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Absorptive capacity and innovation Absorptivecapacity
generation in higher education
institutions: themediating role of
inter-functional coordination
Mercy Asaa Asiedu Received 3 November 2022
Department of Management, Graduate School of Management, Revised 3 February 20238March 2023
Nobel International Business School, South Legon, Ghana 10April 2023
13April 2023
Hod Anyigba Accepted 14April 2023
St. Petersburg University of Management Technologies and Economics,
Sankt-Peterburg, Russian Federation, and
Jesse Kwaku Doe
College of Health Sciences, University of Ghana, Accra, Ghana
Abstract
Purpose – The purpose of this paper is to theoretically broaden the knowledge-based view (KBV) by examining
the significant intermediary role that inter-functional coordination (IFC) plays in acquiring new knowledge and
exploiting it throughout the entire higher education institution (HEI) community for innovation generation (INNG).
Design/methodology/approach – Data collected from a survey of 282 lecturers purposively selected
from the business schools of 20 HEIs in the Greater Accra region of Ghana was analyzed using partial least
squares structural equation model to test the hypotheses proposed for the study.
Findings – The results revealed that IFC significantly predicts teamwork and strong relationships across
faculties, departments and units, and has a positive effect on the generation of innovations such as improved
curricula, enhanced academic instruction and quality research output. Practically, the findings advise HEI
managers to invest resources and efforts at building strong relationships that facilitate collaboration, trust
and interactions among varying faculties, departments and units. This will enhance inter-functional
knowledge sharing in academia to sustain a competitive advantage and continued relevance.
Research limitations/implications – There are limitations that must be considered when interpreting
and generalizing the quantitative results of this study. Data were collected from faculty staff of 20 public and
private HEIs in the Greater Accra region of Ghana. Although the majority of HEIs are clustered in this region,
the results may still not be representative of all HEIs in Ghana.
Practical implications – Managers of HEIs are advised to commit to ensuring the management of IFC to
promote knowledge sharing across faculties and departments. Managers are also advised to ensure that staff
are made to be responsible for their cooperative and integrative teamwork. They are also advised to ensure
that faculty and departmental goals are aligned with the overall goals of the university. Staff may also be
encouraged to act as partners and not just employees through rewards, incentives and recognition packages.
Social implications – Attention should be focused on creating lateral relations among faculty and
department members to achieve internal social capital. They are advised to invest resources and efforts in
building a culture of teamwork and connectedness through strong informal networking that facilitate
collaboration between faculties and departments while cultivating a shared vision throughout the university.
The authors acknowledge the Editor-in-chief and reviewers of The Learning Organization for the The Learning Organization
support they have received in making this paper strong. The authors are indeed grateful to them for © EmeraldPublishingLimited
0969-6474
their constructive comments that are geared towards enhancing this paper to the readers. DOI 10.1108/TLO-11-2022-0128
TLO Originality/value – The main contribution of this paper is that it theoretically extends the KBV by
empirically broadening the scope of absorptive capacity (ACAP) beyond its dimensions to include the
“collaborative mechanism” (IFC) through which knowledge can be holistically exploited. The paper also
contributes to existing literature by examining the intermediary role played by IFC in the relationship
between ACAP and INNG in the HEIs domain which has been least discussed in the ACAP literature.
Keywords Absorptive capacity, Knowledge acquisition, Inter-functional coordination,
Innovation generation, Higher education institution
Paper type Research paper
Introduction
Globalization and its attendant competition have stimulated innovation generation (INNG)
in education, in particular, in higher education institutions (HEIs). Acquiring knowledge is
now regarded as an impetus for organizational relevance, as a source of competitive
advantage and also as a matter of survival in this fast-paced knowledge-based economy that
is characterized by quick technological changes, shorter product life cycles and complex
demands (Alnafrah & Mouselli, 2019; Nham et al., 2020; Osobajo & Bjeirmi, 2021).
Achieving high performance is no longer contingent on possessing tangible assets, but
rather on the interplay of both tangible assets and organizational knowledge (Asiedu et al.,
2020). The HEI sector contributes to the development of intellectual property and knowledge
production, by extending knowledge skills and producing quality and valuable graduates
for the development of society as a whole (Moon et al., 2019). Managing knowledge is
therefore crucial, not only in commercial organizations but also in HEIs (Fullwood et al.,
2019; Ibrahim&Ali, 2021; Paudel, 2020; Ramjeawon&Rowley, 2020).
Absorptive capacity (ACAP) refers to the ability of any establishment to recognize
valuable new external knowledge, assimilate it in addition to its existing internal knowledge
and apply it for commercial gains (Cohen & Levinthal, 1990). In spite of the fact that ACAP
has been generally accepted and recognized as a crucial antecedent of INNG, only few
studies have actually examined the in-depth reasons why and under what circumstances or
conditions ACAP is able to affect innovation (Yang & Tsai, 2019). For this reason,
organizational mechanisms of ACAP have been consistently overlooked in the literature
(Barakat, 2021; Song et al., 2018; Volberda et al., 2010), despite the fact that Cohen and
Levinthal (1990) emphasize the need for such organizational mechanisms for the ACAP
process by stating that: “absorptive capacity is intangible and its benefits are indirect”
(Cohen & Levinthal, 1990). Once the literature establishes that ACAP’s benefits for
innovation is an indirect relationship (Cohen & Levinthal, 1990; Song et al., 2018; Volberda
et al., 2010), there must be a mediation effect. However, the mechanisms through which
external knowledge is acquired by organizations for innovative purposes remain under-
investigated (Barakat, 2021; Nguyen et al., 2018; Song et al., 2018). An organization’s ACAP
cannot be enhanced if the mechanism through which new external knowledge can be
exploited is not specified. As such, it is worth considering the particular organizational
mechanism which is associated with capabilities for socialization as well as capabilities for
coordination (Jansen et al., 2005; Volberda et al., 2010; Zou et al., 2018). Given the fact that
knowledge resides in the individual (Grant, 1996) and needs to be shared or transferred
through an enabling mechanism (Song et al., 2018), an organization cannot create a shared
vision and identity without enhancing communication, trust and coordination (Jameson,
Barnard, Rumyantseva, Essex & Gkinopoulos, 2022;Yang & Tsai, 2019). The acquisition of
new knowledge cannot automatically translate into value addition for a competitive edge
unless some strategic activities and processes are put in place.
Inter-functional coordination (IFC) is an integration mechanism that enhances the Absorptive
common goals in an organization. Integration refers to “the process of achieving unity of capacity
effort among the various functional departments in the accomplishment of the
organization’s tasks” (Lawrence & Lorsch, 1967). IFC therefore fosters better collaboration
and communication to improve relationships between teams who possess different
functional skills, experiences and knowledge (Auh&Menguc, 2005; Narver & Slater, 1990).
Technology also plays a vital role in attaining quality product and service delivery in HEIs
(Abass et al., 2021). Knowledge sharing and transfer are activities in HEIs that requires full
implementation of information technology (IT) applications to diffuse knowledge from teaching
and research through various e-learning and blended e-learning platforms. Knowledge
dissemination processes must involve technologies, people and structures to develop strong
digital-based learning and innovative digital culture, for effective collaboration that will
strengthen their value creation abilities (Rup
cic, 2021). In HEIs, a successful knowledge
management strategy is contingent, not only on synergies among faculty and administrative
members but on software tools and applications (Abass et al., 2021). Again, to boost
competitiveness, the successful management of knowledge must also be founded on the
availability of efficient and effective knowledge-centered faculty and administrative members.
Even though it is expected that the HEI is a place where knowledge is freely shared among
academics because they understand the importance of acquiring and sharing new knowledge,
the reverse seems to be the case as the culture in the university setting is more individualistic
and self-serving (Ramjeawon & Rowley, 2020; Fullwood et al., 2019). Within the academic
environment, academics place a high premium on individual scholarly achievement rather than
on the overall goal achievement of the university. Most academics are rather interested in their
self-preservation instincts as they see knowledge as being too valuable to be parted with freely
(Asiedu et al., 2020; Fullwood et al., 2019). The lack of zeal to share knowledge is even deepened
when academics possess certain “specialized knowledge” that others do not possess. It is
advisable to successfully integrate faculties and departments to remain innovative without
compromising the benefits of specialization (Lee&Kapoor, 2017).
The main contribution of this paper is that it broadens the scope of ACAP beyond its
dimensions to include the “collaborative mechanism” (IFC) through which knowledge can be
holistically exploited. It then examines the intermediary role played by IFC in the relationship
between ACAP and INNG in HEIs. This is necessary to advance both theory and practice,
because it is fundamentally important to know how and why an effect occurs to understand
any phenomenon. As a mediator, IFC will play the role of revealing the true relationship
between the independent and dependent variables (Hair et al., 2022). This mediation is
important because IFC will serve as a conduit through which identified knowledge can be
acquired holistically and exploited for the desired innovative results in the HEI space.
Literature review and hypotheses development
ACAP is a strategic function that enables organizations to identify new knowledge for
efficient usage to accrue long-term benefits (Cohen & Levinthal, 1990). From the theory of
ACAP, Cohen & Levinthal (1990) and Zahra & George (2002) propose that an organization’s
strength of ACAP is dependent on its prior knowledge and diversity. This prior knowledge
helps the organization to understand the usefulness of new external knowledge to recombine
it with the existing knowledge and transform them to suit its purposes such as finding new
ways to solve problems. This is the reason why ACAP positively impacts essential
organizational outcomes like innovation. Extant conceptual research has been done on
ACAP to reflect its positive relationship with innovation (Lane et al., 2006; Volberda et al.,
2010; Zahra & George, 2002). Further other findings from two meta-analyses have
TLO supported the positive link between ACAP and innovation although they posit it is an
indirect link (Song et al., 2018; Zou et al., 2018). ACAP is closely related to knowledge
management as well as organizational learning (Gao et al., 2017).
External knowledge which is deemed valuable is identified after great efforts at
searching and scanning the environment (Cohen & Levinthal, 1990; Song et al., 2018). This
core function is known as Knowledge Search in the HEI domain (Asiedu & Doe, 2022). Here,
investments are made by the institution to build knowledge by identifying and acquiring
external knowledge deemed valuable and accessible. This is usually achieved through
dedicated efforts of proactive search. The organization then stocks up and accumulates
knowledge continuously to understand and transform external knowledge for use internally
(Song et al., 2018). This core function is known as knowledge accumulation in the HEI
domain (Asiedu & Doe, 2022). Finally, the organization puts in place its own internal
procedures and processes to enable the sharing and diffusion of external knowledge
internally (Reus et al., 2009; Song et al., 2018). This core function is known as process
transformation in the HEI domain (Asiedu & Doe, 2022). These three functions come
together to activate the ACAP process within the university space.
IFC refers to the integration and collaboration of differing functional departments of an
organization to enhance communication and information flow so as to attain organizational
goals (Auh & Menguc, 2005; Narver & Slater, 1990; Tomaškova, 2018). This means that
different functional units are able to embrace differing views and work with such varying
perspectives for the good of the whole organization. In this regard, IFC enhances the
achievement of common goals in an organization when integrated functional units
synergistically strive to attain holistic team success (Atuahene-Gima, 2005). When the
organizational culture exhibits an appreciable level of inter-departmental teamwork within
the organization, its goals are easily executed and achieved (Atuahene-Gima, 2005).
Organizations can therefore achieve internal sources of social capital through the
collaboration of different functional units (Auh & Menguc, 2005; Tsai & Ghoshal, 1998). As
an integration mechanism, IFC likely to play a key role in translating externally absorbed
knowledge into INNG as different functions within an organization coordinate interact,
communicate, share information (Narver & Slater, 1990) in an environment of trust and
cooperation which also reflects the mutual alignment of inter-functional interdependencies
(Swink & Schoenherr, 2015). This mechanism ensures the synchronization of
communication, dissemination of information, ideas and resources in an integrative and
collaborative manner among different functional units within an organization to create
value for customers (Yang & Tsai, 2019). Internal knowledge acquisition is also facilitated
through the existence of the connections and relationships among different faculties or
functions (Tomaškova, 2018) whose members show willingness to share or exchange
knowledge and ideas, based on mutual trust.
INNG is a process which involves developing and adopting new methods, ideas, policies
and programs for the achievement of organizational goal (Butnariu, 2020; Cohen &
Levinthal, 1990; Hameed et al., 2021; Yang & Tsai, 2019). It is seen to be a dominant factor
for consolidating global competitiveness (Butnariu, 2020; Liu et al., 2021) and can therefore
be a key ingredient for achieving profitability, even in the higher education domain
(McClure, 2016). Again, “Innovation is a key factor in the knowledge-based economy and is
positively related to superior performance” (Butnariu, 2020).
The “absorptive knowledge search” of HEIs entails the institution’s efforts to primarily
search for and identify external knowledge which they deem useful. By performing the
function of a “radar” (Song et al., 2018), individual academics or faculty members scan the
external environment to identify valuable information, knowledge or ideas which can be
acquired to enhance the university’s overall performance output (Choi & Park, 2017; Cohen Absorptive
& Levinthal, 1990). HEIs who make such efforts to acquire new knowledge do not see such capacity
activities as an expense but rather as an investment which will yield high returns. And these
investments are dependent on financial and human resources for research and development
(R&D) as well as new technological expertise that require “intensity of effort” as a critical
element (Song et al., 2018) to acquire the needed new knowledge as well as emerging
technologies as key resources for institutional growth and success (Alnafrah & Mouselli,
2019; Grant, 1996; Kogut & Zander, 1992; Paudel, 2020). Additionally, the absorptive
knowledge search of the HEI must be “forward looking” (Song et al., 2018) as it will enable
the institution to proactively detect and acquire valuable, accessible and relevant external
knowledge to facilitate improved work progress and also enhance academic discourse. We
therefore hypothesize that:
H1. Absorptive knowledge search is positively related to knowledge acquisition in
HEIs.
The absorptive knowledge accumulation of HEIs refers to the stock of knowledge that has
been previously acquired and stored by the institution, referred to as “prior knowledge.”
Prior knowledge is very important as learning is associative (Gagne, 1962) and this prior
knowledge helps to understand the usefulness of new external knowledge so that the latter
can be acquired. This means that prior knowledge helps to link the new knowledge with the
existing one. Gagne’s (1962) theory of hierarchical learning argued that an individual who
has existing or prior knowledge can easily acquire related new knowledge. This prior
knowledge helps HEIs to understand the usefulness of external new knowledge and enables
them to recombine it with the existing knowledge and transform both together to suit their
purposes, such as, finding new ways to solve problems or create new curricula and
programs. (As argued by Cohen & Levinthal (1990), Zahra & George (2002) the ACAP of an
organization is dependent on its prior knowledge which helps to better understand new
knowledge whilst enhancing the stock of knowledge. This presupposes that the absorptive
knowledge accumulation of HEIs must be built on foundations that are past oriented, and
path dependent and require that newly acquired knowledge is related to facilitate easy
comprehension and a smooth transformation process. Knowledge stocks accumulated by
the HEI could be in the form of patents and intellectual properties, scientific publications
and prior product innovations (Srivastava et al., 2015). Understanding new external
knowledge facilitates easy transformation and exploitation of such new knowledge by
functioning as a “processor” (Song et al., 2018). As learning is associative, an individual who
has existing or prior knowledge can easily acquire related new knowledge (Gagne, 1962).
Furthermore, existing knowledge possesses lower-order capabilities that enable an
individual to gain higher-order capabilities which are embedded in the new knowledge. We
therefore hypothesizes that:
H2. Absorptive knowledge accumulation is positively related to knowledge acquisition
in HEIs.
The absorptive process transformation (APT) of HEIs, which is key to this study, refers to
the efforts made by the institution to put in place its own internal procedures and processes
and structures to enable the sharing, dissemination and diffusion of external knowledge
internally at all levels, faculties or departments of the institution by functioning as a
“transmitter” (Song et al., 2018). Cohen and Levinthal (1990) earlier suggested that the
ACAP of an organization is contingent on the establishment of knowledge-sharing
TLO procedures and processes to diffuse knowledge across the various linkages between
individual capabilities and expertise through a process of knowledge integration (Grant,
1996; Nonaka, 1994). In doing so, the knowledge held by individuals can be shared,
exchanged and integrated through teams to become organizational (Crossan et al., 2021).
These organizational processes are what will facilitate the integration of knowledge, a
process which involves the collective action of individual and group members based on their
understanding of the knowledge received at the individual level and which is then translated
from the group level to the organizational level (Crossan et al., 2021). Equally important are
improved IT systems for networking to help create opportunities for knowledge
management in the academic environment. It is recommended that managers of HEIs invest
in advanced technological infrastructure toward the acquisition of knowledge. This will
facilitate the achievement of improved curricula, program content and relevance.
Furthermore, it is suggested that they create community-based learning and inter-
disciplinary research and teaching and also implement structures and networks to reward
people for supporting collaborations (Kezar et al., 2020). APT makes learning more
interactive because institutional practices like socialization, integration and collaboration of
differing functions are required to share knowledge and its various applications (Jansen
et al., 2005). This is also affirmed by Lo and Tian (2020) who propose the promotion of
knowledge sharing among different units in universities because synergy could be achieved
when colleges, schools or departments collaborate. By so doing, relevant knowledge will be
distributed or transmitted to every faculty, department or unit within the HEI (Tomaškova,
2018). APT also facilitates the storing and retrieval of knowledge holistically for the
institution.We therefore hypothesizes that:
H3. Absorptive process transformation is positively related to knowledge acquisition in
HEIs.
Mediating role of inter-functional coordination
A mediator variable plays the role of revealing the true relationship between the
independent and dependent variables (Hair et al., 2022). Drawing from knowledge-based
perspective, this study hypothesizes that IFC may mediate the relationship between the
ACAP dimensions and knowledge acquisition for the generation of innovations in HEIs.
When social integration mechanisms are connected to ACAP they can help the university to
create a shared identity and mission, which can enhance trust and improve communication
and collaboration across differing functional departments (Kezar et al., 2020; Lo & Tian,
2020; Yang & Tsai, 2019). This facilitates the development and implementation of new
programs, curricula and research output. Integration differing functional activities can
intervene to generate a shared body of knowledge and facilitate multiple applications of
external knowledge (Song et al., 2018). According to Nguyen, Ngo, Bucic, & Phong (2018),
external knowledge of customer needs, market trends and technological evolutions can
stimulate new ideas and enhance innovation through inter-functional knowledge sharing.
Collaboration across faculties and departments will enable the university to better integrate
marketing, R&D and other complementary knowledge resources to create new knowledge
which facilitates innovation (Lin et al., 2015). IFC is therefore a necessary mechanism
through which externally acquired knowledge can be effectively integrated and transformed
into innovation outcomes. Universities with a high ACAP are more likely to develop greater
IFC, which will enhance their innovation gains. Apart from reaping external knowledge
together through their collective absorptive effort, this collaboration will facilitate the
generation of new internal knowledge resources (Tsai & Ghoshal, 1998) through their
coordination with other functional departments and faculties, thereby creating strength and Absorptive
dynamic capabilities from the synergistic effects of IFC.We therefore hypothesize that: capacity
H4. The positive relationship between absorptive knowledge search and knowledge
acquisition is mediated by inter-functional coordination in HEIs.
The HEI’s storehouse of knowledge represents its most valuable resource, which makes
it relevant in this competitive knowledge economy. However, the storehouse of
knowledge in universities are more often fragmented and stored in various individuals,
departments and faculties because of the interdisciplinary nature of academic research.
As such, both academic and administrative staff of diverse disciplines need to be
stimulated to share information and knowledge through the establishment of knowledge
sharing routines and contact meetings like workshops, seminars and colloquia in a bid to
facilitate easy and open exchange of ideas, knowledge and opinions so that a holistic
knowledge base will be developed and maintained cumulatively for the university.
Moreover, in the process of linking external knowledge to the university’s prior
knowledge competencies, IFC will facilitate both the reinterpretation of diverse
perspectives and the recombination of existing competencies to generate novel ideas (Lin
et al., 2015). Through the integration of diverse functional expertise and perspectives,
the university will be better able to enhance the flow of external knowledge into the
innovation process and will therefore be more likely to achieve innovation success
(Yang & Tsai, 2019). Tacit knowledge is a key source of competitive advantage as it is
embedded in the owner and cannot be easily transferred without the owner’s
participation in the knowledge exchange process (Karlsson & Andersson, 2009; Nonaka,
1994). An integrative mechanism like IFC is therefore required as a conduit for sharing
and transmitting both tacit and explicit knowledge to every faculty, department and unit
within the university, to facilitate the storing of university-wide knowledge (Jansen
et al., 2005). We therefore hypothesize that:
H5. The positive relationship between absorptive knowledge accumulation and
knowledge acquisition is mediated by inter-functional coordination in HEIs.
The involvement of academics in research collaboration and the capacity of collaboration
to drive research and innovation are all contingent on the existence of an enabling
environment that includes structures, systems and incentives that support research
collaboration. HEI managers are thus advised to emphasize the need for studying staff
behavior to determine the technologies that could foster goal achievement through the
development of strong digital-based learning and innovative digital culture, for effective
collaboration that strengthen their value creation abilities (Rup
cic, 2021). Digital culture
refers to the ability of the internet as a dynamic and robust place for collaboration where
people can gather to share, participate and coordinate around common interests (Boyd,
2014). This encourages the building of collaborative intentions that will eventually be
translated into action (Bartels & Koria, 2014). As Schomaker & Zaheer (2014) clearly
emphasized, knowledge transfer is contingent on a good and reliable communication
process between the sender and receiver. Further, because learning new external
knowledge can enhance awareness of market opportunities and challenges, ACAP can
help differing functional departments to overcome barriers to collaboration and achieve
unity of effort through IFC. Additionally, the need to assimilate externally acquired
knowledge will encourage different faculties, departments and units to cooperate and
TLO share information and in the transfer of valuable external knowledge to the university
(De Luca & Atuahene-Gima, 2007). We therefore hypothesize that:
H6. The positive relationship between APT and knowledge acquisition is mediated by
IFC in HEIs.
The absorption of external knowledge, with its attendant information-processing
demands require higher levels of coordinated integration across functions to assimilate
and apply that knowledge to innovate successfully (Lane et al., 2006). IFC and
knowledge sharing will enable the university to develop a knowledge integration
capability (Gardner et al., 2012). Even though the academic environment is characterized
by individualistic tendencies, the practice of IFC will enable the collaboration and
integration of faculty and administrative staff of various faculties and departments to
enhance communication and information so that collective goals of the institution can be
achieved (Atuahene-Gima, 2005; Narver & Slater, 1990). IFC will enable all the different
functional departmental members to set aside their individual functional interests and
accept differing views from varying perspectives in their quest for detecting and
acquiring new knowledge as social capital (Nahapiet & Ghoshal, 1998) for the HEI. We
therefore hypothesize that:
H7. IFC is positively related to knowledge acquisition for INNG in HEIs.
The knowledge-based view reiterates that knowledge is a valuable resource of organizations
and by implication for HEIs. It is therefore central to institutional innovation (Von Krogh et al.,
2012). Acquiring new knowledge has become a key strategic resource for innovation
(Butnariu, 2020; Cohen & Levinthal, 1990; Hameed et al., 2021). In the value creation process,
innovation is dependent on individual employees’ experiences, skills and knowledge, (Wang&
Wang, 2012). Because knowledge resides within individuals, it is important to share for all
organizational members to acquire to establish new routines for solving problems (Von Krogh
et al., 2012). Innovation is not sorely an internal affair so HEIs need to be aware of their clients’
current economic trends, external ideas and current research. They also require different
human capital skills to improve or maintain their performance as they will be under pressure
from the external environment to innovate, especially now with globally competitive
graduates on the job market and increased on-line technology (Voolaid & Ehrlich, 2017). For
this reason, HEIs need to build capacities that will enable them respond to the changing needs
of the external environment by continuously searching for and acquiring new knowledge,
transforming them and, above all, diffusing new knowledge internally within faculties or
departments to churn out innovative program combinations and better research output. We
therefore hypothesize that:
H8. Knowledge acquisition is positively related to innovation generation in HEIs.
Conceptual framework
The conceptual framework (Figure 1) has 5 key success factors adapted from the studies of
Song et al., (2018) with modifications in line with this study. Innovation generation (INNG) is
the endogenous construct or dependent variable that is predicted by direct factors as well as
mediated relational factors. Absorptive knowledge search (AKS), absorptive knowledge
accumulation (AKA) and absorptive process transformation (APT) are the exogenous
constructs or independent variables that predict the outcome variable. They, however, have
to go through a variable that is both exogenous and endogenous (independent and
Controls Absorptive
University capacity
tenure
University Size
Staff level 
Gender
ACAP
m   K  n  o  w  l e d  g  e                 H1+                                                         H8+
Search Knowledge 
Acquision
m H4
m                                Innovaon 
Knowledge H2+                                      H7+Mmm                   Generaon
Accumulaon H5
H3+ Inter-funconal 
Coordinaon
Process 
Transformaon
H6
Main effect          
Mediating Effect Figure 1.
Non-hypothesized path Conceptual
framework of
Source: ACAP process Adapted and modified from Song et al., 2018
dependent) - Knowledge acquisition (KA) - to achieve that outcome in the ACAP process.
This study further introduces an organisational mechanism - inter-functional coordination
(IFC) that is relevant to complete the ACAP process. IFC serves as a mediator that plays the
role of governing and enhancing the relationship between the independent and dependent
variables (Hair et al., 2017).
Methodology
Measurement instrument
To improve content validity the measurement items for the latent variables used in this
study were obtained from previous studies (Straub et al., 2004). The statements were then
reworded and modified to fit our specific context, the HEI industry. Items for measuring
the independent variables “absorptive knowledge search” (AKS) and “absorptive
knowledge accumulation (AKA) were based on the Potential ACAP and Realized ACAP
scales by Jansen et al. (2005). This scale was similarly adapted by Zhao et al. (2021) who
focused on the mediating role of ACAP and individual creativity in the link between
knowledge sharing and organizational innovation performance. Respondents were
instructed to evaluate the survey items on a five-point Likert-type scale ranging from the
lowest score of 1 (strongly disagree) to the highest score of 5 (strongly agree). For
“absorptive knowledge search” (AKS) statements by Jansen et al. (2005) were modified
into the following:
TLO 
 Our university has frequent interactions with sister universities and academic
partners to acquire new knowledge.

 Our university periodically organizes special meetings with our clients and
stakeholders to acquire new ideas and knowledge.

 Management motivates faculty and administrative staff to quickly analyze and
interpret changing market trends.
For “absorptive knowledge accumulation” (AKA), modified statements which were
measured included the following:

 In our university, faculties and departments record and store newly acquired
knowledge for future reference.

 Ideas and concepts are transmitted across departments and faculties for usage and
storage.

 Our university quickly recognizes the usefulness of new external knowledge to the
existing stock of prior knowledge.
APT was also developed following the approach by Liao, Welsch & Stoica (2003), Matusik
and Heeley (2005) and Zhao and Anand (2009), which deal with the structures, routines and
infrastructure for assimilating new knowledge in the organization (Liao et al., 2003;
Matusik & Heeley, 2005; Zhao & Anand, 2009). Modified statements which were measured
included the following:

 Management ensures that new external knowledge is disseminated across
departments at all levels in the university.

 We have transfer structures and routines that enable us to apply new knowledge
throughout the various faculties and departments.

 We have adopted an excellent information infrastructure for both faculty and
administrative staff to share and assimilate information and knowledge.
For our mediator variable “inter-functional coordination”modified statements, following the
approach by Narver & Slater (1990) and Atuahene-Gima (2005) were developed. The
modified statements which were measured included the following:

 The activities of faculties and departments are tightly coordinated through inter-
faculty and inter-departmental meetings to ensure better use of our industry
knowledge.

 Functions of quality assurance, faculties, departments and administration are
tightly integrated in cross-functional teams in our curriculum development
processes.

 In this university different faculties and departments regularly share information
about our clients, technologies and competitors.
Knowledge acquisition, had a two-fold relationship as an independent as well as dependent
variable (Hair et al., 2022). As an independent variable it predicted INNG, and as a
dependent variable, it was also predicted by AKS, AKA and APT. Modified statements,
following the approach of Jansen et al. (2005) were developed and respondents were
instructed to evaluate the following survey items:

 Management organizes meetings with our students to acquire information on new Absorptive
trends and demands. capacity

 We frequently visit our industry partners to acquire new ideas on curricula/
programs.

 We gather industry information through formal meetings with our stakeholders.
Items for measuring the dependent variable “innovation generation” (INNG) were adapted
from Wang, Zhao, & Zhou’s (2018) innovation incentives scale. Statements which were
measured included the following:

 In terms of promotion, our university gives priority to both faculty and
administrative staff who actively engage in innovation activities.

 In terms of salary increase, our university gives priority to both faculty and
administrative staff who actively engage in innovation activities.

 Management recognizes and rewards both faculty and administrative staff for their
knowledge-sharing initiatives.
Sample and data collection
The study population for the data collection was the HEI industry and the unit of
analysis was faculty staff. Data was collected from the business faculties of four public
and 16 private universities in the Greater Accra Region of Ghana. According to the
Ghana Tertiary Education Commission (GTEC) there were four public and 77 private
universities in the Greater Accra Region as at the 2019/2020 academic year when we
embarked on this research. We used the purposive sampling approach which is a non-
probability sampling technique. This technique was the deliberate choice for information
gathering because the business faculties of HEIs are highly competitive, with
investments in knowledge creation and dissemination and a quick response to market
needs. And this method was justified by the interest to include only HEIs which have a
mission for research and innovation-driven activities. The overall number of faculty staff
in the business schools of these 20 universities was 820. One good thing about studying
the HEI industry is the fact that most participants are highly educated making it easy for
them to deliver responses in fluid English language. Standardized structured interview
and survey procedures were used, administering survey questionnaires in-person to 380
faculty staff out of which 282 total responses were received. This represents a 70.5% total
response rate. Further examination of the 282 responses did not reveal the presence of
any missing data or errors in any of the questionnaires resulting in an effective response
rate. This sample represents a fairly typical sector in HEIs; however, it is still
not representative of all HEIs in Ghana. This number exceeds the minimum sample size
requirement of the ten times rule recommended by Hair et al. (2022). Out of the 282 valid
responses, 171 (60.6%) were from males, whilst 111 (39.4%) were from females.
Permission had been sought and granted from the various deans of the business schools
through formal letters. Responses were sought from willing participants who were
available and accessible at the time of data gathering through convenient sampling,
which was affordable and quick to implement (Battaglia, 2008).
Data analysis method
The partial least squares of structural equation model (PLS-SEM) path modeling is a
causal-predictive method used to build theories about the factors that lead to a certain
TLO conclusion (Richter et al., 2020). Despite the fact that PLS-SEM technique has been
criticized by some authors, it has gained much popularity in recent times. The major
advantage is that PLS-SEM is less restrictive regarding sample size and normality
assumptions. Preliminary analysis of the survey data suggests that the data was not
normally distributed and hence our choice of PLS-SEM. This study applied PLS-SEM in
conformity with the guidelines established by Hair et al. (2022), which cover a variety of
evaluations like reliability, convergent validity, statistical significance and others. The
two-step approach recommended by Chin (1998) was adopted for analyzing the data.
First, the measurement model was assessed for reliability, convergent validity and
discriminant validity. Once the measurement model was found to be adequate, the
structural model was tested to ascertain the significance of the hypothesized
relationships
Results and analysis
The measurement model was assessed for composite reliability, convergent validity and
discriminant validity. Table 1 shows that all latent variables are reliable. This is because
values of both Cronbach’s alpha and composite reliability are higher than the 0.7 threshold
set by Henseler et al. (2009). Average variance extracted (AVE) was used to assess
convergent validity and factor loadings of items. Again, it can be clearly seen from Table 1
that the AVE values for all the constructs are greater than the 0.5 threshold (Henseler et al.,
2009), therefore the measurement model shows a good convergent validity.
95% CI
CONSTRUCT AKS AKA APT IFC INNG KA CA (a) CR LB UB AVE
AKS1 0.826 0.417 0.374 0.330 0.289 0.319 0.736 0.845 0.82 0.87 0.647
AKS2 0.876 0.435 0.488 0.452 0.415 0.367
AKS3 0.701 0.461 0.463 0.313 0.217 0.322
AKA1 0.460 0.771 0.560 0.374 0.286 0.453 0.752 0.856 0.83 0.88 0.665
AKA2 0.387 0.826 0.545 0.480 0.361 0.441
AKA3 0.461 0.848 0.530 0.421 0.427 0.396
APT1 0.437 0.479 0.782 0.390 0.330 0.376 0.751 0.858 0.84 0.88 0.668
APT2 0.476 0.561 0.857 0.473 0.375 0.432
APT3 0.424 0.580 0.811 0.417 0.369 0.443
IFC3 0.356 0.411 0.433 0.820 0.435 0.525 0.769 0.867 0.85 0.89 0.686
IFC4 0.428 0.456 0.443 0.893 0.490 0.489
IFC5 0.369 0.432 0.427 0.766 0.397 0.392
INNG1 0.322 0.382 0.316 0.382 0.778 0.472 0.901 0.924 0.90 0.94 0.672
INNG2 0.280 0.337 0.342 0.420 0.835 0.417
INNG3 0.338 0.358 0.387 0.504 0.870 0.460
INNG4 0.332 0.343 0.355 0.472 0.882 0.429
INNG5 0.349 0.406 0.368 0.421 0.834 0.336
INNG6 0.345 0.372 0.381 0.415 0.704 0.298
KA2 0.356 0.420 0.444 0.485 0.429 0.835 0.761 0.861 0.84 0.88 0.675
KA3 0.369 0.492 0.454 0.546 0.462 0.890
KA4 0.297 0.355 0.354 0.339 0.300 0.732
Table 1.
Notes: AKS = absorptive knowledge search, AKA = absorptive knowledge accumulation, APT = absorptive
Factor loadings, process transformation, IFC = inter-functional coordination, INNG = innovation generation, KA = knowledge
cross loadings and acquisition, CA = Cronbach’s alpha, CR = composite reliability, AVE = average variance extracted
reliability statistics Source: Field data (2020)
Validity refers to “the degree to which evidence and theory support the interpretations of Absorptive
test scores for proposed uses of tests” (AERA et al., 2014, p. 11). Different sources are now capacity
considered for validity evidence. For example, for validity evidence based on test content,
we sought the opinion and judgement of three experts who are seasoned academics
(deans of business schools) on the relevance, adequacy and clarity of the interview
instrument as a pre-test to determine its appropriateness and how well the items
represent the proficiencies intended to be measured (Yaghmaie, 2003). Further, for
validity evidence based on relations to other variables, validity is assured when these
conditions are met:

 The loadings of each construct is greater than the cross loadings with other
constructs (Chin, 1998).

 The square root of the AVE for each construct is greater than the correlation
between that construct and any other construct (Fornell & Larcker, 1981).

 The heterotrait–monotrait (HTMT) values of correlations are less than 0.85
(Henseler et al., 2009).
The results in Table 2 shows that the square root of the AVE for each construct is greater
than the cross correlation with other constructs. Again, results of the more recent HTMT
0.85 criterion presented in Table 3 also proves that validity has been achieved. The standard
provides a logical structure that maps the items of the construct to the content domain,
illustrating the relevance of each item and the adequacy with which the set of items
represents the content domain (AERA et al., 2014). In all, the results showed that the
psychometric properties of the measures used in the study were adequate.
CONSTRUCT AKS AKA APT INNG IFC KA
AKS 0.804 Table 2.
AKA 0.531 0.816 Discriminant validity
APT 0.545 0.662 0.817 test using the Fornell
INNG 0.401 0.448 0.438 0.820
IFC 0.465 0.522 0.523 0.534 0.828 and Larcker criterion
KA 0.417 0.520 0.512 0.493 0.568 0.822 (square root of AVEs
in diagonal and in
Source: Field data (2020) bold)
CONSTRUCT AKS AKA APT INNG IFC KA
AKS
AKA 0.729
APT 0.734 0.844
INNG 0.465 0.532 0.532 Table 3.
IFC 0.599 0.685 0.689 0.639 Discriminant validity
KA 0.55 0.686 0.669 0.582 0.724
test of constructs
Note: All correlation values of HTMT are less than 0.85 (Henseler et al., 2009) using the HTMT
Source: Field data (2020) criterion
TLO Structural model assessment
After verifying the measurement model to be reliable and valid, we assessed the structural
model. We used the bootstrapping resampling procedure (5,000 sub-samples drawn to
replace the original 282 samples) to ascertain the significance of each estimated path in the
structural model. We also assessed the model fit by using the standardized root mean square
residual (SRMR). The SRMR value for a good model fit must be below 0.08, and because this
study’s model of 0.069 falls within the threshold recommended by Hu and Bentler (1999), the
reliability and validity measures, as well as the R square measures indicate that our model is
able to explain the hypothesized path relationships well. Results for the structural model
assessment are presented in Table 4.
Discussion of results
The structural model was assessed on the basis of the statistical significance and magnitude
of the predicted paths. Results for the structural model show that out of the eight
hypotheses, seven are supported in the present context. With the exception of H1, all the
hypotheses were supported.
Absorptive knowledge search was not found to directly affect knowledge acquisition in
the HEI (b = 0.059, t = 0.837, p < 0.201). This means that the absorptive knowledge search
of the HEI does not necessarily drive the acquisition of knowledge. However, it was found to
have an indirect effect on Knowledge acquisition through the mediating role of IFC (b =
0.018, t = 2.511, p < 0.006). This means that when different functional units come together
synergistically to search for valuable external knowledge, their efforts to acquire knowledge
can be successful.H1was not supported in this context.
Absorptive knowledge accumulation was found to positively and significantly predict
knowledge acquisition in the HEI (b = 0.205, t = 2.620, p < 0.004). This means that the
prior knowledge within the university is very important as learning is associative, and
this prior knowledge will help to understand the new external knowledge and be able to
link it with the existing knowledge to facilitate the knowledge acquisition for the HEI. H2
is supported in this context.
APT was found to positively and significantly predict knowledge acquisition in the
tertiary institution (b = 0.158, t = 2.220, p < 0.013). This means that efforts made by
the university to put in place its own internal procedures and processes and structures for
the sharing, dissemination and diffusion of external knowledge internally at all levels,
faculties or departments of the institution will positively promote the knowledge acquisition
within the HEI. H3 is supported in this context. These findings are similar to those of
Vasconcellos (2019) which explain the different dimensions of ACAP through a process and
Hypotheses Hypothesized path Path coefficient (b) t-Values p-Values Hypothesis results
H1 AKS! KA 0.059 0.837 0.201 Not supported
H2 AKA! KA 0.205 2.620 0.004 Supported
H3 APT! KA 0.158 2.220 0.013 Supported
H4 AKS! IFC! KA 0.018 2.511 0.006 Supported
H5 AKA! IFC! KA 0.025 2.944 0.002 Supported
H6 APT! IFC! KA 0.097 2.973 0.001 Supported
H7 IFC! KA 0.352 5.585 0.000 Supported
Table 4. H8 KA! INNG 0.276 4.938 0.000 Supported
Assessment of
hypotheses Source: Field data (2020)
structure approach, that knowledge acquisition, transformation and integration are realized Absorptive
through exploration and exploitation of new knowledge. capacity
IFC was found to positively and significantly mediate the relationship between the
absorptive knowledge search and knowledge acquisition in HEIs (b = 0.019, t = 2.511, p >
0.006). This is a full mediation. According to Baron & Kenny’s (1986) recommendation, if the
effects of the independent variable (AKS) on the dependent variable (KA) disappear after
mediator (IFC) controlled, it is called a full or complete mediation (Baron & Kenny, 1986).
IFC accounts for all (and not some) of the observed relationship between AKS and KA in an
“indirect only mediation” procedure.H4 is supported in this context.
IFC was found to significantly mediate the positive relationship between the AKA and KA
in HEIs. This is a partial mediation which means that the path from the independent variable
to dependent variable (AKA) is reduced but is still significant (b = 0.025, t = 2.944, p > 0.002)
when the mediator (IFC) is introduced (Baron & Kenny, 1986). So based on this criterion, the
effect of AKA (independent variable) on KA (dependent variable) is reduced but is still
significant after introducing IFC (mediator variable).H5 is supported in this context.
IFC was again found to significantly mediate the positive relationship between the APT
and KA in HEIs. This is a partial mediation whichmeans that the path from the independent
variable (APT) to dependent variable (KA) is reduced but is still significant (b = 0.097,
t = 2.973, p > 0.001) when the mediator (IFC) is introduced (Baron & Kenny, 1986). H6 is
supported in this context.
IFC was found to positively and significantly predict KA in the HEIs (b = 0.352,
t = 5.585, p > 0.000). This means that IFC is an essential integration mechanism in HEIs.
H7 is supported in this context. These findings endorse the findings of Yang & Tsai
(2019, p. 126) which reveal that “absorptive capacity requires cross-functional integration
(as an intermediate mechanism) to enhance innovation performance. This is also similar
to a work by Diriye (2019) which examines the relationship between knowledge sharing
and social capital in the HEI environment. This is consistent with another by study Lo &
Tian (2020) who propose the promotion of knowledge sharing among different units in
universities because synergy could be achieved when colleges, schools or departments
collaborate.
Knowledge acquisition was found to positively and significantly predict innovation in
the HEI (b = 0.276, t = 4.938, p > 0.000). This result shows that when the HEI is able to
successfully internalize the external knowledge that has been acquired into its operations,
this will naturally spur innovation through the development and improvement of academic
programs research output and content for commercialization.
Conclusion
The results of the hypotheses assessments reveal that IFC is an essential institutional
mechanism in HEIs that will encourage a culture of teamwork and build strong
relationships across faculties and departments to promote knowledge acquisition and
transfer for the shared institutional vision. This mechanism enables all the different
functional departmental members to set aside their individual functional interests and
accept differing views so that they can operate from varying perspectives and disciplines in
their quest for detecting and acquiring new knowledge for the university. The ACAP
process can therefore not be complete unless we go through an important organizational
mechanism; IFC, to yield innovations for the HEI. The benefits of enhancing IFC in
knowledge sharing and transfer among faculties and departments is clear. The findings
have revealed that a high level of IFC will improve institutional performance by way of
INNG.
TLO Theoretical, managerial and policy implications
The theory of social capital, which is in consonance with the concept of IFC, suggests that
social networking among organizational members with external actors gives them access to
certain vital strategic resources such as information, knowledge, social support, advice and
friendship (Adler & Kwon, 2002; Burt, 1997; Coleman, 1988; Inkpen & Tsang, 2005; Lo &
Tian, 2020; Nahapiet & Ghoshal, 1998; Nguyen & Ha, 2020; Putnam, 1995). IFC helps to
eliminate departmental barriers, paving the way for access to the strategic resources
aforementioned.
It is recommended that managers of HEIs commit to ensuring the management of IFC
to promote knowledge sharing across faculties and departments. We also suggest that
they focus on creating lateral relations among faculty and department members to
achieve internal social capital (Diriye, 2019). They could also invest resources and efforts
at encouraging the building of teamwork and connectedness through strong informal
networking that facilitate collaboration between faculties and departments while
cultivating a shared vision throughout the university (Yang & Tsai, 2019). When
teamwork efforts coordinate different faculties and departments, strong personal
relationships are built, and this can lead to high levels of trust, communication and
interactions among departments to enhance inter-functional knowledge sharing. Further,
managers are encouraged to ensure that staff are made to be responsible for their
cooperative and integrative teamwork. Finally, it is suggested that that faculty and
departmental goals are aligned with the overall goals of the university. Staff could also be
encouraged to act as partners and not just employees through rewards, incentives and
recognition packages.
This paper also theoretically extends the knowledge based view by empirically
broadening the scope of ACAP beyond its dimensions by incorporating the institutional
enabler mechanism - IFC into the process. It further empirically examines the intermediary
role played by IFC in the relationship between ACAP and knowledge acquisition for INNG
in HEIs. These findings are similar to Yang & Tsai (2019, p. 126) who theorize that
“absorptive capacity requires cross-functional integration (as an intermediate mechanism)
to enhance innovation performance.
Policymakers, accrediting institutions and quality assurance entities will also
benefit from these findings by ensuring that ACAP learning instruments are included in
accreditation documentations as a conditional requirement for quality assurance
certifications (Asiedu et al., 2020). Consequently, managers will have to focus on
redesigning HEIs as “Learning Organizations” that support the development and
involvement of all members of the university community in line with the shared goals of
improving curricula, programs and research output. They must therefore include
strategic learning opportunities and collaborative knowledge sharing activities in their
staff development agenda as an investment to promote teamwork and information
sharing. Policymakers must also outline clear policy frameworks and reward
mechanisms for the development of the absorptive capacities of individuals and teams
whose acquisition of knowledge promotes the innovative drive of the university. These
efforts will promote the building of knowledge management capabilities.
Limitations and directions for future research
There are limitations that must be considered when interpreting and generalizing the
quantitative results of this study. Data was collected from faculty and staff of 20 public and
private HEIs in the Greater Accra region of Ghana. Although the majority of HEIs are
clustered in this region, the results may still not be representative of all HEIs in Ghana.
This study also offers some directions for future research. First, extensions of our model Absorptive
might consider enablers and barriers of ACAP in HEIs, such as openness in communication capacity
and knowledge hoarding among academics in HEIs. In addition, this study used cross-
sectional design due to time constraints. Cross-sectional designs are usually not able to
account for the potential time lags in cause-and-effect relationships between ACAP
components, inter-functional knowledge acquisition, sharing and transfer and its associated
innovative outcomes. It will take a considerable time frame to adapt a successful knowledge
management strategy to promote inter-functional knowledge acquisition, sharing and
transfer between faculties and departments which aim at generating innovations. It would
therefore be appropriate to consider longitudinal research designs in future as they may
offer more suitable inferences with regard to the causal relationships among ACAP, inter-
functional knowledge acquisition, sharing and transfer and subsequent innovative
outcomes. Finally, future researchers could conduct a study to explore the reasons for non-
cooperation among some academics in HEIs, such as trust. They could examine the impact
of trust as an essential element for effective functioning of HEIs (Jameson, Barnard,
Rumyantseva, Essex & Gkinopoulos (2022), as limited knowledge exists on how trust
operates in this domain.
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Corresponding author
Mercy Asaa Asiedu can be contacted at: akusid@yahoo.com
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