Abstract:

The absorptive capacity, which is expressed as the ability to exploit knowledge, is an important capability for firms to increase firm performance and gain competitive advantage, and firms can increase their absorptive capacity firms can increase their absorptive capacity by a paradigm shift from traditional innovation to open innovation and improving their level of knowledge. To increase absorptive capacity and ensure the embracement of open innovation approach for firms, leadership style of the managers comes to the fore. Thus, it will be easier for firms to manage knowledge acquisition, transformation, exploitation and protection processes. The purpose of this research is to investigate the relationships between leadership style, open innovation, absorptive capacity and firm performance. Questionnaire method was used as data collection tool. Data were collected from 164 employees working in the manufacturing industry in Kocaeli. The collected data were analyzed using the AMOS statistical package program. As a result of the analysis, it was found that supportive leadership affects open innovation positively, instrumental leadership has a positive effect on absorptive capacity, open innovation has a positive effect on absorptive capacity, and absorptive capacity affects firm performance positively. In the light of these findings it was concluded that firms need to increase their absorptive capacity in order to improve their performance and, it can be possible through embracement the open innovation, and using an appropriate leadership style.

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