Moderating effect of absorptive capacity on the entrepreneurial orientation of international performance of family businesses

2018 ◽  
Vol 8 (1) ◽  
pp. 58-74 ◽  
Author(s):  
Felipe Hernandez-Perlines
Keyword(s):  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Family Firms ◽  
Absorption Capacity ◽  
Family Businesses ◽  
Moderating Effect ◽  
Content Type ◽  
International Performance ◽  
Moderating Role

Purpose The purpose of this paper is to analyse the moderating effect of absorptive capacity on the entrepreneurial orientation of international performance of family businesses. Design/methodology/approach The sample for this study was collected from 218 family firms associated with the Family Business Institute (IEF). This paper used a structural equation model through PLS-SEM technique to test the proposed model and for contrasting the moderating effect of absorptive capacity on the entrepreneurial orientation of international performance of family businesses. Findings The main result of this work is that international performance of family businesses is determined, to a great extent, by the entrepreneurial orientation. In addition, this effect is reinforced by the absorption capacity, exerting a positive moderating role. Practical implications If family firms want to improve their international results, they must act in the entrepreneurial orientation through the effect of absorption capacities. Originality/value The originality of this work comes from the discovery of the new moderating role of absorption capacities in family firms.

The systematization knowledge of articles adherent to familiness, entrepreneurial orientation and absorptive capacity

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismael Luiz dos Santos ◽  
Sidnei Vieira Marinho ◽  
Ruan Carlos dos Santos
Keyword(s):  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Academic Research ◽  
Absorption Capacity ◽  
Family Businesses ◽  
Content Type ◽  
Academic Production ◽  
Family Enterprises ◽  
Categorical Groups

PurposeFamily businesses gain notoriety in academic research because they have peculiarities found only in this type of organization, and it is because of these attributes that this work aims to analyze, through an epistemological look, the results of a systematization that sought for works that use the unique characteristics of family businesses, called familiness, as well as two other constructs that showed attractive adherents and little researched in parities with familiness, organizational entrepreneurship, better known as entrepreneurial orientation and the ability to adapt, called absorption capacity.Design/methodology/approachTo achieve this goal, an investigation of national and international academic production was carried out through a systematization called Proknow-C, being possible to identify the main categorical groups of authors in the area, main journals, besides identifying and analyzing the main objectives and contributions of selected scientific articles.FindingsAmong the results obtained, it was possible to consolidate some research intentions inherent to the junction of such constructs, besides directing, which can be the best and most promising fields of research for the application of these constructs and the most indicated methods, based on the three epistemological positions, subjectivism, objectivism and constructivism.Originality/valueThis study adds value to the literature on familiness, pointing to a relationship between entrepreneurial orientation and absorption capacity, in contrast to studies focused on other dimensions of social capital, which obtained divergent results. In addition, this study reinforces the unique characteristics of family enterprises, in which this work intends to consolidate a methodological proposal with arguments linked to positivism or interpretativism in the midst of epistemology. The study provides a valuable theoretical framework of familiness determinants connecting the cognitive perspective of the entrepreneur theory to a view of the absorptive capacity.

Strategic orientations, firm performance and the moderating effect of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
María del Rosario Demuner-Flores ◽  
Felipe Hernández-Perlines
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Orientations ◽  
The Relationship

PurposeThe purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance.Design/methodology/approachThe data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM).FindingsDespite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance.Practical implicationsThe main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP.Originality/valueThe main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done.

scholarly journals Servitization strategies from customers’ perspective: the moderating role of co-creation

2019 ◽  
Vol 34 (3) ◽  
pp. 628-642 ◽  
Author(s):  
José L. Ruiz-Alba ◽  
Anabela Soares ◽  
Miguel A. Rodríguez-Molina ◽  
Dolores M. Frías-Jamilena
Keyword(s):  
Structural Equation ◽  
Business Models ◽  
Service Providers ◽  
Moderating Effect ◽  
Mediating Effect ◽  
Content Type ◽  
The Impact ◽  
Moderating Role ◽  
Different Levels

Purpose This paper aims to investigate the moderating role of co-creation in the implementation of servitization strategies in the pharmaceutical industry in a business-to-business (B-to-B) context. More specifically, this investigation explores the impact of different levels of services (base, intermediate and advanced) on servitization and on performance by using co-creation as a moderating factor. Design/methodology/approach A research framework was developed and empirically tested in the pharmaceutical sector. Data collection was conducted through the online distribution of questionnaires. The final sample included 219 pharmacy stores, and the data were analysed using structural equation modelling. Findings Main findings suggest that when the level of co-creation of the design of services is high, there are significant effects of servitization on firm performance. The moderating effect of co-creation is illustrated in regard to intermediate and advanced services, but results referring to the impact of intermediate services on servitization appear non-significant with a low degree of co-creation. No significant effects could be found for the impact of base services on performance and servitization for both high and low degrees of co-creation. Findings show an impact of advanced services on performance through the mediating effect of servitization when the degree of co-creation is high. Originality/value Most research concerning servitization has been done from the perspective of manufacturers and service providers. This study adds value to the literature because it was designed from a customer’s perspective. Moreover, it contributes towards the conceptualization of the servitization research strategy and business models in a B2B context. This is accomplished through the investigation of the moderating effect of co-creation on the impact of the different levels of services on servitization and on performance.

scholarly journals Conditional mediation of competitive strategy and environment in international entrepreneurial orientation of family businesses

2017 ◽  
Vol 6 (2) ◽  
Author(s):  
Felipe Hernández-Perlines ◽  
Esteban Mancebo-Lozano
Keyword(s):  
Entrepreneurial Orientation ◽  
Competitive Strategy ◽  
Structural Equation ◽  
Family Firms ◽  
Second Generation ◽  
Family Businesses ◽  
Measure Data ◽  
Moderator Effect ◽  
Academic Field ◽  
Spanish Family

This paper analyzes the effect of conditional mediation of environment-competitive strategy in business orientation of family businesses. In order to study the results we propose a method based on a second generation structural equation (PLS-SEM) where software SmartPLS 3.2.6 is applied to measure data of 174 Spanish family businesses. This paper presents a relevant contribution both to the academic field and the performance of family firms, helping to understand the process of transforming international entrepreneurial orientation into a better international performance through competitive strategy while family businesses invest their efforts in aligning international entrepreneurial orientation and competitive strategy with international results, bearing in mind the positive moderator effect of environment.

scholarly journals Chief executive officer retirement and auditor’s risk assessment

2020 ◽  
Vol 18 (2) ◽  
pp. 343-361
Author(s):  
Salau Olarinoye Abdulmalik ◽  
Noor Afza Amran ◽  
Ayoib Che-Ahmad
Keyword(s):  
Risk Assessment ◽  
Chief Executive Officer ◽  
Perceived Risk ◽  
Family Firms ◽  
Chief Executive ◽  
Family Businesses ◽  
Moderating Effect ◽  
Content Type ◽  
Client Risk ◽  
The Relationship

Purpose This study aims to examine the unique nature of family firms by investigating the moderating effect of chief executive officer (CEO) identity on CEO career horizon and the auditor’s client risk assessment. Consistent with literature on family businesses, the level of CEO attachment to socio-emotional wealth (SEW) varies among family businesses. Design/methodology/approach This study used a longitudinal sample of 2,063 non-financial family firm-year observations from 2005 to 2016 listed on the Bursa Malaysia. The study used the general method of moments (GMM), which controls for endogeneity concerns. Findings The results reveal that, without the moderating effect of CEO identity, the relationship between CEO career horizon and auditor’s risk assessment is positive, which suggests that the auditor’s risk perception of retiring CEOs is very high. However, the interaction of CEO identity reverses the relationship as evidenced by the negative and significant coefficient on the interacted terms. The finding suggests that the auditor’s perceived risk associated with CEO career horizon is lower in family firms with CEOs affiliated to family members or in which the CEO has an equity stake. Overall, the findings provide compelling evidence that the extent of the CEO’s attachment to the firm’s SEW affects the auditor’s client risk assessment. Practical implications The findings of the study serve as an enlightenment to policymakers such as Bursa Malaysia and Security Commission that within the family-controlled firms, differences still exist; therefore, there might be a need for future regulatory initiative to cater for the specific need of family-controlled firms. Originality/value The study contributes to prior literature by departing from the agency theory adopted in previous studies on auditor choice in family firms under the assumption that family firms are homogenous.

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.

scholarly journals International new ventures’ international performance: a matter of network entrepreneurial orientation and network management activities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria Ripollés ◽  
Andreu Blesa
Keyword(s):  
Network Management ◽  
Knowledge Sharing ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
New Ventures ◽  
International New Ventures ◽  
Potential Conflict ◽  
Content Type ◽  
International Performance ◽  
Positive Effects

Purpose The purpose of this paper is to demostrate that commitment to developing knowledge sharing, coordination, adaptation and resolving potential conflict results in idiosyncratic relational assets for firms, which increases the benefits that international new ventures (INVs) can obtain from their networking activity. Design/methodology/approach To test the theoretical model, a survey was conducted among a sample of INVs. The data obtained were examined with structural equation modelling using the maximum likelihood estimation procedure in linear structural relations software. Findings The results showed positive effects of network entrepreneurial orientation (EO) on knowledge sharing, coordination, adaptation and resolving potential conflict, but only network coordination showed a positive effect on international performance. Research limitations/implications The study introduces and extends EO to the network level and shows that it contributes to INVs’ international performance through its influence on the development of coordination activities among networked firms. Practical implications The results provide guidance for building INVs’ networks. Entrepreneurs will find orientations about which partners could be more valuable to them. Originality/value Little research has addressed the study of network management activities to create a network structure. This paper reveals how firms’ volition and commitment to networking helps us to understand, in a fine-grained manner, how INVs gain benefits from their social networks. Additionally, EO at the network level is also studied, and arguments are proposed showing its relationships with the aforementioned relational activities based on the fact that entrepreneurial-oriented partners are supposed to be more active in networking.

The role of absorptive capacity and organizational unlearning in the link between social media and service dominant orientation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jaime Ortega-Gutiérrez ◽  
Ignacio Cepeda-Carrión ◽  
Helena Alves
Keyword(s):  
Social Networks ◽  
Social Media ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Service Sector ◽  
Dynamic Capabilities ◽  
Absorption Capacity ◽  
Equation Modeling ◽  
Content Type

Purpose This paper aims to study the relationship between the knowledge obtained in social networks by firms together with the firms’ knowledge absorptive capacity and organizational unlearning as influencers of service-dominant (S-D) orientation, as well as the mediating role of absorption capacity and organizational unlearning in this process. Design/methodology/approach The sample amounts to 101 responding companies, obtained from the SABI database. The companies belong to the service sector in Spain and have at least 50 employees and 5 years or more of existence in the market. The model was estimated through partial least squares structural equation modeling with smartPLS software 3.2.6. Findings The results show that the use of social media is very important for firms to acquire knowledge and capabilities that help them to become S-D oriented. In addition, absorptive capacity and unlearning processes are dynamic capabilities necessary to transform the knowledge acquired in social media and to become S-D oriented. Research limitations/implications Companies’ managers draw conclusions that can generate great value, while better meeting the needs and desires of the market, the more knowledge is obtained. In addition, the use of the knowledge generated in this process will reduce the risk of sudden changes in the market. Practical implications The more knowledge is gained using social networks, the better the companies’ managers will be able to draw conclusions that can generate great value, while at the same time better satisfying the needs and desires of the market, and thus create capacities that allow the company to be service-oriented. In addition, the use of these knowledge platforms strengthens the strategic advantage of companies through the promotion of innovation and by relating dynamic capabilities with the orientation toward sustainable development. As mentioned above, a process will be generated that will reduce the risk of sudden changes in the market. Originality/value This is one of the few studies trying to study the antecedents of S-D orientation and the first to study the direct effect of social media use, and the direct and indirect effect of absorptive capacity and organizational unlearning on S-D orientation as dynamic capabilities.

Entrepreneurial orientation, absorptive capacity and business performance in SMEs

2019 ◽  
Vol 24 (4) ◽  
pp. 417-429 ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
Felipe Hernandez-Perlines
Keyword(s):  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Business Performance ◽  
Manufacturing Sector ◽  
Regional Scale ◽  
National Level ◽  
Multidimensional Analysis ◽  
Equation Modeling ◽  
Content Type

Purpose Firms must be constantly looking for markets and business opportunities and developing new products; to do so, they must find ways to increase their competitiveness, productivity so that it is noticed in their financial statements. The purpose of this paper is to establish the influence of entrepreneurial orientation (EO) in business performance (BP) of small and medium-sized enterprises of the manufacturing sector in Mexico. Likewise, it is intended to demonstrate how absorptive capacity (ACAP) allows moderating this important relation. Design/methodology/approach Analyzing important theoretical and empirical contributions as regards this topic, a survey was designed and applied to 165 manufacturing firms, and by means of partial least squares structural equation modeling resorting to SmartPLS, the research hypotheses were tried. Findings The obtained results indicate that indeed, EO positively influences BP; in like manner, ACAP has a moderating effect on this relation. Thereby, it can be established that the manufacturing sector carries out the right practices that aim at increasing entrepreneurial competitiveness. Research limitations/implications The main limitation of the paper is its regional scale, not national; however, the typology of the manufacturing sector in the country is very similar, as the analyzed subsectors are the most relevant at a national level. Moreover, the existence of international value chains is also found in the rest of the country, so these chains are not exclusive to the region. Another limitation is that even if the analysis focuses on the main manufacturing subsectors, it would have been interesting to analyze if the behavior is similar in other subsectors. Originality/value This paper contributes to broadening the studies on EO, ACAP and BP in a different context. Besides, it allows contrasting the results obtained in an eminently manufacturing country with other economies less dependent on this sector. It also contributes to broadening the multidimensional analysis of the manufacturing sector in Mexico, as the authors of the present paper have also performed studies over similar lines in the same sector.

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