Technological Turbulence Research Articles

Firm absorptive capacity: multidimensionality, drivers and contextual conditions

Purpose This paper aims to enrich absorptive capacity literature by specifically highlighting and adding environmental conditions and internationalisation process to the original conceptualisation. Design/methodology/approach The authors undertake a conceptual analysis and present an enhanced framework of absorptive capacity by integrating multiple literature streams. The authors have analysed the most relevant literature to provide underlying justifications for the proposed conceptual model. Findings Absorptive capacity ensures the long-term survival and success of a business. To develop absorptive capacity successfully, firms should focus on its various dimensions and existing intangible assets and external environment. The multidimensionality and richness of absorptive capacity is an under-explored area in the existing literature. The authors revisit the conceptualisation of absorptive capacity and add environmental conditions and the internationalisation process to the original conceptualisation. Absorptive capacity does not lead to a competitive advantage independent of its environment. To successfully develop it, firms have to adopt a holistic approach by considering the multi-dimensions, drivers and contextual conditions of absorptive capacity. Originality/value This study contributes by conceptualising absorptive capacity as a dynamic capability. It is one of the first studies to specifically propose a framework that combines antecedents (prior knowledge, combinative capabilities and IT capabilities), moderators (environmental conditions, namely, market and technological turbulence, competitiveness and the internationalisation process) and consequences (competitive advantage). The study offers a unique conceptualisation with implications for researchers and managers. As a result, managers will have a well-defined blueprint to create value by using firm capabilities.

Examining the impact of deep learning technology capability on manufacturing firms: moderating roles of technology turbulence and top management support.

Data science can create value by extracting structured and unstructured data using an appropriate algorithm. Data science operations have undergone drastic changes because of accelerated deep learning progress. Deep learning is an advanced process of machine learning algorithm. Its simple process of presenting data to the system is sharply different from other machine learning processes. Deep learning uses advanced analytics to solve complex problems for accurate business decisions. Deep leaning is considered a promising area for creating additional value in firms’ productivity and sustainability as they develop their smart manufacturing activities. Deep learning capability can help a manufacturing firm’s predictive maintenance, quality control, and anomaly detection. The impact of deep learning technology capability on manufacturing firms is an underexplored area in the literature. With this background, the purpose of this study is to examine the impact of deep learning technology capability on manufacturing firms with moderating roles of deep learning related technology turbulence and top management support of the manufacturing firms. With the help of literature review and theories, a conceptual model has been prepared, which is then validated with the PLS-SEM technique analyzing 473 responses from employees of manufacturing firms. The study shows the significance of deep learning technology capability on smart manufacturing systems. Also, the study highlights the moderating impacts of top management team (TMT) support as well as the moderating impacts of deep learning related technology turbulence on smart manufacturing systems.

Technology cluster coupling and invulnerability of industrial innovation networks: the role of centralized structure and technological turbulence

Technology cluster coupling and invulnerability of industrial innovation networks: the role of centralized structure and technological turbulence

Knowledge management strategies and organizational improvisation: what changed after the emergence of technological turbulence caused by artificial intelligence?

PurposeThis paper aims to analyze the moderating effect of technological turbulence caused by artificial intelligence on the relationship between the traditional knowledge management strategies of personalization (tacit knowledge) and codification (explicit knowledge), and organizational improvisation, which refers to the firm's ability to generate ideas and respond to changes in the technological environment in real time. Until now, individuals have played a key and indispensable role in organizational improvisation since they are the owners of tacit knowledge and users of explicit knowledge.Design/methodology/approachThe research model was tested in a sample of firms from sectors in which the adoption of intelligent robots is growing.FindingsBoth personalization and codification have a positive and significant influence on improvisation, the former to a greater extent. Nevertheless, when technological turbulence caused by artificial intelligence occurs, the relationship between personalization and improvisation is weakened, whereas the link between codification and improvisation is strengthened.Originality/valueContrary to the pre-digital literature consensus, explicit knowledge is becoming the new major driver of organizational improvisation, while tacit knowledge sharing is losing strength and relevance. This finding may be a first indication that intelligent robots are the new exponents of improvisation for their ability to respond to changes in the environment in real time because of a combination of explicit knowledge, beyond being a mere support tool for humans.

The strategic innovation under information technological turbulence: the role of organisational resilience in competitive advantage

PurposeThis study aims to propose a structural model drawing from the theoretical literature, extending the relative research fields to the competitive strategy. The empirical results involve data collection of 582 data that represents various enterprises in the Indonesian context. The authors develop four scenarios of strategic innovation based on the empirical findings, which extend the discussion on the concept of competitive strategy.Design/methodology/approachThis paper aims to examine the impact of organisational resilience and marketing communication on competitive advantage through new product development under information technological turbulence.FindingsThe results indicate that product development is less effective to firm competitive advantage during the high information technological turbulence than during low information technological turbulence. This study shows that organisational resilience and marketing communication help firms achieve a competitive advantage. The authors also identify four scenarios for strategic innovation, drawing from empirical results.Originality/valueThis paper extends the literature of resource-based views by proposing a model that concerns product development as the primary determinant of competitive advantage. In addition, this study discusses the intersection between the concept of dynamic capability and contingency theory by examining how firms deal with information technological turbulence.

Impact of dynamic capacities on the performance of food and beverage enterprises in Lagos, Nigeria

This study examined the impact of dynamic capacities on the performance of food and beverage enterprises in Lagos, Nigeria. The following sub-variables (strategic decision-making capacity, product innovation capacity, strategic flexibility, competitive intensity, technological turbulence, and technological capability) were employed to represent the variable of dynamic capacity. Also, the following sub-variables (sales growth, enterprise survival, enterprise efficiency, and competitive advantage) were employed to represent the variable of enterprise performance. Primary data was used to achieve descriptive and inferential statistics, and the statistics is estimated by the PLS-SEM method which was calibrated on Lisrel 8.70 software. This study found that product innovation, competitive intensity and technological turbulence, technological capability and competitive intensity, and strategic flexibility are critical sub-variables in determining the robustness of dynamic capacities, as they adequately improve increasing sales growth, survival, and sustenance of enterprise into the unforeseeable future, efficiency of enterprise, and competitive advantage of food and beverage manufacturing enterprises, respectively, particularly in this trying period that is evidenced with technological change and competition, among others.

User participation depth and innovation performance of Internet companies: the moderating effect of environmental turbulence

ABSTRACT As the external environment is changing rapidly, the traditional innovation model can no longer satisfy firms’ requirements for time-based competition. Internet technology enables users to become a source of innovation, thereby engaging user participation in firms’ innovation activities has become an important means for firms to improve their innovation performance. Based on resource-based theory, this study analyzes a sample of 189 Internet companies to examine the direct effect of user participation depth on firms’ innovation performance, as well as the moderating effect of environmental turbulence (including market turbulence, competitive intensity, and technological turbulence) on this relationship. We find that there is a positive relationship between user participation depth and the innovation performance of Internet companies, and that market turbulence and competitive intensity positively moderates this relationship.

The Factors Affecting Cooperation and the Moderating Effect of Technological Turbulence

This present study investigates the effect of technological turbulence on cooperation, the mediation role of non-economic satisfaction between focal constructs of relationship marketing (RM) and cooperation, and the effect of interpersonal commitment on interorganizational commitment. The findings show that high technological turbulence dampens the positive relationship of two focal constructs of RM, non-economic satisfaction mediates focal constructs of RM and cooperation, and interpersonal commitment influences interorganizational commitment. The study uses empirical data from business-to-business (B2B) ICT resellers in Indonesia to test the hypotheses developed. A structured questionnaire via an online platform is used as a research instrument with one hundred and one company participating.

Corporate social responsibility and disruptive innovation: The moderating effects of environmental turbulence

A growing number of firms have used disruptive innovation as a strategy to gain competitiveness, and the topic of how disruptive innovation occurs has attracted wide attention. Leveraging the extant literature on disruptive innovation, stakeholder theory, and contingency theory, this study explores how corporate social responsibility (CSR) affects disruptive innovation under various degrees of environmental turbulence. A sample of 226 firms was used, and empirical results indicate that CSR (external and internal CSR) positively affects disruptive innovation. In addition, technological turbulence positively moderates the abovementioned relationships, while the effect between external CSR and disruptive innovation was negatively moderated by market turbulence. These findings advance the knowledge of disruptive innovation, stakeholder theory, and contingency theory, and provide practical insights to guide the implementation of disruptive innovation.

Service customization in turbulent environments: Service business models and knowledge integration to create capability-based switching costs

Prior studies considered external conditions that trigger the adoption of servitization in product firms, but little is known on the decision to provide standardized vs. customized services. We analyze this tradeoff when companies face market and technological turbulence. We follow the capability-based switching costs theory, which considers the cost resulting from customer efforts to create new capabilities related to the solution offered by product firms. We propose that customized services help create these switching costs in turbulent environments. We also consider the mediating role of service-centric business models and the moderating role of cross-functional knowledge integration in these relationships. We combined data from a survey of 104 firms and secondary industry-level data on turbulence and analyzed it with regression techniques. Results show that, in turbulent environments, companies increase service customization instead of standardization and enhance service-centric business models, which benefits customer loyalty (a measure of capability-based switching costs). Companies focused on knowledge integration were less sensitive to technological turbulence and could better develop service activities for customization. We extend the service theory connecting it to the capability-based switching cost view and explain service provision mechanisms in turbulent environments. Managers can learn what to consider to implement a servitized business model in turbulent environments.

Contract‐Based Knowledge Protection and Cooperation Performance: The Effects of Technological Turbulence and Legal System Completeness

AbstractThis study examines the direct effects of technological turbulence and legal system completeness on contract‐based knowledge protection and the moderating effects of these factors on the relationship between contract‐based knowledge protection and cooperation performance. A conceptual model is developed using the sensemaking perspective. The model is tested using survey data collected from 227 manufacturing firms in China. We find that contract‐based knowledge protection is positively associated with cooperation performance. Technological turbulence and legal system completeness both have significant positive effects on contract‐based knowledge protection. In addition, technological turbulence weakens the positive relationship between contract‐based knowledge protection and cooperation performance, while legal system completeness strengthens the relationship. The findings enrich existing knowledge on how technological and legal environments shape firms’ decisions on knowledge protection in cooperation and moderate its effect on performance outcomes.

Sustainable innovation among small businesses: The role of digital orientation, the external environment, and company characteristics

AbstractThis study aimed to identify the internal and external environments of a company that affect sustainable innovation in such small enterprises by examining the circumstances under which small enterprises are likely to engage in sustainable innovation. The results of this study demonstrate that companies with high levels of digital orientation in their operations contributed more to sustainable innovation than those without such high levels. In addition, in the external environment, factors that include market and technological turbulence have a negative effect on sustainable innovation. However, the adoption of sustainable innovation was not significantly impacted by market turbulence. Furthermore, certain company characteristics, such as size and maturity, do not determine the contribution of a company's internal and external environments to sustainable innovation.

Perceived technological turbulence and individual ambidexterity – The moderating role of formalization

Today's turbulent environment, with fast and unpredictable technological changes, requires employees to increasingly act ambidextrously, i.e., to simultaneously incorporate exploitative and explorative tasks in their work roles. To improve our understanding of how to foster individual ambidexterity in technologically turbulent environments, we draw on organizational management theories by arguing (1) that perceived technological turbulence directly affects individual ambidexterity in a positive way and (2) that organizations can strengthen this effect by providing employees with internal stability in these times of external changes through high degrees of formalization. Using data collected in a three-wave online survey of 739 German employees, this study demonstrates that employees who perceive high degrees of technological turbulence in their organization's environment show high degrees of ambidexterity in their work. In addition, we show that formalization in the form of written rules, procedures, and instructions positively moderates this relationship so that employees' ambidexterity is highest when both perceptions of technological turbulence and formalization are high. We conclude by discussing the implications of these findings for the ambidexterity literature, for future research and managerial practice.

The effects of performance shortfalls on firms’ exploitation and exploration R&D internationalization decisions: Does industry environmental matter?

Building on the behavioral theory of the firm (BTF), our study investigated how firms adjust their exploitation and exploration R&D internationalization in response to performance shortfalls and how this adjustment is moderated by industry environmental factors. Using 16 years (2003–2018) of data on Chinese listed firms, our study found that in response to performance shortfalls, firms will increase exploitation R&D internationalization rather than exploration R&D internationalization. In other words, performance shortfalls negatively affect the share of exploration R&D internationalization. In addition, we also found that the relationship between performance shortfalls and the share of exploitation R&D internationalization is strengthened by industry market turbulence but weakened by industry technological turbulence.

Reinterpreting excellence for sustainable competitive advantage: the role of entrepreneurial culture under information technological turbulence

PurposeThis study aims to understand the culture of excellence by examining the role of entrepreneurial culture in shaping how firms achieve sustainable competitive advantage (CA). This study takes into consideration the firms’ capability to transform the entrepreneurial culture into a sustainable CA by generating product development and adapting the information technological turbulence.Design/methodology/approachThis study first gathers evidence from literature then carries out a detailed study to propose a structural equation model followed by an online survey that supports empirical evidence. This empirical test involves a data set with 782 usable responses following the 4,000 emails sent to the respondents and removed data due to the missing values. The population data are taken from the firm directory in Surabaya City that the Indonesian Ministry of Trade and Industry published.FindingsThere is a strong tendency that entrepreneurial culture is imperative for firms to attain sustainable CA by supporting new product development. The results show that product development provides a partial mediating effect, which indicates that entrepreneurial culture may affect the sustainable CA directly and with the product development support. This study also touches on dynamic capability by proposing a scenario approach that suggests that firms should refine the entrepreneurial culture to adapt to the information technological turbulence.Originality/valueThis study extends the understanding of the culture of excellence by underpinning the dynamic capability theory, which argues that entrepreneurial culture is a valuable resource, which helps firms achieve sustainable CA by promoting product development.

Adoption of Ubiquitous CRM for Operational Sustainability of the Firms: Moderating Role of Technology Turbulence

Ubiquitous CRM (UCRM) enhances customer relationship management. It can sense customer needs and demands, to which firms can respond quickly. Therefore, UCRM helps to improve a firm’s agility. There is a growing interest among researchers and practitioners to understand how the adoption of UCRM impacts the sustainability of firms’ operations, but not many studies have investigated this issue. In this context, the aim of this study is to examine how firms’ absorptive capacity and dynamic capability could impact the adoption of UCRM to influence the operational sustainability of the firms and their performance. The study also investigates the moderating role of technology turbulence on the relationship between a firm’s operational sustainability and its performance. Using absorptive capacity theory and dynamic capability view theory and reviewing the existing literature, we developed a conceptual model. The model was then validated using a structural equation modeling technique considering 309 usable respondents from different firms that use UCRM for their operational activities. The study found that firms’ absorptive capacity and dynamic capability significantly and positively impact the adoption of UCRM, which in turn significantly and positively impacts firms’ operational sustainability and improves their performance. The study also shows that there is a significant moderating role of technology turbulence on the relationship between operational sustainability and firm performance.

Innovation strategy beyond the COVID-19 pandemic: the role of trust under disruptive technology

PurposeThis paper aims to understand how firms promote innovation under disruptive technology by exploring the role of trust and risk-taking behaviour in enhancing product development towards competitive advantage.Design/methodology/approachThis study proposes a structural equation model that entails seven hypotheses for the constructs and their relationship with support from the previous literature. The empirical analysis involves a survey of the 390 small firms in Indonesia to generate four scenarios following the COVID-19 pandemic.FindingsThe evidence indicates that trust allows the firms to take a risk for new product development, which is, in turn, help to achieve their competitive advantage. However, the impact of product development on competitive advantage varies depending on the capability of the firms to deal with the information technological turbulence.Research limitations/implicationsThis study adopted the concept of trust at the organisational level and did not cover the concept of trust at the family and community levels. Secondly, this study focusses on small and medium-sized enterprises as unit analysis during the COVID-19 pandemic. The results depend on the subject of study, which could be different from the normal condition.Practical implicationsThis study provides four scenarios of foresight innovation strategy, which allow the firms to deal with various plausible futures. The proposed model devise strategies to prepare a strategy in the face of uncertainty. The findings encourage the firms to cultivate trust from their business partners to create innovation.Originality/valueThis study extends the discussion on how innovativeness leads to firm competitive advantage by examining the role of trust and risk-taking behaviour in product development under information technological turbulence. The results confirm the integration between social capital theory and the contingency approach.

The double-edged sword effect of social media usage on new product development performance: evidence from Chinese firms

PurposeResearch on social media frequently analyze social media usage (SMU)'s positive consequences for organizations and individuals; however, recent innovation studies caution that SMU may not always lead to positive new product development (NPD) outcomes. The competing streams of research highlight a fundamental tension that exists in the social media literature exemplified by the question: Is SMU good or bad for NPD? In this manuscript, the authors suggest that a more appropriate question as follows: What are the positive and negative indirect effects of SMU on NPD performance? The purpose of this paper is to discuss the aforementioned points in detail.Design/methodology/approachA literature review provides the model and hypotheses. Using a sample of 168 Chinese firms, the authors conducted an empirical test following multiple regression analysis.FindingsThe results demonstrate that SMU facilitates business analytics (ability) and social legitimacy (opportunity) but impairs entrepreneurial proclivity (motivation). These three constructs in turn mediate the effect of SMU on NPD performance. Moreover, this paper explores how technological turbulence moderates SMU's effects on business analytics, entrepreneurship proclivity and social legitimacy.Research limitations/implicationsThe results may be affected by both the context (solely in China) and type (cross-sectional) of the data set. Future research might take a decompositional approach to study SMU's effect on innovation in different NPD stages. Furthermore, with widely varying purposes (e.g., marketing, information searching, partner collaboration, new product launch, etc.), there is certainly a need for more clarity and understanding of how firms can leverage each of these different social media activities for successful NPD.Practical implicationsFirst, we suggest that managers in China should be explicitly aware of the double-edged sword effect of SMU on NPD performance. Second, this study encourages managers to use social media carefully when technological turbulence becomes intense.Originality/valueDrawing on the ability–motivation–opportunity framework, this is one of the first studies to simultaneously examines the benefits and costs of SMU for NPD. In addition, this paper bridges the separate literatures on social media, business analytics, entrepreneurial proclivity and social legitimacy and contributes to the NPD research.

Business model experimentation in SMEs: the application of a dual scaling technique

ABSTRACT Business model experimentation is an essential step for developing new business models. While the benefits of business model experimentation are increasingly studied, it is still poorly understood why companies engage in business model experimentation. This paper examines, starting from environmental turbulence reasoning, which external and internal drivers serve as antecedents for business model experimentation by firms that already have established business models. We do so by making use of a unique, quantitative data set based on a survey study among 929 European SMEs actively engaged in business model innovation. Using Dual Scaling, a procedure to scale categorical inputs that yields the least-squares lower-rank approximation to the elements of our data set, we find that external drivers relating to technological turbulence are the most important antecedents for business model experimentation. External competitive intensity doesn't motivate business model experimentation. Regarding internal drivers, strategic change, related to product innovation, is a significant antecedent, while innovative activities are less outspoken. By examining why companies engage in business model experimentation, the paper contributes to understanding the antecedents of business model innovation.

The Influence of Marketing Innovations on Firm Performance under Different Market Environments: Evidence from China

The adoption of marketing innovations can contribute to the sustainability of a firm. However, research on the types of marketing innovations and their effects is limited. The purpose of this study is to analyze the dimensions of marketing innovations, their effects on firm performance, and how market environmental factors moderate those effects. Based on an analysis of the literature, this study discovered two types of marketing innovations and established a model to explain the dynamics of marketing innovation and firm performance under different market environments. Empirical data were collected and used to validate the model. Results show that both market-driven and market-driving innovations significantly contribute to a firm’s performance. Moreover, their effects are significantly moderated by competition intensity and technological turbulence but not demand uncertainty. This study contributes to the literature because it elaborates the conceptualization of marketing innovation and presents the dynamics of marketing innovation, market environment, and firm performance. It also provides practical implications on how firms can utilize marketing innovations to achieve business sustainability.