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This paper examines the role of acquirers’ prior related knowledge in the post-acquisition integration process. The purpose of this paper is to identify what constitutes the key prior related knowledge that can contribute to the reverse knowledge transfer following Chinese firms’ outward mergers and acquisitions (M&As) to Europe, and explain how prior related knowledge affects such transfer of knowledge.

The authors employ a multiple case study approach. Semi-structured interviews were conducted from February 2012 to June 2013 with 24 managers.

The authors find that, in addition to knowledge about the target, prior international business experience, R&D capability, and industrial capabilities are key components of acquirers’ prior related knowledge that can contribute to the success of M&A integration and post-acquisition reverse knowledge transfer. Indeed, Chinese acquirers’ prior related knowledge can influence the reverse knowledge transfer from acquired firms to acquirers by directly improving acquirers’ absorptive capacity and building a harmonious organisational climate to facilitate such transfer.

This paper contributes to the absorptive capacity and the cross-border M&A literature. It extends the current knowledge on the key components of an acquirer’s prior related knowledge in the outward M&A by Chinese firms. It also uncovers how post-acquisition reverse knowledge transfer is affected by acquirers’ prior related knowledge.

Entrepreneurs approach the startup process with a stock of experience and a unique range of accumulated skills and abilities. Their prior experience shapes an “information funnel” through which the entrepreneurs’ attention is filtered. This study aims to investigate the impact of the relatedness of prior knowledge and knowledge acquisition activities on entrepreneurs’ perceived knowledge access.

Survey data were collected from 100 early-stage entrepreneurs in the New York City metropolitan area to empirically test the proposed relationships with the method of conditional process modeling.

Findings from this study demonstrate a negative relationship between entrepreneurs’ prior experience and their perceived ability to access knowledge. However, this negative relationship can be mitigated by seeking tacit knowledge through informal channels. In addition, the relatedness of prior experience plays a positive role in influencing media use and knowledge network engagement. While media use is a positive predictor of perceived knowledge access, engagement within knowledge networks shows no direct influence on perceived knowledge access.

This study sheds light on the dimensions of entrepreneurial knowledge and recognizes perceived knowledge access as an important concept in forming an entrepreneurial intention and adds to the current dialogue on the interpretation of entrepreneurs’ prior experience. For practitioners, this study offers insights into the formation of founding teams and the approaches to obtaining valuable information.

The purpose of this paper is to adopt two different perspectives of an organization’s absorptive capacity, namely, the asset perspective and the capability perspective, to examine its impact on enterprise resource planning (ERP) assimilation. While prior IT knowledge represents the asset perspective, organization’s combinative capabilities – formalization, cross-functional interfaces and connectedness – represent the capability perspective of absorptive capacity.

The study develops a hypotheses-based theory of absorptive capacity. Data for hypotheses testing are collected from Indian organizations using a cross-sectional survey method. Partial least-squares technique is used to test the proposed hypotheses.

The results reaffirm earlier work showing the importance of connectedness and cross-functional interfaces in ERP assimilation; other two factors (prior IT knowledge and formalization) were not found to be positively related to ERP assimilation. To obtain more insights regarding the latter unexpected results, the study checked the interaction effect of the nature of company ownership (private or state-owned). The results pointed to the existence of a negative relationship between prior IT knowledge and ERP assimilation particularly in the case of private organizations compared to state-owned organizations.

Previous studies on ERP have predominantly examined the influence of absorptive capacity on ERP implementation outcomes at the user level. The present study focuses on absorptive capacity at the organizational level using two perspectives. By utilizing two perspectives on absorptive capacity, namely, the asset perspective and the capabilities perspective, it illustrates how different aspects of absorptive capacity can be brought to light while studying its impacts.

This paper aims to explore differences in tacit knowledge at opportunity recognition reported by founders of new technology ventures. The paper seeks to shed light on the types of tacit knowledge related to achieving sales within the first year of new technology ventures.

A survey was administered to 145 technology venture founders during structured interviews across 13 university‐affiliated technology incubators. To investigate tacit knowledge a framework was used comprised of ways to serve markets, customer problems, markets, and technology. The results were analyzed using t‐tests and logistic regression while controlling for founder's years of work experience. A configuration analysis is presented revealing the patterns of knowledge related to sales in the first year of new ventures.

The study provides an understanding of how types of tacit knowledge relate to early sales outcomes in the high technology context. Prior hands‐on experiences with development of products or services as well as prior experiences within markets were found vital to achieving first‐year sales for newly created innovations. On the other hand, tacit knowledge of customer problems and technology is, surprisingly, of less importance.

The findings provide insights as to the particular hands on experiences important in achieving desirable venture outcomes. By identifying and developing tacit knowledge in particular areas (prior hands‐on development experience and prior experience within markets) future entrepreneurs may develop an early sales advantage. The results demonstrate how configurations of tacit knowledge link to desired outcomes while highlighting the importance of certain knowledge at the opportunity recognition stage of new product development.

Generation of early sales for new technology ventures is a momentous concern for enterprise development. The ability to identify specific types of knowledge that link to initial sales enables educators and entrepreneurs alike.

The paper develops further a theoretical conceptualization of types of knowledge related to recognizing opportunities. The study contributes to the literature by assessing how patterns of tacit knowledge at opportunity recognition relate to achieving early sales in the context of technology entrepreneurship.

In order to answer why and how some individuals identify opportunities, the purpose of this paper is to offer a comprehensive framework of key effective factors that investigates the role of prior knowledge and cognitive characteristics of entrepreneurial alertness and learning in the entrepreneurial opportunities recognition process.

First, the authors identified key effective factors and developed research hypotheses and conceptual model. Second, the authors considered research methodology including sampling and data collection, measurement model. The third section presents a report of the results from the analysis of the structural model and the hypotheses tests.

The findings show that all the three factors had positive impact on opportunity recognition. It is also confirmed that prior knowledge has significant impact on entrepreneurial alertness and learning. Finally, the results demonstrate that both entrepreneurial alertness and learning partially mediated the relationship between prior knowledge and opportunity recognition.

Possible effects of other cognitive characteristics such as creativity and innovation can be considered in the model to increase accuracy of the findings. Also, comparative studies with the proposed framework in different industrial domains can be conducted in order to compare the possible differences concerning the role of the factors in opportunity recognition.

By using this model, entrepreneurs will be able to identify and enhance the factors that influence opportunity recognition, thus honing this entrepreneurial ability. Also, this framework can be employed in the field of education to identify opportunity recognition problems in individuals and to foster entrepreneurs.

This paper presents a new integrated model that would examine the impact of key effective factors of entrepreneurial opportunity recognition simultaneously while taking into account the interactions among them.

This paper aims to draw on a knowledge-based view to emphasize that internal technological and market knowledge is critical to developing absorptive capacity.

This is a conceptual paper, which draws on recent transformations of management practices. Thus, the paper builds on prior academic contributions.

Firms increasingly establish innovation processes that involve an active acquisition of external technologies, often through alliances and licensing. To explain differences across firms in external knowledge acquisition, marketing and product innovation researchers have recently adopted a process perspective of absorptive capacity, which refers to a firm’s ability to explore, retain and exploit external knowledge. This paper develops a conceptual framework with propositions relating technology orientation, responsive market orientation and proactive market orientation to the three process stages of absorptive capacity under different conditions of environmental dynamism.

Beyond the relevance of technology and market orientation for fostering internal innovation, this paper points to their importance for successfully acquiring external technological knowledge. In light of increasingly open innovation processes, absorptive capacity is an essential complement to internal innovation in linking technology and market orientation to firm performance.

This paper aims to test the influence of external information search (EIS) on knowledge elaboration and group cognitive complexity (GCC) under the moderating effect of absorptive capacity (AC is indicated by prior knowledge base and gender diversity).

The results of three studies (one field study and two experimental studies) are reported. The first study tests the interaction between EIS and the two dimensions of AC on group knowledge elaboration in a sample of 65 organizational groups. In the second study, EIS was directly manipulated and the interaction with AC in a sample of 65 groups was tested. In the last experimental study, the AC of the boundary spanner (highest level of expertise versus lowest level of expertise) was manipulated and the effects of EIS in a sample of 37 groups were tested.

The first study reveals a significant interaction between EIS and prior knowledge base on knowledge elaboration and points toward a compensatory interplay of EIS and AC on GCC. The results of the second study indicate that EIS increases the time spent on task, as well as the efficiency of knowledge integration (GCC per unit of time). Furthermore, EIS has the strongest positive effect on GCC in groups in which at least one of the AC dimensions is average or high. The results of the last study show that the AC of the boundary spanner compensates for the lack of absorptive capacity of the group and also show that the cognitive distance between the boundary spanner and the rest of the group has a negative influence on the efficiency of knowledge integration in groups.

The limitations of Study 1, common to non-experimental research (related to causality), are dealt with in the second and third studies that establish causality between EIS and GCC.

The paper has important implications for the management of information search effort in organizational groups, in particular the groups are advised to: engage in EIS to increase their cognitive repertoire and cognitive complexity, delegate, when possible, their most competent members to engage in boundary spanning activities as they will maximize the cognitive benefits of EIS and finally minimize the cognitive dissimilarity between the boundary spanner and the rest of the group to facilitate the effective integration of novel insights into the group cognition.

This study is among the first empirical attempts to uncover the causal effect of EIS on knowledge elaboration and GCC in groups and to uncover the role of the boundary spanner in the EIS efforts.

This chapter investigates the antecedents to the development of the three components of subsidiaries’ absorptive capacity (ACAP): recognition, assimilation and application of transferred knowledge in the context of the vertical flow of social and environmental accounting and reporting (SEAR) knowledge from the HQ to acquired subsidiaries. Our analysis is based on an embedded multiple case study of a UK-based MNC, informed by 44 semi-structured interviews and capitalising on agency theory and socialisation theory. Prior knowledge is not a sufficient explanation to the development of ACAP but it is also dependent on organisational mechanisms that will trigger the learning processes. Depending on the nature and degree of the social, control and integration mechanisms, the effects of prior stocks of knowledge on ACAP may vary. Our propositions only hold for one direction of knowledge transfer. The study is based on an embedded multiple case study in one sector which restricts its generalisation. It excludes the specific relationships between the three ACAP learning processes and the existence of feedback loops. Our findings suggest that the HQ’s mix of social, control and integration mechanisms should account for initial stocks of SEAR knowledge. The contribution lies in uncovering the interaction between heterogeneous levels of prior knowledge and organisational mechanisms deployed by the HQ fostering ACAP. We address emerging issues regarding the reification of the ACAP concept and highlight the potential of agency theory for informing studies on HQ-subsidiary relations.

This chapter examines the factors that may influence the total value created in a joint venture (JV) and also the relative value appropriated by each partner in the venture. We look at the effects of both partners’ embeddedness in prior networks of relationships and the asymmetry of business relatedness of two partners with the JV on these two important outcomes. Results of an event study of stock market reaction to JV announcements by the largest U.S. firms during 1987–1996 suggest that both network embeddedness of partners and the asymmetry of business relatedness of two firms with the JV affect the total value creation of all partners but not the relative value appropriation between the partners.

Although previous research acknowledges that the process of entrepreneurship is also a regional and a peripheral activity, empirical evidence concerning the personal and contextual factors affecting business start‐ups due to the identification of opportunities in rural contexts is limited. The purpose of the present research is to verify whether prior entrepreneurship theories conducted in urban contexts are useful for predicting entrepreneurial activities in rural contexts.

A short, self‐report questionnaire was administered to a random sample of 81 business owners located at a small town in southern Crete, Greece. Bayesian confirmatory factor analysis and logistic regression analysis were the main analytical tools used.

Results suggest that entrepreneurs' personality, prior knowledge, expectation of future social status, and level of education are significant predictors of opportunity entrepreneurship.

The reported research relied on self‐reports and on a sample from the Greek public sector. Moreover, data are cross‐sectional. Future research should be multinational and longitudinal to test the assumptions of the present study.

The present study provides evidence about the utility of existing opportunity entrepreneurship theories in rural contexts. Results could be of value to policy makers focusing on the development of small businesses and entrepreneurship and the promotion of entrepreneurial and innovative capabilities in rural contexts.