Abstract

ABSTRACT Purpose: The ability of individuals to recognize the value of external, corporate-applicable information is critical to organizational absorptive capacity. This study aims to define and operationalize the recognize the value construct, identify its antecedents and predictive power. Originality/value: It analyzes how this construct occurs at the level of the individual, workgroups and processes, besides indicating its relationship with the other predictors present in the literature. The theoretical bases can be classified by Cohen and Levinthal (1990) and Zahra and George (2002). The first one considers absorptive capacity as a stock of knowledge, the second one, as dynamic capacity. Design/methodology/approach: We adopt the Structural Equation Modeling technique to test a variance model, with four predictors of general recognize the value. We use a non-probabilistic sample consisting of 283 individuals who answered an electronic questionnaire. Findings: The results are satisfactory, as the model shows a 40% prediction power of how recognize the value occurs. The work processes were found to show higher predictive power (β = 0.417), meaning that that processes of recognize the value are enablers of the organizational recognize the value of new information. The other hypotheses were also supported, but with comparatively minor effects. The study is limited to the identification and analysis of the effects of predictors and does not contemplate its consequences, whose research is suggested.

Highlights

  • As organizations experience a more competitive environment, the absorptive capacity (AC) becomes important, because it allows for shorter development cycles, increased innovation and improved market reactivity (Lane, Koka, & Pathak, 2006)

  • Its criterion is the value of average variance extracted (AVE), which is the average variance extracted

  • The literature review indicates that recognize the value, social integration mechanisms (SIM), regimes of appropriability, and relationship power are moderating variables of AC, this study found that their most appropriate positioning is as predictors, given their high predictive power

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Summary

Introduction

As organizations experience a more competitive environment, the absorptive capacity (AC) becomes important, because it allows for shorter development cycles, increased innovation and improved market reactivity (Lane, Koka, & Pathak, 2006). AC refers to the ability of the organization to identify valuable external knowledge, assimilate that knowledge and apply it internally in order to guide its competitive actions (Cohen & Levinthal, 1990). Relevant to AC, recognize the value is a construct that addresses the organization’s ability to identify the value of information outside the organization, so that it can be harnessed within the internal organizational environment (Lane et al, 2006). Recognize the value cannot be considered a skill at the individual level alone, nor the sum of the multiple individuals in the organization, but it depends on a mosaic of matching organizational and individual capabilities Recognize the value cannot be considered a skill at the individual level alone, nor the sum of the multiple individuals in the organization, but it depends on a mosaic of matching organizational and individual capabilities (Cohen & Levinthal, 1990, p. 133)

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