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Role of Knowledge Creation and Absorptive Capacity: A Panel Data Study of Innovation

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  • Kamran Hameed (show author details)

    Kamran Hameed

    University of Management and Technology, Lahore, Pakistan, Pakistan

    • Noman Arshed (show author details)

      Noman Arshed

      University of Management and Technology, Lahore, Pakistan, Pakistan

      0000-0002-8940-5391

      Corresponding author

      • Mubbasher Munir (show author details)

        Mubbasher Munir

        University of Management and Technology, Lahore, Pakistan, Pakistan

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        Hameed, K., Arshed, N., & Munir, M. (2021). Role of Knowledge Creation and Absorptive Capacity: A Panel Data Study of Innovation. SEISENSE Journal of Management, 4(2), 25-44. https://doi.org/10.33215/sjom.v4i2.579

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        Abstract

        Purpose- Knowledge creation refers to the ability of firms to create new knowledge that starts from individuals to integrating the firms and then the overall economy. This study suggests that knowledge acquisition in a country has a significant relationship with innovative performance.

        Design/Methodology- Data from 48 highly HDI countries is taken from World Bank and World Economic Forum. Based on 480 country-year observations in a panel mediator model, it is revealed that the national efforts of boosting knowledge acquisition influence the firms’ innovative performance.

        Findings- Further, it is found that absorptive capacity in the employability of knowledgeable workers works as a mediator between knowledge acquisition and innovation. Whereby higher knowledge acquisition leads to higher absorptive capacity and higher innovation.

        Practical Implications- This study builds a quantitative model for the macroeconomic context of knowledge-based view.

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        Copyright (c) 2021 Kamran Hameed, Noman Arshed, Mubbasher Munir

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        This work is licensed under a Creative Commons Attribution 4.0 International License.

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        Vol. 4 No. 2 (2021): SEISENSE Journal of Management View Issue

        Reads, last 12 months

        2025-122026-11

        Article history

        1. ReceivedFebruary 13, 2021
        2. AcceptedMarch 11, 2021
        3. Published March 12, 2021

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