This paper aims to seek to explain the influence of power asymmetry and the moderating role of an organization’s absorptive and desorptive capacity on enhancing supply chain competence from its orientation to open innovation with its supply network.
To perform this study, the authors use data collected from 262 European firms. They apply regression analysis to test the moderating role of an organization’s absorptive and desorptive capacity on enhancing its supply chain competence from its orientation to open innovation.
The results confirm both the influence of power asymmetry and absorptive capacity on obtaining benefits that derive from an organization’s orientation to open innovation. The results do not, however, support the moderating effect of an organization’s desorptive capacity. Subsequent analyses performed in the study show that organizations that achieve complementarity among their own absorptive capacity and the capacities of its supply network manage to obtain greater benefits from its orientation to open innovation.
This paper responds to the need to study innovation in the context of a supply network and respond to calls in the literature on open innovation and supply chain management for the need to study the moderating role of absorptive and desorptive capacity.
