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This research explores perceptions of knowledge management processes held by managers and employees in a service industry. To date, empirical research on knowledge management in the service industry is sparse. This research seeks to examine absorptive capacity and its four capabilities of acquisition, assimilation, transformation and exploitation and their impact on effective knowledge management. All of these capabilities are strategies that enable external knowledge to be recognized, imported and integrated into, and further developed within the organization effectively. The research tests the relationships between absorptive capacity and effective knowledge management through analysis of quantitative data (n = 549) drawn from managers and employees in 35 residential aged care organizations in Western Australia. Responses were analysed using Partial Least Square-based Structural Equation Modelling. Additional analysis was conducted to assess if the job role (of manager or employee) and three industry context variables of profit motive, size of business and length of time the organization has been in business, impacted on the hypothesized relationships.

Structural model analysis examines the relationships between variables as hypothesized in the research framework. Analysis found that absorptive capacity and the four capabilities correlated significantly with effective knowledge management, with absorptive capacity explaining 56% of the total variability for effective knowledge management. Findings from this research also show that absorptive capacity and the four capabilities provide a useful framework for examining knowledge management in the service industry. Additionally, there were no significant differences in the perceptions held between managers and employees, nor between respondents in for-profit and not-for-profit organizations. Furthermore, the size of the organization and length of time the organization has been in business did not impact on absorptive capacity, the four capabilities and effective knowledge management.

The research considers implications for business in light of these findings. The role of managers in providing leadership across the knowledge management process was confirmed, as well as the importance of guiding routines and knowledge sharing throughout the organization. Further, the results indicate that within the participating organizations there are discernible differences in the way that some organizations manage their knowledge, compared to others. To achieve effective knowledge management, managers need to provide a supportive workplace culture, facilitate strong employee relationships, encourage employees to seek out new knowledge, continually engage in two-way communication with employees and provide up-to-date policies and procedures that guide employees in doing their work. The implementation of knowledge management strategies has also been shown in this research to enhance the delivery and quality of residential aged care.

The purpose of this paper is to investigate how absorptive capacity mediates the relationship between ambidextrous organizational learning and performance among small and medium-sized enterprises (SMEs).

Based on the resource-based view (RBV) and the dynamic capability approach, this paper uses the resource-capability-performance framework to construct the theoretical model of this study and tests the theoretical model with the questionnaire survey data of 189 SMEs in mainland China.

Ambidextrous organizational learning has different effects on SMEs' performance in terms of survival performance and growth performance. Both exploitative learning and exploratory learning have positive effects on absorptive capacity, and absorptive capacity has positive influences on both the survival performance and growth performance of SMEs. Absorptive capacity plays different mediating roles in the relationships between ambidextrous organizational learning and SMEs' performance: absorptive capacity plays a partial mediating role in the relationship between exploratory learning and SME growth performance, while absorptive capacity plays complete mediating roles in other relationships.

Managers must stress the use of exploratory learning in order to promote SMEs' growth performance. However, to foster both absorptive capacity and SME performance in terms of survival and growth, managers must pay more attention to take advantage of ambidextrous organizational learning. Government as policymakers should create a favorable environment that enable SMEs to benefit much more from the deployment of ambidextrous organizational learning and absorptive capacity.

To the best of authors’ knowledge, this study is the first to theorize and test the mediating role of absorptive capacity in the linkage between ambidextrous organizational learning and SME performance in terms of survival and growth. Additionally, this study also is the first to provide empirical support for the impact of ambidextrous organizational learning on absorptive capacity among SMEs.

This study examines green absorptive capacity as an important intervening variable that elucidates the relationship between green supply chain management (GSCM) practices (specifically, green purchasing, customer cooperation and investment recovery) and firm performance.

Drawing from the theoretical underpinnings of the natural-resource-based view theory and information processing theory, a research model is developed and tested using data obtained from 368 manufacturing firms in Ghana. Data analysis was conducted using structural equation modeling.

The results indicate that green purchasing, customer cooperation and investment recovery have a direct positive and significant effect on firm performance. Additionally, green purchasing and customer cooperation have a positive and significant effect on green absorptive capacity but investment recovery does not. Further, the results show that the paths from green purchasing and customer cooperation to firm performance are positively mediated by green absorptive capacity.

The study reveals to supply chain managers that green absorptive capacity is an important conduit through which firms can achieve enhanced firm performance from GSCM initiatives.

This study makes a contribution by integrating the absorptive capacity literature and green management literature and establishes green absorptive capacity as a mechanism through which GSCM practices enhance firm performance.

Absorptive capacity is a knowledge-processing ability that hospitality organizations should hone to create competitive advantage in a fierce business environment. This study aims to examine an integrative model explaining how hospitality organizations infuse external knowledge into competitive advantage via absorptive capacity processes and opportunity-capturing abilities.

This study used structural equation modeling, using the R Lavaan package, with 288 survey responses collected from hospitality employees.

Structural equation modeling with multiple indirect relationships presents a holistic picture of how hospitality organizations develop externally acquired knowledge into organizational outcomes through detailed absorptive capacity processes. Unit size is found to positively moderate the indirect relationship between external acquisition and competitive advantage through knowledge transformation only. Competitiveness level negatively moderates indirect relationships through assimilation and transformation.

The findings highlight the importance of hospitality organizations’ knowledge management capabilities through acquisition, assimilation, transformation and exploitation processes. These integrative mechanisms can be facilitated by intraorganizational coordinative processes through collective interpretations and applications of knowledge and effective organizational routines based on management and technical support.

This study proposes an integrative model encompassing a process perspective and the role of intraorganizational coordination in bridging potential and realized absorptive capacity.

The purpose of this research is to examine the impact of high-involvement work systems (HIWS) on absorptive capacity. In addition, the mediating effect of happiness at work in the relationship between high-involvement work practices and absorptive capacity is analyzed.

A 2-1-2 bathtub multilevel mediation model was used to analyze a sample of 783 employees from 111 bank branches, gathering data at three different times.

The results reveal that HIWS positively affect absorptive capacity. In addition, they show that happiness at work partially mediates the relationship between HIWS and absorptive capacity.

Happiness at work is a fundamental element for knowledge absorption. The findings support the basic assumptions of the job demands-resources model, and demonstrate how HIWS, acting as a job resource, lead to positive attitudes (happiness at work) and, in turn, to positive outcomes (absorptive capacity). The proposed HIWS, based on the assumptions of the mutual gains model, reveal a positive employment relationship with effects on both HAW and organizational outcomes. If organizations expose their employees to management practices that have specific benefits for their HAW, employees are more likely to perform their jobs in ways that will promote their absorptive capacity.

Technological entrepreneurship concerns the transformation of potentially viable technological opportunities into successful businesses. Absorptive capacity is argued to be essential for this transformation, since it can facilitate the prediction of new technology trends and the assimilation and application of new knowledge to produce new commercial outputs. The investigation of the relationships between absorptive capacity, technological entrepreneurship and their impact on Guangdong technology firms' performance is the purpose of this study.

In this aim a positive causal chain from absorptive capacity to technological entrepreneurship and from this latter to performance is tested through a mediation analysis, which uses an ordinary least squares regression‐based path analytical framework for estimating indirect effects on a sample of 113 Guangdong technology‐based firms.

Findings are consistent with the hypothesis that greater absorptive capacity leads to greater technological entrepreneurship, which in turn leads to greater performance. Therefore evidence is provided about both the mediating role of technological entrepreneurship and the role of absorptive capacity as its antecedent in relation to Guangdong‐based technology firms' performance.

A relevant but somewhat neglected relationship is examined using an integrative model in the Guangdong context. Moreover the study uses direct measures of absorptive capacity as a capability and provides a firm‐level operationalization of technological entrepreneurship. In so doing it also adopts state‐of‐the‐art analysis techniques and highlights the relevance of investments in soft factors for Guangdong technology firms' path towards excellence.

Open innovation and information systems have been key topics in the theoretical domain, but little empirical research thoroughly examines how information technology (IT) capability affects open innovation performance. Thus, the purpose of this paper is to explore the relationship between IT capability and open innovation performance and to expose the inner mechanism at the firm level.

This paper collected firm-level data in China; 232 usable questionnaires from different firms were collected. Then, the study used a structural equation model by AMOS for hypothesis testing.

The results indicate that both internal IT capability and external IT capability have positive impacts on open innovation performance; potential absorptive capacity and realized absorptive capacity mediate the relationship between external IT capability and open innovation performance. Additionally, realized absorptive capacity plays a mediating role in the relationship between internal IT capability and open innovation performance.

These findings indicate that practitioners should pay attention to the important relationship between absorptive capacity and IT capability and open innovation performance in Chinese businesses.

Existing research has emphasized the influence of IT on open innovation, but empirical studies have not thoroughly focused on the inner mechanisms of the effect of IT capability on open innovation performance. Drawing on firm capability theory, this paper classifies IT capability as internal and external IT capability and absorptive capacity as potential and realized absorptive capacity. Then, this paper confirms the mediating role of absorptive capacity between IT capability and open innovation performance.

Despite the established significance of absorptive capacity, there is a worrying lack of research that empirically examines its antecedents. With a call for investigation guided by the knowledge-based theory, the purpose of this paper is to bridge any probable gap by exploring the effect that an organization’s knowledge stock and its knowledge integrating mechanisms have on the development of its absorptive capacity.

On the basis of a survey administered to a sample comprising owners of small Indian automotive firms, this paper empirically examines the direct effect of an organization’s knowledge stock (including knowledge breadth and depth) and the moderating role of its structure-related mechanisms (e.g., formalization) on its potential and realized absorptive capacities. The study uses survey data from 226 small business owners and multiple linear regression analysis to examine the significance of its hypotheses.

The results show that knowledge stock has a statistically notable influence on a small firm’s absorptive capacity. The enabling role of formalization in the relationship between knowledge stock and absorptive capacity is also evident.

Given the handicap of small firms vis-à-vis large firms to deploy internal R&D capabilities, business owners must ensure not to confuse absorptive capacity with the pre-existence of R&D capabilities.

The unbundling of knowledge stock into breadth and depth of knowledge enables business owners and researchers to understand how any particular knowledge stock can relate to an organization’s absorptive capacity.

This paper aims to seek to explain the influence of power asymmetry and the moderating role of an organization’s absorptive and desorptive capacity on enhancing supply chain competence from its orientation to open innovation with its supply network.

To perform this study, the authors use data collected from 262 European firms. They apply regression analysis to test the moderating role of an organization’s absorptive and desorptive capacity on enhancing its supply chain competence from its orientation to open innovation.

The results confirm both the influence of power asymmetry and absorptive capacity on obtaining benefits that derive from an organization’s orientation to open innovation. The results do not, however, support the moderating effect of an organization’s desorptive capacity. Subsequent analyses performed in the study show that organizations that achieve complementarity among their own absorptive capacity and the capacities of its supply network manage to obtain greater benefits from its orientation to open innovation.

This paper responds to the need to study innovation in the context of a supply network and respond to calls in the literature on open innovation and supply chain management for the need to study the moderating role of absorptive and desorptive capacity.

In innovation networks, firm innovation performance is affected by external tie strength and internal knowledge absorptive capacity. This study aims to empirically examine the path relationship between tie strength, absorptive capacity and firm innovation performance in Chinese manufacturing industries, thus enhance our understanding on the mechanism between innovation network and innovation performance.

The authors have conducted a survey among Chinese manufacturers in four industries (textile and garment, household appliance, IT and electronics and motor vehicle assemblers) that are located in North, East, Central and South China, respectively, with a valid response from 278 manufacturers. Structural equation model is used to analyze the results.

This study demonstrates that in Chinese Manufacturing industry, tie strength is positively related to innovation performance. The authors also find that absorptive capacity has a positive impact on innovation performance and it mediates the relationship between tie strength and innovation performance. Then, the authors analyze the effect of ownership, industry and sub-region, and the results show that in private firms and traditional manufacturers, and the firms located in North and Eastern China, tie strength has no direct effect on innovation outcomes, but it can influence innovation indirectly through absorptive capacity.

This study further supports that in Chinese guanxi culture, strong ties with other innovation partners can improve the firm’s absorptive capacity and thus improve innovation performance. The results also suggest that a firm’s absorptive capacity has a significant mediating effect on the relationship between tie strength and innovation performance.