Dimensions Of Absorptive Capacity Research Articles

Exploring patterns of organizational capability alignment: a contingency approach

Purpose The purpose of the study is to investigate whether the alignment between organizational capabilities is idiosyncratic to an organization or a predictable pattern of alignments can be identified across organizations. Design/methodology/approach Survey design is used to collect data from upper- and mid-level managers of organizations operating in the software industry. A total of 219 responses are used to test the study hypotheses. Partial least squares structural equation modeling and regression analysis are used for data analysis and hypotheses testing. Findings Results suggest that the alignment between strategic thinking and absorptive capacity is different for organizations with a prospector-type strategic orientation compared to organizations with other types (defenders and analyzers) of strategic orientations. The study also finds that the pattern of alignment holds for each dimension of absorptive capacity. Originality/value There is limited research on the alignment between the three types of organizational capabilities (metaphysical, dynamic and ordinary). This may have transcended from arguments that if organizational capabilities are truly idiosyncratic, they should not be expected to follow a predictable pattern of alignments across organizations. To the best of the authors’ knowledge, this study is the first to empirically investigate and provide evidence that the alignment between organizational capabilities is contingent on the strategic orientation of the organizations. The findings offer hope for the development of a generalizable theory of organizational capability alignment in organizations.

Orchestrating absorptive capacity: organizational catalysts of TMT’s influence

ObjetivoEste estudo tem como objetivo analisar a influência do top management team (TMT) e as capacidades de socialização de uma empresa em sua capacidade de absorção. Especificamente, este artigo examina a diversidade e a coordenação do TMT como “facilitadores” com potencial para desencadear os processos envolvidos no desenvolvimento da capacidade de absorção de negócios e, em segundo lugar, estuda um efeito de mediação da coordenação de TMT para através das capacidades de socialização da organização.Design/metodologia/abordagemA análise é baseada em uma amostra 96 empresas de manufatura em um país em desenvolvimento. Devido ao modelo sugerido, bem como ao tamanho da amostra, optamos por uma metodologia PLS-SEM.ResultadosOs resultados mostram que a diversidade do TMT não está significativamente relacionada à capacidade de absorção da empresa. Além disso, as evidências enfatizam que a coordenação das TMT influencia a capacidade de absorção da empresa quando é efetivamente complementada por mecanismos estruturais que visam promover maior comunicação, colaboração e coesão entre os membros de uma organização.Implicações práticasConfigurar um TMT simplesmente para ter diversidade ou garantir a coordenação entre os membros da equipe não é suficiente para estimular a capacidade de absorção da empresa. Um alinhamento de um TMT coordenado com a possibilidade de os funcionários se comunicarem livremente através de áreas funcionais e limites hierárquicos é um pré-requisito para a aquisição, assimilação, transformação e exploração de conhecimento externo.Originalidade/valorEste artigo apresenta um referencial teórico que destaca a influência do TMT em diferentes dimensões da capacidade de absorção. Com base na teoria do escalão superior, sugerimos que essa relação é muito importante, uma vez que a medida em que o conhecimento é adquirido, integrado e explorado dentro da empresa pode depender da configuração e estrutura de colaboração do TMT. Os autores consideram que este estudo levanta novas considerações sobre os esforços para entender como os recursos e capacidades individuais (por exemplo, configuração TMT) podem ser transformados em uma capacidade sistêmica baseada no conhecimento (por exemplo, capacidade de absorção)Palavras chaveCapacidade de absorção, Equipe de alta gerência, Capacidade de socialização, Coordenação da equipe de alta gerência, D da equipe de alta gerência, PLS-SEMTipo de artigoArtigo de pesquisa

Keep Innovating: Absorptive Capacity and the Performance of Brazilian Information Technology Companies

Abstract Continuous innovation is considered a major challenge for companies. By deepening this issue, this article highlights the absorptive capacity, which is the ability to explore external knowledge. This study analyzes the extent to which absorptive capacity affects the organizational performance of Brazilian IT companies. A theoretical model containing three hypotheses related to potential absorptive capacity, realized absorptive capacity, and organizational performance is analyzed by using factor analysis and structural equation modeling using an instrument applied to 130 companies between the months of July and August of 2017. The results show significant relations between the dimensions of absorptive capacity and organizational performance, indicating that a characteristic of the technological market is translated by adaptation ability, which demonstrates the influence of potential and realized absorptive capacity in performance as explained by the firm’s dynamic capabilities. JEL Code: N76, O32, L25.

The role of absorptive capacity and opportunity capture in latecomer firms’ innovation catch-up

ABSTRACT Relevant literature tends to take innovation catch-up of emerging markets’ latecomer firms almost for granted. However, not all catch-up efforts are successful and some of these firms remain stuck in catching-up or exit from the market. In the search for explanations, this paper investigates the mediating effects of opportunity capture against those of technological innovation in the relationships with the performance of single dimensions of absorptive capacity. Hypotheses about the different ways in which absorptive capacity can be deployed are tested on data collected from 166 manufacturing firms in Guangdong Province (China). Findings support a stronger mediation effect of opportunity capture between absorptive capacity dimensions and firm’s performance than that of technological innovation. By using bootstrapped multiple mediation analysis and a multi-dimensional operationalisation of absorptive capacity, the study provides evidence of the relationships investigated, sheds light on some of their unintended effects on latecomer firms’ innovation catch-up and draws practical implications.

Combined Influence of Absorptive Capacity and Corporate Entrepreneurship on Performance

Drawing on a dynamic capabilities perspective and a resource-based view, this article analyzes the relationship between absorptive capacity and corporate entrepreneurship, and their combined effect on organizations’ performance. It contributes to the literature by dissociating the dimensions of absorptive capacity (potential and realized) and corporate entrepreneurship (innovativeness, proactiveness, new business venturing, and self-renewal). A quantitative study was performed with data gathered by personal interviews, using a structured questionnaire. The theoretical model was estimated through a structural equation model, using a sample of 168 Spanish firms. The results show that proactiveness positively influences innovativeness and that both proactiveness and innovativeness have a positive influence on potential and realized absorptive capacity. A significant positive relationship also exists between potential and realized absorptive capacity. Furthermore, realized absorptive capacity positively influences new business venturing and self-renewal. Finally, proactiveness and new business venturing directly and positively influence organizational performance, but not innovativeness and self-renewal. The study demonstrates that entrepreneurs must be able to enhance potential and realize absorptive capacities at the same time in order to improve the end performance of their corporate entrepreneurial projects. Both absorptive capacities are strongly related to corporate entrepreneurial activities and have a strong influence on firms’ performance.

Une étude exploratoire des facteurs déterminants de l’innovation produit des petites et moyennes entreprises (PME) exportatrices françaises : le rôle-clé de la capacité d’absorption

L’objectif de notre recherche est d’identifier les déterminants de l’innovation produit au sein des PME exportatrices françaises. L’originalité principale de notre article réside dans la mobilisation de deux cadres théoriques : la capacité d’absorption et les profils institutionnels, combinés afin d’étudier les déterminants de l’innovation produits au sein des PME exportatrices. Les principaux résultats indiquent le rôle-clé des dimensions de la capacité d’absorption des PME pour le développement des innovations. L’acquisition et l’assimilation de la connaissance reposeraient sur la connaissance commerciale, technologique et institutionnelle pour mieux répondre aux changements de l’environnement et aux besoins des clients. Le partage de la connaissance à travers la communication interne et la collaboration entre les équipes contribuent à une meilleure transformation et exploitation de la connaissance pour le développement de nouveaux produits. L’approche par profils institutionnels offre une grille d’analyse pertinente pour notre étude car l’accompagnement public contribue au développement des activités innovantes et internationales des PME françaises. Codes JEL : O32, L25, L23

How Can a Firm Innovate When Embedded in a Cluster?—Evidence from the Automobile Industrial Cluster in China

In the era of the knowledge economy, knowledge management is increasingly important. Knowledge management ability is one of the core factors influencing enterprise competitiveness, affecting innovation performance and sustainable development. To test the impact mechanism of the knowledge management of enterprises on innovation performance, a multilevel structural equation model was established using data from the automobile industry in China, with “knowledge management” (KM) as the independent variable, the three dimensions of absorptive capacity as the mediating variables, and “innovation performance” (IP) as the dependent variable at the firm level. At the cluster level, the innovation milieu of the cluster was introduced into the model. The results show that the three dimensions of absorptive capacity all significantly mediate the relationship between knowledge management and innovation performance. The innovation milieu of the cluster had a direct cross-level effect on the innovation performance of enterprises and a positive cross-level moderated effect on the relationship between explorative learning and innovation performance. These results support the promotion of enterprise innovation ability and the creation of an innovation milieu in the automobile industry in China.

Evolving Absorptive Capacity: The Mediating Role of Systematic Knowledge Management

Absorptive capacity is mediated through knowledge management capacity on innovation output and performance in technology-oriented firms. While prior research work has focused on the direct effect of absorptive capacity on innovation, in this paper, our model posits that absorptive capacity is more efficient in promoting firms' innovation provided that it is supported by systematic knowledge management practices. We tested this model that included all four components of absorptive capacity using a sample of 127 manufacturing and technology firms in Croatia. Structural equation modeling procedures were used to test hypotheses. Our findings confirm the significance of the relationship between absorptive capacity and knowledge management within firms. Furthermore, we found that firms with higher acquisition and transformation dimensions of absorptive capacity can enhance and replenish their knowledge management practices, which in return result in higher innovation output. These findings extend previous research work by explaining the sometimes-contradictory findings concerning knowledge management practices, which firms may adopt to enhance their absorptive capacity.

Examining Organizational Absorptive Capacity Construct: A Validation Study in the School Context

ABSTRACT The purpose of this study was to develop a new measure for the absorptive capacity (ACAP) construct, specifically in the educational system. Exploration of this construct involved developing, field testing, and validating an ACAP-measuring instrument, followed by exploratory and confirmatory factor analyses of the items to examine factorial validity. Two samples were derived to examine the construct’s validity. The developed scale was correlated with other established work-related constructs (e.g., teacher’s affective commitment). It was found that the four ACAP dimensions underlying potential (acquisition and assimilation) and realized (transformation and exploitation) ACAP are not only theoretically but also empirically distinguishable.

Talent Management Practices and Absorptive Capacity of Russian Companies

The aim of this study is to investigate the relationship between talent management and absorptive capacity of Russian companies. Specifically, the paper discusses the theoretical framework, which demonstrates how talent attraction, development and retention are related to absorptive capacity dimensions, namely knowledge acquisition and assimilation (referred to as potential absorptive capacity), and knowledge transformation and exploitation (referred to as realized absorptive capacity). The paper suggests a number of testable hypotheses and via multiple linear regression analyzes 60 Russian companies showing the applicability of the proposed framework. Consequently, the research proves the important role of talent management practices, specifically talent development, in developing absorptive capacity dimensions in Russian context.

Technological innovation vs technological backwardness patterns in latecomer firms: An absorptive capacity perspective

Abstract This study investigates the factors inhibiting latecomer firms’ technological innovation and eventually their catch-up process. Accordingly, it relies on resource-based theory to advance an absorptive capacity argument and develop a multiple mediation model. This model is tested using the data collected from 166 Chinese manufacturing firms. Furthermore, this study provides theoretical arguments and empirical evidence about the role of each dimension of absorptive capacity in studying the catch-up process of latecomer firms, with particular reference to knowledge transformation. It also offers insights into the limitations of predominant latecomer firms’ innovation strategies and suggests shifts in managerial practice and policymaking.

Absorptive capacity and its impact on innovation and performance: findings from SEM and fsQCA

Innovation can provide sustainable competitive advantages to service companies that consider the absorption of external knowledge a key strategic issue. Using the four dimensions of absorptive capacity, this study examined the impact of absorptive capacity on innovation in service delivery processes and explored how this innovation influences business performance. Structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA) were applied to a sample of 134 companies drawn from the Colombian tourism sector. The results of the SEM indicate that innovation in service delivery processes is positively influenced by two of the four dimensions of absorptive capacity: knowledge transformation and knowledge exploitation. Also, innovation in service delivery processes encourages outstanding performance and mediates the relationship between absorptive capacity and business performance. These findings are supported by the results of the fsQCA. Furthermore, although the SEM results indicate that knowledge exploitation has the greatest direct influence on innovation, the fsQCA results suggest that knowledge assimilation and transformation are necessary conditions for companies to outperform competitors.

Absorbing knowledge in the digital age: the key role of integration mechanisms in the context of crowdsourcing for innovation

The digital age offers unprecedented opportunities for firms to access new knowledge for innovation. Both academics and managers have identified crowdsourcing (CS) as one relevant way to do so. CS for innovation involves outsourcing problem‐solving or creative tasks to the crowd. To benefit from CS, absorptive capacity (ACAP) is critical; this can be enhanced by prior knowledge and past experience with a partner. However, in the CS context, firms open themselves up to undefined, anonymous partners through the Internet, hence the development of ACAP becomes more difficult. The literature on ACAP describes how internal integration mechanisms encourage the absorption of knowledge but fails to clearly address the way in which uncommon knowledge is integrated. Although literature has acknowledged the beneficial role of a wider spectrum of influential internal and external mechanisms on uncommon knowledge, few empirical studies have addressed the distinctive effect of these mechanisms on the absorption of anonymous partners’ knowledge. To fill this gap, this study identifies relevant integration mechanisms and how they impact upon different ACAP dimensions in the CS context. Five case studies reveal the distinctive influence of integration mechanisms depending on the nature of the CS activity. Our results extend research on ACAP in the little studied digital open context, investigating the absorption of uncommon knowledge from unidentified partners. From a managerial perspective, this study shows that managers need to pay attention to integration mechanisms in order to support the absorption of knowledge from the crowd. More precisely, our study suggests that the main focus should not be on external mechanisms, but also on internal mechanisms. Finally, we open up a new theoretical debate on how these mechanisms should be combined.

Disruptive technology adoption, particularities of clustered firms

ABSTRACTThis article explores to what extent the internal attributes of a clustered firm influence its capacity to adopt disruptive innovations. A multidimensional approach to the absorptive capacity (ACAP) model is used to distinguish between potential (acquisition and assimilation domains) and realized (transformation and exploitation domains) internal firm capabilities. Our evidence comes from an empirical analysis of the population of firms belonging to the Spanish ceramic tile cluster which have adopted a disruptive innovation – the so-called digital printing technology – on a massive scale. The econometric estimations suggest the relevance of the Exploitation dimension of ACAP for early adoption of a new technology. In contrast, the other dimensions do not seem to play a decisive role when it comes to adopting one novelty earlier than others. In conclusion, and contrary to what was expected for non-clustered firms, the results revealed an uneven effect of the potential and realized domains of ACAP of clustered firms regarding the rate of adoption of distant technologies.

Talent Development and Its Role in Shaping Absorptive Capacity in Emerging Market Firms: The Case of Russia

The Problem The overall ability to create and transfer knowledge is one of the main competitive advantages for companies from emerging economies and becomes their performance driver. As human resource development (HRD) and talent development (TD), in particular, aim to extend employees’ capabilities related to innovative thinking, creativity, and their key competences, which can be necessary for knowledge creation and development, TD can be associated with a firm’s absorptive capacity; however, their relationship remains underresearched. Although some studies claim about grounds for absorptive capacity, lack of analysis of absorptive capacity dimensions, specified as knowledge acquisition, assimilation, transformation, and exploitation, and its connection to TD in the emerging market context can be observed especially with the relationship to firm performance in Russia. The Solution We investigate the influence of TD on firm’s absorptive capacity in emerging market contexts, more specifically in Russia, and confirm the link between TD in Russia and knowledge assimilation, knowledge transformation, knowledge exploitation, and knowledge acquisition. The Stakeholders We show the new perspective of talent management, in general, and TD, in particular, for HRD area, showing the leading role of TD in emerging market contexts that should be in a primary agenda for both researchers and practitioners.

Impacts of network relationships on absorptive capacity in the context of innovation

ABSTRACT Knowledge acquired through external network relationships is widely accepted as one of the most important resources for a firm to be innovative. This is especially true for the networked tourism industry, where capabilities associated with the acquisition, assimilation and exploitation of external knowledge (‘absorptive capacity’) are paramount. While several studies highlight the importance of network relationships to acquire new knowledge, most of them remain vague in explaining their impact on the assimilation and exploitation of the knowledge. This paper investigates the impacts of network relationships on absorptive capacity dimensions. A quantitative survey among 378 hotel businesses was carried out to measure network participation and relationship quality as well as the absorptive capacity. Regression models reveal that the quality of external relationships and the overall network size implicate access and availability of valuable knowledge and positively affect the organization’s capacity to assimilate and exploit the knowledge in pursuit of innovation.

Triggering absorptive capacity in organizations: CEO succession as a knowledge enabler

PurposeThe purpose of this paper is to introduce CEO succession (and subsequent TMT turnover) as a knowledge enabler. Focusing on absorptive capacity, an important dynamic capability involving the acquisition, assimilation, transformation and exploitation of knowledge, this paper highlights the role of a new CEO in emphasizing specific facets of the knowledge management (KM) process to fulfill expected strategic mandates.Design/methodology/approachThis paper presents a conceptual framework that underscores the importance of CEO succession as a knowledge enabler by depicting its influence on the various dimensions of absorptive capacity. To this end, this paper develops an integrated set of propositions that unpack the influence of different types of CEO successions that trigger and enable different KM processes involved dimensions of absorptive capacity.FindingsThe theoretical framework presented in this paper suggests that given a certain succession context (forced or voluntary turnover of predecessor) different types of CEO succession, combined with possible executive turnover, will constitute a reorientation in top management experience and expertise. This will in turn trigger certain dimensions of absorptive capacity (potential or realized), to fulfill specific strategic mandates such as strategic change or strategic continuity.Research limitations/implicationsThis paper presents a theoretical framework that underscores the importance of studying CEO succession in conjunction with their influence on different knowledge dimensions of absorptive capacity. CEO succession (and subsequent changes in top management team composition) is suggested to be a knowledge enabler. Based on the context of CEO turnover (forced vs voluntary) and the amount of change undergone in TMT composition, different types of CEO succession (based on their origin) are suggested to have different challenges to overcome and different strategic mandates to fulfill. Fulfilling these strategic mandates will require an emphasis on different facets of the KM process, which is encompassed in the dimensions of absorptive capacity. This will, in turn, resolve questions about which knowledge activities the organization needs to invest its resources in and resources allocation decisions may become easier.Practical implicationsBased on their origin, three kinds of CEO succession have been described in this paper – insider-follower, insider-contender and outsider succession. Each of these types of succession encounter different challenges and are expected to fulfill different kinds of strategic mandates. Accordingly, this paper proposes that each kind of CEO succession trigger and enable the knowledge components of absorptive capacity (knowledge acquisition, knowledge assimilation, knowledge transformation and knowledge exploitation) in different manners. This will in turn, allow firms to prioritize the allocation of resources toward different kinds of knowledge activities related to absorptive capacity.Originality/valueThis paper suggests that the CEO succession event, although broadly discussed in management research, has been overlooked when it comes to KM in organizations. Given that strategic leadership is one of the powerful enablers of organizational practices and outcomes, this paper emphasizes that different types of CEO succession may be able to influence the KM process by enabling the different dimensions of absorptive capacity (potential and realized).

Absorptive capacity and intraorganizational inventor network structures

A firm’s absorptive capacity is delineated by its abilities to sequentially identify, assimilate, and exploit valuable external knowledge. Although numerous inquiries have explored how firms identify and exploit valuable knowledge, relatively little work has explored the assimilation dimension of absorptive capacity, let alone how knowledge assimilation and mechanisms used to identify external knowledge are part of an integrated process. We explore how a firm's internal inventor network structure influences its ability to assimilate and exploit external technology. Specifically, we examine how densely connected inventor network structures influence the absorptive capacity of firms in opposite ways. Using a sample of 38 incumbent firms in the U.S. information technology sector and analyzing their citing behaviors of the patents developed by 370 new IT ventures over the course of sixteen years, we find that incumbent firms having inventor network configurations that were highly clustered were generally more likely to build on and exploit the technologies of our sample new ventures. In contrast, high network connectivity beyond that which contributes to clustering decreased the extent to which our sample incumbent firms exploited the technologies of new ventures. We also find that such high connectivity diminishes any advantage that incumbent firms might gain from forming CVC partnerships in terms of being able to absorb valuable technology from new venture investees. Our findings contribute to research on absorptive capacity, social networks and CVC.

Project complexity and team-level absorptive capacity as drivers of project management performance

Many believe that project complexity reduces project management performance. However, so far research has failed to establish this causal relationship conclusively. We extend research on project complexity by introducing the concept of team-level absorptive capacity and by studying its role as mediator between project complexity and project management success. Applying structural equation modelling to a sample of 285 respondents, we find an unequivocal, direct and positive statistical association between project complexity and delays and overspending. Further, we show that team-level absorptive capacity is critical for successful project management, but also that absorptive capacity can only partially offset the harmful impact of project complexity. Beyond adding to project management theory, the paper contributes to the wider management literature. We establish complexity as an antecedent of absorptive capacity and demonstrate how each dimension of absorptive capacity has unique determinants and outcomes.

Absorptive capacity: A process and structure approach

The aim of this study is to understand and explain different dimensions of absorptive capacity and the strategies used in practice to realise it. The theoretical and conceptual contribution of the study lies in the adoption of a dual process and structure approach, aiming at identifying, respectively, how learning takes place and what learning takes place. The study is based upon a case study research design to explore the manifestation of absorptive capacity processes and its relationship to knowledge structures in four company case studies. The findings of the research indicate that knowledge acquisition, transformation and integration involve successive iterations of codification, abstraction and diffusion of knowledge in relation to product concepts, process requirements and problem-solving approaches. This relates to the capability to adopt, simultaneously, different trajectories in terms of knowledge exploration and knowledge exploitation strategies. The combined adoption of these different strategies enables both strategic and operational flexibility and underlies the successful realisation of absorptive capacity.