Opening the Box of Knowledge in Absorptive Capacity Development in the Context of Service Innovation

How does the flow of different knowledge forms develop operational absorptive capacity in a service innovation? We interpret empirical findings from our five year longitudinal case of a business-to-consumer service through the multiple theoretical perspectives of operational absorptive capacity development, knowledge management and service innovation to address this question. We move beyond acknowledging the importance of the customer to understand how customers might more effectively assist in operational absorptive capacity development if a firm consciously shifts the focus of their customer engagement during the life of a service innovation. We characterize how alignment of a champion’s motives with the interests of the firm can direct the path of knowledge during absorptive capacity development. We generate insight into how relational, experiential and structural elements develop absorptive capacity at an operational team level by forming a knowledge mosaic from individual employees. An emergent model is articulated to represent the path of knowledge processes that support the flow of different forms of knowledge between individuals, teams and the firm. The model is conceptualized as mutually reinforcing knowledge spirals, facilitating knowledge conversations and transformation between knowledge levels during operational absorptive capacity development.