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Article
Publication date: 19 July 2022

Yasmin Fayad and Raghda El Ebrashi

This paper studies the role of inter-firm supply chain social capital and intra-firm social capital in enabling Corporate Entrepreneurship (CE), and also investigates the…

Abstract

Purpose

This paper studies the role of inter-firm supply chain social capital and intra-firm social capital in enabling Corporate Entrepreneurship (CE), and also investigates the moderating and mediating effect of absorptive capacity.

Design/methodology/approach

A correlational descriptive survey research is employed for 200 firms; adopting a 13-item Likert scale obtained from Wang and Li (2016) for measuring inter-firm social capital, and an eight item Likert scale for measuring absorptive capacity. This is in addition to a nine item Likert scale obtained from De Clercq et al. (2013) to measure the intra-firm social capital, and a nine item semantic differential scale developed by Covin and Slevin (1989) for measuring the level of corporate entrepreneurship. Statistical analysis packages SPSS V.24 and AMOS V.24 were used.

Findings

Results provide evidence that structural supply chain social capital has an effect on corporate entrepreneurship; mediated by potential absorptive capacity. Additionally, the effect of relational supply chain social capital on corporate entrepreneurship is fully mediated by potential absorptive capacity. Furthermore, the effect of cognitive supply chain social capital on corporate entrepreneurship is fully mediated by potential absorptive capacity. On the other hand, results show that both intra-firm social capital and realized absorptive capacity moderate the relationship between potential absorptive capacity and corporate entrepreneurship.

Research limitations/implications

The convenience sampling technique increases the probability of selection bias. In addition, the research focused on two aspects of intra-firm social capital, namely relational and cognitive dimensions, and overlooked the structural dimension of social capital.

Practical implications

Providing managers with insights about the critical role of developing social capital among supply chain partners to facilitate the transfer and exchange of crucial knowledge necessary for product development and innovation. This is in addition to the need to capitalize on intra-collaborations and cross-functional routines to facilitate CE.

Originality/value

This study provides a required extension to the previous literature, which has not empirically modeled the role of potential absorptive capacity as means by which supply chain social capital dimensions enable CE. Also, the research identifies contingency factors that enable the effect of potential absorptive capacity on CE; namely intra-firm social capital and realized absorptive capacity.

Details

Management Decision, vol. 60 no. 9
Type: Research Article
ISSN: 0025-1747

Keywords

Book part
Publication date: 20 October 2015

Michael Preece

This research explores perceptions of knowledge management processes held by managers and employees in a service industry. To date, empirical research on knowledge…

Abstract

This research explores perceptions of knowledge management processes held by managers and employees in a service industry. To date, empirical research on knowledge management in the service industry is sparse. This research seeks to examine absorptive capacity and its four capabilities of acquisition, assimilation, transformation and exploitation and their impact on effective knowledge management. All of these capabilities are strategies that enable external knowledge to be recognized, imported and integrated into, and further developed within the organization effectively. The research tests the relationships between absorptive capacity and effective knowledge management through analysis of quantitative data (n = 549) drawn from managers and employees in 35 residential aged care organizations in Western Australia. Responses were analysed using Partial Least Square-based Structural Equation Modelling. Additional analysis was conducted to assess if the job role (of manager or employee) and three industry context variables of profit motive, size of business and length of time the organization has been in business, impacted on the hypothesized relationships.

Structural model analysis examines the relationships between variables as hypothesized in the research framework. Analysis found that absorptive capacity and the four capabilities correlated significantly with effective knowledge management, with absorptive capacity explaining 56% of the total variability for effective knowledge management. Findings from this research also show that absorptive capacity and the four capabilities provide a useful framework for examining knowledge management in the service industry. Additionally, there were no significant differences in the perceptions held between managers and employees, nor between respondents in for-profit and not-for-profit organizations. Furthermore, the size of the organization and length of time the organization has been in business did not impact on absorptive capacity, the four capabilities and effective knowledge management.

The research considers implications for business in light of these findings. The role of managers in providing leadership across the knowledge management process was confirmed, as well as the importance of guiding routines and knowledge sharing throughout the organization. Further, the results indicate that within the participating organizations there are discernible differences in the way that some organizations manage their knowledge, compared to others. To achieve effective knowledge management, managers need to provide a supportive workplace culture, facilitate strong employee relationships, encourage employees to seek out new knowledge, continually engage in two-way communication with employees and provide up-to-date policies and procedures that guide employees in doing their work. The implementation of knowledge management strategies has also been shown in this research to enhance the delivery and quality of residential aged care.

Details

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

Keywords

Article
Publication date: 30 June 2022

Surbhi Gupta, Surendra S. Yadav and P.K. Jain

The purpose of the study is to examine the moderating impact of absorptive capacity on the foreign direct investment (FDI)–growth link using the data for the period 1995–2019.

Abstract

Purpose

The purpose of the study is to examine the moderating impact of absorptive capacity on the foreign direct investment (FDI)–growth link using the data for the period 1995–2019.

Design/methodology/approach

The authors apply the autoregressive distributed lag (ARDL) model and threshold analysis for empirical analysis.

Findings

The findings indicate that the link between FDI and economic growth is influenced indirectly by absorptive capacities, such as financial development, institutional quality, technological capability, and trade openness. However, while examining the linear FDI–growth nexus, the authors noticed that human capital and infrastructure did not affect the relationship; when the non-linearity in the link is considered, the authors noted that all absorptive capacities (including human capital and infrastructure), when interacted with FDI, have a positive effect on growth. Furthermore, FDI stimulates growth if the absorptive capacities have exceeded a certain threshold level.

Research limitations/implications

From a practical standpoint, it is reasonable to conclude that improving absorptive capacities is critical in order to perceive FDI as a growth driver.

Originality/value

India has been able to position itself as a preferred destination for FDI (when the major economies are facing a sharp decline in FDI inflows) despite the Covid-19 pandemic. However, it still suffers from low growth. Although much of the literature admits that absorptive capacity is crucial for FDI to promote growth, no study in the case of India examines FDI–growth nexus conditioned upon absorptive capacity. Moreover, the authors have used threshold analysis for assessing the non-linearities in FDI–growth nexus contingent on absorptive capacity.

Details

Journal of Advances in Management Research, vol. 19 no. 5
Type: Research Article
ISSN: 0972-7981

Keywords

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…

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: 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…

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. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 9 May 2020

Andrés Salas-Vallina, Manoli Pozo-Hidalgo and Pedro-Gil Monte

The purpose of this research is to examine the impact of high-involvement work systems (HIWS) on absorptive capacity. In addition, the mediating effect of happiness at…

Abstract

Purpose

The purpose of this research is to examine the impact of high-involvement work systems (HIWS) on absorptive capacity. In addition, the mediating effect of happiness at work in the relationship between high-involvement work practices and absorptive capacity is analyzed.

Design/methodology/approach

A 2-1-2 bathtub multilevel mediation model was used to analyze a sample of 783 employees from 111 bank branches, gathering data at three different times.

Findings

The results reveal that HIWS positively affect absorptive capacity. In addition, they show that happiness at work partially mediates the relationship between HIWS and absorptive capacity.

Originality/value

Happiness at work is a fundamental element for knowledge absorption. The findings support the basic assumptions of the job demands-resources model, and demonstrate how HIWS, acting as a job resource, lead to positive attitudes (happiness at work) and, in turn, to positive outcomes (absorptive capacity). The proposed HIWS, based on the assumptions of the mutual gains model, reveal a positive employment relationship with effects on both HAW and organizational outcomes. If organizations expose their employees to management practices that have specific benefits for their HAW, employees are more likely to perform their jobs in ways that will promote their absorptive capacity.

Details

Employee Relations: The International Journal, vol. 42 no. 4
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 23 May 2013

Claudio Petti and Shujun Zhang

Technological entrepreneurship concerns the transformation of potentially viable technological opportunities into successful businesses. Absorptive capacity is argued to

3621

Abstract

Purpose

Technological entrepreneurship concerns the transformation of potentially viable technological opportunities into successful businesses. Absorptive capacity is argued to be essential for this transformation, since it can facilitate the prediction of new technology trends and the assimilation and application of new knowledge to produce new commercial outputs. The investigation of the relationships between absorptive capacity, technological entrepreneurship and their impact on Guangdong technology firms' performance is the purpose of this study.

Design/methodology/approach

In this aim a positive causal chain from absorptive capacity to technological entrepreneurship and from this latter to performance is tested through a mediation analysis, which uses an ordinary least squares regression‐based path analytical framework for estimating indirect effects on a sample of 113 Guangdong technology‐based firms.

Findings

Findings are consistent with the hypothesis that greater absorptive capacity leads to greater technological entrepreneurship, which in turn leads to greater performance. Therefore evidence is provided about both the mediating role of technological entrepreneurship and the role of absorptive capacity as its antecedent in relation to Guangdong‐based technology firms' performance.

Originality/value

A relevant but somewhat neglected relationship is examined using an integrative model in the Guangdong context. Moreover the study uses direct measures of absorptive capacity as a capability and provides a firm‐level operationalization of technological entrepreneurship. In so doing it also adopts state‐of‐the‐art analysis techniques and highlights the relevance of investments in soft factors for Guangdong technology firms' path towards excellence.

Article
Publication date: 11 December 2019

Suming Wu, Xiuhao Ding, Ruihong Liu and Hui Gao

Open innovation and information systems have been key topics in the theoretical domain, but little empirical research thoroughly examines how information technology (IT…

1006

Abstract

Purpose

Open innovation and information systems have been key topics in the theoretical domain, but little empirical research thoroughly examines how information technology (IT) capability affects open innovation performance. Thus, the purpose of this paper is to explore the relationship between IT capability and open innovation performance and to expose the inner mechanism at the firm level.

Design/methodology/approach

This paper collected firm-level data in China; 232 usable questionnaires from different firms were collected. Then, the study used a structural equation model by AMOS for hypothesis testing.

Findings

The results indicate that both internal IT capability and external IT capability have positive impacts on open innovation performance; potential absorptive capacity and realized absorptive capacity mediate the relationship between external IT capability and open innovation performance. Additionally, realized absorptive capacity plays a mediating role in the relationship between internal IT capability and open innovation performance.

Practical implications

These findings indicate that practitioners should pay attention to the important relationship between absorptive capacity and IT capability and open innovation performance in Chinese businesses.

Originality/value

Existing research has emphasized the influence of IT on open innovation, but empirical studies have not thoroughly focused on the inner mechanisms of the effect of IT capability on open innovation performance. Drawing on firm capability theory, this paper classifies IT capability as internal and external IT capability and absorptive capacity as potential and realized absorptive capacity. Then, this paper confirms the mediating role of absorptive capacity between IT capability and open innovation performance.

Details

European Journal of Innovation Management, vol. 24 no. 1
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 29 March 2019

Sanjay Chaudhary

Despite the established significance of absorptive capacity, there is a worrying lack of research that empirically examines its antecedents. With a call for investigation…

Abstract

Purpose

Despite the established significance of absorptive capacity, there is a worrying lack of research that empirically examines its antecedents. With a call for investigation guided by the knowledge-based theory, the purpose of this paper is to bridge any probable gap by exploring the effect that an organization’s knowledge stock and its knowledge integrating mechanisms have on the development of its absorptive capacity.

Design/methodology/approach

On the basis of a survey administered to a sample comprising owners of small Indian automotive firms, this paper empirically examines the direct effect of an organization’s knowledge stock (including knowledge breadth and depth) and the moderating role of its structure-related mechanisms (e.g., formalization) on its potential and realized absorptive capacities. The study uses survey data from 226 small business owners and multiple linear regression analysis to examine the significance of its hypotheses.

Findings

The results show that knowledge stock has a statistically notable influence on a small firm’s absorptive capacity. The enabling role of formalization in the relationship between knowledge stock and absorptive capacity is also evident.

Practical implications

Given the handicap of small firms vis-à-vis large firms to deploy internal R&D capabilities, business owners must ensure not to confuse absorptive capacity with the pre-existence of R&D capabilities.

Originality/value

The unbundling of knowledge stock into breadth and depth of knowledge enables business owners and researchers to understand how any particular knowledge stock can relate to an organization’s absorptive capacity.

Article
Publication date: 8 August 2016

María Isabel Roldán Bravo, Antonia Ruiz Moreno and Francisco Javier Llorens-Montes

This paper aims to seek to explain the influence of power asymmetry and the moderating role of an organization’s absorptive and desorptive capacity on enhancing supply…

1369

Abstract

Purpose

This paper aims to seek to explain the influence of power asymmetry and the moderating role of an organization’s absorptive and desorptive capacity on enhancing supply chain competence from its orientation to open innovation with its supply network.

Design/methodology/approach

To perform this study, the authors use data collected from 262 European firms. They apply regression analysis to test the moderating role of an organization’s absorptive and desorptive capacity on enhancing its supply chain competence from its orientation to open innovation.

Findings

The results confirm both the influence of power asymmetry and absorptive capacity on obtaining benefits that derive from an organization’s orientation to open innovation. The results do not, however, support the moderating effect of an organization’s desorptive capacity. Subsequent analyses performed in the study show that organizations that achieve complementarity among their own absorptive capacity and the capacities of its supply network manage to obtain greater benefits from its orientation to open innovation.

Originality/value

This paper responds to the need to study innovation in the context of a supply network and respond to calls in the literature on open innovation and supply chain management for the need to study the moderating role of absorptive and desorptive capacity.

Details

Supply Chain Management: An International Journal, vol. 21 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

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