The role of prior experience and goal orientation in individual absorptive capacity

2016 ◽  
Vol 116 (4) ◽  
pp. 723-739 ◽  
Author(s):  
Adedapo Oluwaseyi Ojo ◽  
Murali Raman
Keyword(s):  
Knowledge Acquisition ◽  
Absorptive Capacity ◽  
Prior Experience ◽  
Project Teams ◽  
Equation Modeling ◽  
Content Type ◽  
Joint Project ◽  
Team Members ◽  
External Knowledge

Purpose – International joint ventures offer the appropriate platform for the host partners in an emerging economy to access the external knowledge embedded in the expatriate from foreign partners. However several factors could constrain the acquisition of this knowledge by the local employees who are engaged in the former. The purpose of this paper is to investigate the underlying differences for the individual’s knowledge acquisition capability. Design/methodology/approach – Individual’s knowledge acquisition capability was conceptualized as the individual dimension of absorptive capacity (ACAP). Given the engagement of employees in joint project teams, the team members are expected to differ in their experience and disposition to task. Thus, these differences are considered as predictors of the local team members ACAP, i.e., abilities to: recognize the value of; and assimilate the external knowledge embedded in the foreign partners. The hypothesized model was validated through the results of structural equation modeling on a cross sectional survey of 248 local team members of joint projects in the Nigerian upstream oil industry. Findings – All the hypothesized relationships were supported, with the exception of that between prior experience and ability to recognize the value of knowledge. Originality/value – This study offers empirical clarification on the underlying differences for individual ACAP within the context of asymmetric joint project teams set up to facilitate knowledge transfer. The findings have implications for academic and practical understanding on the role of individuals in the acquisition of external knowledge.

Micro perceptive on absorptive capacity in joint ICT project teams in Malaysia

2015 ◽  
Vol 64 (1/2) ◽  
pp. 162-178 ◽  
Author(s):  
Adedapo Oluwaseyi Ojo ◽  
Murali Raman
Keyword(s):  
Absorptive Capacity ◽  
Prior Experience ◽  
Mediating Effect ◽  
Project Teams ◽  
Learning Orientation ◽  
Cross Sectional ◽  
Learning Capability ◽  
Content Type ◽  
Joint Project ◽  
Team Members

Purpose – This study aims to investigate the micro-antecedents of the multidimensional construct of absorptive capacity (ACAP) from the perspective of the individual characteristics underlying learning capability in joint project information and communications technology (ICT) teams. Specifically, the model proposes prior experience and learning goal orientations as the micro-antecedents and delineates ACAP into four dimensions. Design/methodology/approach – The context of study was the joint project teams, set up to facilitate the transfer of knowledge from expatriate to local employees in Malaysian ICT sector. Data collected through the cross-sectional survey of 205 local team members of joint ICT projects in Malaysia were analyzed using structural equation modelling. Findings – Individual’s prior experience and learning orientation were associated with the ability to assimilate and recognize the value of partner’s knowledge, respectively. Furthermore, the hypothesized relationships among the ACAP dimensions were supported, and the mediating effect of shared cognition was confirmed. Research limitations/implications – The use of cross-sectional and self-reported survey is a major limitation of this study. Practical implications – Managerial implications are offered on the selection of team members and designing the joint project team. Originality/value – This study demonstrates prior experience and learning orientation as antecedents of individuals’ learning capability, thereby extending extant conceptualization on the multifaceted nature of ACAP.

Individual differences and potential absorptive capacity in joint project teams in the Nigerian upstream oil industry

2016 ◽  
Vol 46 (1) ◽  
pp. 45-63 ◽  
Author(s):  
Adedapo Oluwaseyi Ojo ◽  
Murali Raman ◽  
Chin Wei Chong
Keyword(s):  
Goal Orientation ◽  
Absorptive Capacity ◽  
Prior Experience ◽  
Oil Industry ◽  
Need For Cognition ◽  
Project Teams ◽  
Equation Modeling ◽  
Content Type ◽  
Joint Project ◽  
Value Of Knowledge

Purpose – The purpose of this study is to elucidate the factors that underlie the differences in individual absorptive capacity (ACAP) within the context of joint project teams, following the individual-level perspective on potential ACAP. Design/methodology/approach – The model was empirically validated through structural equation modeling conducted on a cross-sectional survey of 248 local team members of joint projects in the Nigerian upstream oil industry. Findings – Prior experience and learning goal orientation are positively associated with the ability to assimilate knowledge, whereas performance approach goal orientation and need for cognition are positively associated with the ability to recognize the value of knowledge. Surprisingly, no significant relationship exists between prior experience and ability to recognize the value of knowledge. In addition, the positive relationship between ability to recognize the value of knowledge and ability to assimilate knowledge is supported. Originality/value – This study contributes to the empirical justification of the role of individuals in acquiring and assimilating external knowledge, and extends classroom-based constructs (i.e. need for cognition and goal orientation) to the project domain.

How firms accumulate knowledge to innovate – an empirical study of Vietnamese firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Duy Quoc Nguyen
Keyword(s):  
Developing Countries ◽  
Knowledge Acquisition ◽  
Absorptive Capacity ◽  
Open Innovation ◽  
Content Type ◽  
Innovative Performance ◽  
External Knowledge ◽  
Knowledge Depth ◽  
Exploratory Innovation ◽  
External Knowledge Acquisition

PurposeOrganizational innovations are closely associated with organizational knowledge, and thus a firm builds its knowledge base to enhance its innovative performance. However, insights into this process are still limited, especially in the context of firms in developing countries. Building on the dynamic managerial capabilities literature and open innovation paradigm, this paper attempts to fill this gap by developing and empirically testing a model that investigates how firms in developing countries accumulate knowledge to innovate.Design/methodology/approachA model of a firm's knowledge accumulation and innovation is proposed in which it specifies relationships among absorptive capacity, knowledge breadth, research and development (R&D), knowledge depth, exploratory innovation and exploitative innovation, and then it is empirically tested by using the structural equation modeling (SEM) technique based on the surveyed data of Vietnamese firms.FindingsThe results indicate that absorptive capacity positively influences both knowledge breadth and knowledge depth, knowledge breadth positively influences R&D, R&D positively influences exploratory innovation and knowledge depth, and knowledge depth positively influences exploratory and exploitative innovation.Practical implicationsThe study proposes an “acquire and develop” open innovation model for firms in developing countries in which firms acquire external technologies and then develop R&D (develop and design) capability to adapt acquired technologies to their local conditions to create new organizational-specific capabilities and exploratory innovation.Originality/valueThis study argues that external knowledge acquisition is beneficial to innovative performance of firms in developing countries via renewing their knowledge base. Furthermore, the study provides the unique evidence that novel external knowledge acquisition and internal R&D are fit to each other in the fit-as-mediation form in which novel external knowledge acquisition is mediated by R&D to positively influence exploratory innovation.

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 Effects of absorptive capacity and innovation spillover on manufacturing flexibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
José Pinheiro ◽  
Luis Filipe Lages ◽  
Graça Miranda Silva ◽  
Alvaro Lopes Dias ◽  
Miguel T. Preto
Keyword(s):  
Market Orientation ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Equation Modeling ◽  
Manufacturing Flexibility ◽  
Content Type ◽  
Production Cycles ◽  
Exploratory Innovation ◽  
Positive Effect

PurposeShifting demand and ever-shorter production cycles pressure manufacturing flexibility. Although the literature has established the positive effect of the firm's absorptive capacity on manufacturing flexibility, the separate role of the innovation competencies of exploitation and exploration in such a relationship is still under-investigated. In this study, the authors examine how these competencies affect manufacturing flexibility.Design/methodology/approachThe authors use survey data from 370 manufacturing firms and analyze them using covariance-based structural equation modeling (CB–SEM).FindingsThe results indicate that absorptive capacity has a strong, positive and direct effect on exploitative and exploratory innovation competencies, proactive and responsive market orientations, and manufacturing flexibility. The authors’ findings also demonstrate that the exploitative innovation competencies mediate the relation between responsive market orientation and manufacturing flexibility. Essentially, these exploitative innovation competencies produce a direct positive effect on manufacturing flexibility while simultaneously being a vehicle for absorptive capacity's indirect effects on it. An exploration innovation strategy does not significantly affect manufacturing flexibility.Originality/valueThis study contributes by combining key strategic features of firms with manufacturing flexibility, while providing new empirical evidence of the mediation of the exploitative innovation competencies in the relation between responsive market orientation and manufacturing flexibility.

Too much of a good thing

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fláviade Souza Costa Neves Cavazotte ◽  
Fábio de Oliveira Paula
Keyword(s):  
Absorptive Capacity ◽  
Shared Leadership ◽  
Structural Equation ◽  
Empirical Test ◽  
Equation Modeling ◽  
Curvilinear Relationship ◽  
Team Creativity ◽  
Content Type ◽  
Team Members ◽  
Very High

PurposeThis study investigates the influence of shared leadership on creativity and absorptive capacity in R&D teams. Based on theories of intragroup processes, it proposes that shared leadership positively affects such team outcomes up to a certain point, but at very high levels could cause loss of synergy and effectiveness, and therefore the relationship will follow an inverted U-shaped curve.Design/methodology/approachThe study was conducted with 76 independent teams from the R&D unit of one of the largest energy companies in Brazil. Data were collected with two questionnaires answered by external team managers and team members. The study applied structural equation modeling to test the hypotheses.FindingsResults indicate that there is a curvilinear relationship between shared leadership and external assessments of creativity and absorptive capacity in R&D teams. Although leadership shared among team members tends to favor creativity and realized absorptive capacity, at very high levels it yielded less than optimal outcomes. Team creativity had a direct positive effect on the teams' ability to explore and transform knowledge.Originality/valueThe study is the first empirical test of the influence of shared leadership on team creativity and absorptive capacity that proposes and confirms a quadratic effect. These results shed new light on the authors’ understanding of how intrateam leadership affects creative processes and absorptive capacity in the R&D context. These findings offer novel insights to inform practice as firms manage innovation performance.

Relationships among absorptive capacity, creativity and job performance: the moderating role of social media usage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huseyin Ince ◽  
Salih Zeki Imamoglu ◽  
Hulya Turkcan
Keyword(s):  
Social Media ◽  
Job Performance ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Media Usage ◽  
The Impact ◽  
Moderating Role

PurposeThis paper investigates the impact of absorptive capacity (ACAP) on creativity and the effect of creativity on job performance. Further, the study investigates the moderating role of social media usage on the ACAP–creativity link and the creativity–job performance link. Accordingly, drawing on the ACAP perspective and social exchange theory (SET), the study develops a conceptual model and tests the proposed relationships.Design/methodology/approachThe paper empirically tests the developed model using 512 survey responses from research and development (R&D) employees. Data were factor analyzed, and path estimates were determined using structural equation modeling to test the hypotheses.FindingsThe results reveal that (1) individual ACAP is positively related to creativity; (2) creativity is positively associated with job performance and (3) social media usage positively moderates the relationship between individual ACAP and creativity.Originality/valueThis paper contributes to the ACAP and creativity literature by establishing a comprehensive and empirically grounded framework that enlightens the relationships between ACAP, creativity, job performance and the moderating role of social media usage.

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.

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