The Effect of Technological Innovation Capabilities and Absorptive Capacity on Firm Innovativeness: A Conceptual Framework

Abstract

In today's rapidly changing environment, firms have to adapt to this conditions and open to innovations in order to survive. Innovativeness is vital for gaining competitive advantage. Technological innovation capabilities make it possible for firms to response to changes rapidly and to acquire technological innovation strategies and innovative outputs. Absorptive capacity enabling the firms to obtain the information necessary, allows firms to make the external knowledge useful, to take opportunities in the market, to come to a leading position and to develop new capabilities. Technological innovation capabilities and absorptive capacity are critical factors of innovativeness and thereby competitiveness. The aim of this study is to investigate the effects of technological innovation capabilities and absorptive capacity on innovativeness. The extensive literature review is undertaken to develop the hypotheses and explain the relationships among technological innovation capabilities, absorptive capacity and innovativeness. Based on these arguments, we propose a conceptual model to explain the relationships. (C) 2016 The Authors. Published by Elsevier Ltd.