Structural process model of absorptive capacity for stakeholder’s integration in decision-making: dynamic capability perspective

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kumar Verma Bhupendra ◽  
Shirish Sangle
Keyword(s):  
Decision Making ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Process Model ◽  
Empirical Test ◽  
Formal System ◽  
Dynamic Capability ◽  
Content Type ◽  
Structural Process ◽  
New Knowledge

Purpose This paper aims to present empirical test to analyse a structural process model based on the constructs of absorptive capacity considering sustainability aspects. It integrates dynamic capability perspective to strengthen the existing literature. Findings of the study may help organisations to renovate business processes related to absorptive capacity and improve decision-making considering sustainability attributes. Design/methodology/approach Sample for data analysis covers 389 managers of firms demonstrating some traits of sustainability orientation and operating in a developing economy like India. Structural equation modelling is applied to test a casual model. Findings Result of this study reveals that a formal system that drives knowledge sharing, storing and exploitation of knowledge, a structured way to appropriate and reward intellectual property rights can be fundamental to development of absorptive capacity. Such a system conducive to knowledge exploration and acquisition must lead to exploration of new knowledge sources and new knowledge. A firm’s knowledge acquisition system shall be able to deliver to acquire external as well as internal knowledge spread across departments. Research limitations/implications This study considers commercial output as an aspect of innovative capability, so this attribute is not included in absorptive capacity. Practical implications The study may help organisations to develop a systemic approach to evolve decision-making and develop suitable processes linked to absorptive capacity considering sustainability challenges and uncertain market conditions. Social implications The study presents a comprehensive view of absorptive capacity considering societal stakeholder’s knowledge in addition to technological and market knowledge. Originality/value There are hardly any research articles which link absorptive capacity, dynamic capability and sustainability strategies.

scholarly journals Should Organisations Compete or Collaborate when Absorbing New External Knowledge?

2015 ◽  
Vol 8 (3) ◽  
pp. 4
Author(s):  
Muhammad Rafique ◽  
Richard David Evans ◽  
Muhammad Tahir Nawaz ◽  
Mujtaba Hassan Agha
Keyword(s):  
Decision Making ◽  
Absorptive Capacity ◽  
Dynamic Capability ◽  
Resource Based View ◽  
Incorrect Decision ◽  
External Knowledge ◽  
New Knowledge ◽  
Enterprise Level

Organisations possessing significant resources (Resource Based View) or knowledge, as their significant capability (Dynamic Capability View), are often unaware of their own ability to acquire new knowledge entering the enterprise (level of absorptive capacity); this unawareness can lead to reduced marketplace performance and incorrect decision making, which may result in the wastage of organisational resources, including employee knowledge. This study highlights the key differences in absorptive capacity which firms possess, in the context of resource based and dynamic capability views. Based on these differing perspectives, options are provided for companies who wish to compete or mate/merge with competitors in the market, while discussion is given on the considerations that organisations must take before adopting a suggested option.

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.

Structural process model of organizational innovativeness types for sustainability: a dynamic capability perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kumar Verma Bhupendra ◽  
Shirish Sangle
Keyword(s):  
Business Process ◽  
Process Model ◽  
Dynamic Capabilities ◽  
Dynamic Capability ◽  
Measurement Scale ◽  
Equation Modeling ◽  
Product Innovativeness ◽  
Content Type ◽  
Structural Process ◽  
Organizational Innovativeness

Purpose This paper aims to present an empirical test to analyze a structural process model based on constructs of organizational innovativeness types considering sustainability aspects. It explores interdependency among constructs of organizational innovativeness identified as product, process, behavioral, market, strategic and risk innovativeness. It integrates a dynamic capability perspective to strengthen the existing literature. Design/methodology/approach Sample for data analysis covers 389 managers of firms demonstrating some traits of sustainability orientation and operating in a developing economy like India. Structural equation modeling is applied to test the causal model. Findings Study reveals that risk innovativeness along with strategic innovativeness leads to behavioral innovativeness which further causes product innovativeness and business process innovativeness. Business process innovativeness supports product innovativeness leading to market innovativeness of a firm. Characteristics of organizational innovativeness linked with the risk-taking ability of top management can be a critical differentiating factor between conventional and sustainability-oriented firms. Research limitations/implications The factor of risk innovativeness was applied as per the existing measurement scale and has a scope for further exploration. It also offers an opportunity to reassess organizational innovativeness processes considering sustainability aspects. Practical implications The study may help organizations to develop a systemic approach to evolve and develop business processes linked to organizational innovativeness considering sustainability challenges and uncertain market conditions. Social implications Development of organizational innovativeness considering sustainability aspects may lead to innovative and disruptive products/services leading to mitigate climate change issues, thus helping global societies in long run. Originality/value The study offers common ground linked to the bodies of research related to dynamic capabilities, micro-foundations of dynamic capabilities, innovative capability and sustainability.

scholarly journals Exploring the role of anticipated emotions in product adoption and usage

2018 ◽  
Vol 35 (3) ◽  
pp. 300-316 ◽  
Author(s):  
Debora Bettiga ◽  
Lucio Lamberti
Keyword(s):  
Decision Making ◽  
Conceptual Model ◽  
Structural Equation ◽  
Consumer Products ◽  
Product Adoption ◽  
Radical Product ◽  
Content Type ◽  
Product Decision ◽  
Anticipated Emotions

Purpose This study aims to explore the role of positive and negative anticipated emotions on adoption and continued usage of consumer products. The components of value eliciting anticipated emotions are investigated as well. Design/methodology/approach The conceptual model proposed is tested in two empirical studies, one focussing on functional and hedonic products and one on incremental and radical product innovations. Data are collected through online surveys on consumers and are analysed using structural equation modelling. Findings Results confirm the ability of anticipated emotions to influence product decision-making process. Moreover, anticipated emotions mediate the influence of value perceptions on product attitude. Findings show that these relationships vary greatly between initial adoption and further usage of the product. Practical implications Findings from this study may help marketers in the development of the right brand strategies and communication campaigns, aimed at building emotional connections with the consumer which prompt product adoption and usage. Originality/value Anticipated emotions, the predictions about the emotional consequences of a behaviour, have been acknowledged as strong drivers of consumer choices. Despite that, the role of anticipated emotions in product decision-making has not been explored yet. The present research, by means of a novel conceptual model, uncovers the role of anticipated emotions in both product adoption and continued usage decisions and depicts the components of value arousing such anticipated emotions.

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.

In search of virtuous learning circles: absorptive capacity and its antecedents in the education sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Regina Lenart-Gansiniec ◽  
Wojciech Czakon ◽  
Massimiliano Matteo Pellegrini
Keyword(s):  
Organizational Learning ◽  
Prior Knowledge ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Knowledge Flows ◽  
Measurement Scale ◽  
Structured Interviews ◽  
Measurement Scales ◽  
Content Type ◽  
The Impact

Purpose This study aims to identify context-specific antecedents to schools’ absorptive capacity (AC) and to show how those can enact “a virtuous learning circle.” Design/methodology/approach The study uses a mixed method: an exploration based on semi-structured interviews with educational experts; the development of a measurement scale and a partial least squares structural equation modelling to test the impact of the antecedents. Findings The results yielded four empirically-grounded antecedents and their measurement scales, namely, prior knowledge, employees’ skills, educational projects and interactions with the environment (Studies one and two). All antecedents are significantly and positively related to AC processes (study three). Using the organizational learning theory perspective, the results have been interpreted as an AC “virtuous learning circle.” Practical implications With increasing pressures to adapt, a case of which was the COVID-19 pandemic, schools can greatly benefit from absorbing knowledge flows. This suggests the construction a favourable environment for AC. To this end, the individual (employees’ prior knowledge and skills), organizational (educational projects) and institutional level of managerial action (interactions with the environment) can be effective when create a recursive organizational learning circle. In addition, this study offers an expert-validated measurement scale for self-assessment of a school’s specific contingencies, and thus, for planning of punctual interventions to develop AC. Originality/value This study advances the existing body of knowledge management in the educational context by rigorously identifying and validating a scale for measuring the antecedents of AC and developing an interpretive approach to the AC “virtuous circle.”

Data-based ethical decision making, lateral relations, and organizational commitment

2018 ◽  
Vol 40 (6) ◽  
pp. 946-963 ◽  
Author(s):  
Sean Robert Valentine ◽  
David Hollingworth ◽  
Patrick Schultz
Keyword(s):  
Decision Making ◽  
Organizational Commitment ◽  
Information Flow ◽  
Structural Equation ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Ethical Issues ◽  
Self Report ◽  
Equation Modeling ◽  
Content Type

Purpose Focusing on ethical issues when making organizational decisions should encourage a variety of positive outcomes for companies and their employees. The purpose of this paper is to determine the degree to which data-based ethical decision making, lateral relations and organizational commitment are interrelated in organizations. Design/methodology/approach Data were collected from business professionals employed at multiple locations of a financial services firm operating in the USA. Mediation analysis (based on structural equation modeling) was used to test the proposed relationships. Findings Results indicated that employees’ perceptions of data-based ethical decision making were positively related to perceived lateral relations, and that perceived lateral relations were positively related to organizational commitment. Research limitations/implications Given that information was collected using only a self-report questionnaire, common method bias could be an issue. In addition, the study’s cross-sectional design limits conclusions about causality. Another limitation involves the study’s homogenous sample, which decreases the generalizability of the findings. Finally, variable responses could have been impacted by individual frames of reference and other perceptual differences. Practical implications Results suggest that information flow enhancements should support or be consistent with horizontal information flow enhancements, and that together these factors should increase employee commitment. Originality/value Given the dearth of existing research, this interdisciplinary investigation is important because it fills gaps in the management literature. This study is also important because the results could inform decisions regarding the use of data analysis in ethical decisions and lateral forms of organizational structuring to improve work attitudes.

scholarly journals Revisiting the relationship between formal planning process and planning effectiveness

2018 ◽  
Vol 30 (2) ◽  
pp. 1016-1034 ◽  
Author(s):  
Said Elbanna ◽  
Tamer H. Elsharnouby
Keyword(s):  
Decision Making ◽  
United Arab Emirates ◽  
Structural Equation ◽  
Planning Process ◽  
Price Volatility ◽  
Organizational Capabilities ◽  
Equation Modeling ◽  
Content Type ◽  
Tourism Sector ◽  
The Impact

Purpose The purpose of this study is to address a timely research question by clarifying whether formal planning is a worthy approach for hotels. In so doing, the authors developed a theoretical model that extends prior research by exploring how the formal planning process influences organizational capabilities and decision-making style. The model also examines the impact of the three identified factors on planning effectiveness. Design/methodology/approach Data were collected from 175 hotels located in United Arab Emirates (UAE) and Qatar and hypotheses were tested using structural equation modeling (SEM). Findings The study concludes that the practice of formal planning in the tourism sector does matter and both organizational capabilities and decision-making style are important factors in predicting planning effectiveness. Research limitations/implications Generalizations to organizations operating in other sectors, such as manufacturing or government sectors, should be drawn cautiously. Practical implications Taking into account oil price volatility and serious political crises in the region, this study provides several insights to hotel managers into how the formal planning process can influence planning effectiveness. Originality/value The findings enrich the debate on the role of formal planning in the tourism sector, which has been relatively devoid of similar studies.

Webrooming and showrooming: a multi-stage consumer decision process

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Srabanti Mukherjee ◽  
Swagato Chatterjee
Keyword(s):  
Decision Making ◽  
Information Search ◽  
Structural Equation ◽  
Product Type ◽  
Equation Modeling ◽  
Purchase Decision ◽  
Decision Making Process ◽  
Content Type ◽  
Channel Choice ◽  
Multi Stage

PurposeThe purpose of this research is to propose and validate a theoretical framework explaining web-rooming and showrooming as a multi-stage decision-making process. The authors have used consumer purchase decision-making theories to propose a model that identifies showrooming and webrooming as a combination of two decisions, channel choice during information search and channel choice during actual purchase. Further, the authors explored how various antecedents of showrooming and webrooming have differential effects on various stages of a purchase decision-making process and how product type moderates the relationships.Design/methodology/approachThe authors have conducted empirical research, whereby 243 responses were obtained from a cross-sectional survey. The authors have used structural equation modeling and multiple regression analysis to validate our theoretical model.FindingsWebrooming or showrooming is a multi-stage decision-making process for the consumers. First, consumers decide whether to search online or offline and then whether to buy online and offline. Different individual, purchase context-related and channel related factors impact these decisions. Product type governs which variables will be more important than others.Originality/valueThe research looks to enhance the understanding of the consumer's decision-making process during showrooming and webrooming while also helping retailers design and implement appropriate strategies that could affect consumers during information search and actual purchase.

The circular economy, environmental performance and environmental management systems: the role of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luca Marrucci ◽  
Tiberio Daddi ◽  
Fabio Iraldo
Keyword(s):  
Environmental Management ◽  
Absorptive Capacity ◽  
Circular Economy ◽  
Environmental Performance ◽  
Structural Equation ◽  
Environmental Management System ◽  
General Interest ◽  
Environmental Certification ◽  
Content Type

Purpose Despite the general interest in the circular economy, organisations have difficulties in implementing circular practices. Developing absorptive capacity (ACAP) may foster circularity among organisations. The paper aims to shed light on relationship between ACAP and organisational performance. Design/methodology/approach To empirically investigate the contribution of ACAP in circular economy implementation, the authors analysed a European sample of more than 800 Eco-Management and Audit Scheme-registered organisations through partial least squares structural equation modelling. Findings The analysis demonstrates that ACAP and the underlying organisational activities of a firm significantly facilitate the implementation of a circular economy and the internalisation of an environmental management system (EMS), which consequently improve the overall performance of organisations. The authors found that the diffusion of the circular economy in the organisations’ environment does not affect their commitment to implement a circular economy. Originality/value The study expands the academic literature by framing the concept of the circular economy with ACAP theory, thereby highlighting the contribution of acquisition, assimilation, transformation and exploitation. The results also provide useful insights for practitioners highlighting how organisations with an environmental certification can identify and pursue opportunities deriving from a circular economy. Finally, the research contributes to the debate on the effect of internalising EMSs and how ACAP improves economic performance, environmental performance and reputation.

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