It is well known that absorptive capacity facilitates innovation performance. And yet, despite the growing importance of service firm in innovation activities, extant literature has neglected the influence of service suppliers in this process. We contribute to the literature by identifying how knowledge-intensive business service may affect the knowledge absorption process of their clients. Using an empirical study based on three exploration innovation contracts, our results suggest KIBS may affect the absorption process. The framework highlights three decisive roles played by KIBS, which are seen to function as trigger, developer and teacher of their client’s absorptive capacity. We underline the interdependencies between KIBS and clients in this process and discuss the idea of an “insemination capacity” developed by KIBS, leading to enhanced clients’ absorption process. Important managerial implications for both KIBS and innovative firms are given.
