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Applying Absorptive Capacity to Value Innovations Within Electricity Utilities

Heiko Gebauer, Hagen Worch & Bernhard Truffer

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abstract Our study examines key elements of absorptive capacity and value innovations in the context of electricity utilities. The theoretical implications are threefold. First, our usage of value innovation as dependent variable, absorptive capacity as independent and organizational elements as contextual variable breaks free from the existing approach to mainly focus on analyzing the performance of absorptive capacity and innovation outcome. Second, our study establishes that the acquisition, assimilation, transformation and exploitation of knowledge determine the degree of value innovations. Third, our study enriches the concepts of value innovations through offering managerial guidelines on how acquisition, assimilation, transformation and exploitation can support value innovations. The practical impact arising from the combination of absorptive capacities and value innovation hinges on the ability to develop useful managerial recommendations. The managerial implications can be formulated around the question: how can managers organize procedures and processes for enhancing a company’s absorptive capacity.
   
type presentation (English)
   
keywords Absorptive Capacity, Service Innovation, Value Innovation, Electricity Utilities, Knowledge Acquisition and Assimilation, Knowledge Transformation and Exploitation
   
date of presentation 17-6-2010
event AMA SERVSIG International Research Conference (Porto)
citation Gebauer, H., Worch, H., & Truffer, B. (2010). Applying Absorptive Capacity to Value Innovations Within Electricity Utilities. Presented at AMA SERVSIG International Research Conference, Porto.