Maximizing the Impact of Knowledge Sharing Direction and Absorptive Capacity on Innovation Performance: Insights from Organizational Research

Abstract

This paper explores the critical role of knowledge sharing direction and absorptive capacity in enhancing organizational innovation performance. Drawing insights from organizational research, this paper proposes a conceptual framework to elucidate how knowledge sharing direction, characterized by both inbound and outbound knowledge flows, interacts with absorptive capacity to foster innovation. The framework posits that effective knowledge sharing direction, encompassing both the acquisition of external knowledge (inbound) and the dissemination of internal knowledge (outbound), catalyzes innovation. Moreover, absorptive capacity, an organization's ability to recognize, assimilate, and utilize external knowledge, moderates the relationship between knowledge sharing direction and innovation performance. Through a comprehensive review of existing literature and empirical evidence, this paper elucidates the mechanisms through which knowledge sharing direction and absorptive capacity jointly influence innovation outcomes. Practical implications for organizational leaders and managers are discussed, highlighting strategies for maximizing the impact of knowledge sharing initiatives on innovation performance.