Frontiers of Entrepreneurship
APPROPRIATING RENTS FROM EXTERNAL KNOWLEDGE: THE IMPACT OF ABSORPTIVE CAPACITY ON FIRM SALES GROWTH AND RESEARCH PRODUCTIVITY
Michael B. Heeley, Georgia Institute of Technology
DATA AND MEASURES
CONCLUSIONS AND IMPLICATIONS
In this paper we investigate the impact of firm absorptive capacity on firm sales growth and research productivity. Using new measures of the constitutional elements of absorptive capacity; external knowledge acquisition, and intrafirm knowledge dissemination, were found to increase the productivity of research expenditures in a sample of businessunits in the medical device and supplies industry. In addition the effects vary by firm size, small firms benefit from knowledge about customers while large firms benefit from knowledge about competitors and new developments.
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