Abstract: |
Due to the fourth industrial revolution, manufacturing companies face the biggest disruption of their
production processes since the rise of advanced manufacturing technologies in the last century. Therefore,
process innovation will become a critical task to master in the future for many manufacturing firms around
the world. The general ability of organizations to acquire, assimilate, transform, and exploit external
knowledge, known as Absorptive Capacity (ACAP), was proven to positively influence product innovation
and is already conceptually associated with process innovation. We are based on a sample of 729 firms from
seven leading and emerging countries. The statistical analysis reveals the positive influence of potential and
realized ACAP on successful digital process innovation in existing production systems, which was not
operationalized so far. Additionally, we provide empirical evidence for the effect of digital infrastructure on
ACAP. All in all, our findings contribute to the dynamic capability and process innovation research streams
applying an established measure of Absorptive Capacity in a broad international context focusing on digital
process innovation. In addition, the presented research sheds light on the importance of ACAP as a
fundamental prerequisite for Digital Manufacturing technology implementation. |