The Role of Absorptive Capacity and Market Dynamism in Shaping the Firm’s Entrepreneurial Orientation

Innovation ◽  
2021 ◽  
pp. 1-24
Author(s):  
Gloria Parra Requena ◽  
María José Ruiz-Ortega ◽  
Job Rodrigo-Alarcón
Keyword(s):  
Absorptive Capacity ◽  
Entrepreneurial Orientation

Entrepreneurial orientation in turbulent environments: The moderating role of absorptive capacity

2014 ◽  
Vol 43 (8) ◽  
pp. 1353-1369 ◽  
Author(s):  
Andreas Engelen ◽  
Harald Kube ◽  
Susanne Schmidt ◽  
Tessa Christina Flatten
Keyword(s):  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Turbulent Environments ◽  
Moderating Role

The nexus between entrepreneurial orientation and performance: enabling roles of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Raisal ◽  
Arun Kumar Tarofder ◽  
Aboobucker Ilmudeen
Keyword(s):  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Medium Enterprises

PurposeDeveloping countries’ economic growth very much depend on the successful performance of entrepreneurial-oriented firms. Entrepreneurial orientation (EO) is a valuable conjecturer of firm success. This study mainly focuses on analyzing the effect of EO on the firm performance (FP) with the mediating role of absorptive capacity (ACAP).Design/methodology/approachTo test the hypothetical model, we collected 226 valid responses from senior managers of small and medium enterprises (SMEs). The structural equation modeling technique is performed and research hypotheses are validated.FindingsThe findings show that the strong causal relations exit between EO, ACAP and FP. In brief, EO was found to be a predictor of ACAP, and ACAP has a strong positive impact on FP. Moreover, ACAP substantiated to be a mediator between EO and FP.Research limitations/implicationsA notable ramification of this finding is that for SMEs to enhance their performance via EO, the presence of ACAP as a mediator is essential.Practical implicationsThe findings of this study can be used as a basis to consider EO to increase firms' level of ACAP and to enhance FP. As a whole, the findings offer pragmatic insights for SMEs and pertinent stakeholders.Originality/valueSo far, little is known about the interrelationship between EO, ACAP and FP. Importantly, the mediating role of ACAP between EO and FP has remained unexplored. This study fills this gap in the existing literature.

scholarly journals Entrepreneurial orientation-as-experimentation and firm performance: The enabling role of absorptive capacity

2014 ◽  
Vol 36 (11) ◽  
pp. 1739-1749 ◽  
Author(s):  
Pankaj C. Patel ◽  
Marko Kohtamäki ◽  
Vinit Parida ◽  
Joakim Wincent
Keyword(s):  
Firm Performance ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation

scholarly journals Role of entrepreneurial orientation in firm performance through project success; Moderating role of absorptive capacity in SMEs of KSA

2021 ◽  
Vol 8 (7) ◽  
pp. 14-22
Author(s):  
Sami Salem Alzahrani ◽  
Keyword(s):  
Firm Performance ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Project Success ◽  
Small And Medium Enterprises ◽  
Primary Data ◽  
Equation Modeling ◽  
The Impact ◽  
Moderating Role

This study aimed to examine the impact of entrepreneurial orientation on firm performance through project success and moderating role of absorptive capacity. A deductive approach was used to test the model empirically. Primary data were collected at one point in time from employees of small and medium enterprises in the Kingdom of Saudi Arabia. 354 responses were used for final data analysis. The structure Equation Modeling (SEM) technique was used to analyze the hypothesized relationships by using the Smart PLS3. The findings indicate that entrepreneurial orientation has a significant impact on firm performance and project success also significantly mediates this relationship. Moreover, absorptive capacity moderates the entrepreneurial orientation impact on project success this relation becomes stronger in the presence of absorptive capacity. This study adds value to the literature and proves the mediating role of project success and moderating role of absorptive capacity. Practically, it highlights the importance of entrepreneurial activities for firm performance and project success.

The role of knowledge absorptive capacity on the relationship between cognitive social capital and entrepreneurial orientation

2018 ◽  
Vol 22 (5) ◽  
pp. 1015-1036 ◽  
Author(s):  
Pedro M. García-Villaverde ◽  
Job Rodrigo-Alarcón ◽  
Maria Jose Ruiz-Ortega ◽  
Gloria Parra-Requena
Keyword(s):  
Social Capital ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Social Capital Theory ◽  
Curvilinear Relationship ◽  
Capital Theory ◽  
Content Type ◽  
Cognitive Social Capital ◽  
The Relationship

Purpose The purpose of this paper is to study the effect of cognitive social capital (CSC) on firms’ entrepreneurial orientation (EO) and how knowledge absorptive capacity moderates this relationship. The purpose is aimed at completing the gap in the literature regarding determinants of EO linked with knowledge. Design/methodology/approach The empirical study was carried out on a sample of 292 Spanish firms in the agri-food industry. Partial least squares (SmartPLS software) was used to evaluate the measurement and structural models. Findings CSC has a curvilinear influence (U-shaped) on EO. In addition, this relationship is accentuated with higher knowledge absorptive capacity. Practical implications Managers should promote cognitively close networks and reinforce shared goals and culture with their contacts to maintain a high EO. Furthermore, managers should strengthen their knowledge absorptive capacity to boost innovativeness, risk taking and proactiveness derived from cognitive proximity with their contacts. Originality/value This study adds value to social capital literature by pointing out a curvilinear relationship (U-shaped) between CSC and EO, in contrast to studies focussed on other dimensions of social capital, which have obtained divergent results. Furthermore, this study reinforces the key contingent role of knowledge absorptive capacity. The study provides a valuable theoretical framework of EO determinants connecting the cognitive perspective of social capital theory with a dynamic capability view.

scholarly journals Impact of Entrepreneurial Orientation on Innovation Capability: The Mediating Role of Absorptive Capability and Organizational Learning Capabilities

2021 ◽  
Vol 13 (10) ◽  
pp. 5399
Author(s):  
Lahcene Makhloufi ◽  
Abderrazak Ahmed Laghouag ◽  
Alhussain Ali Sahli ◽  
Fateh Belaid
Keyword(s):  
Organizational Learning ◽  
Absorptive Capacity ◽  
Knowledge Creation ◽  
Entrepreneurial Orientation ◽  
Mediation Effect ◽  
Innovation Capability ◽  
Cross Sectional Survey ◽  
Learning Capabilities ◽  
The Impact

Learning and knowledge creation are acknowledged as crucial drivers associated with entrepreneurial orientation (EO) and innovation capability (IC). Absorptive capacity (AC) harmonizes internal innovation-building activities with external opportunities, while organizational learning capabilities (OLC) foster entrepreneurial cognitive skills and innovation capabilities. This study aims to (1) predict the impact of absorptive capacity and organizational learning on IC and (2) to estimate the mediation effect of OLC and AC on the relationship between entrepreneurial orientation and innovation capabilities. Drawing upon the dynamic capability theory, the study had applied a cross-sectional survey targeting Algerian firms to test the hypotheses. The study findings indicate that EO is positively associated with innovation capability. Besides, even though both OLC and AC partially increase EO’s interaction impact on innovation capability as a mediation role, suggesting that the more a firm is entrepreneurially oriented, the more learning and knowledge creation processes are involved in the interaction relationship. This study’s core focus is to overcome the substantial role of learning and knowledge creation processes as an intangible proactive resource that fosters the EO mindset to get involved in innovation activities. It has been discovered that AC and OLC as a connectedness mechanism links external knowledge and internal learning processes to accompany EO readiness during innovation development.

Sign in / Sign up

Export Citation Format

Share Document