From external knowledge to competitive advantage: absorptive capacity, firm performance, and the mediating role of labour productivity

2020 ◽  
pp. 1-13 ◽  
Author(s):  
Feng Liu ◽  
Dev K. Dutta ◽  
Kwangtae Park
Keyword(s):  
Firm Performance ◽  
Competitive Advantage ◽  
Absorptive Capacity ◽  
Labour Productivity ◽  
External Knowledge ◽  
Mediating Role

External knowledge sourcing and innovation in family firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manzoor Ul Akram ◽  
Koustab Ghosh ◽  
Rojers P. Joseph
Keyword(s):  
Social Capital ◽  
Absorptive Capacity ◽  
Product Innovation ◽  
Family Firms ◽  
Family Firm ◽  
Content Type ◽  
External Knowledge ◽  
Mediating Role ◽  
Realized Absorptive Capacity

Purpose This study aims to investigate the external knowledge search behaviors in terms of search breadth and search depth in family firms and the resultant product innovation in Indian context. The authors theorize the mediating role of absorptive capacity (potential and realized absorptive capacity) between knowledge sourcing from external sources and product innovation. Further, the authors examine the moderating role of crucial internal social capital of the family firm in enhancing the use of external knowledge for firm innovation activities. Design/methodology/approach The study uses a quantitative research design taking single informant for collection of data from 151 family small and medium enterprises in automotive sector in India. The authors use structural equation modeling to test hypothesized relationships. Findings The findings indicate that both search breadth and search depth of family firms are positively associated with product innovation in family firms. The authors also find evidence for partial mediating role of potential and realized absorptive capacity in the relationship between search breadth and innovation and search depth and innovation. The results show how family firms learning taking place while scanning external knowledge sources in terms of external absorptive capacity routines. Finally, the authors find that family firm internal social capital positively moderate the relationship between search breadth and depth, and product innovation. Practical implications Family firms need to innovate to remain relevant in the long-run and as such development of superior capabilities is of great significance to them. Family firm managers must be open to external knowledge as such knowledge help them improve the firm level of innovation through absorptive capacity. Further, family firms must realize and act upon the importance of their social capital for the integration and utilization of acquired knowledge. Originality/value This paper is amongst a few papers that take dynamic capability views of innovation in family firms wherein the authors theorize how external search breadth and depth lead to the development of potential and realized absorptive capacity in family firms. The importance of family firm internal social capital as a strong integrating and knowledge sharing mechanism that helps family firms transform external knowledge into innovation is also highlighted.

Impact of External Knowledge Inflow on Product and Process Innovation of Korean SMEs: Absorptive Capacity as a Mediator

2019 ◽  
Vol 37 (4) ◽  
pp. 219-234 ◽  
Author(s):  
So Won Jeong ◽  
Jae-Eun Chung ◽  
Jung-Sim Roh
Keyword(s):  
Absorptive Capacity ◽  
Process Innovation ◽  
Government Agencies ◽  
External Knowledge ◽  
Mediating Role ◽  
Sources Of Knowledge ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Relationship

We examine the role of external knowledge inflow in improving the product and process innovation of Korean exporting small- and medium-sized enterprises (SMEs) in the textiles, apparel, and footwear industries. Building on the resource-based view (RBV), we investigate how five sources of knowledge inflow (suppliers, customers, competitors, universities, and government agencies) contribute to product and process innovation through absorptive capacity (AC) as a mechanism to explain the link between external knowledge inflow and innovation. Conducting a path analysis, we found that knowledge inflow from customers and government agencies had a positive effect on AC, subsequently enhancing product and process innovation. Additionally, knowledge inflow from universities and government agencies also affected process innovation and product innovation, respectively. We also demonstrated the mediating role of AC in the relationship between external knowledge inflow and innovation. Korean SMEs should thus invest in developing the knowledge sources of customers, universities, and government agencies to enhance AC and innovation.

Depth and breadth of external knowledge search and performance: The mediating role of absorptive capacity

2015 ◽  
Vol 47 ◽  
pp. 86-97 ◽  
Author(s):  
José Luis Ferreras-Méndez ◽  
Sue Newell ◽  
Anabel Fernández-Mesa ◽  
Joaquín Alegre
Keyword(s):  
Absorptive Capacity ◽  
External Knowledge ◽  
Mediating Role ◽  
Knowledge Search ◽  
And Performance

scholarly journals Ambidexterity in External Knowledge Search Strategies and Innovation Performance: Mediating Role of Balanced Innovation and Moderating Role of Absorptive Capacity

2019 ◽  
Vol 11 (18) ◽  
pp. 5111 ◽  
Author(s):  
Choo Yeon Kim ◽  
Myung Sub Lim ◽  
Jae Wook Yoo
Keyword(s):  
Absorptive Capacity ◽  
Positive Impact ◽  
Search Strategies ◽  
Innovation Performance ◽  
External Knowledge ◽  
Mediating Role ◽  
Modes Of Innovation ◽  
Moderating Role ◽  
External Knowledge Acquisition

The importance of external knowledge acquisition for innovation by firms is well established. In particular, there has been an increasing focus on the two distinct modes of firms’ external search strategies, which have a differential effect on their learning and innovation: search breadth and depth. By applying organizational ambidexterity lens, we hypothesize that pursuing high levels of both external search strategies is beneficial to achieve a balance between exploitative and explorative innovation, which, in turn, has a positive impact on the firm’s innovation performance. We also hypothesize that, even among the firms that maintain high levels of both search strategies, firms with higher absorptive capacity better achieve a balance between both modes of innovation, thereby producing higher performance. The findings on a multi-industry sample of Koran manufacturing firms confirm our hypotheses and imply that it is essential for firms to develop capabilities for different modes of external search activities in conjunction with internal absorptive capacity for superior innovation performance.

The mediating role of organizational innovation on the impact of strategic agility on firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tayfun Yildiz ◽  
Zafer Aykanat
Keyword(s):  
Firm Performance ◽  
Competitive Advantage ◽  
Organizational Innovation ◽  
Marmara Region ◽  
Industrial Zone ◽  
Content Type ◽  
Mediating Role ◽  
Strategic Agility ◽  
The Impact

PurposeThe field of strategic management mainly concerns with the achievement and sustainability of competitive advantage since the sustainability of strategic competitive advantage is more challenging. The concept of innovation can also be regarded as a to respond continuously changing environmental conditions and to sustain firm profits. The aim of this paper is to examine the mediating role of organizational innovation for the impact of strategic agility on firm performance and to determine the relationship among variables. Although there is a significant amount of work on organizational innovation, literature is still lacking in the debate on strategic agility and firm performance.Design/methodology/approachAn online questionnaire was administered to 216 firms operating in the Sakarya Organized Industrial Zone (Marmara Region of Turkey) during September–December 2019 and the data were analyzed using structural equation analysis for hypothesis testing.FindingsResults reveal that strategic agility has a positive impact on both firm performance (ß = 0.895) and organizational innovation (ß = 0.854), and organizational innovation (ß = 0.485) plays a partial mediating role on this relationship.Originality/valueThe results of this study improve our understanding of how these factors affect firm performance in the organized industrial zone.

Sign in / Sign up

Export Citation Format

Share Document