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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: 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

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…

1676

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: 18 October 2023

Zhenkuo Ding, Meijuan Li, Xiaoying Yang and Wanjun Xiao

The purpose of this paper is to investigate how absorptive capacity mediates the relationship between ambidextrous organizational learning and performance among small and…

Abstract

Purpose

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).

Design/methodology/approach

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.

Findings

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.

Practical implications

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.

Originality/value

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.

Details

Management Decision, vol. 61 no. 11
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 24 August 2023

Makhmoor Bashir and Sudeepta Pradhan

This paper aims to explore the importance of knowledge-oriented leadership in the context of business model innovation (BMI) and open innovation. This study also seeks to explore…

Abstract

Purpose

This paper aims to explore the importance of knowledge-oriented leadership in the context of business model innovation (BMI) and open innovation. This study also seeks to explore the existence of a mediating effect of absorptive capacity.

Design/methodology/approach

Data were collected using a survey, from the information technology industry in India. The relationships proposed in the conceptual framework were tested with structural equation modeling (SEM) using Smart partial least squares (PLS) 3.

Findings

The findings highlight a positive influence of knowledge-oriented leadership on BMI and open innovation. Results also revealed that open innovation can facilitate BMI. Additionally, findings highlighted the mediating role of absorptive capacity in these relationships.

Practical implications

This study suggests that businesses should employ and value leaders who can create, transform, store and use knowledge resources. Companies that employ such leaders encourage the creation and exchange of new knowledge, which consequently would lead to the successful exploration of innovative approaches. A culture of open innovation would help managers break down barriers, overcome inertia and continuously test new business models to generate revenues, increase value, enhance organizational effectiveness and ultimately gain competitive advantage.

Originality/value

This study is one of the first to empirically contribute to the role of knowledge-oriented leadership and BMI from the perspective of open innovation.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 25 May 2023

Sawasn Al-Husseini

Drawing on the knowledge-based view and social exchange theory, this study aims to examine how top management support relates both directly and indirectly to employee creativity…

Abstract

Purpose

Drawing on the knowledge-based view and social exchange theory, this study aims to examine how top management support relates both directly and indirectly to employee creativity through knowledge management processes (acquisition and sharing) and absorptive capacity.

Design/methodology/approach

Data were collected from 284 academics and researchers working in research centres in Iraq’s public universities to assess their perceptions of management support, knowledge management, absorptive capacity and creativity.

Findings

Performing structural equation modelling with AMOS, positive relationships were identified between top management support, knowledge management processes, absorptive capacity and employee creativity. The study findings emphasise the pivotal role of top management support in creating an environment that fosters knowledge acquisition and sharing, and enhancing absorptive capacity, in turn, amplifying employee creativity. Empirical evidence confirming the salient role of knowledge management and absorptive capacity in strengthening employee creativity in the context of Iraqi academia and researchers is presented.

Originality/value

The study shows that knowledge management processes and absorptive capacity mediate the influence of top management support on employee creativity. The premise of absorptive capacity is the individual’s ability to identify, accumulate and assimilate relevant knowledge from external sources and commercialise the gained knowledge.

Details

International Journal of Innovation Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-2223

Keywords

Open Access
Article
Publication date: 22 November 2022

Sergio David Cuéllar, Maria Teresa Fernandez-Bajón and Felix de Moya-Anegón

This study aimed to examine the similarities and differences between the ability to analyze the environment and exploit new knowledge (absorptive capacity) and the skills to…

1147

Abstract

Purpose

This study aimed to examine the similarities and differences between the ability to analyze the environment and exploit new knowledge (absorptive capacity) and the skills to generate value from innovation (appropriation). These fields have similar origins and are sometimes confused by practitioners and academics.

Design/methodology/approach

A review was conducted based on a full-text analysis of 681 and 431 papers on appropriation and absorptive capacity, respectively, from Scopus, Science Direct and Lens, using methodologies such as text mining, backward citation analysis, modularity clustering and latent Dirichlet allocation analysis.

Findings

In business disciplines, the fields are considered different; however, in other disciplines, it was found that some authors defined them quite similarly. The citation analysis results showed that appropriation was more relevant to absorptive capacity, or vice versa. From the dimension perspective, it was found that although appropriation was considered a relevant element for absorptive capacity, the last models did not include it. Finally, it was found that studies on both topics identified the importance of appropriation and absorptive capacity for innovation performance, knowledge management and technology transfer.

Originality/value

This is one of the first studies to examine in-depth the relationship between appropriation and absorptive capacity, bridging a gap in both fields.

Details

Benchmarking: An International Journal, vol. 31 no. 1
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 26 July 2022

Chia-Yang Chang, Kuen-Hung Tsai and Billy Sung

This paper examines the effect of market knowledge on market success of product innovativeness and the moderating role of absorptive capacity. We separated market knowledge into…

Abstract

Purpose

This paper examines the effect of market knowledge on market success of product innovativeness and the moderating role of absorptive capacity. We separated market knowledge into market diversity and market significance components and examined their effects on radical product innovation performance.

Design/methodology/approach

This paper adopted the secondary database study. Excluding cases with missing values of main variables, a total of 1,219 Taiwanese manufacturing firms from the Third Taiwan Technology Innovation Survey (TTIS3) database were used to test the hypotheses. A moderated hierarchical regression approach was utilized to analyze the data.

Findings

The results revealed that the relationship between market diversity and radical product innovation performance is a predominantly positive concave downward curve. In contrast, the relationship between market significance and radical product innovation performance is a predominantly negative concave downward curve. Furthermore, the results also indicated that absorptive capacity has different moderating effects on the relationships between market diversity/significance and radical product innovation performance. Absorptive capacity enhances the negative effect of market significance but suppresses the positive effect of market diversity on radical product innovation performance.

Originality/value

This paper is the first research which contributes to examining the relationship between market knowledge and radical product innovation sale performance.

Details

European Journal of Innovation Management, vol. 27 no. 2
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 29 November 2022

Ronaldo Gomes Dultra-de-Lima and Luiz Artur Ledur Brito

The absorptive capacity (AC) leads to firm performance and influences the development and evolution of capabilities and routines, but the influence of AC in projects remains…

Abstract

Purpose

The absorptive capacity (AC) leads to firm performance and influences the development and evolution of capabilities and routines, but the influence of AC in projects remains unclear. Therefore, this study aims to investigate the effect of AC on project performance (PP) in the construction industry of Sao Paulo State, Brazil.

Design/methodology/approach

The authors conducted a survey questionnaire with project managers and collected 157 responses in the construction sector. They also used confirmatory factor analysis (CFA) and multiple linear regression techniques to assess the data.

Findings

The study provides empirical evidence that realized absorptive capacity (RAC) has a direct and indirect positive effect on PP. Conversely, the potential absorptive capacity (PAC) only indirectly impacts PP through project management practices (PMPs). PAC and RAC positively influence PMPs that in turn positively influence PP. The findings reinforce the relevance of AC to the development of internal knowledge for processes and routines, thereby enhancing PP.

Practical implications

The findings provide practical implications: the AC influences PP by refining and adapting routines. Moreover, the consistent application of accepted practices is not enough for PP, but the ability to adapt, adjust and transform the relevant knowledge into routines.

Originality/value

This paper provides empirical evidence that the knowledge application of PMPs improves organizational performance through PP. However, despite what the literature has discussed, this paper proved that AC has no effect as a moderating factor between PMPs and performance; however, AC's role significantly impacts PP through PMPs.

Details

International Journal of Managing Projects in Business, vol. 16 no. 3
Type: Research Article
ISSN: 1753-8378

Keywords

1 – 10 of 761