Absorptive Capacity and Innovation Generation in Higher Education Institutions: The Mediating Role of Inter-Functional Coordination

Abstract

The purpose of this study was to, first, contextualize the absorptive capacity (ACAP) process for generating innovation in the Higher Education Institution (HEI) domain. Secondly, the study sought to theoretically broaden the knowledge-based view (KBV) research to take account of the three theoretical gaps – the conceptualization of ACAP dimensions specifically in HEIs; the organizational mechanism for ACAP in HEIs; and the governance mode for acquiring knowledge in HEIs - to build a more applicable theory of managing knowledge. Employing the mixed method approach, purposive sampling technique was adopted to select respondents for both the qualitative and quantitative data collection. Ten (10) heads of departments and three hundred and eighty (380) lecturers were selected from twenty (20) HEIs in the Greater Accra region of Ghana. Qualitative data were analysed using the general inductive approach to derive the contextual meaning of ACAP and its dimensions in the HEI context. Subsequently, quantitative data were analysed using Partial Least Squares Structural Equation Model to test the hypotheses proposed for the study. Empirical findings revealed three core dimensions of ACAP in HEIs as knowledge search, knowledge accumulation and process transformation. It was also revealed that inter-functional coordination (IFC) is an essential integration mechanism through which knowledge can be acquired, shared and transferred throughout the entire HEI community as it promotes a culture of teamwork for building strong relationships across faculties, departments and units. The findings advise HEI managers that, for faculty to acquire and share new knowledge to help innovate new products, such as improved curricula, enhanced academic instruction and quality research output, differing functional departments and faculties need to set aside their individual functional interests and accept divergent views from varying perspectives in their quest for acquiring new knowledge for the university. HEIs must invest resources and efforts to build strong relationships that facilitate collaboration, trust and interactions among varying functions to enhance inter-functional knowledge sharing in academia in order to sustain a competitive advantage and continued relevance. The study makes theoretical contributions to the KBV to facilitate building an applicable theory of managing knowledge in HEIs. It also contributes to practice as managers are advised to focus on redesigning HEIs as learning organizations in order to promote knowledge management capabilities.