Social capital and organizational ambidexterity: the moderating effect of absorptive capacity

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Younggeun Lee ◽  
Andres Felipe Cortes ◽  
Yiming Zhuang ◽  
Pol Herrmann
Keyword(s):  
Social Capital ◽  
Absorptive Capacity ◽  
Emerging Economies ◽  
Organizational Ambidexterity ◽  
Content Type ◽  
Knowledge Based ◽  
External Actors ◽  
Different Cultures ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this paper is to examine the impact of social capital on organizational ambidexterity in the context of emerging economies. Moreover, this paper aims to study the moderating influence of absorptive capacity on the relationship between social capital and organizational ambidexterity.Design/methodology/approachThe authors conducted two studies using survey data collected from 97 Ecuadorian and 100 Chinese small and medium-sized enterprises (SMEs).FindingsThe authors found that social capital, the extent to which organizational members interact, collaborate and share knowledge with one another and with external actors, has a positive effect on the simultaneous implementation of exploratory and exploitative innovations (i.e. organizational ambidexterity). Moreover, the authors found that absorptive capacity positively strengthens the impact of social capital on organizational ambidexterity.Originality/valueDrawing on the knowledge-based view and the innovation literature, the authors theoretically argue the importance of social capital and absorptive capacity for SMEs to develop and manage exploratory and exploitative innovations simultaneously in emerging economies of different cultures. The authors empirically test proposed hypotheses in Ecuador and China, two emerging markets with important cultural differences, and show the relevance of social capital in multiple settings.

The impact of social capital on competitive advantage

2016 ◽  
Vol 54 (6) ◽  
pp. 1443-1463 ◽  
Author(s):  
Min-Yueh Chuang ◽  
Chih-Jou Chen ◽  
Ming-ji James Lin
Keyword(s):  
Social Capital ◽  
Competitive Advantage ◽  
Social Interactions ◽  
Absorptive Capacity ◽  
Collective Learning ◽  
Equation Modeling ◽  
Content Type ◽  
Industrial Parks ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to empirically examine the influence of social capital on competitive advantage through collective learning and absorptive capacity. Design/methodology/approach – The study carries out analyses based on structural equation modeling to measure the main constructs and test the hypothesized relationships among the variables. The primary statistical technique for assessing survey data collected from 358 Taiwan tenants is partial least squares analysis. Findings – Collective learning and absorptive capacity fully mediate the relationship between social capital and competitive advantage. Moreover, social capital has a significant influence on both collective learning and absorptive capacity. Practical implications – Tenant firms in industrial parks must develop effective management tactics for the nurturing of inter-firm relations to enhance collective learning and their absorptive capacity to acquire and exploit key strategic resources such as tacit and explicit knowledge. For specialized firms, close social interactions in specific contexts, mediated by collective learning and absorptive capacity to make up for their resource constraints, can heighten their competitive advantage. Originality/value – By demonstrating the impact of social capital on competitive advantage in the specific context of industrial parks, whose artificial environment encourages and promotes close social interactions among tenants, this paper overcomes previous and contradictory findings regarding the relationship between social capital and competitive advantage. A key contingent factor is the mediating role of collective learning and absorptive capacity.

Measuring the impact of relational capital on customer performance in the SME B2B sector

2017 ◽  
Vol 23 (6) ◽  
pp. 1144-1166 ◽  
Author(s):  
Lara Agostini ◽  
Anna Nosella ◽  
Benedetta Soranzo
Keyword(s):  
Absorptive Capacity ◽  
Open Innovation ◽  
Moderating Effect ◽  
High Tech ◽  
Relational Capital ◽  
Marketing Capability ◽  
Content Type ◽  
Innovation Practices ◽  
External Actors ◽  
The Impact

Purpose The purpose of this paper is to investigate the influence that different components of relational capital (marketing capability, open innovation with business and scientific partners, technological reputation, brand) have on customer performance (CP). Moreover, the moderating effect of absorptive capacity on such relationships is tested. Design/methodology/approach First, the direct relationship between the different components of relational capital and CP is analyzed through a linear regression model. Then, to test the moderating effect, two distinct regression analyses are conducted into two sub-samples, defined according to the level of absorptive capacity. The authors carried out these analyses on a sample of 150 small- and medium-sized enterprises (SMEs) in the medium- and high-tech B2B context. Findings Results of this study prove that CP is enhanced through firm marketing capability, open innovation with business partners and technological reputation, while brand and open innovation with scientific partner do not have an association with CP. In particular, the impact of marketing capability and open innovation with business actors on CP is greater for firms with higher absorptive capacity. Research limitations/implications This paper, highlighting the relevance of relational capital and absorptive capacity in improving CP, enhances our knowledge about the factors that help to strengthen the relationships with customers, which is an under-investigated issue especially for SMEs competing in B2B industries, and extends our knowledge on open innovation practices. Practical implications Findings of this paper suggest that, to achieve better CP, managers should pay special attention to nurturing their marketing capability and high-quality relationships with external actors and invest in absorptive capacity to enhance the positive effect of such linkages. Originality/value This work, combining the external perspective of relational capital and the internal organizational dimension of absorptive capacity, provides valuable insights about the knowledge and resource mix that firms might rely on to achieve better customer satisfaction and loyalty.

Passive but defiant: the role of innovative capabilities in knowledge management and corporate entrepreneurship

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Azhar Khalil ◽  
Muhammad Khuram Khalil ◽  
Rashid Khalil
Keyword(s):  
Corporate Entrepreneurship ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Market Demand ◽  
Content Type ◽  
Knowledge Based ◽  
Innovative Capabilities ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to examine the role of organizational innovative capabilities (OIC) on the relationship between knowledge sharing (KS), corporate entrepreneurship (CE) and firm performance (FP). Specifically, this study uses the knowledge-based view to develop a model that examines the mentioned relationship. Design/methodology/approach Using survey data from 520 participants across 75 service sector companies in Thailand, measurement and structure models are tested through structural equation modeling to quantify the impact between constructs. Findings This study shows that KS and CE positively affect OIC and FP. A positive relationship is also found between KS and CE. The mediating impact of OIC strengthens the relationship between KS and CE on FP. Research limitations/implications Like all research using survey methods, the research is prone to respondent biases and generalizability. However, this paper has put the best effort to minimize such effects by rigorous methodological testing to avoid such biases. Practical implications The findings of this study suggest that to improve organizational learning and knowledge-based performance, commitment and understanding of the employees in the entire organization is crucial. KS significantly contributes to developing innovative abilities because of its characteristics of providing firm-specific and socially complex advantages. The way a firm transforms and exploits its knowledge may ascertain its level of innovativeness, such as coming up with certain problem-solving procedures and new product development according to the rapid change in the market demand. However, organizations may only instigate to effectively organize knowledge when their employees are ready to share knowledge. Continuous KS boosts entrepreneurial practices and contributes innovativeness across individuals, groups, units or the entire organization. Originality/value The relationship between CE, organization innovative capabilities and FP in the presence of KS is rarely discussed in both theoretical and empirical literature. This study contributes to the literature by arguing that apart from the direct impact of KS on FP, KS can lead the firms toward generating important competitive advantage by forming innovative capabilities that can significantly influence FP.

A Conceptual Proposition

2016 ◽  
pp. 1921-1934
Author(s):  
Ahmad Vazehi Ashtiani ◽  
Sharmila Jayasingam
Keyword(s):  
Social Capital ◽  
Literature Review ◽  
Communities Of Practice ◽  
Knowledge Sharing ◽  
Knowledge Based ◽  
Contextual Influence ◽  
Conceptual Paper ◽  
The Impact ◽  
The Relationship ◽  
Resource Based Theory

This conceptual paper proposes social capital as a possible moderator of the relationship between commonly identified knowledge sharing enablers in the literature and knowledge sharing (KS). A literature review was carried out to determine the contextual influence of the level of social capital within communities of practice (CoPs). Propositions were developed based on a review of past studies addressing KS enablers and KS. The literature review revealed that prior studies built on resource-based theory (RBT) and knowledge-based view of the firm (KBV) focused on organizational enablers of KS without any concern for the contextual influence such as the level of social capital of CoPs. Further analysis indicated that social capital could possibly moderate the impact of commonly identified KS enablers. These insights are presented as propositions in this conceptual paper. This paper addresses a gap in the area of KS. It questions the results of past studies and proposes the needs to consider the level of social capital when identifying appropriate KS enablers.

Effects of intellectual capital on innovative performance

2015 ◽  
Vol 53 (1) ◽  
pp. 40-56 ◽  
Author(s):  
Yuqian Han ◽  
Dayuan Li
Keyword(s):  
Intellectual Capital ◽  
Dynamic Capability ◽  
Content Type ◽  
Innovative Performance ◽  
Mediating Role ◽  
Knowledge Based ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role ◽  
Practical Implications

Purpose – The purpose of this paper is to demonstrate the relationship between intellectual capital and innovative performance, and to specify the boundary conditions and mechanisms of the relationship from a knowledge-based dynamic capability perspective. Design/methodology/approach – This study empirically analyzes the impact of intellectual capital on innovative performance and the role knowledge-based dynamic capability plays with a sample of 217 firms in China. To test the research hypotheses, regression analysis is applied. Findings – The results show that intellectual capital positively affects innovative performance, and knowledge-based dynamic capability is a mediator rather than a moderator which partly mediates the relationship between intellectual capital and innovative performance. Practical implications – The findings suggest that realizing superior innovative performance is dependent on a firm’s intellectual capital and its ability to sense opportunities and threats, to make timely and correct decisions, and to facilitate necessary changes efficiently. Originality/value – This study is the first to clarify whether knowledge-based dynamic capability plays a moderating role or a mediating role between intellectual capital and innovative performance. The present study thus helps move forward the understanding on the conditions and mechanisms of the effects of intellectual capital.

scholarly journals Dynamic capability of the firm: analysis of the impact of internationalisation on SME performance in an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahfuzur Rahman ◽  
Dieu Hack-Polay ◽  
Sujana Shafique ◽  
Paul Agu Igwe
Keyword(s):  
Firm Performance ◽  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Emerging Economy ◽  
Two Dimensions ◽  
Dynamic Capability ◽  
Content Type ◽  
Market Expansion ◽  
The Impact ◽  
The Relationship

PurposeInternationalisation is considered as a key strategy for the growth of Small and Medium Enterprises (SMEs). The purpose of this paper is to examine the relationship between dynamic capability, SMEs internationalisation and firm performance in the context of emerging economies and to evaluate the impact of financial, asset and market expansion on internationalisation of SMEs.Design/methodology/approachUsing primary data from 212 SMEs from Bangladesh, structural equation modelling and mathematical (hierarchical reflective) model, the analysis enabled the measurement of the casual relationship on the impacts of internationalisation.FindingsThe results revealed that internationalisation of SMEs has significant impact on both financial and non-financial performance of SMEs in an emerging economy- Bangladesh. The paper found internationalisation impacts on two dimensions (financial and non-financial) with eight defined indicators – higher sales, higher profit, assets maximisation, market expansion, competitive advantage, better reputation, better customer service and added knowledge.Originality/valueDespite several studies that examine the relationship between SME internationalisation and firm performance, limited research exists on emerging economies. This is contrary to the fact that SMEs are one of the main vehicles for growth in those economies such as Bangladesh. In this research, the authors use the theories of dynamic capabilities to conceptualise how internationalisation becomes a core SME capability for SMEs in an emerging economy.

High involvement work systems, happiness at work (HAW) and absorptive capacity: a bathtub study

2020 ◽  
Vol 42 (4) ◽  
pp. 949-970 ◽  
Author(s):  
Andrés Salas-Vallina ◽  
Manoli Pozo-Hidalgo ◽  
Pedro-Gil Monte
Keyword(s):  
Absorptive Capacity ◽  
Management Practices ◽  
Organizational Outcomes ◽  
Mediating Effect ◽  
Work Systems ◽  
High Involvement ◽  
Content Type ◽  
Positive Attitudes ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this research is to examine the impact of high-involvement work systems (HIWS) on absorptive capacity. In addition, the mediating effect of happiness at work in the relationship between high-involvement work practices and absorptive capacity is analyzed.Design/methodology/approachA 2-1-2 bathtub multilevel mediation model was used to analyze a sample of 783 employees from 111 bank branches, gathering data at three different times.FindingsThe results reveal that HIWS positively affect absorptive capacity. In addition, they show that happiness at work partially mediates the relationship between HIWS and absorptive capacity.Originality/valueHappiness at work is a fundamental element for knowledge absorption. The findings support the basic assumptions of the job demands-resources model, and demonstrate how HIWS, acting as a job resource, lead to positive attitudes (happiness at work) and, in turn, to positive outcomes (absorptive capacity). The proposed HIWS, based on the assumptions of the mutual gains model, reveal a positive employment relationship with effects on both HAW and organizational outcomes. If organizations expose their employees to management practices that have specific benefits for their HAW, employees are more likely to perform their jobs in ways that will promote their absorptive capacity.

Network embeddedness and innovation performance: a mediation moderation analysis using PLS-SEM

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongyun Tian ◽  
Shuja Iqbal ◽  
Farooq Anwar ◽  
Shamim Akhtar ◽  
Muhammad Aamir Shafique Khan ◽  
...  
Keyword(s):  
Absorptive Capacity ◽  
Significant Relationship ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Network Embeddedness ◽  
The Impact ◽  
The Relationship

PurposeThis study examines the impact of network embeddedness (NE) on innovation performance in small- and medium-sized enterprises (SMEs), and analyses absorptive capacity as mediator and openness as moderator.Design/methodology/approachData were collected from 209 employees of SMEs using a convenient sampling technique. Partial least squares structural equation modeling in SmartPLS was used to analyze the various constructs.FindingsThe results exhibit a positive and significant relationship in NE and absorptive capacity. Also, this study found a positive and significant relationship in absorptive capacity and innovation performance. Moreover, absorptive capacity has a positive and significant mediation role in the relationship between NE and innovation performance. Also, openness positively moderated the relationship of NE and absorptive capacity.Practical implicationsSMEs should try to implement the functions of NE, such as interaction with other firms in higher frequency, developing trust among all parties, clear alliance among the partners to enhance innovation performance. Similarly, SMEs should focus on absorptive capacity and openness to enrich innovation performance.Originality/valueThis study adds in the current literature of the chosen constructs and empirically contributes the effects in the manufacturing industry of Jiangsu Province, China.

The relationship between budgetary evaluation, firm size and performance

2015 ◽  
Vol 34 (8) ◽  
pp. 973-986 ◽  
Author(s):  
Azzouz Elhamma
Keyword(s):  
Emerging Economies ◽  
Firm Size ◽  
Evaluation System ◽  
Design Methodology ◽  
Management Control ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to present the main results of the first empirical study done in Morocco and attempts to highlight the impact of the firm size on the budgetary evaluation and its performance according to the firm size. Design/methodology/approach – Data were collected using a questionnaire sent to the Moroccan firms. A total of 62 questionnaires were correctly returned. The response rate was 15 per cent. Findings – In this research, we identified three principal styles of budgetary evaluation: “strict budgetary evaluation” adopted by 21 per cent of the sample; “moderate budgetary evaluation” adopted by 27.4 per cent of the surveyed enterprises; and “lower budgetary evaluation” adopted by 51.6 per cent of the sample. The first style is adopted especially by large firms. The firm’s performance is significantly and positively correlated with the budgetary evaluation in large enterprises. This correlation is not significant in SMEs. Practical implications – The findings of this research can help managers of companies in emerging economies in the choice of a better budgetary evaluation system. Originality/value – The outcomes of the study are relevant both to the literature on budgetary evaluation in particular and on management control in general, since they determine that the correct fit between budgetary evaluation and firm size causes a positive and significant change in the firm’s performance.

Strategic renewal of SMEs: the impact of social capital, strategic agility and absorptive capacity

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samar Hayat Khan ◽  
Abdul Majid ◽  
Muhammad Yasir
Keyword(s):  
Social Capital ◽  
Strategic Management ◽  
Absorptive Capacity ◽  
Content Type ◽  
Strategic Renewal ◽  
Mediating Role ◽  
Strategic Agility ◽  
The Relationship ◽  
Moderating Role

PurposeThis research was carried out with the purpose to empirically test the model to explain the procedures concerned with the translation of social capital (SC) into strategic renewal (SR) of SMEs in developing economy like Pakistan. This procedure involves the mediating role of firms' strategic agility (SA) as well as the contingent effects of firms' absorptive capacity (AC).Design/methodology/approachThis study employed a cross-sectional design to evaluate the hypothesized model. To validate the moderated mediation model, data was collected from 519 CEOs, owners, finance managers and managing directors of 123 manufacturing units dealing in agricultural machinery (32 units), automobile accessories (16 units), pharmaceutical instrument (11 units), electrical equipment (25 units), IT related accessories (21 units) and garments (18 units).FindingsThe findings of the study confirm a positive association between SC on SR. Moreover, results also validate the mediating role of SA in the relationship between SC and SR. In addition, the moderating role of AC is also confirmed and presented this construct as a catalyst in the relationship between SC and SR.Practical implicationsThis research provides new endeavors for strategic management and strategic entrepreneurship literature by focusing on distinctive resources such as SC with its different facets. Therefore, it provides a new dimension and a roadmap that will be beneficial to the achievement of the objectives of SR.Originality/valueThe findings of this research have contributed to the streams of strategic management perspective by emphasizing upon the mediating mechanism how SC can be transformed into SR of SMEs through SA. Findings of the research also contribute to understand the moderating role of AC, and how its association with SC and SA augments the effects on SR of firms.

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