Exploring the microfoundations of innovation capabilities. Evidence from a cross-border R&D partnership

Abstract In today's markets, innovation has been identified as a key driver of firms' competitive advantage and innovation capabilities and as a key explanatory variable for differences between firms in behavior and outcomes. Although the literature has explored innovation capabilities, typically from a firm-level perspective, little is known about how firms' innovation capabilities originate in lower-level entities and processes, namely in the microfoundations of innovation capabilities. To bridge this gap, the present research adopts a microfoundations perspective to propose a conceptual model that investigates whether and how individual characteristics for innovation (individual attention to detail, creativity, and openness) and individual-level knowledge sharing behaviors (individual motivation, control, ability, and engagement) affect firm-level strategic innovation capabilities. Drawing on data from 287 R&D employees and general managers operating within 11 firms/research centers belonging to a cross-border R&D partnership, the results of structural equation modeling (SEM) show the crucial role played by individual motivation in effective and frequent sharing of knowledge and by individual engagement in knowledge sharing activities. This research contributes to the existing body of knowledge on innovation capabilities and knowledge management and provides interesting insights for marketers.

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