Determinants of absorptive capacity: the value of technology and market orientation for external knowledge acquisition

2016 ◽  
Vol 31 (5) ◽  
pp. 600-610 ◽  
Author(s):  
Ulrich Lichtenthaler
Keyword(s):  
Knowledge Acquisition ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Management Practices ◽  
Content Type ◽  
External Knowledge ◽  
Knowledge Based ◽  
Process Perspective ◽  
Innovation Processes ◽  
External Knowledge Acquisition

Purpose This paper aims to draw on a knowledge-based view to emphasize that internal technological and market knowledge is critical to developing absorptive capacity. Design/methodology/approach This is a conceptual paper, which draws on recent transformations of management practices. Thus, the paper builds on prior academic contributions. Findings Firms increasingly establish innovation processes that involve an active acquisition of external technologies, often through alliances and licensing. To explain differences across firms in external knowledge acquisition, marketing and product innovation researchers have recently adopted a process perspective of absorptive capacity, which refers to a firm’s ability to explore, retain and exploit external knowledge. This paper develops a conceptual framework with propositions relating technology orientation, responsive market orientation and proactive market orientation to the three process stages of absorptive capacity under different conditions of environmental dynamism. Originality/value Beyond the relevance of technology and market orientation for fostering internal innovation, this paper points to their importance for successfully acquiring external technological knowledge. In light of increasingly open innovation processes, absorptive capacity is an essential complement to internal innovation in linking technology and market orientation to firm performance.

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.

Knowledge absorptive capacity: do all its dimensions matter for export performance of SMEs?

2016 ◽  
Vol 12 (2) ◽  
Author(s):  
Godwin Mwesigye Ahimbisibwe ◽  
Stephen Korutaro Nkundabanyanga ◽  
Gideon Nkurunziza ◽  
David Nyamuyonjo
Keyword(s):  
Knowledge Acquisition ◽  
Absorptive Capacity ◽  
Design Methodology ◽  
Sampling Error ◽  
Export Performance ◽  
Hierarchical Regression ◽  
General Effect ◽  
Firm Level ◽  
External Knowledge ◽  
External Knowledge Acquisition

Purpose In this paper we aim to study the relationship between knowledge absorptive capacity (KAC) of exporting SMEs in Uganda and their export performance. Design/methodology/approach This study is correlational and cross-sectional, and adopts firm-level data collected via questionnaires from Ugandan exporting SMEs. As we use the sub-domains of KAC to predict export performance and therefore these sub-mains are expected to be correlated, we apply hierarchical regression as an appropriate tool for analysis when variance on a criterion variable is being explained by predictor variables that are correlated with each other (Pedhazur, 1997). Using this tool we analyze the effect of a given sub-domain after controlling for other indicators (sub-domains) of KAC; a “control” achieved by calculating the change in the adjusted R2 and the significance of this change. Findings We find that only external knowledge acquisition (a dimension of potential absorptive capacity) and external knowledge application (a dimension of realised absorptive capacity) are the only significant predictors of export performance in our model. Contrary to previous thinking, we find that external knowledge assimilation and transformation are not significant predictors of export performance. Taken together, our independent variables explain about 35.4 percent of the variance in export performance of SMEs in Uganda. Research limitations/implications The use of hierarchical regression is susceptible to problems associated with sampling error. However, the likelihood of these problems is reduced by our interaction with the data Practical implications – Our results imply that the initial focus of exporting SMEs should be on external knowledge acquisition and application. Originality/value Unlike most of the export performance literature, which have focused on the general effect of knowledge absorptive capacity as a global variable, this study explores the role played by the four dimensions of KAC and methodologically isolates the contribution played by each individual dimension in the context of exporting SMEs in a developing nation. As such we uncover the reality that not all the sub-domains of KAC are significant for export performance of SMEs in a developing country context.

Organizational Absorptive Capacity and Responsiveness: An Empirical Investigation of Growth–Oriented SMEs

2003 ◽  
Vol 28 (1) ◽  
pp. 63-86 ◽  
Author(s):  
Jianwen Liao ◽  
Harold Welsch ◽  
Michael Stoica
Keyword(s):  
Knowledge Acquisition ◽  
Absorptive Capacity ◽  
Strategic Orientation ◽  
Knowledge Dissemination ◽  
Future Research ◽  
Organizational Responsiveness ◽  
External Knowledge ◽  
Future Research Directions ◽  
The Relationship ◽  
External Knowledge Acquisition

This study examines the relationship between firm absorptive capacity and organizational responsiveness in the context of growth–oriented small and medium–sized enterprises (SMEs). By testing the different dimensions of absorptive capacity, external knowledge acquisition and intrafirm knowledge dissemination were found to be positively related to organizational responsiveness. In addition, the relationships between absorptive capacity and organizational responsiveness were moderated by environmental dynamism and the SMEs’ strategic orientation. Results demonstrate that the responsiveness of growth–oriented SMEs is expected to increase if (1) they have well–developed capabilities in external knowledge acquisition and intrafirm knowledge dissemination; (2) they have a well–developed external knowledge acquisition capability and adopt a more proactive strategy, such as being a prospector; (3) they face a turbulent environment and have a well developed internal knowledge dissemination capability. Implications and future research directions are provided.

scholarly journals Antecedents and effects of individual absorptive capacity: a micro-foundational perspective on open innovation

2017 ◽  
Vol 21 (6) ◽  
pp. 1319-1341 ◽  
Author(s):  
Sandor Lowik ◽  
Jeroen Kraaijenbrink ◽  
Aard J. Groen
Keyword(s):  
Knowledge Management ◽  
Cognitive Style ◽  
Absorptive Capacity ◽  
Open Innovation ◽  
Management Practices ◽  
Content Type ◽  
Individual Level ◽  
External Knowledge ◽  
Absorptive Capacities ◽  
Innovation Practices

Purpose The paper aims to understand how individuals differ in individual absorptive capacity – their ability to recognize, assimilate, transform and exploit external knowledge. These individual absorptive capacities are a key knowledge management building block for an organization’s open innovation practices. The study examines individual antecedents – human capital, social capital and cognition – and innovation outcomes of individual absorptive capacity. Design/methodology/approach This is a quantitative study of 147 employees in a single medium-sized Dutch industrial firm. Based on a survey and structural equation modeling, the antecedents’ prior knowledge diversity, network diversity and cognitive style are examined in relation to individual absorptive capacity. Further, the mediating effects of individual absorptive capacity on its antecedents and innovation outcome are investigated. Findings The main findings are that prior knowledge diversity, external network diversity and a bisociative cognitive style explain differences in individual absorptive capacity. A bisociative cognitive style appears to be the most important factor. Also, this study finds that individual absorptive capacity mediates between its antecedents and individual innovation performance and is therefore a relevant factor to capture value from external knowledge sources. Research limitations/implications The study extends open innovation theory by exploring individual-level factors that explain the ability to capture value from external knowledge. It suggests that differences in open innovation practices are explained by heterogeneity at the individual level. Further, it explains how individuals’ potentials for open innovation are mediated by their absorptive capacities. These insights enable future researchers to further examine individual-level factors in knowledge management practices and to explore cross-level individual-organizational interactions for open innovation. Practical implications This paper highlights that individuals’ engagements in open innovation practices are explained not only by individuals’ motivations but also by their abilities to absorb external knowledge. Further, it helps managers to design knowledge management practices to promote employees’ absorptive capacities, to improve open innovation processes. Originality/value This study investigates the neglected individual-level factors of open innovation practices from a micro-foundational and knowledge management perspective. To our best knowledge, this is the first study to examine individual-level antecedents and outcomes of individual absorptive capacity.

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.

External knowledge sources as antecedents of organizational innovation in firm workplaces: a knowledge-based perspective

2018 ◽  
Vol 22 (2) ◽  
pp. 237-256 ◽  
Author(s):  
Lurdes Simao ◽  
Mário Franco
Keyword(s):  
Quantitative Research ◽  
Management Practices ◽  
Organizational Innovation ◽  
Innovation Management ◽  
Knowledge Sources ◽  
Community Innovation Survey ◽  
Content Type ◽  
External Knowledge ◽  
Knowledge Based ◽  
The Impact

Purpose This paper aims to analyse the impact of different knowledge sources used by firms to adopt organizational innovation, in relation to organization of responsibilities and decision-making in the workplace. Design/methodology/approach To fulfil the proposed objective, quantitative research, based on a sample of 2,591 Portuguese firms, has been undertaken. Data have been obtained from the Community Innovation Survey 2012. Findings The results show the importance of external knowledge from suppliers, clients, consultants and commercial laboratories in new innovation practices in firm workplace. Knowledge from competitors, universities, the State and research institutes does not present a significant effect. Practical implications Knowledge sources can stimulate the introduction of new management practices in the workplace, consistent with the external search literature on technological innovation, which argues that many of the ideas and implementation skills for organizational innovation come from outside sources. Originality/value Within the innovation management literature, very few studies tried to explore organizational innovation in firm workplaces. This paper is innovative and makes a novel contribution mainly to the knowledge management field by highlighting the importance of external knowledge sources in organizational innovation in firm workplaces from a knowledge-based perspective.

Linking knowledge management to competitive strategies of knowledge-based SMEs

2020 ◽  
Vol 33 (1) ◽  
pp. 42-59 ◽  
Author(s):  
Rohana Ngah ◽  
Kuan Yew Wong
Keyword(s):  
Knowledge Management ◽  
Knowledge Acquisition ◽  
Knowledge Creation ◽  
Management Practices ◽  
Competitive Strategies ◽  
Content Type ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Knowledge Based ◽  
Knowledge Management Practices

Purpose This paper aims to study the effect of knowledge management in formulating competitive strategies for knowledge-based small- and medium-sized enterprises (SMEs) in Malaysia. Design/methodology/approach A quantitative approach of a survey was carried out on 135 owners and managers of knowledge-based SMEs in Malaysia. Structural equation modeling technique was used to investigate the relationship between knowledge management and competitive strategies. SmartPLS software is used to analyze the quantitative data. Only SMEs which are involved in R&D and innovation were selected to get the right respondents who meet the objective of the study. Findings The findings show mixed results. Most dimensions of knowledge management have significant relationships to differentiation strategy except for knowledge creation and knowledge acquisition, with only knowledge acquisition showing a significant relationship to cost leadership. Findings reveal that knowledge management has a positive effect on competitive strategies with more inclination toward differentiation strategy, compared to cost leadership strategy which does synchronize with their commitment in research and development and innovation. Research limitations/implications This study is only focused on knowledge-based SMEs in central Malaysia. Second, the use of a survey approach minimized the flow of information. Practical implications SMEs do have knowledge management practices but may not be exploiting it well. Mapping knowledge management practices would help SMEs identify their strengths and weaknesses to explore better business opportunities. This proves that SMEs are leveraging their resources through knowledge application, dissemination, storage and protection to be different than their competitors. However, their apparent lack of knowledge in knowledge acquisition and knowledge creation should be addressed accordingly, as it is important for their future continuous sustainability. Originality/value This paper contributes to the literature of knowledge management relating to competitive strategies in SMEs. The study offers insights on how competitive strategies were formulated through knowledge management. The mixed results reveal a new different outlook of knowledge management relating to competitive strategies.

scholarly journals Absorptive capacity and relationship learning mechanisms as complementary drivers of green innovation performance

2018 ◽  
Vol 22 (2) ◽  
pp. 432-452 ◽  
Author(s):  
Gema Albort-Morant ◽  
Antonio L. Leal-Rodríguez ◽  
Valentina De Marchi
Keyword(s):  
Absorptive Capacity ◽  
Manufacturing Sector ◽  
Innovation Performance ◽  
Path Modeling ◽  
Green Innovation ◽  
Learning Mechanisms ◽  
Content Type ◽  
External Knowledge ◽  
Automotive Components ◽  
Knowledge Based

Purpose This paper aims to explore in depth how internal and external knowledge-based drivers actually affect the firms’ green innovation performance. Subsequently, this study analyzes the relationships between absorptive capacity (internal knowledge-based driver), relationship learning (external knowledge-based driver) and green innovation performance. Design/methodology/approach This study relies on a sample of 112 firms belonging to the Spanish automotive components manufacturing sector (ACMS) and uses partial least squares path modeling to test the hypotheses proposed. Findings The empirical results show that both absorptive capacity and relationship learning exert a significant positive effect on the dependent variable and that relationship learning moderates the link between absorptive capacity and green innovation performance. Research limitations/implications This paper presents some limitations with respect to the particular sector (i.e. the ACMS) and geographical context (Spain). For this reason, researchers must be thoughtful while generalizing these results to distinct scenarios. Practical implications Managers should devote more time and resources to reinforce their absorptive capacity as an important strategic tool to generate new knowledge and hence foster green innovation performance in manufacturing industries. Social implications The paper shows the importance of encouraging decision-makers to cultivate and rely on relationship learning mechanisms with their main stakeholders and to acquire the necessary information and knowledge that might be valuable in the maturity of green innovations. Originality/value This study proposes that relationship learning plays a moderating role in the relationship between absorptive capacity and green innovation performance.

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