Globalization and innovation with Chinese characteristics: the case of the automotive industry

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Claudio Petti ◽  
Francesca Spigarelli ◽  
Ping Lv ◽  
Mario Biggeri
Keyword(s):  
Absorptive Capacity ◽  
Automotive Industry ◽  
Theoretical Development ◽  
International Expansion ◽  
Content Type ◽  
Chinese Characteristics ◽  
Knowledge Assimilation ◽  
Latecomer Firms ◽  
Knowledge Seeking

Purpose The purpose of this paper is to analyze the internationalization of Chinese new global players through innovation-oriented Mergers and Acquisitions (M&As). Design/methodology/approach The paper combines the analysis of East-Asian and Chinese multinationals’ international expansion within international business (IB) and innovation domains, with the “latecomer” perspective. It is a conceptual contribution, based on the role of local institutions and firm’s absorptive capacity. A theoretical framework is developed, and further elucidated with two illustrative cases of Chinese M&As abroad in the automotive sector. Implications for theoretical development and practical application are then drawn. Findings Chinese firms’ M&As abroad have become one of the preferential modes of developing innovation capabilities. The success of these endeavors is argued to be the result of a combination of a strong push from government industrial policies, along with significant internal knowledge assimilation and transformation capabilities. Originality/value The paper extends IB literature integrating the latecomer firms’ perspective within a novel conceptual framework, which adds to the traditional resource-based arguments about incumbent MNEs asset and knowledge-seeking internationalization modes, as well as institutional and multi-dimensional absorptive capacity perspectives.

Believe they can succeed, and they will: intrapreneurial behavior and leadership

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farrukh ◽  
Fanchen Meng ◽  
Ali Raza
Keyword(s):  
Organizational Climate ◽  
Structural Equation ◽  
Chemical Engineering ◽  
Theoretical Development ◽  
Equation Modeling ◽  
Pharmaceutical Chemical ◽  
Participative Leadership ◽  
Content Type ◽  
Member Exchange

PurposeA leader's job is not to put greatness into people, but rather to recognize that it already exists and to create an environment where that greatness can emerge and grow (Smith, 2014). Based on Brad Smith's quote, the purpose of this study is to investigate the role of the leader's expectations, leader-member exchange (LMX) and organizational climate for innovation in fostering the intrapreneurial behavior (IB) of employees.Design/methodology/approachData were collected from employees and their supervisors working across industries such as pharmaceutical, chemical, engineering and manufacturing. Collected data were then analyzed using the structural equation modeling technique.FindingsThe authors’ results show that LMX and leaders' expectations are positively linked to employees' IB. Moreover, this association is mediated by organizational climate.Practical implicationsThis study's findings contribute to the literature on intrapreneurship and may also help practitioners formulate interventions to foster IB in organizations that will ultimately lead to higher performance.Originality/valueThis study attempted to investigate the effect of LMX and the Pygmalion effect on IB through employees' perception of organizational climate for innovation. The literature in this field is scarce and theoretical development is weak because traditional collaborative or participative leadership approaches are more relevant to an outcome than innovation.

Impact of knowledge sharing and absorptive capacity on project performance: the moderating role of social processes

2018 ◽  
Vol 22 (2) ◽  
pp. 453-477 ◽  
Author(s):  
Imran Ali ◽  
Ata Ul Musawir ◽  
Murad Ali
Keyword(s):  
Knowledge Management ◽  
Knowledge Sharing ◽  
Absorptive Capacity ◽  
Project Performance ◽  
Social Processes ◽  
Content Type ◽  
Proposed Model ◽  
Knowledge Governance ◽  
Moderating Role

Purpose This study aims to propose an integrated model to examine the impact of knowledge governance, knowledge sharing and absorptive capacity (ACAP) on project performance in the context of project-based organizations (PBOs). This study also examines the moderating role of social processes on the relationships among these variables. Design/methodology/approach To test the proposed model, cross-sectional data were collected regarding projects from 133 PBOs in Pakistan’s information technology/software industry. The data were analyzed using the partial least squares – structural equation modeling (PLS-SEM) method and PRCOESS tool. Finally, this study also uses causal asymmetry analysis to check asymmetric relationship in the key constructs. Findings The results generally support the proposed model. Knowledge governance and knowledge sharing are important antecedents for improving the ACAP of the project, which in turn significantly improves project performance. Additionally, social processes positively moderate the relationship between knowledge sharing and ACAP, as well as between ACAP and project performance. Research limitations/implications The findings suggest that PBOs should invest in developing a knowledge governance system that guides and stimulates knowledge sharing within and between projects. This would boost the ACAP of projects and lead to superior project performance. Originality/value This study addresses the important issue of knowledge management in IT/software projects. It proposes a unique model that integrates the key constructs of knowledge management and describes their effect on project performance.

The circular economy, environmental performance and environmental management systems: the role of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luca Marrucci ◽  
Tiberio Daddi ◽  
Fabio Iraldo
Keyword(s):  
Environmental Management ◽  
Absorptive Capacity ◽  
Circular Economy ◽  
Environmental Performance ◽  
Structural Equation ◽  
Environmental Management System ◽  
General Interest ◽  
Environmental Certification ◽  
Content Type

Purpose Despite the general interest in the circular economy, organisations have difficulties in implementing circular practices. Developing absorptive capacity (ACAP) may foster circularity among organisations. The paper aims to shed light on relationship between ACAP and organisational performance. Design/methodology/approach To empirically investigate the contribution of ACAP in circular economy implementation, the authors analysed a European sample of more than 800 Eco-Management and Audit Scheme-registered organisations through partial least squares structural equation modelling. Findings The analysis demonstrates that ACAP and the underlying organisational activities of a firm significantly facilitate the implementation of a circular economy and the internalisation of an environmental management system (EMS), which consequently improve the overall performance of organisations. The authors found that the diffusion of the circular economy in the organisations’ environment does not affect their commitment to implement a circular economy. Originality/value The study expands the academic literature by framing the concept of the circular economy with ACAP theory, thereby highlighting the contribution of acquisition, assimilation, transformation and exploitation. The results also provide useful insights for practitioners highlighting how organisations with an environmental certification can identify and pursue opportunities deriving from a circular economy. Finally, the research contributes to the debate on the effect of internalising EMSs and how ACAP improves economic performance, environmental performance and reputation.

Information technology competency and organizational agility: roles of absorptive capacity and information intensity

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongyi Mao ◽  
Shan Liu ◽  
Jinlong Zhang ◽  
Yajun Zhang ◽  
Yeming Gong
Keyword(s):  
Information Technology ◽  
Absorptive Capacity ◽  
General Level ◽  
Organizational Agility ◽  
Content Type ◽  
Technology Competency ◽  
Information Intensity ◽  
It Knowledge ◽  
It Operations

PurposeScholars have examined the possible relationship between information technology (IT) and organizational agility. Although the general-level effect of IT is undisputed, empirical research on how different types of IT contribute to various aspects of organizational agility remains scarce. Therefore, this study aims to propose an integrated framework of internal capability and external environment to address this research gap.Design/methodology/approachThis study investigates the potential mediating effects of absorptive capacity and the moderating effects of information intensity in the IT‒agility relationship. With a dataset comprising 165 organizations in China, this work provides empirical evidence that the effects of absorptive capacity and information intensity are multifaceted and nuanced, thereby revealing the latent mechanisms of IT competency and organizational agility.FindingsAbsorptive capacity partially mediates the effects of IT knowledge and IT operations on market capitalizing agility and fully mediates their effects on operational adjustment agility. However, no direct or indirect effects of IT objects are found on both types of organizational agility. Information intensity also positively moderates the effects of IT operations and IT objects on absorptive capacity. However, no significant moderation is found with regard to IT operations.Originality/valueThis study provides novel insights by demonstrating clearly the different mediating roles of absorptive capacity in the relationship among various types of IT competency and diverse aspects of organizational agility. This work also underscores the moderating role of information intensity in shaping absorptive capacity through IT competency.

Understanding the relationships between global supply chain risk and supply chain resilience: the role of mitigating strategies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Juneho Um ◽  
Neungho Han
Keyword(s):  
Supply Chain ◽  
Global Supply Chain ◽  
Theoretical Development ◽  
Supply Chain Risk ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Supply Chain Risks ◽  
The Impact ◽  
Practical Implications

Purpose This study aims to theoretically hypothesise and empirically explore the relationships amongst global supply chain risks, supply chain resilience and mitigating strategies. Design/methodology/approach The study adopts supply chain resilience as a dynamic capability and resilience capability as a mediating prerequisite in addressing supply chain risk in sourcing, manufacturing and delivery. The moderating role of diverse mitigating strategies is tested to enhance supply chain resilience. Data collected via survey was used for structural equation modelling and additional tests to explore appropriate mitigating strategies for differing risk environments. Findings Achieving better supply chain resilience capability plays an important mediating role between supply chain risks and resilience, while the relationships depend on the performance of seven mitigating strategies. Research limitations/implications The findings contribute to the theoretical development of risk management issues in global supply chains by suggesting the role of supply chain resilience capability. Practical implications The findings offer managerial guidance on how to mitigate the global supply chain risk through the appropriate practice of strategies to strengthen supply chain resilience in an uncertain environment. Originality/value This is the first empirical research examining the impact of mitigating strategies on supply chain resilience. The results provide practical implications for managing uncertain events and offering theoretical insight for future research in supply chain resilience.

Intellectual capital and business performance: the role of dimensions of absorptive capacity

2019 ◽  
Vol 21 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Syed Saad Ahmed ◽  
Jia Guozhu ◽  
Shujaat Mubarik ◽  
Mumtaz Khan ◽  
Essa Khan
Keyword(s):  
Absorptive Capacity ◽  
Intellectual Capital ◽  
Business Performance ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship ◽  
Realized Absorptive Capacity

Purpose The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance. Design/methodology/approach Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items. Findings The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence. Originality/value This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.

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.

scholarly journals Innovation outcomes of knowledge-seeking Chinese foreign direct investment

2015 ◽  
Vol 9 (1) ◽  
pp. 73-96 ◽  
Author(s):  
Xianming Wu ◽  
Nathaniel C. Lupton ◽  
Yuping Du
Keyword(s):  
Organizational Learning ◽  
Absorptive Capacity ◽  
Multinational Enterprises ◽  
Innovation Performance ◽  
Primary Data ◽  
Content Type ◽  
Chinese Multinationals ◽  
Positive Direct ◽  
Knowledge Seeking ◽  
The Impact

Purpose – The purpose of this paper is to investigates how organizational learning, absorptive capacity, cultural integration, specialization of the acquired firm and characteristics of transferred knowledge impact innovation performance subsequent to overseas acquisitions. Design/methodology/approach – Survey responses from 222 Chinese multinational enterprises engaged in overseas acquisitions. Findings – Differences between acquiring and acquired firms’ capabilities, while having a positive direct influence, suppress the positive impact of organizational learning and absorptive capacity, suggesting that multinationals require some basic level of capabilities to appropriate value from overseas acquisitions. Research limitations/implications – This paper investigates the impact of knowledge-seeking overseas acquisition of Chinese multinationals on innovation performance, as this appears to be the primary motive for making such acquisitions. Practical implications – Knowledge-seeking overseas acquisition should be based upon the absorptive capacity of the acquiring firm and complementarity between both firms. In knowledge-seeking overseas acquisitions, establishing an effective organizational learning mechanism is necessary for improving innovation performance. Originality/value – This paper reports on the behaviour and innovation performance of Chinese multinationals through analysis of primary data.

Knowledge transfer from business schools to business organizations: the roles absorptive capacity, learning motivation, acquired knowledge and job autonomy

2017 ◽  
Vol 21 (5) ◽  
pp. 1240-1253 ◽  
Author(s):  
Nguyen Dinh Tho
Keyword(s):  
Knowledge Transfer ◽  
Absorptive Capacity ◽  
Business Schools ◽  
Business Students ◽  
Learning Motivation ◽  
Job Autonomy ◽  
Business Organizations ◽  
Content Type ◽  
Service Training

Purpose The purpose of this paper is to investigate the impacts of absorptive capacity, learning motivation and acquired knowledge on knowledge transfer from business schools to business organizations, as it has been realized that in-service training business students can serve as a channel as well as a source in this type of knowledge transfer. The study also examines the mixed moderating role of job autonomy in the relationship between acquired knowledge and knowledge transfer. Design/methodology/approach A sample of 344 in-service training business students in Vietnam was surveyed to collect data. Confirmatory factor analysis was used to validate the measures, and structural equation modeling was used to test the hypotheses. Findings The findings reveal that absorptive capacity positively affects acquired knowledge but it does not have an effect on knowledge transfer. Learning motivation, however, has positive effects on both acquired knowledge and knowledge transfer. The findings also indicate that acquired knowledge is a determinant of knowledge transfer. Finally, job autonomy plays the role of a mixed moderator in the relationship between acquired knowledge and knowledge transfer. Practical implications This study signals the participating parties –business schools, business organizations and in-service training business students –that absorptive capacity, learning motivation, acquired knowledge and job autonomy are critical to the transfer of knowledge from business schools to business organizations. Originality/value This study contributes to the literature on university-to-industry knowledge transfer by providing empirical evidence for key determinants of knowledge transfer from business schools to business organizations through a new channel of knowledge transfer – in-service training business students.

The role of organizational and social capital in the firm’s absorptive capacity

2015 ◽  
Vol 19 (5) ◽  
pp. 987-1006 ◽  
Author(s):  
Amal Aribi ◽  
Olivier Dupouët
Keyword(s):  
Social Capital ◽  
Absorptive Capacity ◽  
Organizational Capital ◽  
Industrial Firms ◽  
Content Type ◽  
Radical Innovations ◽  
The World ◽  
Expected Outcome ◽  
Do So

Purpose – This paper aims to ask the question of the contingency of a firm’s absorptive capacity upon the type of expected outcome. Thus, this paper looks at different expected outputs in terms of more or less radical innovations and sees if there are consequences on the absorptive process underpinning cognitive structures and processes, as embodied in its organizational and social capital. Design/methodology/approach – To do so, a qualitative study was conducted. In total, 23 persons in three French industrial firms were interviewed about their firm’s absorptive capacity. One of these firms aims at “new-to-the-firm” innovations, while the other two aim at “new-to-the-world” innovations. Findings – Results suggest that while “new-to-the-firm” innovations tend to favor the use of social capital, “new-to-the-world” innovations tend to rely more on organizational capital. These rather counterintuitive results are interpreted by the necessity to take into account other variables than knowledge distance in the absorption of new knowledge. In particular, complexity and time-length would call for greater use of organizational capital, while speed and reactivity would instead require greater use of social capital. Originality/value – This is to the best of the authors’ knowledge that one of the first study evidencing the contingent nature of the absorptive process. Further, results tend to show the form absorptive capacity takes depends not only on cognitive aspects but also on the particular environment the firm evolves in.

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