The Role of Absorptive Capacity in the Relationship between Organizational Culture and Open Innovation

Abstract:

Using data collected from 259 middle and top managers, we investigate how organizational culture affects open innovation outcomes of companies operating in the United Arab Emirates. Results show that highly integrative culture relates positively while hierarchy culture relates negatively to the two types of open innovation. Results also establish the mediating role of realized absorptive capacity in these relationships. These findings contribute theoretically to open innovation and organizational culture literature while providing insights for practitioners on how to succeed or avoid failure in their open innovation initiatives.Â