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1 – 10 of 407
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: 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…

1698

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

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…

1152

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: 23 August 2022

Brou Ettien Fulgence, Xuhua Hu, Otu Larbi-Siaw, Siele Jean Tuo and Franck Edouard Gnahe

This study builds on knowledge-based view (KBV) research and the natural resource-based view of the firm (NRBV) to examine the effect of knowledge absorptive capacity on…

Abstract

Purpose

This study builds on knowledge-based view (KBV) research and the natural resource-based view of the firm (NRBV) to examine the effect of knowledge absorptive capacity on innovative performance. It also investigates the mediating role of three dimensions of the cluster environment: degree of network, institutional environment and access to factors of production.

Design/methodology/approach

By means of partial least squares-based structural equation modelling method, the study validated and analysed the responses of 503 owners and managers of small and medium-sized enterprises (SMEs) in the wood industrial cluster of Cote d'Ivoire, a developing economy.

Findings

The analysis and results reveal that knowledge absorptive capacity strongly predicts cluster environment and innovation performance. Moreover, the cluster environment emerged as a powerful determinant of innovation performance and a mediator of the effect of knowledge absorptive capacity on innovation performance. Unequivocally, institutional support has no significant impact on knowledge absorptive capacity (KAC) and innovative performance mediation relationship and is not a key determinant of innovative performance.

Originality/value

This study offers a key departure from past studies by linking knowledge absorptive capacity to innovative performance and the cluster environment in SMEs. It also extends knowledge concerning the role of KBV, NRBV and relational theory in innovation performance.

Details

Kybernetes, vol. 52 no. 12
Type: Research Article
ISSN: 0368-492X

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: 1 November 2022

Ruslan Prijadi, Adhi Setyo Santoso, Tengku Ezni Balqiah, Hongjoo Jung, Putri Mega Desiana and Permata Wulandari

This research investigates the nature of regulatory-focused effectuation (as the basis of entrepreneurial behavior) in absorptive capacity development for open innovation…

Abstract

Purpose

This research investigates the nature of regulatory-focused effectuation (as the basis of entrepreneurial behavior) in absorptive capacity development for open innovation implementation, the role of crowds or communities management practices in the effectuation-based open innovation process, and open innovation performance as the output of the open innovation process in digital multi-sided platform (MSP) startups context.

Design/methodology/approach

In order to verify the hypothesis, the researcher conducts a quantitative study that is based on a self-administered questionnaire and employs the PLS-SEM approach. The sample comprises of 70 Indonesian digital MSP businesses that have been operational for at least three years and have used open innovation approaches with their audiences, communities or complementors.

Findings

The research findings imply that there is a connection between promotion-focused effectuation and the open innovation process. This connection is particularly strong when it comes to the incorporation of absorptive capacity and crowds or communities management practices. On the other hand, prevention-focused effectuation shows insignificant effect toward open innovation process in digital MSP startups context.

Research limitations/implications

The research findings imply that with limited resources and experiences, young entrepreneurs can still implement open innovation strategy for their digital MSP platform through effectuation principles that leverage the external resources from digital platform ecosystem members.

Practical implications

In digital MSP startups context that perform promotion-based effectuation principles, innovation performance can be achieved by analyzing new insight, transforming the existing activities with the new insight, creating new offering afterward, as well as strengthening crowds or communities management practices through co-creation activities with platform ecosystem members that may lead into new business model.

Originality/value

The originality of this work is to make a contribution to the literature on strategic entrepreneurship by describing the phenomena of the paradox of resource-based theory; adopting open innovation strategy under constrained initial resources and capabilities scenario.

Article
Publication date: 29 September 2022

Junying Liu, Zhixiu Wang, Jiansheng Tang and Jingcong Song

While there is a general belief that a defective institutional environment will lead to higher compliance risk, the current state of knowledge about how the institutional…

Abstract

Purpose

While there is a general belief that a defective institutional environment will lead to higher compliance risk, the current state of knowledge about how the institutional environment affects enterprises' compliance is equivocal. This study aims to explore how does the host country's institutional environment affect the compliance risk perception of international engineering contractors and how to mitigate this impact.

Design/methodology/approach

This study empirically tests the impact of the institutional environment from the two dimensions of the institutional environment: legal completeness reflects whether the formal regulations are clear, detailed and comprehensive and legal effectiveness reflects whether rules and policies can be implemented effectively when the proper legal codes are provided. Based on 213 questionnaire data, this study uses partial least squares structural equation model (PLS-SEM) and Smart PLS software to test the hypothesis.

Findings

This study finds a negative relationship between the host country's legal completeness (LC) or legal effectiveness (LE) and a contractor's compliance risk perception. Further, the results show potential absorptive capacity (PAC) and realized absorptive capacity (RAC) of a contractor are critical for mitigating the impact of low LC in the host country, but not when LE is low.

Practical implications

The findings will be useful for international engineering contractors to respond to the compliance risk of the host country, both in choices of overseas investment locations and compliance capacity building.

Originality/value

This study reveals the impact of the host country's institutional environment on the compliance risk perception of international contractors, and provides theoretical guidance for how to alleviate the compliance barriers brought by the host country's institutional environment to international engineering contractors.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 2
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 7 June 2022

Stephanie Tonn Goulart Moura, Christian Falaster and Bernardo Silva-Rêgo

Cultural distance can be a challenge for internationalization. However, in some instances, it is possible that different cultures could represent a benefit for multinational…

Abstract

Purpose

Cultural distance can be a challenge for internationalization. However, in some instances, it is possible that different cultures could represent a benefit for multinational enterprises (MNEs) from emerging contexts. Drawing on the knowledge-based view (KBV), the authors propose that greater cultural distances lead to benefits for multinationals seeking to absorb new knowledge overseas.

Design/methodology/approach

The authors performed ordinary least squares regressions with moderation tests over a database containing 101 cross-border acquisitions to test the study’s hypotheses. The acquisitions were performed by Brazilian firms between 1995 and 2015, targeting 24 host countries.

Findings

The study’s results indicate that cultural distance positively affects the firm's post-acquisition performance and that absorptive capacity moderates these results, improving the positive effect. The study suggests that cultural diversity is an asset for the multinationals in question.

Practical implications

When deciding to invest in a foreign country, managers should consider this cultural diversity as one more value creation driver, especially if the firm has well-developed innovation capabilities.

Originality/value

The study’s findings contribute to the international business literature providing further evidence that emerging markets multinationals can create value in acquisitions through the firm's abilities to exploit cultural asymmetries. Thus, the authors also emphasize that absorptive capacity plays a strategic role in multinational's international strategies.

Details

International Journal of Emerging Markets, vol. 18 no. 12
Type: Research Article
ISSN: 1746-8809

Keywords

1 – 10 of 407