scholarly journals The role of subsidiary dual embeddedness and absorptive capacity in a transition economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mehdi Rasouli Ghahroudi ◽  
Seyed Hossein Chabok ◽  
Kieran M. Conroy
Keyword(s):  
Knowledge Transfer ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Transition Economy ◽  
Equation Modeling ◽  
Local Market ◽  
Foreign Subsidiaries ◽  
Content Type ◽  
Knowledge Stocks ◽  
External Embeddedness

Purpose This study aims to focus on dual embeddedness as an important channel through which foreign subsidiaries access and share valuable and idiosyncratic knowledge within the multinational corporation (MNC). The authors examine the dual embeddedness challenges of foreign subsidiaries based in the context of Iran as a transitional market. Design/methodology/approach The final sample includes 144 active foreign subsidiaries in Iran from across a broad range of industries. A structured questionnaire was distributed to firms and structural equation modeling was adopted to analyze the results. Findings The findings reveal how building external embeddedness in an environment with potentially poor access to valuable knowledge, and risk of knowledge leakage impacts the subsidiary’s ability to subsequently transfer this knowledge within the MNC. The authors identify the significance of absorptive capacity as a way for the subsidiary to access knowledge from and share knowledge with firms in the local market. Originality/value Departing from existing work on subsidiary embeddedness in developed markets, the authors reveal how competence creating subsidiaries manage dual embeddedness and knowledge transfer in transition economies that are low in knowledge stocks. The authors unpack how subsidiary absorptive capacity enables access to local knowledge in a transitional market and increases reverse knowledge transfer in the MNC. In doing so, the authors answer calls for work on the dynamic and complementary relationships that exists between subsidiary dual embeddedness, absorptive capacity and knowledge sourcing in less open markets. Focusing on Iran as a transitional economy, this study provides greater contextual nuance to the extant literature on subsidiary dual embeddedness.

Comprehending a knowledge framework as a source of dynamic capabilities in IJVs through PLS-SEM

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madhavi Kapoor ◽  
Vijita Aggarwal
Keyword(s):  
Knowledge Transfer ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Global Market ◽  
Innovation Performance ◽  
International Joint Ventures ◽  
Mediation Effect ◽  
Equation Modeling ◽  
Content Type

Purpose This study aims to investigate the relationship among knowledge transfer enablers, knowledge transfer process, absorptive capacity and innovation performance in the context of Indian international joint ventures (IJVs). These elements are woven with the thread of dynamic capabilities theory (DCT) into an integrated framework. Design/methodology/approach Data analysis is conducted on a quantitative survey of 196 IJVs with partial least squares structural equation modeling as the statistical technique. Findings Co-learning strategy, collaborative trust culture, information technology-based resources and systems and organizational structural design are found to be significant knowledge transfer enablers. Absorptive capacity has a complementary partial mediation effect on the positive relationship between knowledge transfer and innovation performance of Indian IJVs. Research limitations/implications The study has pioneered in explicating the criticality of IJV’s internal dynamics to cope with the global market dynamism in a much needed Indian context. Practitioners must focus on building dynamic capabilities in IJVs to make them sustainably competitive, as proposed and evaluated by this study. Further, IJV managers need to strategize their resources, routines and structure dynamically to foster knowledge transfer and innovativeness. Originality/value The comprehensive model on DCT offered by this study is rare to match in literature with a completely new context, which is the need of the hour.

Innovation capabilities for global R&D projects in subsidiaries

2019 ◽  
Vol 22 (4) ◽  
pp. 639-659 ◽  
Author(s):  
Elisangela Lazarou Tarraço ◽  
Roberto Carlos Bernardes ◽  
Felipe Mendes Borini ◽  
Dennys Eduardo Rossetto
Keyword(s):  
Emerging Markets ◽  
Multinational Corporations ◽  
Structural Equation ◽  
Emerging Market ◽  
Process Innovation ◽  
Equation Modeling ◽  
Foreign Subsidiaries ◽  
Content Type ◽  
Product And Process Innovation ◽  
Product And Process

Purpose Is the development of local innovation capabilities enough for foreign subsidiaries in emerging markets to be able to integrate into global R&D projects? The authors argue that it is not. The purpose of this paper is to show the central role of R&D capacities when it comes to inserting foreign subsidiaries in emerging markets into global R&D projects. Design/methodology/approach The study investigated 131 foreign multinational subsidiaries operating in Brazil. For each subsidiary, the authors surveyed two to five directors or C-level executives from innovation, R&D, engineering, product development and projects. the authors used structural equation modeling for analysis. Findings The results indicate that product and process innovations alone do not guarantee the insertion of the emerging market subsidiaries into global innovation projects. Such insertion depends on the subsidiary’s accumulation of R&D capacities. Practical implications The results reinforce the central issue of building product and process innovation capabilities as the first step toward a blueprint for global projects. However, the effort is not limited to these initiatives. Product and process innovation efforts need be reverted in headquarters’ eyes in order for subsidiaries to gain R&D center status. To achieve this, subsidiaries must align their technological innovations with multinational corporations’ innovation strategies. Originality/value In authors’ view, this study contributes to the literature in three main areas: the evolutionary process of innovation capability in subsidiaries, the reverse innovation debate and the discussion of subsidiaries’ initiatives.

Innovation with IS usage: individual absorptive capacity as a mediator

2014 ◽  
Vol 114 (8) ◽  
pp. 1110-1130 ◽  
Author(s):  
Weiwei Wang ◽  
Luning Liu ◽  
Yuqiang Feng ◽  
Tienan Wang
Keyword(s):  
Absorptive Capacity ◽  
Business Intelligence ◽  
Structural Equation ◽  
Equation Modeling ◽  
Research Model ◽  
Content Type ◽  
Is Implementation ◽  
Business Intelligence Systems ◽  
Investment Returns ◽  
Innovation Model

Purpose – After information systems (IS) implementation, many organizations report that system underutilization causes the failure to meet expected IS investment returns. It is imperative to understand the way to leverage employees’ fullest potential in the IS usage. The paper aims to discuss these issues. Design/methodology/approach – Anchoring on absorptive capacity (ACAP) theory, the authors develop an employee innovation model. Using survey data and structural equation modeling, this research investigates how perceived organizational levers affect innovation with IS usage (INVU) by introducing individual ACAP as a mediator. Findings – The authors find general support for the research model through a survey of 205 employees using SAP business intelligence systems in China. The empirical data shows that three interrelated components of individual ACAP significantly contribute to INVU. The findings also suggest that, both fairness of reward and job autonomy are key organizational levers for the utility of individual ACAP. Furthermore, their effects on INVU can be fully mediated by individual ACAP. Originality/value – The authors empirically unpack and validate individual ACAP in IS innovation situation. The findings provide academics and practitioners with an understanding of how management can inspire employees’ potential in implemented system innovation.

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.

Impact of a firm's commitment to learning and open-mindedness on its organizational innovation among Russian manufacturing firms

2020 ◽  
Vol 15 (4) ◽  
pp. 551-569
Author(s):  
Igor Dukeov ◽  
Jukka-Pekka Bergman ◽  
Pia Heilmann ◽  
Andrey Nasledov
Keyword(s):  
Structural Equation ◽  
Transition Economy ◽  
Management Practices ◽  
Organizational Innovation ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Innovation Activity ◽  
General Level ◽  
Content Type ◽  
The Impact

PurposeDuring the last decade, a firm's ability to innovate has gained substantial attention in the literature devoted to innovation and strategic management. This study aims at discussing on what is the relationship of a firm's commitment to learn and its open-mindedness with its activity in introducing organizational innovations. The data collection was carried out in Russia. In order to make the research more specific, the organizational innovation is broken down into two subtypes, namely innovation in management practices and innovation in workplace organization.Design/methodology/approachThe study is grounded on the data obtained by the surveying of 123 Russian top managers working in manufacturing firms. The structural equation modeling was approached in order to investigate the impact of a firm's commitment to learn and open-mindedness on its organizational innovation.FindingsThe results indicate that the commitment to learn and the open-mindedness have considerable impact on organizational innovation activity in a firm. The findings also provide evidence that both the investigated subtypes of organizational innovation are positively influenced by commitment to learn and open-mindedness, though the degree of that influence differs.Originality/valueThe literature traditionally focuses mostly on the technological type of innovation leaving the organizational innovation covered by scarce research. In this respect the study contributes to the theory of organizational innovation by elaborating its relations with organizational learning dimensions. Apart from the investigation on the research question at a general level, the study explores the specific context related to the manifestation of phenomenon in a transition economy of Russia.

scholarly journals The mediation between participative leadership and employee exploratory innovation

2019 ◽  
Vol 40 (3) ◽  
pp. 334-355 ◽  
Author(s):  
Yi-Ying Chang ◽  
Ian Hodgkinson ◽  
Paul Hughes ◽  
Che-Yuan Chang
Keyword(s):  
Absorptive Capacity ◽  
Structural Equation ◽  
Equation Modeling ◽  
Participative Leadership ◽  
Content Type ◽  
Technology Firms ◽  
Time Lagged ◽  
Questionnaire Method ◽  
The Relationship ◽  
Exploratory Innovation

Purpose The purpose of this paper is to examine the role of intermediate knowledge mechanisms on the participative leadership–employee exploratory innovation relationship using a distal mediation model. Design/methodology/approach Deploying a time-lagged questionnaire method implemented over four business quarters, data are generated from 1,600 responses in R&D units of Taiwanese technology firms. Findings The structural equation modeling results reveal that participative leadership is positively related to employee exploratory innovation; coworker knowledge and absorptive capacity partially mediate the relationship between participative leadership and employee exploratory innovation independently; and coworker knowledge sharing in combination with absorptive capacity partially mediates this relationship. Originality/value The findings contribute new knowledge on the relationship between participative leadership and employee exploratory innovation by uncovering intermediate knowledge mechanisms that augment this relationship.

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.

Effect of poultry absorptive capacity on the farms' economic and commercial performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Florence Obiageli Ifeanyieze ◽  
Cosmas Ikechukwu Asogwa ◽  
Clara U. Nwankwo ◽  
Lilian Ukamaka Ekenta ◽  
Felicia Ngozi Ezebuiro ◽  
...  
Keyword(s):  
Absorptive Capacity ◽  
Latent Variables ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Equation Modeling ◽  
Developed Country ◽  
Content Type ◽  
Performance Effect ◽  
Market Shares ◽  
Commercial Performance

PurposeCorporate organizations could enhance their economic and commercial values through knowledge acquisitions and exploitations. The purpose of this study is to analyze the economic and commercial performance effect of poultry management absorptive capacity in Nigeria.Design/methodology/approachStructural equation modeling was used in the analysis of a random sample of 300 poultry managers and owners surveyed within the South-Eastern Nigeria. The scales that quantified the latent variables of the factors were tested for reliability and consistency using confirmatory factor analysis.FindingsThe study found evidence that the difference between economically and commercially viable poultry businesses and failing ones depends on the level of absorptive capacity. Absorptive capacity advanced innovations that resulted in higher economic and commercial performance of poultry farm. Poultry firms' profitability, sales growth and market shares were positively increased by absorptive capacity dimensions of acquisition, assimilation, transformation and exploitation.Research limitations/implicationsThe study was carried out within a region in Nigeria and thus could be limited by generalization to the developed country.Originality/valueThis study is the first to link four dimensions of absorptive capacity to the economic and commercial performance of poultry businesses in Nigeria. As such, it originally breaks new frontier of poultry farming from dynamic capabilities and absorptive capacity perspectives.

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