Boosting firms’ absorptive capacity: the digital technologies edge

Purpose This study aims to explore how firms can enhance their innovation processes by effectively utilizing external knowledge and employing digital technologies. Specifically, it emphasizes the role of absorptive capacity (ACAP) in external knowledge acquisition and assimilation (potential ACAP), as well as transformation and exploitation (realized ACAP), highlighting the necessity of equipping firms with digital technologies to support ACAP activities. Design/methodology/approach To achieve the research purpose, we conducted a structured literature review of academic papers sourced from Scopus-Elsevier. Findings The key findings encompass the identification of common digital technologies supporting ACAP and explore how these technologies contribute to knowledge acquisition, assimilation, transformation and exploitation. The main results show that social media and online communities are the most studied technologies in relation to ACAP activities. Research predominantly centres on potential ACAP – with acquisition activity more studied than assimilation – rather than realized ACAP – with only social media and online communities demonstrating full support for transformation and exploitation activities. Research limitations/implications This research represents a pioneering joint study of ACAP and digital technologies, advancing understanding beyond organizational perspectives and expanding open innovation literature by integrating ACAP role in technology collaborations. A call for qualitative investigations into the relationship between digital technologies and ACAP emerged. Practical implications The findings offer valuable guidance to innovation managers, aiding them in selecting appropriate digital technologies to strengthen ACAP activities. Originality/value This work’s uniqueness lies in bridging the gaps between open innovation, ACAP and digital technologies, which are often studied in isolation.