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Article
Publication date: 18 April 2024

Sehrish Huma, Sidra Muslim and Waqar Ahmed

The purpose of this paper is to empirically investigate the impact of organizational intellectual capital (IC) components on absorptive capacity (ACAP) such as potential…

Abstract

Purpose

The purpose of this paper is to empirically investigate the impact of organizational intellectual capital (IC) components on absorptive capacity (ACAP) such as potential absorptive capacity (PACAP) and realized absorptive capacity (RACAP). Furthermore, it attempts to investigate the mechanism through which PACAP and RACAP jointly influence innovation strategies (i.e.) exploitative and exploratory innovations.

Design/methodology/approach

This is an explanatory research using a deductive approach. This study uses survey data from 184 manufacturing export firms analyzed through partial least squares structural equation modelling.

Findings

The results have found that the cognitive and social capital of a firm positively affects PACAP and RACAP, whereas relational capital has a significant effect on RACAP. Moreover, the study reveals that both potential and realized absorptive capacities considerably lead to the development of organizational exploitative and exploratory innovation strategies.

Research limitations/implications

The research focused on two driving factors, i.e. IC components and ACAP dimensions, and overlooked how each component of IC and ACAP influences ambidextrous innovative strategy.

Practical implications

Providing managers with insights about the critical role of developing IC to facilitate the transfer and exchange of crucial absorptive capacity necessary for ambidextrous innovative strategy.

Originality/value

This study makes a significant contribution to the existing literature by highlighting the importance of ACAP and provides useful insights for firms in developing economies to improve their exploitative and exploratory innovation capability. This study likewise reveals the significance of the four dimensions of IC, which can facilitate bringing in knowledge from developing economies.

Details

Review of International Business and Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-6014

Keywords

Open Access
Article
Publication date: 21 February 2024

Stephanie Moura, Christian Daniel Falaster and Thomas C. Lawton

This study aims to explore how the absorptive capacity of emerging market multinationals (EMNEs) facilitates increased acquirer performance in industry exploration and technology…

Abstract

Purpose

This study aims to explore how the absorptive capacity of emerging market multinationals (EMNEs) facilitates increased acquirer performance in industry exploration and technology exploration cross-border acquisitions (CBAs).

Design/methodology/approach

The research context for this study is Brazilian EMNEs and their CBAs. The final database contains 101 CBAs.

Findings

The authors find that industry exploration strategies negatively affect financial performance, but technology exploration strategies have a positive effect. The acquirer’s absorptive capacity can exacerbate the negative effects, except in instances of technology exploration strategies, where there is a demonstrable benefit from the acquirer’s absorptive capacity.

Originality/value

The study contributes first by providing a more nuanced understanding of the effects of absorptive capacity on postacquisition performance, depending on the type of knowledge explored. Second, by drawing on EMNE learning perspectives, the authors demonstrate the versatility of absorptive capacity in emerging markets.

Details

Multinational Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 2 March 2023

SangGon (Edward) Lim and Chihyung “Michael” Ok

Absorptive capacity is a knowledge-processing ability that hospitality organizations should hone to create competitive advantage in a fierce business environment. This study aims…

Abstract

Purpose

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.

Design/methodology/approach

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

Findings

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.

Practical implications

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.

Originality/value

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

Details

International Journal of Contemporary Hospitality Management, vol. 35 no. 10
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 16 May 2023

Pouria Khosravi, Cameron Newton, Azadeh Rezvani, Reza Ghanbarzadeh and Morteza Akbari

Management innovation is one of the most vital practices underpinning economic growth and is considered to be one of the fundamental components of gaining a superior business…

Abstract

Purpose

Management innovation is one of the most vital practices underpinning economic growth and is considered to be one of the fundamental components of gaining a superior business position in market conditions that are continually fluctuating. Drawing upon neo-institutional theory as well as absorptive capacity, the current empirical study unpacks the relationships between external institutional forces (i.e. regulative, mimetic and normative pressures) and management innovation through investigating the role of absorptive capacity as a mediator.

Design/methodology/approach

The research model is tested using survey data from Australian organisations. The study used Partial Least Squares (PLS), a component-based structural equation modelling (SEM) method, in order to perform the data analysis.

Findings

The results confirm that the various dimensions of institutional forces have diverse influences on management innovation. The authors found mimetic and normative pressures have positive influences on realised and potential absorptive capacity of an organisation. In addition, realised absorptive capacity mediates the relations between institutional forces and management innovation.

Originality/value

Dissimilar to preceding studies, this research shows that organisations not only innovate to pursue higher performance but sometimes strive for legitimacy. In addition, the significant associations between absorptive capacity and management innovation and the mediation role clearly signify that institutional forces and absorptive capacity play significant roles in the adoption of management innovation.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Open Access
Article
Publication date: 13 June 2023

Blendi Gerdoçi, Nertila Busho, Daniela Lena and Marco Cucculelli

This paper explores the relationships between firm absorptive capacity, novel business model design (NBMD), product differentiation strategy and performance in a transition…

1695

Abstract

Purpose

This paper explores the relationships between firm absorptive capacity, novel business model design (NBMD), product differentiation strategy and performance in a transition economy.

Design/methodology/approach

The study uses structural equation modeling (SEM) to analyze firm-level data from a unique sample of Albanian manufacturing and service firms.

Findings

The study shows that absorptive capacity enables and shapes the NBMD that, in turn, leads to performance gains. The authors also find that the NBMD capacity mediates the impact of realized absorptive capacity on performance, whereas product differentiation strategy moderates the relationship between new business model and performance.

Research limitations/implications

All variables were measured based on a self-assessed scale leading to potential method bias. Also, based on relevant literature, the study focuses on only one type of business model (BM) design.

Practical implications

Since dynamic capabilities are the foundation of NBMD, firms should invest carefully in developing such capabilities. Thus, the study results provide an integrative framework for understanding the role of absorptive capacity in NBMD adoption and for explaining the relationship between NBMD adoption and performance, an aspect that helps organizations in a dynamic environment.

Originality/value

This study strives to investigate the relationships between absorptive capacity, business model design, product strategies and performance by answering the call of Teece (2018) to “flesh out the details” of such relationships.

Details

European Journal of Innovation Management, vol. 26 no. 7
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 30 September 2022

Hussein-Elhakim Al Issa, Tahir Noaman Abdullatif, Joseph Ntayi and Mohammed Khalifa Abdelsalam

This research aims to examine the role of green intellectual capital (GIC) dimensions in promoting sustainable healthcare as reflected by sustainable performance. The mediating…

Abstract

Purpose

This research aims to examine the role of green intellectual capital (GIC) dimensions in promoting sustainable healthcare as reflected by sustainable performance. The mediating effect of green absorptive capacity (GAC) and moderating role of environmental turbulence were also explored.

Design/methodology/approach

Structural equation modeling was utilized for hypotheses testing of a survey data set of 387 at healthcare organizations operating in Iraq. The data were collected using purposive sampling with expert judgment from senior managers and professionals.

Findings

Contrary to previous studies, the findings showed that only green human and relational capitals predict green performance and only green human capital predicted economic performance. GAC was related to green human capital, green structural capital and performance, and played a significant mediating role on the relationships.

Research limitations/implications

Even though the research was limited to one region of a single country, Iraq, GAC can be modified by managers to enhance GIC for sustainable healthcare performance. This action must be viewed in terms of the future timing of the impact while managers display strong conviction for sustainability commitment. Managers will find GRC least associated with performance, but that GIC dimensions work best in unison.

Originality/value

The examination of GIC with GAC as moderated by environmental turbulence contributes nascent theoretical insights in sustainable healthcare.

Details

Journal of Intellectual Capital, vol. 24 no. 4
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 26 December 2023

José-María Sánchez-López, María Luz Martín-Peña, Eloísa Díaz-Garrido and Cristina García-Magro

Absorptive capacity, technological collaboration and servitization are analyzed to establish ways to overcome the balance between products and services in manufacturing companies…

Abstract

Purpose

Absorptive capacity, technological collaboration and servitization are analyzed to establish ways to overcome the balance between products and services in manufacturing companies. A fresh perspective is introduced by presenting a framework for innovation strategy, moving beyond product-based R&D.

Design/methodology/approach

The hypotheses are tested using data on Spanish firms in the high-tech chemical and pharmaceutical industries through ordinary least squares regression analysis. The sample consists of 112 manufacturing firms included in the Spanish Survey of Business Strategies.

Findings

The results show that absorptive capacity facilitates servitization and that technological collaboration moderates the relationship between absorptive capacity and servitization. The synergies between absorptive capacity and technological collaboration for servitization are recognized from the perspective of open innovation as a way of resolving the trade-off between products and services.

Research limitations/implications

Future research should introduce more sources of collaboration by broadening the value chain perspective. Other approaches to innovation may also be considered, including relationships to process innovation.

Practical implications

The results can provide meaningful guidance for companies to determine the key opportunities of servitization driven by absorptive capacity, and the best ways to leverage open innovation and collaboration strategies to exploit such approaches.

Originality/value

This research enriches theories on servitization, open innovation and innovative behavior. Open innovation strategy should be linked to greater servitization activity and should support an open service strategy. This approach is crucial for building innovation capabilities through technological collaboration.

Details

Journal of Manufacturing Technology Management, vol. 35 no. 2
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 15 March 2023

Cristina I. Fernandes, Mathew (Mat) Hughes, João Ferreira and Pedro Mota Veiga

Microfoundations have received increasing attention in several management disciplines. This study aims to outline the uniqueness of microfoundations research in innovation, look…

Abstract

Purpose

Microfoundations have received increasing attention in several management disciplines. This study aims to outline the uniqueness of microfoundations research in innovation, look at where it comes from and where it is going and provide rich opportunities for future work.

Design/methodology/approach

To advance research in this area, this study conducted a systematic literature review combining mixed methods and creating a mapping framework to take stock of progress in the innovation microfoundations research field.

Findings

This study shows how distinct subfields have formed around key ideas expressed in subsets of seminal articles, shedding light on the relational nature of knowledge creation – uncovering these subfields’ characteristics, evolution and future trajectories.

Originality/value

This study develops a framework that reflects a critical analysis of the microfoundations of innovation within dos three research levels – individual, process and interaction and structure – and highlights the research gaps and potential research questions for future research that reflect the broad spectrum of approaches in the microfoundations of innovation literature.

Details

European Business Review, vol. 35 no. 3
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 17 May 2023

Mercy Asaa Asiedu, Hod Anyigba and Jesse Kwaku Doe

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…

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.

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.

Details

The Learning Organization, vol. 30 no. 4
Type: Research Article
ISSN: 0969-6474

Keywords

Article
Publication date: 7 April 2023

Mohammed Awad Alshahrani and Mohammad Asif Salam

The purpose of this paper is to investigate the relationship between entrepreneurial orientation (EO) and firm performance (FP) through the mediating role of absorptive capacity…

Abstract

Purpose

The purpose of this paper is to investigate the relationship between entrepreneurial orientation (EO) and firm performance (FP) through the mediating role of absorptive capacity (AC) in small and medium enterprises (SMEs) in the Kingdom of Saudi Arabia (KSA) as an emerging economy.

Design/methodology/approach

This paper used a quantitative research design. Data was collected using a self-administered online questionnaire. The study was based on 366 samples from Saudi Arabian workers at SMEs. Statistical analysis was carried out using SPSS/AMOS 26.

Findings

The paper provides empirical insights. It suggests the positively mediating role of AC in the relationship between EO and FP. The authors found a full positive mediating role of AC in the relationship between EO and FP in SMEs in the KSA.

Research limitations/implications

The study empirically confirms the role of EO through AC in enhancing a firm’s performance. Additionally, the research findings support SME owners and managers in increasing their firms’ performance by implementing AC dimensions (assimilation and acquisition) with existing entrepreneurial characteristics to boost and increase business and performance. Regardless of the implications, this paper has some limitations. For instance, this study was conducted only on SMEs in Saudi Arabia. Therefore, future researchers are encouraged to extend the study to other organization sizes or to extend the study to other industries.

Originality/value

This study contributes to the literature by demonstrating the importance of AC’s mediating role in EO’s impact on FP, extending the previous studies in the area. Moreover, this research investigates the study themes in a relatively new context, specifically SMEs in the KSA.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 26 no. 1
Type: Research Article
ISSN: 1471-5201

Keywords

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