Impact of FDI and TRIPS on the Absorptive Capacity of Manufacturing Firms in India

2021 ◽  
pp. 47-56
Author(s):  
Sunil Kumar Ambrammal ◽  
P. Baiju
Keyword(s):  
Absorptive Capacity ◽  
Manufacturing Firms

scholarly journals Accelerating Green Innovation Performance from the Relations of Network Potential, Absorptive Capacity, and Environmental Turbulence

2021 ◽  
Vol 13 (14) ◽  
pp. 7765
Author(s):  
Shuizheng Song ◽  
Md Altab Hossin ◽  
Xiaohua Yin ◽  
Md Sajjad Hosain
Keyword(s):  
Sustainable Development ◽  
Absorptive Capacity ◽  
Bootstrap Method ◽  
Manufacturing Firms ◽  
Innovation Performance ◽  
Mediation Effect ◽  
Environmental Turbulence ◽  
High Tech ◽  
Green Innovation ◽  
The Relationship

The demand for sustainable development and the advantages of industries are expediting over time with the triggering of green innovation performance (GIP). Improving a firm’s GIP, especially in manufacturing industries, can accelerate green development and mitigate the global-concerned environmental issues. Thus, to investigate GIP from its antecedent factors, we delineate the relationship between network potential, absorptive capacity, environmental turbulence, and GIP based on social network theory, organizational learning theory, and contingency theory. We tested our hypotheses based on 233 sets of questionnaire surveys from high-tech manufacturing firms in China through deploying the hierarchical regression and bootstrap method. Our empirical findings reveal that the network potential dimensions, including network position centrality (NPC), network structure richness (NSR), and network relationship closeness (NRC), significantly positively impacted the GIP. The absorptive capacity (AC) partially mediated the relationship between the network potential dimensions and GIP. Environmental turbulence (ET) as an essential mechanism not only positively moderated the relationship between AC and GIP but also enhanced the AC mediation effect. These findings indicate that manufacturing firms should continue to improve network potential and AC and respond rapidly to changes in the external environment to enhance GIP, consequently contributing to the sustainable development of the economy.

Strategic orientations, firm performance and the moderating effect of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
María del Rosario Demuner-Flores ◽  
Felipe Hernández-Perlines
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Orientations ◽  
The Relationship

PurposeThe purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance.Design/methodology/approachThe data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM).FindingsDespite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance.Practical implicationsThe main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP.Originality/valueThe main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done.

Developing process and product innovation through internal and external knowledge sources in manufacturing Malaysian firms: the role of absorptive capacity

2020 ◽  
Vol 26 (5) ◽  
pp. 1021-1039 ◽  
Author(s):  
T. Ramayah ◽  
Pedro Soto-Acosta ◽  
Khoo Kah Kheng ◽  
Imran Mahmud
Keyword(s):  
Absorptive Capacity ◽  
Product Innovation ◽  
Manufacturing Firms ◽  
Innovation Performance ◽  
Knowledge Sources ◽  
Manufacturing Companies ◽  
Organizational Capability ◽  
Data Set ◽  
Content Type ◽  
External Knowledge

PurposeFirms' knowledge-processing capabilities have a central role in achieving innovation performance and competitive advantage. Absorptive capacity capabilities and innovation are viewed as essential for enterprise success. Absorptive capacity is deemed as a highly important organizational capability to recognize value and assimilate both external and internal knowledge in order to enhance firm innovation. The aim of this study is to determine if innovation performance can be improved through absorptive capacity (knowledge acquisition, dissemination and utilization), when it is supported by internal (firm experience) and external knowledge sources (R&D cooperation and contracted R&D).Design/methodology/approachA quantitative methodology based on employing a structured questionnaire was used for data collection. The proposed research model and its associated hypotheses are tested by using Partial Least Squares (PLS) structural equation modelling (SEM) on a data set of 248 manufacturing companies located in the Northern Region of Malaysia.FindingsResults showed that firms' experience is significantly related to absorptive capacity, while for R&D cooperation and contracted R&D findings were mixed. In addition, absorptive capacity was found as a strong predictor of innovation performance.Originality/valueOne of the defining features of competition in many industries has been the extremely rapid pace of technological change, marked by a continuous stream of innovations. Manufacturing firms, therefore, face the challenge of nurturing existing knowledge and developing novel knowledge in order to create new business opportunities. This study makes valuable contributions with regard to understanding the behavioural of manufacturing firms towards process and product innovation.

scholarly journals Firm’S Absorptive Capacity: The Case of Vietnamese Manufacturing Firms

2018 ◽  
Vol 18 (3) ◽  
pp. 301-325 ◽  
Author(s):  
Hoang Duong Vu
Keyword(s):  
Maximum Likelihood ◽  
Absorptive Capacity ◽  
Maximum Likelihood Method ◽  
Foreign Firm ◽  
Manufacturing Firms ◽  
Likelihood Method ◽  
Essential Factor ◽  
Tobacco Products ◽  
Definition Of ◽  
Technology Level

Abstract Absorptive capacity is an essential factor for the development of any firm. Hence, numerous researchers use it when proposing different approaches and measurements. However, due to the ambiguity of definition of absorptive capacity, some studies focused on the within-firm aspects of absorptive capacity while some looked at the inter-firm aspects. Consequently, there are several proxies for absorptive capacity, which are unlikely to reach an agreement. Therefore, this study aims for the simplified measurement by defining the absorptive capacity of a firm as the gap in persistent efficiency between the firm and the best foreign firm in the same industry. The persistent efficiency of a firm is estimated by using single stage maximum likelihood method. This measurement is applied to the case of Vietnamese manufacturing firms from 2007 to 2015 to estimate the domestic absorptive capacity. The results show that domestic firms in the manufacture of tobacco products sub-sector have the best absorptive capacity and the manufacture of beverages sub-sector have the worst one. Finally, the validity of the proxy is confirmed when the study finds the positive correlation between absorptive capacity and a firm’s age, size, technology level and skills of its workers.

The determinants of different types of R&D cooperation

2009 ◽  
pp. 41-66
Author(s):  
Valentina Morandi
Keyword(s):  
Absorptive Capacity ◽  
Jel Classification ◽  
Manufacturing Firms ◽  
Stable Set ◽  
Management Skills ◽  
Technological Regime ◽  
Community Innovation Survey ◽  
The Third ◽  
Different Types ◽  
Using Data

- This paper provides new empirical evidence on the determinants of R&D cooperation by investigating the drivers of cooperation with different types of partners. Using data collected by the Third Italian Community Innovation Survey, this study estimates the influence of perceived obstacles to innovation, technological regime and market extension, a firm's absorptive capacity, appropriability conditions, partner selection capabilities, and management skills on the propensity to cooperate. The results of the multivariate analysis suggest a relatively stable set of R&D cooperation determinants, as well as some differences across cooperation types. Keywords: R&D cooperation, innovating manufacturing firms, Italian CIS-3 Parole chiave: collaborazione in R&S, imprese manifatturiere innovative, CIS 3 italiana JEL Classification: O310, O320

scholarly journals Imported Intermediates, Absorptive Capacity and Productivity: Evidence from Ghanaian Manufacturing Firms

World Economy ◽  
2016 ◽  
Vol 40 (2) ◽  
pp. 369-392 ◽  
Author(s):  
Luke Emeka Okafor ◽  
Mita Bhattacharya ◽  
Harry Bloch
Keyword(s):  
Absorptive Capacity ◽  
Manufacturing Firms

scholarly journals Local discoveries and technological relatedness: the role of MNEs, imports and domestic capabilities

2018 ◽  
Vol 19 (5) ◽  
pp. 1077-1098 ◽  
Author(s):  
Alessia Lo Turco ◽  
Daniela Maggioni
Keyword(s):  
Absorptive Capacity ◽  
High Intensity ◽  
Manufacturing Firms ◽  
Local Economy ◽  
Foreign Firms ◽  
Local Market ◽  
Specific Knowledge ◽  
Foreign Affiliates ◽  
Regional Product

Abstract We explore the role of intra- and extra-regional product-specific capabilities in the introduction of local discoveries—products new to the firm and to its local market—by Turkish manufacturing firms. We find that product discoveries in a NUTS3 region are favoured by their technological proximity to the product mix of co-located foreign firms. Proximity to co-located domestic firms and local imports does not play any role. The high intensity of local discoveries in novel and exclusive capabilities which foreign affiliates bring into the local economy drives our findings. Finally, we show that the importance of knowledge spilling from foreign affiliates depends on their insidership in the local market, on their product-specific knowledge advantage and on local firms’ absorptive capacity.

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