Absorbing Partner Knowledge in R&D Collaborations – the Influence of Founders on Potential and Realized Absorptive Capacity

Abstract

We investigate whether founder participation in research and development collaborations enhances the two dimensions of absorptive capacity (ACAP): potential ACAP and realized ACAP. Based on a longitudinal firm‐patent dataset of over 700 collaborations, and using a novel measure of ACAP, we find that founder involvement enhances potential ACAP provided the knowledge bases of focal firm and partner are related. Once knowledge has been absorbed, founder involvement increases realized ACAP irrespective of relatedness. Thus, we highlight the merit of treating the dimensions of ACAP separately by showing differing effects of founder involvement. Our paper emphasizes the outstanding role founders play in the R&D process of their firms. Firms should consider carefully the allocation of team members to R&D projects because team members differ with respect to their ACAP.