Measuring dynamic absorptive capacity in national innovation surveys

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marlon F.R. Alves ◽  
Simone V.R. Galina
Keyword(s):  
Absorptive Capacity ◽  
Dynamic Capabilities ◽  
Discriminant Validity ◽  
Measurement Model ◽  
Dynamic Capability ◽  
Capacity Measurement ◽  
Content Type ◽  
Sustained Competitive Advantage ◽  
Convergent And Discriminant Validity ◽  
Innovation Surveys

PurposeThe dynamic capability view reshaped the understanding of how firms can achieve a sustained competitive advantage through innovation. However, studies based on national innovation surveys have not incorporated this vision when measuring absorptive capacity, especially the evolutionary aspects of dynamic capabilities. This study addresses this gap.Design/methodology/approachWe empirically validate a scale using a national innovation survey based on the Oslo Manual standards. Using a five-wave survey, we demonstrate the scale's reliability, convergent and discriminant validity and stable structure across industries and over time.FindingsThis research integrates the dynamic capability literature with absorptive capacity measurement to propose and validate a multi-item and bidimensional scale for national innovation surveys.Originality/valueWe provide a measurement model that captures an evolutionary conceptualization of absorptive capacity as a dynamic capability. Hence, our contribution enhances the quality and validity of studies on absorptive capacity and advances the understanding of how firms develop and deploy absorptive capacity to drive performance.

The construct validity of Schein's career anchors orientation inventory

2008 ◽  
Vol 13 (1) ◽  
pp. 7-19 ◽  
Author(s):  
Nira Danziger ◽  
Dalia Rachman‐Moore ◽  
Rony Valency
Keyword(s):  
Construct Validity ◽  
Discriminant Validity ◽  
Measurement Model ◽  
Career Anchors ◽  
Content Type ◽  
Working Adults ◽  
Career Anchor ◽  
Convergent And Discriminant Validity ◽  
Confirmatory Factor ◽  
Reliable Instrument

PurposeThe purpose of this paper is to test the construct validity of the measurement model of Schein's Career Orientation Inventory, where entrepreneurship and creativity constitute two separate constructs.Design/methodology/approachA fairly representative sample of 1,847 Israeli working adults completed Schein's Career Anchor Inventory (COI) questionnaire, which probes career anchor constructs through associated indicator items. The data were subjected to confirmatory factor analysis to compare the fit of the proposed nine‐construct model with that of Schein's eight‐construct model.FindingsThe findings demonstrate that: the proposed nine‐construct model of the COI, which distinguishes between Entrepreneurship and Creativity and designates each as a separate construct, yields a better fit than Schein's eight‐construct model; and the nine‐construct model has convergent and discriminant validity and unidimensionality.Originality/valueThe study's contributions are threefold: first, it generally supports Schein's Career Anchor Theory, yet with nine anchors rather than with the original eight; second, it confirms the distinction between entrepreneurship and creativity; and third, it highlights the need to rephrase several existing items, and add new ones. The suggested changes and the conceptual framework of the nine‐anchor model will make the COI a more valid and reliable instrument, both for theory‐building and for practical and diagnostic use by career counselors.

Clarifying absorptive capacity and dynamic capabilities dilemma in high dynamic market IT SMEs

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chulatep Senivongse ◽  
Alex Bennet ◽  
Stefania Mariano
Keyword(s):  
Financial Performance ◽  
Absorptive Capacity ◽  
Dynamic Capabilities ◽  
Positive Impact ◽  
Dynamic Capability ◽  
Development Effort ◽  
Direct Impact ◽  
Content Type ◽  
Market Change ◽  
High Dynamic

Purpose The purpose of this study is to investigate absorptive capacity and dynamic capabilities dilemma in high dynamic market IT small medium enterprises (SMEs). Absorptive capacity and dynamic capabilities have a conflict in theoretical stance. Those in favor of dynamic capabilities regard absorptive capacity as a part of dynamic capabilities, and there are many arguments regarding treating absorptive capacity as a part of dynamic capabilities. One major deficit of dynamic capabilities is that it requires adjusting the firm’s dynamic resources when responding to change, requiring some investment and time. Thus, dynamic capabilities then have a problem in instantaneously responding to a highly dynamic market. With the requirement to adjust organizational resources, absorptive capacity, as a part of dynamic capabilities, cannot have direct impact on a firm’s performance. Design/methodology/approach To show that absorptive capacity, by itself, can have a direct impact on a firm’s performance in a highly dynamic market, quantifiable variables are identified to measure the level of effort in developing absorptive capacity. The relationships between the absorptive capacity development effort and the firm’s financial performance is then explored and evaluated. Findings It is confirmed that absorptive capacity in a high dynamic market such as IT SMEs have direct and positive impact to the firm’s financial performance, without having to configure its resource to interact with changes. Originality/value The study discusses the paradoxical dilemma of the role of absorptive capacity under the light of dynamic capability. The finding indicates that in high dynamic market when the spontaneous respond to market change is crucial to firm's survival, absorptive capacity can direly deliver the result to leverage the firm's performance without having to reconfigure its resources as indicated in the theoretical stance of dynamic capability.

scholarly journals Insurers' risk management as a business process: a prospective competitive advantage or not?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Danish Ahmed ◽  
Xie Yuantao ◽  
Umair Saeed Bhutta
Keyword(s):  
Risk Management ◽  
Competitive Advantage ◽  
Business Process ◽  
Dynamic Capabilities ◽  
Discriminant Validity ◽  
Insurance Industry ◽  
Insurance Companies ◽  
Equation Modeling ◽  
Content Type ◽  
Convergent And Discriminant Validity

PurposeInsurance companies exist to manage the risk of others, which is why they are perceived to be competitive in risk management (RM). Considering this, we investigate how different RM capabilities make insurers effective in RM. These capabilities include understanding risk and risk management (URRM), risk identification (RI), risk assessment and analysis (RAA) and risk monitoring (RMON) activities in insurance companies. In addition, the authors probe how these capabilities can jointly yield a competitive advantage for the insurance industry under the resource-based view (RBV) and dynamic capabilities perspective (DCP).Design/methodology/approachThe authors present a latent variable RM model for the insurance industry and employ structural equation modeling (SEM) to test the hypotheses. Furthermore, the authors also conduct confirmatory factor analysis (CFA) and convergent and discriminant validity analysis for model fit and invariance testing, respectively.FindingsThe results show that insurers who investigated RM-related capabilities directly influence their risk management practices (RMPs). Moreover, improving these capabilities will make insurers more effective in managing the risks of others. Thus, RM as a business process will yield a competitive advantage for the insurance sector. The findings are supported by the theoretical insights presented by the RBV and DCP. Furthermore, the model also adheres to the convergent and discriminant validity cut-off values.Originality/valueTo the best of the authors’ knowledge, this is the first study examining insurers' RM practices as a source of a competitive advantage.

How technology-based firms in Brazil spark innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Absorptive Capacity ◽  
Dynamic Capabilities ◽  
New Product ◽  
Product Performance ◽  
Dynamic Capability ◽  
Content Type ◽  
New Product Performance ◽  
Pertinent Information ◽  
The Relationship ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on understanding the relationship between dynamic capability, absorptive capacity, and market orientation, in the context of how this affects new product performance in some of Brazil's technology-based firms (TBFs). Absorptive capacity alone wasn't deemed enough to boost new product performance, as it needs to be combined with dynamic capabilities to achieve this effect. Both proactive and responsive market orientations boosted dynamic capability in the TBFs, and in turn that dynamic capability then increased new product performance. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Capabilities, market and new product performance in Brazilian technology-based firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniela Modolo ◽  
Priscila Rezende da Costa ◽  
Leonardo Vils
Keyword(s):  
Market Orientation ◽  
Absorptive Capacity ◽  
Dynamic Capabilities ◽  
New Product ◽  
Product Performance ◽  
Dynamic Capability ◽  
Market Demand ◽  
Content Type ◽  
New Product Performance ◽  
Relationship Of

Purpose It should be highlighted that innovation is related to the absorption of knowledge, dynamicity and market orientation, with these elements seeking to aid efficiency, increasing firms’ competitive advantage. This study aims to gauge the influence of absorptive capacity, dynamic capability and market orientation on new product performance in Brazilian technology-based firms. Design/methodology/approach The study was characterized as quantitative, using primary data from Brazilian technology-based firms, as they are dynamic contexts that stimulate the absorption and exchange of knowledge and other organizational resources. It should be highlighted that this study received funding from the National Council for Scientific and Technological Development. The research hypotheses were empirically tested, confirming the relationship between dynamic capability and absorptive capacity, market orientation and new product performance. Findings Regarding the empirical contribution of the research results, it could be argued that for the purpose of improving performance in innovation, reflected in new product performance, companies need to develop strategies that correspond to market demand. Furthermore, these empirical findings provide an integrating view of the constructs and identify the importance of companies anticipating and responding to the demands of their customers quickly so that they can enjoy better performance. Therefore, companies need to adjust their processes, resources and capabilities to obtain better results, and for this, the involvement of managers is fundamental because they are the only ones with the clout to stimulate such initiatives. This approach favors recognizing and valuing absorptive capacity and dynamic capabilities and helps to identify new constructs such as responsive and proactive market orientation, which need to be adequately developed by managers to create competitive advantages that stem from better new product performance. Research limitations/implications A limitation of the study is that it does not address a specific analysis of the sector in which the technology-based firms (TBFs) under study operate. No tests were conducted regarding whether it is possible to perceive different structural paths for absorptive capacity, market orientation, dynamic capability and new product performance according to the sector of the TBFs. Practical implications Regarding the empirical contribution of the research results, it could be argued that for the purpose of improving performance in innovation, reflected in new product performance, companies need to develop strategies that correspond to market demand. Furthermore, these empirical findings provide an integrating view of the constructs and identify the importance of companies anticipating and responding to the demands of their customers quickly so that they can enjoy better performance. Therefore, companies need to adjust their processes, resources and capabilities to obtain better results and, for this, the involvement of managers is fundamental because they are the only ones with the clout to stimulate such initiatives. Social implications One of the main contributions of the study is that it provides an empirical demonstration that on its own absorptive capacity cannot boost new product performance. For this purpose, it needs to be combined with dynamic capabilities. Through this proposed model, it was possible to characterize the antecedent relationship of absorptive capacity and illustrate its relationship with dynamic capabilities. Another relevant theoretical contribution is the statistical proof of the positive relationship of both proactive and responsive market orientation with dynamic capability, and that dynamic capability has a positive influence on new product performance, which will generate better financial performance of TBFs. Originality/value As a contribution to the field, it was empirically demonstrated that on its own absorptive capacity cannot improve new product performance. For this to occur, it must be combined with dynamic capabilities. Through the proposed model, it is possible to characterize the antecedent relationship of absorptive capacity and illustrate its relationship with dynamic capability.

Development and validation of financial well-being related scales

2019 ◽  
Vol 37 (4) ◽  
pp. 1025-1040 ◽  
Author(s):  
Farah Diba M.A. Abrantes-Braga ◽  
Tania Veludo-de-Oliveira
Keyword(s):  
Interest Rates ◽  
Credit Card ◽  
Discriminant Validity ◽  
Well Being ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
Convergent And Discriminant Validity ◽  
Group Interviews ◽  
Development And Validation ◽  
Additional Income

PurposeThe purpose of this paper is to develop valid and reliable scales for assessing a driver and two obstacles potentially related to financial well-being (FWB): financial preparedness for emergency, beliefs of credit limits as additional income and risky indebtedness behaviour.Design/methodology/approachThe scales were developed from scratch across six studies, employing a two-step methodology, which encompassed both qualitative (e.g. focus group, interviews) and quantitative (i.e. online surveys) data collection. Exploratory and confirmatory factor analyses were employed to test and validate the proposed scales.FindingsThis study provides a set of three parsimonious, self-reported behavioural measures that could be employed in conjunction with objective economic indicators to identify individuals who are financially ill prepared and potential candidates for delinquency. The three proposed scales achieved satisfactory levels of reliability and convergent and discriminant validity.Research limitations/implicationsThe resulting scales still need to be tested for predictive validity and in different consumer groups. The scales were validated in a single culture population (Brazil, a country that presents extraordinarily high credit card interest rates), and they should be tested cross-culturally in countries with different economic and credit policies.Originality/valueThe literature on FWB has traditionally employed objective financial indicators as an attempt to measure the concept of FWB and its elements. Self-reported behavioural measures of such constructs are scant to the point of being non-existent for some elements. This study is the first to offer scales for measuring the elements of financial preparedness for emergency, beliefs of credit limits as additional income and risky indebtedness behaviour.

Dynamic capabilities vs. innovation capability: are they related?

2014 ◽  
Vol 21 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Lidija Breznik ◽  
Robert D. Hisrich
Keyword(s):  
Literature Review ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Future Research ◽  
Innovation Capability ◽  
New Approach ◽  
Content Type ◽  
New Research ◽  
The Relationship

Purpose – The purpose of this paper is to provide insights into the relationship between dynamic capabilities and innovation capabilities. It links dynamic capability with innovation capability and indicates the ways they can be related. Design/methodology/approach – The relationships between dynamic and innovation capability were investigated through a systematic literature review. Findings – The review indicates that common characteristics exist between of the both fields, which demonstrate six relationships. Additionally, findings show some inconsistencies and even contradictions. Originality/value – In this paper, the authors have compared dynamic capabilities, a relatively new approach in the field of strategic management, with innovation capabilities, a widely recognised crucial domain for sustained competitiveness. Since both areas address issues that are essential to today's environment, future research should seek to clarify both concepts, by undertaking some new research and developing comprehensive and unambiguous framework.

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.

Exploring organizational problem-solving modes: a dynamic capabilities approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Matin Mohaghegh ◽  
Andreas Größler
Keyword(s):  
Problem Solving ◽  
Dynamic Capabilities ◽  
Fundamental Solutions ◽  
Capabilities Approach ◽  
Dynamic Capability ◽  
Learning Mechanisms ◽  
Content Type ◽  
Improvement Programs ◽  
Micro Foundations

PurposeAdopting the dynamic capability perspective, this study aims at exploring which problem-solving capabilities result in fundamental solutions with a potentially low likelihood for problems to recur. This can also shed light on why, despite many attempts, process improvement programs often fail to produce such long-term solutions.Design/methodology/approachA case study is carried out to inductively describe and classify problem-solving in companies and to indicate why problem-solving efforts are typically bounded to short-term solutions. The empirical findings are triangulated with findings from the extant literature.FindingsFirst, the authors propose three problem-solving modes with different characteristics and potential impacts on operational performance: intuitive problem-solving, semi-structured problem-solving and systematic problem-solving. Second, by emphasizing dynamic capabilities' micro-foundations and with the focus on learning mechanisms, the authors show that, among these modes, only systematic problem-solving can serve as a dynamic capability with fundamental solutions. Third, based on insights from the case study, the authors address behavioral and organizational impediments that curb dynamic capabilities and limit systematic problem-solving adoption.Originality/valueThis study is an empirically informed attempt to understand systematic problem-solving as a dynamic capability. The authors uncover the micro-foundations and the learning mechanisms through which systematic problem-solving becomes a dynamic capability. By highlighting problem-solving orientation as a hardly investigated dimension of improvement programs, the authors show that a mixture of a static problem-solving approach and a set of impediments at both individual and organizational levels is the major reason of failures of improvement programs over time.

Dynamic capabilities in fashion apparel industry: emergent conceptual framework

2016 ◽  
Vol 11 (3) ◽  
pp. 286-309 ◽  
Author(s):  
Yi-Sheng Wang
Keyword(s):  
Conceptual Framework ◽  
Dynamic Capabilities ◽  
Apparel Industry ◽  
Basic Knowledge ◽  
Dynamic Capability ◽  
Trade Association ◽  
Content Type ◽  
Theoretical Contribution ◽  
Market Competitiveness ◽  
Fashion Apparel

Purpose – The purpose of this paper is to reconfigure a new component of dynamic capabilities across firms, and to summarize propositions and to construct a conceptual framework of the dynamic capabilities in fashion apparel industry. Design/methodology/approach – The author used the interviews with the industry experts and trade association executives to develop an understanding of the strategic and technological issues facing the industry and to gain a historical perspective on the evolution of the industry. Findings – This study explored the establishment of dynamic capability and market competitiveness in the fashion apparel industry from the perspectives of dynamic capability and resources embedment, and brought out the insight that commonalities/component has been overlooked. The “conceptual framework of dynamic capabilities in fashion apparel industry” developed by this study, which consists of the major key factors for the maintenance of fast fashion apparel industry in market competitive advantage. Research limitations/implications – Although the five top fashion apparel groups interviewed in this study are representative, there are limits in classification of other brands, which is one of the limitations in this study. Second, although qualitative research can achieve understanding of the utmost layer of situations, its greatest limitation is that it cannot investigate massive amount of interviewees, which is a second limitation in this study. Originality/value – The theoretical contribution of the study is to construct a conceptual framework of dynamic capabilities in the fashion apparel industry using eight theoretical propositions. Such conceptual framework will become a basic knowledge system for firms in the fashion apparel industry to develop strategic directions, as well as an important knowledge reference to other firms when choosing what to establish as their core competences.

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