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Article
Publication date: 30 August 2019

Chulatep Senivongse, Alex Bennet and Stefania Mariano

The purpose of this study is to investigate absorptive capacity and dynamic capabilities dilemma in high dynamic market IT small medium enterprises (SMEs). Absorptive capacity and…

Abstract

Purpose

The purpose of this study is to investigate absorptive capacity and dynamic capabilities dilemma in high dynamic market IT small medium enterprises (SMEs). Absorptive capacity and dynamic capabilities have a conflict in theoretical stance. Those in favor of dynamic capabilities regard absorptive capacity as a part of dynamic capabilities, and there are many arguments regarding treating absorptive capacity as a part of dynamic capabilities. One major deficit of dynamic capabilities is that it requires adjusting the firm’s dynamic resources when responding to change, requiring some investment and time. Thus, dynamic capabilities then have a problem in instantaneously responding to a highly dynamic market. With the requirement to adjust organizational resources, absorptive capacity, as a part of dynamic capabilities, cannot have direct impact on a firm’s performance.

Design/methodology/approach

To show that absorptive capacity, by itself, can have a direct impact on a firm’s performance in a highly dynamic market, quantifiable variables are identified to measure the level of effort in developing absorptive capacity. The relationships between the absorptive capacity development effort and the firm’s financial performance is then explored and evaluated.

Findings

It is confirmed that absorptive capacity in a high dynamic market such as IT SMEs have direct and positive impact to the firm’s financial performance, without having to configure its resource to interact with changes.

Originality/value

The study discusses the paradoxical dilemma of the role of absorptive capacity under the light of dynamic capability. The finding indicates that in high dynamic market when the spontaneous respond to market change is crucial to firm's survival, absorptive capacity can direly deliver the result to leverage the firm's performance without having to reconfigure its resources as indicated in the theoretical stance of dynamic capability.

Details

VINE Journal of Information and Knowledge Management Systems, vol. 49 no. 3
Type: Research Article
ISSN: 2059-5891

Keywords

Article
Publication date: 19 December 2023

Lahcene Makhloufi

This study is the first to examine how big data analytics (BDA) capabilities affect green absorptive capacity (GAC) and green entrepreneurship orientation (GEO). It uses the…

Abstract

Purpose

This study is the first to examine how big data analytics (BDA) capabilities affect green absorptive capacity (GAC) and green entrepreneurship orientation (GEO). It uses the dynamic capability view, BDA and knowledge-sharing literature. There is a lack of studies addressing the BDA–GAC and BDA–GEO relationships and their potential impact on green innovation. Continuing the ongoing research discussion, a few studies examined the vital implications of knowledge sharing (KS) on GAC, GEO and green innovation.

Design/methodology/approach

The study used a cross-sectional and stratified random sampling technique to collect data through self-administered surveys among Chinese manufacturing firm employees. The study applied SmartPLS to analyze the obtained data.

Findings

The findings revealed that BDA capabilities positively influence GAC and GEO. In addition, GEO and KS positively impact green innovation. The KS recorded a positive impact on GAC and GEO. Furthermore, GAC and GEO recorded a partial mediating effect.

Practical implications

The study acknowledges that GAC is the backbone of a firm green entrepreneurial orientation, which needs to be aligned with BDA capabilities to anticipate future green business trends. GAC's help drives GEO's green business agenda. KS plays a strategic role in developing GAC, fostering GEO and improving green innovation.

Originality/value

The study highlights the necessity of aligning BDA capabilities to fit firms' GEO green business agendas. This study focuses on the role of BDA capabilities in developing firms' green dynamics capabilities (e.g. GAC), which helps GEO drive superior green business growth. KS develops GAC and boosts GEO to enhance green innovation.

Open Access
Article
Publication date: 21 September 2021

Eduardo Márcio Santos Galdino da Silva, Alessandra Ferrari Weber, Marina Figueiredo Moreira and Severino Moreira da Silva

The purpose of this article is to investigate the interrelationships between innovation climate and human capital in the development of dynamic capabilities related to innovation…

1424

Abstract

Purpose

The purpose of this article is to investigate the interrelationships between innovation climate and human capital in the development of dynamic capabilities related to innovation. The study presents a set of concepts about variables involved in the innovation process and their interrelationship, addressing the analysis of international scientific production related to the antecedents of the innovation climate, human capital and dynamic capabilities.

Design/methodology/approach

A review of the literature from 1998 to 2018 was carried out, using descriptive statistical methods, at first, and qualitative analysis of the results in order to visualize the current configuration of the field of study of innovation background.

Findings

The results demonstrate a significant number of studies relating human capital and dynamic capabilities and little quantitative significance in studies relating to a climate of innovation and dynamic capabilities. The research describes how the dynamic capabilities of innovation have been approached in a conceptual model based on the perspective of human capital and innovation climate.

Research limitations/implications

The study did not contemplate the analysis of the interrelationship between the resource configuration construct and the dynamic innovation capacities (part of the gap pointed out by Tuzovic, Wirtz and Heracleous (2018), constituting a perceptible limitation of the analyzes carried out in this article.

Practical implications

The influence of the innovation climate construct and its relationship with dynamic innovation capabilities deserves greater attention in research with an empirical approach, constituting a field to be explored by scientific research in organizations.

Originality/value

The research sought to investigate the gap involving the interrelations between innovation climate and human capital in the development of dynamic capabilities related to innovation, indicating the need for further empirical studies on the subject.

Details

Innovation & Management Review, vol. 19 no. 4
Type: Research Article
ISSN: 2515-8961

Keywords

Article
Publication date: 8 June 2021

Kumar Verma Bhupendra and Shirish Sangle

The paper aims to explore the attributes and systemic characteristics of absorptive capacity in sustainability oriented firms in India. Such understanding shall pave a way to…

Abstract

Purpose

The paper aims to explore the attributes and systemic characteristics of absorptive capacity in sustainability oriented firms in India. Such understanding shall pave a way to integrate knowledge about societal stakeholders with technological and market knowledge. The study may help other firms to benchmark their business process considering sustainability aspects to integrate a broader set of stakeholders in decision making.

Design/methodology/approach

A questionnaire-based survey was conducted to gather responses from 689 managers of 60 firms belonging to various industry sectors. Absorptive capacity of firms based on result of factorial analysis, variances explained by factors and rank of attributes is presented.

Findings

The study provides a glimpse of variability in steps taken by firms to remain competitive in current and future markets. This study highlights the importance of benefits sharing among alliance partners, knowledge-management processes, social integration for tacit knowledge and exploration of new knowledge sources. Surveyed firms require improvements in employee's skill set up-gradation, exploitation of knowledge spread across different departments and suitable training systems to promote knowledge sharing behaviour.

Research limitations/implications

The sample of study covers respondents mainly from Health, Safety and Environment/Sustainability/Clean Development Mechanism departments so leading to certain biasness in their perception.

Practical implications

The study may lead organizations to transform business processes to integrate stakeholder's concerns and expectations.

Social implications

The study may help organisations to develop important attributes of absorptive capacity for effective integration of stakeholders considering sustainability challenges.

Originality/value

This research article enhances understanding on common aspects of absorptive capacity, dynamic capability and sustainability strategies.

Article
Publication date: 12 January 2022

Kumar Verma Bhupendra and Shirish Sangle

This paper aims to present empirical test to analyse a structural process model based on the constructs of absorptive capacity considering sustainability aspects. It integrates…

Abstract

Purpose

This paper aims to present empirical test to analyse a structural process model based on the constructs of absorptive capacity considering sustainability aspects. It integrates dynamic capability perspective to strengthen the existing literature. Findings of the study may help organisations to renovate business processes related to absorptive capacity and improve decision-making considering sustainability attributes.

Design/methodology/approach

Sample for data analysis covers 389 managers of firms demonstrating some traits of sustainability orientation and operating in a developing economy like India. Structural equation modelling is applied to test a casual model.

Findings

Result of this study reveals that a formal system that drives knowledge sharing, storing and exploitation of knowledge, a structured way to appropriate and reward intellectual property rights can be fundamental to development of absorptive capacity. Such a system conducive to knowledge exploration and acquisition must lead to exploration of new knowledge sources and new knowledge. A firm’s knowledge acquisition system shall be able to deliver to acquire external as well as internal knowledge spread across departments.

Research limitations/implications

This study considers commercial output as an aspect of innovative capability, so this attribute is not included in absorptive capacity.

Practical implications

The study may help organisations to develop a systemic approach to evolve decision-making and develop suitable processes linked to absorptive capacity considering sustainability challenges and uncertain market conditions.

Social implications

The study presents a comprehensive view of absorptive capacity considering societal stakeholder’s knowledge in addition to technological and market knowledge.

Originality/value

There are hardly any research articles which link absorptive capacity, dynamic capability and sustainability strategies.

Article
Publication date: 14 May 2020

Marlon F.R. Alves and Simone V.R. Galina

The dynamic capability view reshaped the understanding of how firms can achieve a sustained competitive advantage through innovation. However, studies based on national innovation…

Abstract

Purpose

The dynamic capability view reshaped the understanding of how firms can achieve a sustained competitive advantage through innovation. However, studies based on national innovation surveys have not incorporated this vision when measuring absorptive capacity, especially the evolutionary aspects of dynamic capabilities. This study addresses this gap.

Design/methodology/approach

We empirically validate a scale using a national innovation survey based on the Oslo Manual standards. Using a five-wave survey, we demonstrate the scale's reliability, convergent and discriminant validity and stable structure across industries and over time.

Findings

This research integrates the dynamic capability literature with absorptive capacity measurement to propose and validate a multi-item and bidimensional scale for national innovation surveys.

Originality/value

We provide a measurement model that captures an evolutionary conceptualization of absorptive capacity as a dynamic capability. Hence, our contribution enhances the quality and validity of studies on absorptive capacity and advances the understanding of how firms develop and deploy absorptive capacity to drive performance.

Details

Management Decision, vol. 59 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 21 May 2021

Daniela Modolo, Priscila Rezende da Costa and Leonardo Vils

It should be highlighted that innovation is related to the absorption of knowledge, dynamicity and market orientation, with these elements seeking to aid efficiency, increasing…

Abstract

Purpose

It should be highlighted that innovation is related to the absorption of knowledge, dynamicity and market orientation, with these elements seeking to aid efficiency, increasing firms’ competitive advantage. This study aims to gauge the influence of absorptive capacity, dynamic capability and market orientation on new product performance in Brazilian technology-based firms.

Design/methodology/approach

The study was characterized as quantitative, using primary data from Brazilian technology-based firms, as they are dynamic contexts that stimulate the absorption and exchange of knowledge and other organizational resources. It should be highlighted that this study received funding from the National Council for Scientific and Technological Development. The research hypotheses were empirically tested, confirming the relationship between dynamic capability and absorptive capacity, market orientation and new product performance.

Findings

Regarding the empirical contribution of the research results, it could be argued that for the purpose of improving performance in innovation, reflected in new product performance, companies need to develop strategies that correspond to market demand. Furthermore, these empirical findings provide an integrating view of the constructs and identify the importance of companies anticipating and responding to the demands of their customers quickly so that they can enjoy better performance. Therefore, companies need to adjust their processes, resources and capabilities to obtain better results, and for this, the involvement of managers is fundamental because they are the only ones with the clout to stimulate such initiatives. This approach favors recognizing and valuing absorptive capacity and dynamic capabilities and helps to identify new constructs such as responsive and proactive market orientation, which need to be adequately developed by managers to create competitive advantages that stem from better new product performance.

Research limitations/implications

A limitation of the study is that it does not address a specific analysis of the sector in which the technology-based firms (TBFs) under study operate. No tests were conducted regarding whether it is possible to perceive different structural paths for absorptive capacity, market orientation, dynamic capability and new product performance according to the sector of the TBFs.

Practical implications

Regarding the empirical contribution of the research results, it could be argued that for the purpose of improving performance in innovation, reflected in new product performance, companies need to develop strategies that correspond to market demand. Furthermore, these empirical findings provide an integrating view of the constructs and identify the importance of companies anticipating and responding to the demands of their customers quickly so that they can enjoy better performance. Therefore, companies need to adjust their processes, resources and capabilities to obtain better results and, for this, the involvement of managers is fundamental because they are the only ones with the clout to stimulate such initiatives.

Social implications

One of the main contributions of the study is that it provides an empirical demonstration that on its own absorptive capacity cannot boost new product performance. For this purpose, it needs to be combined with dynamic capabilities. Through this proposed model, it was possible to characterize the antecedent relationship of absorptive capacity and illustrate its relationship with dynamic capabilities. Another relevant theoretical contribution is the statistical proof of the positive relationship of both proactive and responsive market orientation with dynamic capability, and that dynamic capability has a positive influence on new product performance, which will generate better financial performance of TBFs.

Originality/value

As a contribution to the field, it was empirically demonstrated that on its own absorptive capacity cannot improve new product performance. For this to occur, it must be combined with dynamic capabilities. Through the proposed model, it is possible to characterize the antecedent relationship of absorptive capacity and illustrate its relationship with dynamic capability.

Details

European Business Review, vol. 33 no. 5
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 9 March 2021

Sunu Widianto, Yetty Dwi Lestari, Beta Embriyono Adna, Badri Munir Sukoco and Mohammad Nasih

The aim of this study is to explore dynamic managerial capabilities (DMCs) and their effect on public organisational performance. While the previous research has focused on how…

1607

Abstract

Purpose

The aim of this study is to explore dynamic managerial capabilities (DMCs) and their effect on public organisational performance. While the previous research has focused on how leadership style impacts on organisational performance, the authors have investigated how the dynamic managerial capabilities of middle managers and their organisational capacity for change as well as their attitude towards the change are linked to organisational performance.

Design/methodology/approach

The dataset was gathered during the field research carried out in a large public Indonesian government institution. In total, 313 managers and their direct followers participated in this study. The authors have employed structural equation modelling to test the hypotheses.

Findings

The results of this study demonstrate the role of the dynamic capabilities of the middle managers associated with organisational performance. The results show that dynamic managerial capabilities and organisational performance are mediated by the organisational capacity for change.

Practical implications

Middle managers should equip and develop their capabilities in order to embrace change in the organisation through the communication between the different staff levels, uniting the vision and mission with the organisational members. Further, the organisation should empower the role of the middle managers by increasing their authority and participation in the policy-making that is part of the change process. In addition, the workplace could implement interventions to optimise the dynamic managerial capabilities held by the middle manager and employees through assessments and mentoring. Finally, particular training programmes could be implemented to boost the employees' skills and flexibility, thereby keeping them agile in the context of the changes in the work environment.

Originality/value

The role of the dynamic managerial capabilities of the middle manager is a prominent factor when facilitating a high level of organisational performance in a public organisation. However, the role of dynamic managerial capabilities does not have a direct effect on organisational performance if the organisation does not have the capacity to change, particularly in the Indonesian context.

Details

Journal of Organizational Effectiveness: People and Performance, vol. 8 no. 1
Type: Research Article
ISSN: 2051-6614

Keywords

Book part
Publication date: 20 October 2015

Mohammad Shamsuddoha

Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from unstructured…

Abstract

Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from unstructured supply chain practices, lack of awareness of the implications of the sustainability concept and failure to recycle poultry wastes. The current research thus attempts to develop an integrated supply chain model in the context of poultry industry in Bangladesh. The study considers both sustainability and supply chain issues in order to incorporate them in the poultry supply chain. By placing the forward and reverse supply chains in a single framework, existing problems can be resolved to gain economic, social and environmental benefits, which will be more sustainable than the present practices.

The theoretical underpinning of this research is ‘sustainability’ and the ‘supply chain processes’ in order to examine possible improvements in the poultry production process along with waste management. The research adopts the positivist paradigm and ‘design science’ methods with the support of system dynamics (SD) and the case study methods. Initially, a mental model is developed followed by the causal loop diagram based on in-depth interviews, focus group discussions and observation techniques. The causal model helps to understand the linkages between the associated variables for each issue. Finally, the causal loop diagram is transformed into a stock and flow (quantitative) model, which is a prerequisite for SD-based simulation modelling. A decision support system (DSS) is then developed to analyse the complex decision-making process along the supply chains.

The findings reveal that integration of the supply chain can bring economic, social and environmental sustainability along with a structured production process. It is also observed that the poultry industry can apply the model outcomes in the real-life practices with minor adjustments. This present research has both theoretical and practical implications. The proposed model’s unique characteristics in mitigating the existing problems are supported by the sustainability and supply chain theories. As for practical implications, the poultry industry in Bangladesh can follow the proposed supply chain structure (as par the research model) and test various policies via simulation prior to its application. Positive outcomes of the simulation study may provide enough confidence to implement the desired changes within the industry and their supply chain networks.

Details

Sustaining Competitive Advantage Via Business Intelligence, Knowledge Management, and System Dynamics
Type: Book
ISBN: 978-1-78560-707-3

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

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