Standing Ground? The Influences of Knowledge Dispersion and Complexity on Generative Appropriation

This study contributes to the literature by examining how and under what conditions a firm can increase generative appropriation – that is, capturing a larger share of future inventions spawned from its existing inventions. Specifically, we investigate how a firm’s knowledge dispersion influences generative appropriation. We also investigate how complexity in the technological environment moderates the effect of the knowledge dispersion on generative appropriation. In a longitudinal study of US manufacturing and information technology firms, we find that knowledge dispersion over technological space has a negative effect on generative appropriation and knowledge dispersion over geographic space has a curvilinear relationship with generative appropriation. We also find that complexity in technological environment weakens the effects of both technological and geographic knowledge dispersion.