Individual Absorptive Capacity Research Articles

Absorptive capacity components: Performance effects in related and unrelated diversification

We study how firms can benefit from external knowledge resources contingent on absorptive capacity. We separate the three components of absorptive capacity – acquiring, assimilating, and exploiting external knowledge – and posit that the benefits of a firm's knowledge expansion through diversification into related and unrelated business domains differ by the firm's relative emphasis on the three components. We test our predictions on a panel of 153 large US-traded ICT firms. Our analysis broadly supports our hypotheses, highlighting the unique contribution of individual absorptive capacity components to organizational learning through diversification strategy.

From absorption to action: unraveling the entrepreneurial path in external rural tourism through bricolage and social support perception

ABSTRACT External rural tourism entrepreneurs play a pivotal role in fortifying the local economy through the creation of employment opportunities, stimulation of consumer spending, and the generation of income. In consonance with social capital theory, this study systematically gathered data over four stages to analyze the absorptive capacities and entrepreneurial actions of 213 external rural tourism entrepreneurs in Yuanjia Village, Shaanxi Province. Key findings include: (1) The significantly and positively impact of individual absorptive capacity on entrepreneurial performance; (2) The positive influence of entrepreneurial bricolage on performance, concurrently serving as a partial mediator in the nexus between individual absorptive capacity and entrepreneurial performance; (3) The critical moderating role played by social support perception in shaping the relationship between individual absorptive capacity and entrepreneurial performance. This study augments the existing theoretical discourse surrounding external rural tourism entrepreneurs, providing valuable insights that inform strategic decision-making aimed at cultivating an environment conducive to the success of such external entrepreneurs.

Influence of Knowledge Management and Individual Absorptive Capacity towards Innovation Capability among Agricultural Researchers: A pilot study

Advancing research and development (R&D) aspects is one of the main approaches to deal with this critical issue in agricultural sectors. The purpose of this paper is to evaluate the instruments to comprehend the association between knowledge management, absorptive capacity, and innovation capability in Malaysia's agriculture R&D. Focusing on individual-level analysis, this study quantitatively assesses the validity and reliability of the instruments at the preliminary stage of before going into full-fledged research. Based on the content validity index (CVI), and pilot data value, the finalized instrument has been sufficiently analyzed to proceed into a larger-scale study.

Micro-foundations of absorptive capacity in platform economy-based tour guiding companies

This study investigates individual absorptive capacity (ACAP) in a platform economy-based tour guiding company. In such companies, guides are not employees but work as freelancers that sell their services to the company. The study's objective is to explore the knowledge-sharing dynamics between lower company management, who depend on the guides' knowledge for product development, and guides, who need incentives to share their knowledge with a company that they work with, rather than for. Methodologically, the study is based on data collected through embeddedness in a relevant case company, consisting of in-depth interviews, as well as participant and direct observation. The study characterizes central ACAP processes in the study context, pointing to five specific categories of micro-foundations that drive or hinder these processes: experience and knowledge, intrinsic and extrinsic motivation, (meta-)routines, social integration mechanisms and leadership. Finally, recommendations are provided on how to improve ACAP processes in these types of companies.

Driving Open Innovation Capability Through New Knowledge Diffusion of Integrating Intrinsic and Extrinsic Motivations in Organizations: Moderator of Individual Absorptive Capacity

Driving Open Innovation Capability Through New Knowledge Diffusion of Integrating Intrinsic and Extrinsic Motivations in Organizations: Moderator of Individual Absorptive Capacity

How does authentic leadership promote taking charge: The mediating effect of team social capital and the moderating effect of absorptive capacity.

Authentic leaders are consistent with the expectations of Chinese traditional cultural values for leaders. The purpose of this study is to take team internal social capital (TISC) as the mediating variable and individual absorptive capacity as the moderating variable to explore the relationship between authentic leadership and taking charge. We collected 337 questionnaires from China and used linear regression to explore the influencing mechanisms and boundary conditions. The study results showed that the trickle-down of authentic leadership and the trickle-round of TISC can directly promote employees' taking charge. Further, individual absorptive capacity positively moderated the relationship between TISC and taking charge. Our study provides a new perspective of leadership support for employees to implement taking charge in the context of high-power distance in China. From the perspective of authentic leadership, it is verified that leadership support is a necessary condition to motivate employees to implement proactive behavior. Moreover, compared with the research on the influence of leadership on proactive behavior, team-related and organization-related factors have not received enough attention. According to the social learning theory, we constructed an integrated framework for the first time in which leadership, team, and individual jointly affect taking charge.

Ambidexterity and absorptive capacity in boundary-spanning managers: role of paradox mindset and learning goal orientation

PurposeBoundary-spanning managers need to recognize, learn and implement external knowledge while balancing the conflicts emerging from new and existing knowledge. The authors' study explores how a paradox mindset (PM) and a learning focus [learning goal orientation (LGO)] promote two managerial capabilities: absorptive capacity (ACAP) and ambidexterity. The authors' study explores the inter-relationship between the mindsets and the capabilities required for innovative work behavior.Design/methodology/approachThe authors use survey data from 113 technology/product managers employed in boundary-spanning roles in a large Indian automotive equipment manufacturing firm. Partial least squares structural equation modeling (PLS-SEM) analysis and bootstrapping (using PROCESS MACRO) are used to test for direct and mediation effects respectively.FindingsBoth PM and LGO are found to affect individual ambidexterity (IA) via the mediation of individual absorptive capacity (IACAP). While IACAP partially mediates the relationship between PM and IA, there is full mediation in the case of LGO.Research limitations/implicationsThe authors focus on a sample of managers from a single, large Indian automotive firm. Although single case studies can help provide novel conceptual insights and to test theoretical relationships, future research needs to confirm the authors' findings in different types of firms.Practical implicationsThis study shows how a learning orientation and the ability to be energized from conflicts help boundary-spanning managers produce innovative outcomes.Originality/valueThe authors reveal fresh insights on how both ACAP and ambidexterity share the focus on learning and paradox management. The authors explicate how LGO and PM uniquely impact the critical capabilities of IACAP and IA for boundary-spanning managers.

The Effect of Technology Readiness on Individual Absorptive Capacity Toward Learning Behavior in Australian Universities

Recipient's absorptive capacity (ACAP) is a barrier to knowledge transfer in organizations. The technology readiness (TR) dimensions measure an individual's technological beliefs and aligns with the individual's ACAP. The purpose of this research is to study if technological beliefs have a causal effect onto individual learning capability and behaviour. University's knowledge transfer makes them an ideal context for this research. Through surveying individuals and conducting statistical analysis, the authors provide empirical evidence that there is a causal effect from the TR dimensions to individuals ACAP and their technological learning behaviour at the individual level. The findings could potentially help leverage technology to address said recipient's ACAP. It would also benefit the development of new technologies, in particular in e-learning and tailoring pedagogy.

The Determinants of the Individual Absorptive Capacity in the Context of the SME: The Case of Tourism Small or Medium-sized Enterprises in the City of Agadir

Individual absorptive capacity is the individual's ability to innovate in his or her work. It is determined by the individual's ability to acquire, assimilate, transform and exploit information into knowledge and applicable skills. This work proposes to study the contribution of each of these dimensions to absorption capacity. From a sample of 37 tourism SMEs in the city of Agadir, and by controlling the different associations between the dimensions as well as the endogeneity of these dimensions concerning the absorptive capacity, our results show that the innovation of the individual in his work depends essentially on his ability to turn the information received into knowledge and to make it applicable knowledge. As both dimensions are essentially based on training and experience, this suggests the importance of specific professional training and experience in the company's innovation. Moreover, the exercise of an evolving job, characterized by non-repetitive tasks, reinforces the individual's knowledge and makes him more capable of innovating in his work.

Extending the absorptive capacity of the small family entrepreneurs and managers as gatekeepers

ABSTRACT Specialized literature reveals that the level of absorptive capacity (ACAP) within organizations depends on the individuals who are at the company's interface with the external environment or at the interface between the company's subunits. It also highlights that some individuals assume relatively centralized gatekeeper roles. The study argues that individual ACAP precedes organizational ACAP, as it is necessary to understand the role of individuals in the capacity of companies to absorb external knowledge. The purpose of this article is to explore the role of owner-managers of small family businesses in ACAP. The exploratory research method uses case studies. The results show that small family business owner-managers have the qualities of gatekeepers and that, even though they help with communication and knowledge transfer across company borders and increase their ACAP, these professionals have limited roles as gatekeepers because of their family ties and affective-emotional matters.

Influence of intellectual capital and individual absorptive capacity on innovation performance

Purpose: The objective of this research was to identify the existence of a relationship between intellectual capital, individual absorptive capacity and the innovation performance of the Federal Institute of Santa Catarina’s technical-administrative civil servants. Methodology: Self-administered questionnaires were used as a data collection instrument, applied to the institution's technical-administrative staff, resulting in a sample of 314 respondents. In the data analysis, structural equation modeling was used. The final quantitative analysis structure resulted in 28 variables, distributed among the constructs proposed by the research. Relevance: the relevance of the study lies in the fact that individuals play a role in the creation, transfer and absorption of knowledge, thus factors at the individual level represent an antecedent for performance; therefore, at the time when the codification of knowledge occurs or expands, through assimilation, acquisition, transformation and application, a direct contribution to increasing organizational effectiveness also occurs. Results: The results showed that human capital, structural capital and relational capital influence the individual absorptive capacity, from the perspective of the institution's technical-administrative staff, with the most relevant relationship being that of human capital. Originality/Theoretical contribution: The responses indicated that the innovation performance – analyzed based on the creation and implementation of ideas – is influenced by the individual absorptive capacity. Therefore, through the results obtained, contributions to management were proposed that could contribute to the influence between the constructs, and consequently, to the individual and organizational performance.

Antecedents and performance outcomes of employees’ data analytics skills: an adaptation structuration theory-based empirical investigation

ABSTRACT How do organizations develop and manage employees’ data analytics skills to create business value and enhance organizational competitive advantage? In order to address this prominent and critical research question for IS research, we conceptualize and operationalize data analytics skills at the individual level and develop a nomological network model to examine its critical antecedents and outcomes from the lens of adaptation structuration theory. We test our core proposition and research model using survey data collected from 258 frontline employees of three data-intensive research institutes in China. We discover that data-driven culture, data analytics affordance, and individual absorptive capacity are positively associated with employees’ data analytics skills, which in turn, have positive influences on their task and innovative performance. We classify the employees into digital immigrants and digital natives based on age and examine the different influences of three salient antecedents on data analytics skills between the two groups. The research findings suggest that data-driven culture plays a more significant role in driving data analytics skills for digital immigrants, while data analytics affordance exhibits a stronger influence on data analytics skills for digital natives.

Linking online and offline intergenerational knowledge transfer to younger employees’ innovative work behaviors: evidence from Chinese hospitals

PurposeLittle is known about when younger employees’ intergenerational knowledge transfer (IGKT) – behaviors of acquiring knowledge from older employees – improves their innovative work behaviors (IWB), especially in hospitals. Taking into consideration the moderating roles of individual absorptive capacity (AC) and organization size, this study aims to develop a theoretical model to account for the associations of both online and offline IGKT with younger employees’ IWB.Design/methodology/approachThe model was tested with a survey of 202 Chinese younger doctors (40 years old and below). Partial least squares structural equation modeling (PLS-SEM) was used to analyze the data.FindingsThe results showed that both online IGKT and offline IGKT have significant positive relationships with younger doctors’ IWB. Individual AC can strengthen the relationship between offline IGKT and IWB, and organization size can weaken the relationship. However, both individual AC and organization size do not significantly moderate the relationship between online IGKT and IWB.Originality/valueThe findings extend the understanding and application of individual-level knowledge-based view and media synchronicity theory by exploring the relationship of knowledge acquisition from older doctors through both online and offline communication channels with younger doctors’ IWB.

Undergraduate Students' Social Entrepreneurial Intention: The Role of Individual Environmental Responsibility and Absorptive Capacity.

As social entrepreneurial intention has received increasing attention from scholars and practitioners, no clear conclusions have been drawn regarding antecedent or external factors that influence social entrepreneurial intention. This study aims to develop a structural model to shape the social entrepreneurial intention of business administration students, which involves the theory of planned behavior (i.e., attitudes, subjective norms), social capital, individual environmental responsibility, and individual absorptive capacity (i.e., potential absorptive capacity and realized absorptive capacity). Furthermore, this study regards potential absorptive capability as a multi-dimensional construct of a higher-order structure. The participants were students from business administration colleges/universities (including general universities and science and technology universities) in Taiwan. The empirical data from 969 participants were analyzed using Smart PLS 3.0 to obtain the results. The results revealed that: (1) social capital had a significant positive effect on attitudes and subjective norms; (2) attitudes, subjective norms, individual environmental responsibility, and realized absorptive capability had a positive effect on social entrepreneurial intention; however, social capital and potential absorptive capability had a negative effect. The results were discussed, and some specific recommendations for practitioners of business administration education were proposed.

Triggering disruptive technology absorptive capacity by CIOs. Explorative research on a micro-foundation lens

• Insights on CIOs’ involvement at the micro and meso firms’ level are offered. • The paper emphasizes the openness to disruptive technologies within SMEs. • An empirical analysis on a large-scale sample of 754 CIOs was performed. • Individual TAC is triggering the use of disruptive technologies. • Solutions for leveraging of disruptive technologies in SMEs The pervasive dissemination of disruptive technologies such as Artificial Intelligences (AI) is rapidly changing the way small to medium-sized enterprises (SMEs) are evolving and becoming more innovative. Individual technology absorptive capacity (TAC) is triggering the use of such technologies in a more effective, efficient, and easy mode by Chief Information Officers (CIOs). The CIO, albeit involved in the firm's micro level, encourages firms’ TAC at meso level. Although the CIO encourages the use of disruptive technologies, studies on this field are still scarce. This research bridges the gap in the literature, offering an empirical analysis of a large-scale sample of 754 CIOs from knowledge-intensive SMEs to evaluate TAC under a micro-foundation lens. The analysis provides detailed stimuli in rethinking the enhancement of CIOs, emphasizing the effect of the micro level in intercepting disruptive technologies, and optimizing investments in research and development in SMEs. The paper is part of a research line that highlights the relevant role of CIOs and the ability of firms’ TAC in Industry 4.0 at micro and meso levels. The study contributes to expanding solutions in the leveraging of disruptive technologies in the digital transformation era.

Relationships among absorptive capacity, creativity and job performance: the moderating role of social media usage

PurposeThis paper investigates the impact of absorptive capacity (ACAP) on creativity and the effect of creativity on job performance. Further, the study investigates the moderating role of social media usage on the ACAP–creativity link and the creativity–job performance link. Accordingly, drawing on the ACAP perspective and social exchange theory (SET), the study develops a conceptual model and tests the proposed relationships.Design/methodology/approachThe paper empirically tests the developed model using 512 survey responses from research and development (R&D) employees. Data were factor analyzed, and path estimates were determined using structural equation modeling to test the hypotheses.FindingsThe results reveal that (1) individual ACAP is positively related to creativity; (2) creativity is positively associated with job performance and (3) social media usage positively moderates the relationship between individual ACAP and creativity.Originality/valueThis paper contributes to the ACAP and creativity literature by establishing a comprehensive and empirically grounded framework that enlightens the relationships between ACAP, creativity, job performance and the moderating role of social media usage.

Fostering individual-level absorptive capacity and adaptive performance through leadership context

PurposeThis study aims to examine the effects of trait goal orientations (mastery, performance-prove and performance-avoid goals) on individual-level absorptive capacity (AC), ultimately adaptive performance. This study also explores the cross-level moderating effects of transformational leadership climate on these mediated relationships.Design/methodology/approachData from 480 participants in 76 teams from accounting firms in Northeast Thailand were analyzed using the multilevel method.FindingsFindings showed support for positive indirect effects from approach-related goal orientations (mastery and performance-prove) to adaptive performance via AC and a negative indirect effect from avoid goal orientation to adaptive performance via AC. Results showed that a transformational leadership climate strengthens the relationship between goal orientations and AC, but only when team members have a high level of approach-related goals.Originality/valueThis study extends previous work by providing an understanding of how a transformational leadership context and the differences in goal orientations interact to promote or impede an individual's AC. It also extends our understanding of the mechanism of how AC mediated the effects of trait goal orientations and transformational leadership climate on adaptive performance.

The impact of organizational practices on formation and development of psychological contract: expatriates' perception-based view

PurposeBased on signaling and motivation theories, this study investigates the impact of organizational practices on the formation and development of expatriates' psychological contracts in three stages. Stage 1: the impact of the selection process on psychological contract formation with the mediating role of perceived organizational justice. Stage 2: the impact of pre-departure training on psychological contract formation with the mediating role of individual absorptive capacity. Stage 3: the impact of perceived organizational support on psychological contract development with the mediating role of expatriates' adjustment.Design/methodology/approachBy using a purposive sampling technique, the respondents were approached via e-mails and personal visits in three waves, each wave had 45 days gap. After three waves, a total of 402 complete questionnaires were received back. To test the hypotheses, the partial least squares-based structural equation modeling (PLS-SEM) approach was used.FindingsStage 1: effective selection process and perceived organizational justice positively support the psychological contract formation. Stage 2: the pre-departure training and individual absorptive capacity have a positive influence on the psychological contract formation of expatriates. Stage 3: the perceived organizational support and psychological contract development have a positive direct association. However, expatriates' adjustment does not mediate the association between perceived organizational support and the psychological contract development of expatriates.Practical implicationsThe implications of this study are supportive to the organizations that deal with expatriates. The organizations should adopt practices (i.e. effective selection process, pre-departure training and perceived organizational support) for effective formation of psychological contract formation and development. In addition, perceived organizational justice, individual absorptive capacity and expatriates' adjustment can help out in the formation and development of the psychological contract of expatriates.Originality/valueThis study highlights the role of organizational best practices in the formation and development of the psychological contract of expatriates.

The Effect of Individual’s Technological Belief and Usage on Their Absorptive Capacity towards Their Learning Behaviour in Learning Environment

Absorptive capacity is a common barrier to knowledge transfer at the individual level. However, technology absorptive capacity can enhance an individual’s learning behaviour. This study investigates that technology readiness, the tools for knowledge sources, social influences, and social networks influence an individual’s absorptive capacity on an adaptation of the individual learning behaviour. A quantitative approach is used to assess the presence of a causal relationship from the constructs mentioned above. Data were collected from university students in Australia to examine the hypotheses. With 199 responses, a partial least squares structural equation modelling (PLS-SEM) approach was used for the analysis. The results generated mixed findings. Individual’s technological belief in optimism and innovation and social influences had a significantly weaker effect on individual absorptive capacity, which in turn had a significantly weaker impact on their learning behaviour.

Understanding new corporate innovation strategies: hybrid high-involvement approaches and the increasing importance of individual absorptive capacity

Driven by the challenges of digitalisation and increasing market dynamics, corporations must develop new strategies for innovation and knowledge management. This paper describes hybrid high-involve...