scholarly journals The absorptive capacity of family firms

2015 ◽  
Vol 5 (1) ◽  
pp. 73-89 ◽  
Author(s):  
Jim Andersén

Purpose – Absorptive capacity (AC) is a key competitive advantage and is defined as the capacity to absorb knowledge from the environment. Although some studies have examined how various antecedents to AC differ between family firms and non-family firms, no studies have set out to specifically analyze AC in the context of family firms. The purpose of this paper is to discuss the ability of family firms to absorb external knowledge by analyzing the relationship between “familiness” and “AC”. Design/methodology/approach – By reviewing and combining studies on AC and knowledge-management practices of family firms, new insights into the AC of family firms are developed. Findings – It is argued that due to higher levels of social capital, familiness is positively related to the ability to transform and use external knowledge (i.e. realized AC). However, firms with high levels of familiness are likely to be inferior in acquiring and assimilating external knowledge (i.e. potential AC). Originality/value – Although previous studies have analyzed various knowledge-management practices of family firms, no studies have set out to specifically explore how familiness affects various dimensions of AC.

2014 ◽  
Vol 18 (5) ◽  
pp. 905-918 ◽  
Author(s):  
Daniel Jiménez-Jiménez ◽  
Micaela Martínez-Costa ◽  
Raquel Sanz-Valle

Purpose – This paper aims to assess the importance of different knowledge management practices to promote organizational innovation in multinational companies. The links among internationalization, reverse knowledge transfer and social capital and organizational innovation are analyzed. Design/methodology/approach – Structural equation modeling was used to check the research hypotheses with a sample of 104 multinational companies. Findings – The results show that internalization has no direct effect on organizational innovation but a indirect effect trhrough the transfer of knowledge from external subsidiaries to the headquarter. Furthermore, this knowledge and other that comes from internal and external social capital is essential for the development of innovations. Research limitations/implications – Self-reporting by the CEOs may be the most significant limitation, as a single key informant provided the data; multiple informants would enhance the validity of the research findings. A second limitation is the cross-sectional design of the research that does not allow observation of the short- and long-term impact of the relationships among the variables. Practical implications – Organizational innovation is not an easy task. However, those multinational companies which foster knowledge management practices that generate new knowledge from external subsidiaries, internal or external social relationships, will facilitate the generation of innovations. In consequence, these companies should foster the generation of knowledge from different sources. Originality/value – The focus of the study in this paper is on multinational companies and the possibility to acquire knowledge from different sources (inside organization, external local environment and international context). Specially, focus on the transfer of knowledge from subsidiaries to headquarters (reverse knowledge transfer), as it is insufficiently investigated by current literature.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manzoor Ul Akram ◽  
Koustab Ghosh ◽  
Rojers P. Joseph

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.


2018 ◽  
Vol 22 (6) ◽  
pp. 1201-1216 ◽  
Author(s):  
Sanjay Chaudhary ◽  
Safal Batra

Purpose Despite the recognized importance of knowledge management for small family firms, relatively little empirical research has been done so far to understand the mechanisms through which absorptive capacity (AC) assists their performance. The purpose of this study is to understand the relationship between absorptive capacity and performance in small family firms. Design/methodology/approach In this study, the authors theoretically argue and empirically validate that AC enables the creation of entrepreneurial, market and technology orientations in small family firms, which, in turn, lead to superior firm performance. They also tested the study’s hypotheses using mediation and multiple linear regression analyses on data collected from 272 small Indian family firms. Findings The study’s findings suggest indirect relationship between AC and performance. The strategic orientations provide a mechanism through which investments in small family firms’ AC results in firm performance. Practical implications This study offers crucial insights to practitioners and small firm managers regarding the use of knowledge-based capabilities in creating appropriate strategic postures, which, in turn, assist firm performance. Originality/value This study is among few research attempts in understanding the knowledge aspects of small family firms. The present research contributes to the existing literature by unravelling the relationship between knowledge management and small family firm performance. Also, by bringing in data from an under-studied context of an emerging economy, this study strengthens the theoretical applicability of knowledge management in different contexts.


2019 ◽  
Vol 33 (1) ◽  
pp. 166-178 ◽  
Author(s):  
Parijat Upadhyay ◽  
Manas Paul

Purpose The purpose of this paper is to provide a framework to understand and reflect upon issues, which can help in producing better industry-ready students graduating from business schools. Design/methodology/approach The paper examines research conducted in the area of knowledge management (KM) and proposes a conceptual framework that can be used by academic institutions to engage students and prepare them for industry needs so that they are better industry-ready graduates. A case study based approach has been adopted in this study. Findings In line with the literature-based analysis, a framework for better industry ready students has been proposed, illustrating the linkage between KM, learning from organization-based projects, industry feedback and inputs from international accreditation bodies in higher education. Originality/value This paper has provided a comprehensive framework that contributes to the understanding and refining the academic processes in a business school setting with the help of learning from academic KM process. Such a framework has not been previously developed by previous researchers.


2017 ◽  
Vol 21 (6) ◽  
pp. 1319-1341 ◽  
Author(s):  
Sandor Lowik ◽  
Jeroen Kraaijenbrink ◽  
Aard J. Groen

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.


2014 ◽  
Vol 22 (4) ◽  
pp. 19-21 ◽  
Author(s):  
Satyendra C. Pandey ◽  
Andrew Dutta

Purpose – The purpose of this paper is to describes the role of knowledge management at MindTree, a medium-sized Indian information technology firm that has featured among the Global Most Admired Knowledge Enterprises (MAKE) and the best companies to work for. Design/methodology/approach – The paper investigates the relationship between knowledge management and innovation at the company and describes its various knowledge-management initiatives. Findings – The paper explains that the company streamlined the process of discovering what knowledge was lying where and established various policies and processes to encourage information sharing and creativity. Practical implications – It highlights the role of self-organized knowledge communities, various software tools and the prevailing organizational culture in promoting knowledge exchange and original thinking. Social implications – It hints that knowledge management will be an increasingly important source of competitive advantage in the years ahead. Originality/value – It describes knowledge-management practices that can be used by other companies to foster innovation and business leadership among employees.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Satyanarayana Parayitam ◽  
Syed Aktharsha Usman ◽  
Rajeshwaran Raja Namasivaayam ◽  
Mohamed Shaik Naina

Purpose This paper aims to investigate the importance of knowledge management as a moderator in the relationship between two of the burnout variables, namely, role ambiguity and work overload. In addition, the paper tests a conceptual model where emotional exhaustion is a moderator in the relationship between role ambiguity, work overload and performance. Design/methodology/approach Using a structured survey instrument, this paper gathered data from 692 respondents from the information technology industry in the southern part of India. The first psychometric properties of the instrument were tested and then hierarchical regression was used as a statistical technique for analyzing the data. Findings Results show that role conflict is positively related to role ambiguity and work overload, role ambiguity is negatively related to performance, work overload is positively related to performance, knowledge management moderates the relationship between role conflict and role ambiguity and role conflict and work overload. The hierarchical regression results also support that emotional exhaustion moderates the relationship between role ambiguity and performance and work overload and performance. Research limitations/implications As the present research is based on self-report measures, the limitations of social desirability bias and common method bias are inherent. However, this study attempts to minimize these limitations by following appropriate statistical techniques and procedures. Practical implications This study contributes to both practicing managers and the literature on conflict management. The study suggests that managers use knowledge management practices to mitigate the ill-effects of role conflict and enhance performance. This study also highlights the role of emotional exhaustion in organizations. Originality/value This study provides new insights about the importance of knowledge management practices and emotional exhaustion in the relationship between role conflict and performance. To the knowledge, the importance of knowledge management practices is underemphasized in conflict management research. The study also provides insights into the role of one of the burnout variables i.e. emotional exhaustion in its influence on performance. The implications of this relationship for organizational role theory and organizational learning theory and for management practice, are discussed.


2018 ◽  
Vol 12 (3/4) ◽  
pp. 286-308 ◽  
Author(s):  
Emad Abu-Shanab ◽  
Issa Shehabat

Purpose This paper aims to examine the perceived influence of knowledge management (KM) practices on the success of e-government initiatives. This paper proposes a framework depicting the overall perspective of the interactions between the environment and KM practices and associated processes in the context of e-government. Design/methodology/approach A conceptual framework was built to set the stage for empirical analysis, which included four major constituents: IT infrastructure, administrative issues, KM practices and e-government projects success. A sample of 181 civil servants completed a survey measuring the factors included in the research model. Structural equation modeling technique was used to test the model. Findings Results have identified IT infrastructure and administrative issues as significant predictors of e-government projects’ success, where the relationship was mediated by KM practices. The model explained 52.7 per cent of the variance in e-government success. Research limitations/implications Governments need to enforce policies to encourage KM practices and make available the needed infrastructure for such environment. The sample size and the new Arabic survey used in the study are the major limitations, where more research is encouraged to validate the instrument and generalize the findings to different environments. Originality/value This study is the first in Jordan, and one of the few that related e-government to KM practices by proposing a comprehensive model that sums the factors related to such relationship. Its value stems from its sample of public employees and the support of its proposed framework.


2013 ◽  
Vol 3 (1) ◽  
pp. 65-77 ◽  
Author(s):  
Bing Li ◽  
Jianpeng Zhang ◽  
Xiaoxia Zhang

Abstract Purpose of the article Knowledge has been considered as the strategic assets and become the source of competitive advantage in organizations. Knowledge management thus receives the extraordinary attention from the top management. Many organizational factors have influences on knowledge management practices. This paper attempts to explore the empirical relationship between knowledge management and organizational culture in the specific situation of China’s commercial banking industry. Methodology/methods The relationship between knowledge management and organizational culture is quantitatively investigated by surveying bank managers. The scale of SECI modes is used to measure knowledge management process and the scale of Denison Organizational Culture Survey (DOCS) is used to measure organizational culture. We explore the underlying relationship by employing the statistical analyses such as correlation, regression and structural equation modeling. Scientific aim The research aims at testing the relationship between knowledge management and organizational culture, and furthermore if there exist linkages between cultural traits and SECI modes. Findings The results of the empirical study confirm the great and positive effect that organizational culture has on knowledge management. Different cultural traits contribute to different SECI modes. Conclusions For obtaining successful knowledge management practices in organizations, it is better to concern about the relationship between knowledge management and organizational culture. The limitation in the paper is the sampling size, which will be solved by an industry-wide survey in our future research.


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