A Longitudinal Analysis of Boundary-Spanning Leadership and Absorptive Capacity as Drivers of Job Embeddedness

This study investigates factors influencing investment distribution in Indonesia, focusing on Corporate Entrepreneurship, Transformational Leadership, and Absorptive Capacity's impact on Organizational Performance in Investment Promotion Agencies (IPA). Organizational Learning Capability acts as a mediating variable, with hypothesis testing conducted through Structural Equation Modelling (SEM-AMOS) on a sample of 373 IPA employees. Results indicate that Transformational Leadership, Corporate Entrepreneurship, Absorptive Capacity, and Organizational Learning Capability all positively and significantly affect Organizational Performance, with Absorptive Capacity exerting the strongest influence. Additionally, Absorptive Capacity also has the most substantial effect on Organizational Learning Capability compared to the other variables. Indirect influence tests reveal that Organizational Learning Capability partially mediates the impact of these factors on Organizational Performance. This research provides valuable insights for decision-makers, highlighting the importance of fostering Transformational Leadership, Corporate Entrepreneurship, and Absorptive Capacity to enhance performance in investment agencies. The study’s comprehensive model underscores both direct and indirect effects, offering a novel perspective for strategic management within Indonesian IPAs.

PurposeThe purpose of this paper is to find out how absorptive capacity (AC), leadership capacity (LC) and government support (GS) affect small and medium enterprises (SMEs) innovation (product innovation [PDI], process innovation [PCI] and distribution channel innovation [DCI]), taking into consideration the role of innovation (PDI, PCI and DCI) on competitive advantage and SMEs performance and the moderating role of customer orientation (CO).Design/methodology/approachThis study gives a theoretical model tested using structural equation modeling. The information used to test the hypotheses came from interviews with the top managers of Vietnam’s SMEs. The 633 survey respondents from the southern part of Vietnam were chosen for the study. The goal of the 47-item questionnaire is to look at how all variables relate to each other.FindingsThe results show that a firm’s LC has the most significant impact on innovation, followed by its AC and GS. According to the study, DCI does not lead to competitive advantage but improves SMEs’ performance. In addition, the study’s findings indicate that CO moderates the relationship between PDI – SMEs performance and DCI – SMEs performance.Research limitations/implicationsThe classification of only three types of innovation (PDI, PCI and DCI) restricted the applicability of the research to other kinds of innovation in SMEs. Second, only AC, LC and GS are identified in this study as external factors that influence business innovation. In this study, the authors have not studied different business industries; the authors recommend that the research in the back on SMEs should investigate their classification into distinct industry groups, including agricultural, forestry and marine products; industry and construction; and commerce and services.Practical implicationsThis study shows the importance of innovation senior management for innovation in SMEs. This study found that innovation, especially continuous innovation, increased competitive advantage and SMEs performance. Companies that wish to innovate must have access to external resources and support. Moreover, enterprises must comprehend their consumers’ wants to achieve innovation and better SMEs’ performance.Social implicationsThis research significantly contributes to enterprise innovation and operational efficiency for the sustainable development of SMEs in Vietnam. It is expected to enhance employment opportunities, maintain social stability and expand Vietnam’s gross domestic product.Originality/valueThis study contributes to the growing knowledge of the indirect and direct effects, the mediating function of innovation (PDI, PCI and DCI) on competitive advantage and SMEs performance and the moderating effect of CO.

There is a long-standing academic consensus that the higher the absorptive capacity of an organization is, the better its performance. Recently, however, the assumption that absorptive capacity can unconditionally contribute to firm performance has begun to be challenged, and empirical results differentiating absorptive capacity and firm performance have also begun to emerge. Therefore, to effectively integrate the variability of different empirical results and reveal the mechanism by which absorptive capacity acts on firm performance, this paper explores the relationship between absorptive capacity and firm performance from the perspectives of both theoretical exploration and META analysis. Through the process of theoretical combing, this paper finds that the existing core concept of absorptive capacity is based on cognitivism, and the existing process behind absorptive capacity is based on a linear cognitive information processing process that focuses on the internal cognitive structure and process of the subject. However, due to the dynamic and complex nature of social phenomena, the process model cannot effectively reflect the influence of contextual factors on their relationships. Next, based on the results of theoretical sorting, the results of existing empirical studies are synthesized by means of META analysis and different contexts are examined, finding that the role of absorptive capacity on firm performance has significant contextual characteristics, among which the research context, economic context and sample context all have significant but distinct moderating effects on absorptive capacity and firm performance. Overall, by including contextual factors, this paper further deepens the understanding of the relationship between absorptive capacity and firm performance. It also provides a preliminary basis for the role of contextual factors in absorptive capacity.

PurposeThe purpose of this study is to assess the effect of process quality management (PQM) activities on firm's operational performance (OP) through the mediation of firm's absorptive capacity (AC).Design/methodology/approachThis research builds on the theory of knowledge-based view to conduct a survey of 294 manufacturing companies in India. With the use of Hayes' PROCESS Macro in SPSS, the collected data were used to analyze the proposed mediating effect of firm's AC and moderating effects of leadership commitment (LC).FindingsStudy results suggest that both PQM and firm's AC contribute to improved OP and should be promoted. The firm's AC was found to partially mediate the impact of PQM on the firm's OP. Results also show that improved firm's AC can have a substantial effect on improvement in OP by stronger support of LC.Research limitations/implicationsThe results may lack generalizability due to the selected cross-sectional nature of the current study. Researchers are also encouraged to further test the proposed ideas using a longitudinal design approach.Practical implicationsTo translate PQM initiatives into core strategic competencies, manufacturing firms need to develop their AC. Senior managers in the manufacturing sector should concentrate strongly on developing a knowledge-driven working culture to enhance operational efficiency and manufacturing productivity.Originality/valueCurrent research study can be considered as one of the very few empirical analyses that investigated the mediating impact of the firm's AC on the PQM-firm's OP relationship. In the operations management (OM) literature, the investigation of the moderating effect of LC on the mediation of the firm's AC between the PQM and OP metrics can be considered to be a noteworthy theoretical addition.

Purpose This paper aims to examine the impact of social capital on the performance of small firms and the role played by paradoxical leadership (encompassing both humility and narcissism) and absorptive capacity (ACAP) in affecting this relationship. Design/methodology/approach This paper uses multi-source cross-sectional survey data from 205 small automotive ancillary firms in Punjab, India. The data were analyzed using partial least squares-based structural equation modeling as well as the bootstrapping method (PROCESS macro in SPSS). Findings Paradoxical leadership moderates the relationship between social capital and ACAP. Further, potential absorptive capacity mediates the relationship between social capital and realized absorptive capacity (RACAP), which directly impacts firm performance. However, paradoxical leadership does not exhibit a significant moderating effect on the translation of potential to RACAP. Originality/value Firm leadership is crucial for the social capital and external knowledge absorption in resource-constrained small firms. This paper elucidates the role of paradoxical leadership (balance of chief executive officer (CEO) humility and CEO narcissism) in developing ACAP and for translating social capital into ACAP and finally firm performance. Apart from contributing to the literature at the nexus of leadership styles and ACAP, the paper also brings more clarity to the role played by paradoxical leadership in helping small firms take advantage of social capital in boosting their performance.

Absorptive Capacity - One Size Fits All? A Firm-Level Analysis of Absorptive Capacity for Different Kinds of Knowledge

This bibliometric review investigates the interplay between Transformational Leadership and Absorptive Capacity in fostering Organizational Competitiveness. The study analyzes 742 SCOPUS-indexed articles from 2019 to March 2024, highlighting thematic patterns and networks among authors. The peak interest in 2022 underscores TL's role in enhancing ACAP to propel a competitive advantage. The research design employs VOSviewer for bibliometric mapping, revealing TL’s substantial contribution to Organizational Innovation and Strategic Flexibility. This suggests the critical integration of Transformational Leadership (TL) with Absorptive Capacity (ACAP) for competitiveness in volatile markets. The study's findings inform strategic management, indicating that TL and ACAP are essential drivers of OC. For practitioners, this translates into leadership practices that foster organizational learning and adaptability.

In modern software development, teams face numerous challenges, particularly frequent and diverse changes in requirements. The ability to respond promptly and effectively to such changes depends not only on technical expertise but also on human and team factors—specifically, how members learn from one another and leverage their diverse backgrounds. To succeed, teams must cultivate software development agility (SDA) supported by effective leadership capable of guiding them through shifting requirements. Grounded in dynamic capability theory, this study investigates the relationship between shared leadership and absorptive capacity and their combined influence on software development agility. The proposed theoretical model illustrates how shared leadership enhances a team’s absorptive capacity, thereby fostering SDA. This work contributes to the human-centered software development literature by offering new insights into team dynamics within the context of requirement changes, viewed through the lens of dynamic capability theory.

Purpose: This article aims to analyze the influence of the organizational climate on the absorptive capacity. Design/Methodology/approach: The survey is characterized as descriptive and quantitative. The employed method is a survey, applied through the virtual platform Google Forms. The sample consisted of 172 respondents from five manufacturing units of a textile industry, being collected by accessibility and convenience. Multiple regression analysis was used to process and analyze the data. Findings: The research shows that hypotheses H1a, H1c and H1d are confirmed, a favorable organizational climate influences the absorptive capacity through proper management of internal relationships, effective leadership, and renowned organizational image. On the other hand, the H1b hypothesis was rejected, organizational climate did not show interference in the absorptive capacity through professional development in the confirmatory test. Originality/relevance: The significance and contribution of this study lie in addressing an observed gap in the analysis and evaluation of absorptive capacity. Specifically, it explores how organizational climate management practices interrelate with this concept, thereby shedding light on related themes. Practical implications: The study allows managers of organizations to understand which organizational climate management practices should be prioritized in the absorptive capacity, thus contributing to the creation of an environment conducive to the transfer of knowledge, that is, combining prior knowledge with the new knowledge.

The food system represents a complex, interrelated, and interdependent network of individuals and organizations. Despite the unique characteristics of the food system domain, there has never been a comprehensive analysis of leadership capacity amongst food system professionals. The present study provides an empirical assessment of food system leadership capacity using many leadership instruments. The study included pilot (n = 125) and primary (n = 4185) data collection across 27 food system-related leadership development programs. The results validate the Issue Leadership scale, which comprises seven capacity areas: action, change, communication, critical thinking, strategic planning and visioning, interpersonal traits and characteristics, leadership process, and leadership skills. The Issue Leadership scale captures both perception of importance and current skill level. The study results indicate that food system professionals perceived communication and critical thinking, strategic planning and visioning as the most important leadership capacity areas. Furthermore, respondents indicated the highest level of self-perceived skill in critical thinking, strategic planning and visioning, and interpersonal traits and characteristics. Overall, respondents had higher perceived importance levels (m = 4.17) than skill (m = 3.44), indicating the need for additional leadership capacity development amongst food system professionals. Respondents also indicated similar levels of opinion leadership (m = 3.92), servant leadership (m = 3.82), transformational leadership (m = 3.78), and transactional leadership (m = 3.70), providing an additional empirical assessment of food system professional leadership capacity.

The article analyzes auto parts companies in Rio Grande do Sul so as to understand their knowledge absorption capacities and to identify important combinations to reach Absorptive Capacity. The Absorptive Capacity is a dynamic skill, and relationships among learning, innovation and interaction may boost knowledge absorption and improve companies' innovative capabilities. Data analysis using Fuzzy Sets Qualitative Comparative Analysis revealed necessary and sufficient conditions related to the dimensions and components that shape the Absorptive Capacity. It was observed that the combinations of capabilities of the companies are sufficient to reach an average level of Absorptive Capacity.

This study aims to investigate how absorptive capacity and knowledge management affect green innovation and how the interaction between absorptive capacity and knowledge management affects green innovation, especially in the context of creative industry MSMEs in Yogyakarta. This study was designed using a purposive sampling technique. Data was collected through a survey of 100 MSMEs in the creative product industry sector in the Special Region of Yogyakarta. The research data were processed using the PLS-SEM analysis tool. The research findings indicate that absorptive capacity significantly impacts the implementation of green innovation, while knowledge management does not significantly impact the implementation of green innovation. The interaction between the company's absorptive capacity and knowledge management also does not significantly affect green innovation. The results of this study contribute to the theory and practice for MSMEs to design strategies for implementing green practices and knowledge management to enhance innovation.

This paper empirically analyzes the effect of R&D activities, human resource and knowledge management, and the organization of knowledge sharing within a firm on the absorptive capacity of innovative firms for three different types of knowledge, namely absorptive capacity to use knowledge from a firm's own industry, knowledge from other industries and knowledge from research institutions. Using data from the German innovation survey, we investigate how firms are able to exploit knowledge from external partners for successful innovation activities. The estimation results show that the determinants of absorptive capacity differ with respect to the type of knowledge absorbed for innovation activities. In particular, we find that the R&D intensity does not significantly influence absorptive capacity for intra‐ and inter‐industry knowledge. Additionally, our results suggest that absorptive capacity is path dependent and firms can influence their ability to exploit external knowledge by encouraging individuals' involvement in a firm's innovation projects. Copyright © 2009 John Wiley & Sons, Ltd.

Aims: This study aims to examine how entrepreneurial leadership, training, absorptive capacity, and innovation capability can affect business performance, as well as the influence of the mediating effect on innovation capability. Study Design: Quantitative. Place and Duration of Study: Sample: This study used a sample of 200 respondents from the Banyumas, Purbalingga, Banjarnegara, Cilacap, and Kebumen districts. The data collection technique used a questionnaire with a multistage random sampling method. Methodology: Statistical analysis used the Partial Least Square Structural Equation Modeling (PLS-SEM) method, which uses an inner model, an outer model, and hypothesis testing. Results: This study's results indicate that entrepreneurial leadership, training, absorptive capacity, and innovation capability have a significant impact on business performance. Likewise, the variable innovation capability as mediation of entrepreneurial leadership, training, and absorptive capacity significantly impacts business performance. Conclusion: This research implies that an organization or MSME must pay attention to and optimize business potential by considering entrepreneurial leadership, training, absorptive capacity, and innovation capability to influence business performance improvements and creating a vision to identify and take advantage of new business opportunities by paying attention to innovation and preparing the workforce to deal with technological changes. This can drive economic growth by increasing business efficiency and market competitiveness.

Bibliometric analysis of absorptive capacity