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Article
Publication date: 19 July 2022

Yasmin Fayad and Raghda El Ebrashi

This paper studies the role of inter-firm supply chain social capital and intra-firm social capital in enabling Corporate Entrepreneurship (CE), and also investigates the…

Abstract

Purpose

This paper studies the role of inter-firm supply chain social capital and intra-firm social capital in enabling Corporate Entrepreneurship (CE), and also investigates the moderating and mediating effect of absorptive capacity.

Design/methodology/approach

A correlational descriptive survey research is employed for 200 firms; adopting a 13-item Likert scale obtained from Wang and Li (2016) for measuring inter-firm social capital, and an eight item Likert scale for measuring absorptive capacity. This is in addition to a nine item Likert scale obtained from De Clercq et al. (2013) to measure the intra-firm social capital, and a nine item semantic differential scale developed by Covin and Slevin (1989) for measuring the level of corporate entrepreneurship. Statistical analysis packages SPSS V.24 and AMOS V.24 were used.

Findings

Results provide evidence that structural supply chain social capital has an effect on corporate entrepreneurship; mediated by potential absorptive capacity. Additionally, the effect of relational supply chain social capital on corporate entrepreneurship is fully mediated by potential absorptive capacity. Furthermore, the effect of cognitive supply chain social capital on corporate entrepreneurship is fully mediated by potential absorptive capacity. On the other hand, results show that both intra-firm social capital and realized absorptive capacity moderate the relationship between potential absorptive capacity and corporate entrepreneurship.

Research limitations/implications

The convenience sampling technique increases the probability of selection bias. In addition, the research focused on two aspects of intra-firm social capital, namely relational and cognitive dimensions, and overlooked the structural dimension of social capital.

Practical implications

Providing managers with insights about the critical role of developing social capital among supply chain partners to facilitate the transfer and exchange of crucial knowledge necessary for product development and innovation. This is in addition to the need to capitalize on intra-collaborations and cross-functional routines to facilitate CE.

Originality/value

This study provides a required extension to the previous literature, which has not empirically modeled the role of potential absorptive capacity as means by which supply chain social capital dimensions enable CE. Also, the research identifies contingency factors that enable the effect of potential absorptive capacity on CE; namely intra-firm social capital and realized absorptive capacity.

Details

Management Decision, vol. 60 no. 9
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 19 November 2021

Florence Obiageli Ifeanyieze, Cosmas Ikechukwu Asogwa, Clara U. Nwankwo, Lilian Ukamaka Ekenta, Felicia Ngozi Ezebuiro, Godwin Emeka Eze, Francis Madueke Onu, Fredrick Chinedu Onah, Vincent Chidindu Asogwa, Edward Chidi Isiwu and Azunku Francis Nwangbo

Corporate organizations could enhance their economic and commercial values through knowledge acquisitions and exploitations. The purpose of this study is to analyze the economic…

Abstract

Purpose

Corporate organizations could enhance their economic and commercial values through knowledge acquisitions and exploitations. The purpose of this study is to analyze the economic and commercial performance effect of poultry management absorptive capacity in Nigeria.

Design/methodology/approach

Structural equation modeling was used in the analysis of a random sample of 300 poultry managers and owners surveyed within the South-Eastern Nigeria. The scales that quantified the latent variables of the factors were tested for reliability and consistency using confirmatory factor analysis.

Findings

The study found evidence that the difference between economically and commercially viable poultry businesses and failing ones depends on the level of absorptive capacity. Absorptive capacity advanced innovations that resulted in higher economic and commercial performance of poultry farm. Poultry firms' profitability, sales growth and market shares were positively increased by absorptive capacity dimensions of acquisition, assimilation, transformation and exploitation.

Research limitations/implications

The study was carried out within a region in Nigeria and thus could be limited by generalization to the developed country.

Originality/value

This study is the first to link four dimensions of absorptive capacity to the economic and commercial performance of poultry businesses in Nigeria. As such, it originally breaks new frontier of poultry farming from dynamic capabilities and absorptive capacity perspectives.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 13 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 11 May 2012

Karma Sherif, Methsika Munasinghe and Chhavi Sharma

This paper aims to develop and test a theoretical framework that examines the capacity of electronic open networks and closed interpersonal networks in building social capital and

Abstract

Purpose

This paper aims to develop and test a theoretical framework that examines the capacity of electronic open networks and closed interpersonal networks in building social capital and creating new knowledge. Specifically, this article aims to extend understanding in the field of knowledge management by examining how social networks can accumulate social capital and build up potential and absorptive capacity for the creation of new knowledge.

Design/methodology/approach

The authors reviewed the literature on open electronic social networks and closed interpersonal networks, social capital and absorptive capacity to examine how different types of networks accumulate different dimensions of social capital and develop different measures of absorptive capacity. A model was developed that hypothesizes that open networks can impact the structural and cognitive dimension of social capital but have less than a moderate effect on the relational dimension. The model is tested in the academic community using a sample of 22 research faculties from ten different research institutions within the MIS departments and five from Marketing.

Findings

The paper posits that electronic open networks have a significantly higher impact on the structural and cognitive dimension of social capital and a less than moderate impact on the relational dimension. Electronic open networks are, thus, best suited for acquiring and assimilating new knowledge, however the transformation and exploitation of knowledge require the cohesive ties of closed networks.

Research limitations/implications

The combinative effect of electronic open networks and closed interpersonal networks is critical for the development of a potential and realized absorptive capacity and the creation of new knowledge. It is essential for researchers to examine the effect of different types of social networks on the process of knowledge creation and whether social capital accumulated in interpersonal networks can be leveraged in electronic open networks to enhance the process of knowledge creation.

Practical implications

Businesses benefit from this line of research in knowing how well different types of social network are suited to the different phases of knowledge creation. Leveraging the capacity of open electronic networks and closed interpersonal networks can foster innovation.

Originality/value

There is no existing literature that has examined the relationship between different types of social networks, social capital, absorptive capacity, and knowledge creation. This paper provides a foundation for future studies that examine the combinative effect of closed interpersonal and open electronic networks.

Article
Publication date: 10 October 2018

Indu Ramachandran

The purpose of this paper is to introduce CEO succession (and subsequent TMT turnover) as a knowledge enabler. Focusing on absorptive capacity, an important dynamic capability…

1046

Abstract

Purpose

The purpose of this paper is to introduce CEO succession (and subsequent TMT turnover) as a knowledge enabler. Focusing on absorptive capacity, an important dynamic capability involving the acquisition, assimilation, transformation and exploitation of knowledge, this paper highlights the role of a new CEO in emphasizing specific facets of the knowledge management (KM) process to fulfill expected strategic mandates.

Design/methodology/approach

This paper presents a conceptual framework that underscores the importance of CEO succession as a knowledge enabler by depicting its influence on the various dimensions of absorptive capacity. To this end, this paper develops an integrated set of propositions that unpack the influence of different types of CEO successions that trigger and enable different KM processes involved dimensions of absorptive capacity.

Findings

The theoretical framework presented in this paper suggests that given a certain succession context (forced or voluntary turnover of predecessor) different types of CEO succession, combined with possible executive turnover, will constitute a reorientation in top management experience and expertise. This will in turn trigger certain dimensions of absorptive capacity (potential or realized), to fulfill specific strategic mandates such as strategic change or strategic continuity.

Research limitations/implications

This paper presents a theoretical framework that underscores the importance of studying CEO succession in conjunction with their influence on different knowledge dimensions of absorptive capacity. CEO succession (and subsequent changes in top management team composition) is suggested to be a knowledge enabler. Based on the context of CEO turnover (forced vs voluntary) and the amount of change undergone in TMT composition, different types of CEO succession (based on their origin) are suggested to have different challenges to overcome and different strategic mandates to fulfill. Fulfilling these strategic mandates will require an emphasis on different facets of the KM process, which is encompassed in the dimensions of absorptive capacity. This will, in turn, resolve questions about which knowledge activities the organization needs to invest its resources in and resources allocation decisions may become easier.

Practical implications

Based on their origin, three kinds of CEO succession have been described in this paper – insider-follower, insider-contender and outsider succession. Each of these types of succession encounter different challenges and are expected to fulfill different kinds of strategic mandates. Accordingly, this paper proposes that each kind of CEO succession trigger and enable the knowledge components of absorptive capacity (knowledge acquisition, knowledge assimilation, knowledge transformation and knowledge exploitation) in different manners. This will in turn, allow firms to prioritize the allocation of resources toward different kinds of knowledge activities related to absorptive capacity.

Originality/value

This paper suggests that the CEO succession event, although broadly discussed in management research, has been overlooked when it comes to KM in organizations. Given that strategic leadership is one of the powerful enablers of organizational practices and outcomes, this paper emphasizes that different types of CEO succession may be able to influence the KM process by enabling the different dimensions of absorptive capacity (potential and realized).

Details

Journal of Knowledge Management, vol. 22 no. 8
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 16 December 2019

Saurabh Srivastava and Derrick D’Souza

Recently, researchers have highlighted the limited attention that has been devoted to managerial capabilities as micro-foundational elements of absorptive capacity. Strategic…

Abstract

Purpose

Recently, researchers have highlighted the limited attention that has been devoted to managerial capabilities as micro-foundational elements of absorptive capacity. Strategic thinking is one such managerial capability that guides managers during the development of organizational capabilities. The purpose of this paper is to empirically investigate the influence of managerial strategic thinking on the development of absorptive capacity.

Design/methodology/approach

Data were collected using a sample of 324 senior-level and mid-level managers from the software industry. PLS-SEM was used to test the hypothesized relationships.

Findings

Study results indicate that managerial strategic thinking is positively related to absorptive capacity, as well as to each of its four components – acquisition, assimilation, transformation and exploitation.

Originality/value

The current study adopts a micro-foundations perspective and delves into the development and orchestration of organizational capabilities. This study is the first to empirically investigate the relationship between managerial strategic thinking and absorptive capacity. Prior literature on absorptive capacity has focused on its influence on phenomena that are downstream to absorptive capacity, e.g. innovation, new product development and firm performance. The research offers new insights into the relationship between absorptive capacity and managerial strategic thinking, a hitherto unexplored upstream phenomenon. Scholars have theorized that managerial strategic thinking plays a pivotal role in managerial decisions, making it a critical factor in developing the absorptive capacity of an organization. The authors believe that the empirical evidence of the theorized relationship offers valuable insights that will aid scholarly research on organizational capabilities.

Details

Journal of Strategy and Management, vol. 13 no. 1
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 28 November 2019

Syed Saad Ahmed, Jia Guozhu, Shujaat Mubarik, Mumtaz Khan and Essa Khan

The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also…

2325

Abstract

Purpose

The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance.

Design/methodology/approach

Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items.

Findings

The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence.

Originality/value

This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.

Details

Journal of Intellectual Capital, vol. 21 no. 1
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 1 May 2006

Maria do Carmo Caccia‐Bava, Tor Guimaraes and Susan J. Harrington

Absorptive capacity has been defined as an organization's ability to recognize the value of new information, assimilate it, and apply it to productive ends. This study aims to…

4037

Abstract

Purpose

Absorptive capacity has been defined as an organization's ability to recognize the value of new information, assimilate it, and apply it to productive ends. This study aims to examine the type of organization culture that influences the capacity of hospital organizations to innovate by absorbing new technology and the importance of this absorptive capacity in information technology (IT) implementation success.

Design/methodology/approach

Based on previous research, this study proposes a measure of absorptive capacity that includes managerial IT knowledge and communication channels and tests its relationship to the level of success implementing new systems. A sample of 192 hospital administrators shared their opinions about their organizations culture, ability to absorb new technology, and the extent to which their latest IT implementation operational for at least one year has been a success.

Findings

The results show the importance of organization culture as an important factor in developing absorptive capacity, and the latter's influence in the implementation of new technologies.

Originality/value

The study provides insights into the types of activities that management should undertake in order to enhance absorptive hospital capacity.

Details

Journal of Health Organization and Management, vol. 20 no. 3
Type: Research Article
ISSN: 1477-7266

Keywords

Article
Publication date: 14 December 2017

Deepak Chandrashekar and Bala Subrahmanya Mungila Hillemane

The purpose of this paper is to outline the key determinants of innovation performance of a firm in a cluster. This paper probes the role of absorptive capacity in furthering the…

1012

Abstract

Purpose

The purpose of this paper is to outline the key determinants of innovation performance of a firm in a cluster. This paper probes the role of absorptive capacity in furthering the cluster linkages and thereby enhancing the innovation performance of a firm.

Design/methodology/approach

This study adopts stratified random sampling technique to choose sample firms from the identified population of firms in a cluster. Further, it employs primary data collection method to collect data from sample firms through a semi-structured questionnaire based in-depth interviews with the top level management of sample firms. It uses multiple linear regression (MLR) techniques to ascertain the influence of absorptive capacity on degree of cluster linkages (both intra-cluster and extra-cluster linkages), and degree of cluster linkages (both intra-cluster and extra-cluster linkages) on innovation performance of a firm.

Findings

On the one hand, internal factors of absorptive capacity of a firm have a significant positive influence on the degrees of both intra-cluster linkages and extra-cluster linkages. On the other hand, external factors of absorptive capacity of a firm significantly impact the degree of intra-cluster linkages (DICL). But, they have no significant influence on the degree of extra-cluster linkages (DECL). Further, both the DICL and the DECL drive innovation performance of a firm in a cluster. Notably, subsidiaries of externally based firms exhibit superior innovation performance compared to those firms based in a cluster.

Originality/value

This paper contributes to the extant literature in two ways. First, it empirically validates the effect of absorptive capacity of a firm on its degree of cluster linkages (both intra-cluster and extra-cluster linkages) taking into account both internal and external factors of absorptive capacity. Second, it ascertains the influence of degree of cluster linkages (both intra-cluster and extra-cluster linkages) on the innovation performance of a firm in a cluster.

Details

Journal of Manufacturing Technology Management, vol. 29 no. 1
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 22 December 2020

J. Kiarash Sadeghi, Elisabeth Struckell, Divesh Ojha and David Nowicki

Service organization supply chains provide a context that amplifies the complexity of interorganizational interdependencies and the need to build unique capabilities and…

1142

Abstract

Purpose

Service organization supply chains provide a context that amplifies the complexity of interorganizational interdependencies and the need to build unique capabilities and innovative solutions, especially when confronted with man-made or natural disasters. Using the lens of complex adaptive systems (CAS), this study aims to investigate the role of absorptive capacity (AC), change management capability and information quality in improving a firm’s ability to cope with disasters – disaster immunity (DI). The study uniquely parses absorptive capacity into a three-variable, second-order construct (absorptive human resource management, absorptive complementary knowledge and absorptive infrastructure).

Design/methodology/approach

Using data collected from 264 US service firms in a supply chain context, this paper evaluates the research model using the structural equation modeling approach.

Findings

The second-order, three-dimensional framework for AC has far superior psychometric properties as compared to the previous unidimensional conceptualizations. Results show that AC influences a firm’s DI through change management capability and information quality – two DI enhancing resources.

Originality/value

The paper builds on previous conceptual discussions of absorptive capacity as a multidimensional construct by operationalizing AC as a latent variable with three dimensions (above). Moreover, this paper shows that AC, change management capability, information quality and DI are interrelated parts of a CAS.

Details

Journal of Knowledge Management, vol. 25 no. 4
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 12 October 2012

Gabriel Cepeda‐Carrión, Juan Gabriel Cegarra‐Navarro and Antonio G. Leal‐Millán

The purpose of this paper is to examine the impact of an organization's unlearning context and information systems (IS) capabilities on the organization's ability to challenge…

Abstract

Purpose

The purpose of this paper is to examine the impact of an organization's unlearning context and information systems (IS) capabilities on the organization's ability to challenge basic beliefs and to implement processes that are explicitly or tacitly helpful in the reception of new ideas (absorptive capacity). The authors also seek to examine the relationship between absorptive capacity and the existence and enhancement of innovativeness.

Design/methodology/approach

These relationships are examined through an empirical investigation of 54 doctors and 62 nurses belonging to 44 hospital‐in‐the‐home units (HHU) in Spain.

Findings

The results show that absorptive capacity is an important dynamic determinant for developing a HHU's innovativeness. Moreover, this relationship is best explained with two related constructs. Firstly, the HHU's unlearning context plays a key role in managing the tension between potential absorptive capacity and realized absorptive capacity. Secondly, the results also shed light on a tangible means for health managers to enhance their units' innovativeness (quality of service) through IS capabilities.

Research limitations/implications

The cross‐sectional design does not allow observation of the short‐ and long‐term impact of absorptive capacity on the unlearning context, information systems capability and HHU's innovativeness. Although the model presented here proposes sequenced relationships between absorptive capacities (PACAP and RACAP), the unlearning context and IS capability, the authors measure all these constructs at one point in time.

Practical implications

This sequential model presented in this paper provides practical steps for managers interested in organizational structures that support organizational innovativeness.

Originality/value

The contribution of unlearning context is related to its ability to prepare the ground for innovation processes.

Details

Management Decision, vol. 50 no. 9
Type: Research Article
ISSN: 0025-1747

Keywords

1 – 10 of over 5000