Realized absorptive capacity and entrepreneurial universities’ organizational change: the role of process innovation practices

2019 ◽  
Vol 49 (5) ◽  
pp. 716-733 ◽  
Author(s):  
Jing A. Zhang ◽  
Zhimin Wang ◽  
Conor O’Kane
Keyword(s):  
Organizational Change ◽  
Absorptive Capacity ◽  
Process Innovation ◽  
Entrepreneurial Universities ◽  
Innovation Practices ◽  
Realized Absorptive Capacity

Intellectual capital and business performance: the role of dimensions of absorptive capacity

2019 ◽  
Vol 21 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Syed Saad Ahmed ◽  
Jia Guozhu ◽  
Shujaat Mubarik ◽  
Mumtaz Khan ◽  
Essa Khan
Keyword(s):  
Absorptive Capacity ◽  
Intellectual Capital ◽  
Business Performance ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship ◽  
Realized Absorptive Capacity

Purpose The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance. Design/methodology/approach Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items. Findings The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence. Originality/value This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.

External knowledge sourcing and innovation in family firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manzoor Ul Akram ◽  
Koustab Ghosh ◽  
Rojers P. Joseph
Keyword(s):  
Social Capital ◽  
Absorptive Capacity ◽  
Product Innovation ◽  
Family Firms ◽  
Family Firm ◽  
Content Type ◽  
External Knowledge ◽  
Mediating Role ◽  
Realized Absorptive Capacity

Purpose This study aims to investigate the external knowledge search behaviors in terms of search breadth and search depth in family firms and the resultant product innovation in Indian context. The authors theorize the mediating role of absorptive capacity (potential and realized absorptive capacity) between knowledge sourcing from external sources and product innovation. Further, the authors examine the moderating role of crucial internal social capital of the family firm in enhancing the use of external knowledge for firm innovation activities. Design/methodology/approach The study uses a quantitative research design taking single informant for collection of data from 151 family small and medium enterprises in automotive sector in India. The authors use structural equation modeling to test hypothesized relationships. Findings The findings indicate that both search breadth and search depth of family firms are positively associated with product innovation in family firms. The authors also find evidence for partial mediating role of potential and realized absorptive capacity in the relationship between search breadth and innovation and search depth and innovation. The results show how family firms learning taking place while scanning external knowledge sources in terms of external absorptive capacity routines. Finally, the authors find that family firm internal social capital positively moderate the relationship between search breadth and depth, and product innovation. Practical implications Family firms need to innovate to remain relevant in the long-run and as such development of superior capabilities is of great significance to them. Family firm managers must be open to external knowledge as such knowledge help them improve the firm level of innovation through absorptive capacity. Further, family firms must realize and act upon the importance of their social capital for the integration and utilization of acquired knowledge. Originality/value This paper is amongst a few papers that take dynamic capability views of innovation in family firms wherein the authors theorize how external search breadth and depth lead to the development of potential and realized absorptive capacity in family firms. The importance of family firm internal social capital as a strong integrating and knowledge sharing mechanism that helps family firms transform external knowledge into innovation is also highlighted.

Impact of External Knowledge Inflow on Product and Process Innovation of Korean SMEs: Absorptive Capacity as a Mediator

2019 ◽  
Vol 37 (4) ◽  
pp. 219-234 ◽  
Author(s):  
So Won Jeong ◽  
Jae-Eun Chung ◽  
Jung-Sim Roh
Keyword(s):  
Absorptive Capacity ◽  
Process Innovation ◽  
Government Agencies ◽  
External Knowledge ◽  
Mediating Role ◽  
Sources Of Knowledge ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Relationship

We examine the role of external knowledge inflow in improving the product and process innovation of Korean exporting small- and medium-sized enterprises (SMEs) in the textiles, apparel, and footwear industries. Building on the resource-based view (RBV), we investigate how five sources of knowledge inflow (suppliers, customers, competitors, universities, and government agencies) contribute to product and process innovation through absorptive capacity (AC) as a mechanism to explain the link between external knowledge inflow and innovation. Conducting a path analysis, we found that knowledge inflow from customers and government agencies had a positive effect on AC, subsequently enhancing product and process innovation. Additionally, knowledge inflow from universities and government agencies also affected process innovation and product innovation, respectively. We also demonstrated the mediating role of AC in the relationship between external knowledge inflow and innovation. Korean SMEs should thus invest in developing the knowledge sources of customers, universities, and government agencies to enhance AC and innovation.

scholarly journals Innovation Capability Performance through Potential and Realized Absorptive Capacity: an Empirical Study in the West Java Mini Market

2021 ◽  
Vol 6 (1) ◽  
pp. 1-16
Author(s):  
Sri - Raharso
Keyword(s):  
Empirical Study ◽  
Multiple Regression ◽  
Absorptive Capacity ◽  
Innovation Capability ◽  
Research Model ◽  
The West ◽  
West Java ◽  
Independent Variables ◽  
Realized Absorptive Capacity

This study explores how potential and realized absorptive capacity affects innovation capability. This study aims to empirically examine the path relationship between potential absorptive capacity, realized absorptive capacity, and innovation capability in mini market in West Java, thus enhance our understanding of the mechanism between absorptive capacity and innovation capability. The authors have conducted a survey among employees with a valid response from 597 respondents. Multiple regression was used to assess the research model. The results provide evidence to show that potential and realized absorptive capacity are positively related to innovation capability, but in different proportions, and potential absorptive capacity affects positively to realize absorptive capacity. This study will contribute in an acceptable way to highlight the effects and role of both the potential absorptive capacity and the realized absorptive capacity in their role as independent variables and the results of this in innovation capability in turn as a dependent variable.Keywords: potential absorptive capacity realized absorptive capacity innovation capability

Impact of knowledge search on product and process innovation: mediating role of absorptive capacity and moderating role of IT capability

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hui Gao ◽  
Xiu-Hao Ding ◽  
Suming Wu
Keyword(s):  
Absorptive Capacity ◽  
Boundary Spanning ◽  
Process Innovation ◽  
Content Type ◽  
Mediating Role ◽  
It Capability ◽  
Product And Process Innovation ◽  
Knowledge Search ◽  
Product And Process

PurposeMore enterprises adopt open innovation by breaking technological or organizational boundaries to seek internal and external knowledge when they face a fiercely competitive environment, complex market demands, and increasingly rapid technological change. In this context, a knowledge search strategy is regarded as an effective means of obtaining inside and outside resources and an important way to break the innovation bottleneck. Moreover, information technology (IT) is deemed an important asset for sourcing knowledge, whereas absorptive capacity is seen as an indispensable ability for utilizing novel knowledge. Thus, this paper aims to test the role of knowledge search in open innovation and examine the mediating effect of absorptive capacity and the moderating effect of IT capability.Design/methodology/approachUsing a sample of 1,088 Chinese firms’ data collected by the World Bank in 2012, this paper employs logistic regression to test the hypotheses.FindingsThis study finds that local and boundary-spanning search strategies positively influence both product and process innovation, and absorptive capacity has a mediating role in the relationships between knowledge search and product and process innovation. Moreover, IT capability has a positive moderating effect on the relationship between local search and innovation performance; however, IT capability strengthens the relationship between boundary-spanning search and process innovation while weakens that between boundary-spanning search and product innovation.Originality/valueThis study explores the impact of different knowledge search behaviors on different types of innovation and probes the role of absorptive capacity and IT capability in mediating and moderating the above relationships. By drawing on knowledge-based theory and cognitive-developmental theory, this paper provides a novel perspective to explain the mechanism between knowledge search and innovation performance.

Managerial ties and open innovation: examining the role of absorptive capacity

2016 ◽  
Vol 54 (9) ◽  
pp. 2256-2276 ◽  
Author(s):  
M. Muzamil Naqshbandi
Keyword(s):  
United Arab Emirates ◽  
Absorptive Capacity ◽  
Open Innovation ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Managerial Ties ◽  
Realized Absorptive Capacity

Purpose The purpose of this paper is to develop and test an integrated model to examine the relationship between managerial ties and two types of open innovation (OI). It takes into account the mediating role of realized absorptive capacity and explains how a firm’s ability to recognize the value of new information, assimilate it and apply it to commercial ends can facilitate OI. Design/methodology/approach Data were collected from 259 middle and top managers working across different sectors in the United Arab Emirates. Findings Results obtained using structural equation modeling show that managerial ties facilitate both in-bound and out-bound OI. Results also establish the mediating role of realized absorptive capacity in these relationships. Research limitations/implications Use of cross-sectional data as was done in this study has been criticized for being inappropriate to test causal models. Besides the findings may not be generalizable to different industries/cultures/regions. Practical implications This study suggests that managerial ties act to support OI in firms thus giving the insight that managers should be appreciated to build ties with managers of other firms, universities and government officials. Doing so can help firms achieve better OI outcomes. Firms should arrange means of interaction of their managers with these external knowledge sources such as events and occasions where managers of different firms can interact with each other to foster strong ties among them. Originality/value The above findings contribute theoretically to OI and managerial ties literature while providing insights for practitioners on how to succeed or avoid failure in their OI initiatives. These insights are novel and are new to the OI and managerial ties theory.

scholarly journals Potential and Realized Absorptive Capacity in Colombian Firms: The Mediating Role of the Organizational Climate for Innovation

SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110525
Author(s):  
Francoise Contreras ◽  
Ignacio Aldeanueva ◽  
Juan C. Espinosa ◽  
Ghulam Abid
Keyword(s):  
Organizational Climate ◽  
Absorptive Capacity ◽  
Organizational Innovation ◽  
Cross Sectional Study ◽  
Cross Sectional ◽  
Mediating Role ◽  
Industrial Sectors ◽  
Potential Capacity ◽  
Realized Absorptive Capacity

The absorptive capacity is related to knowledge evaluation and acquisition (Potential Capacity), as well as to the transformation and exploitation of such knowledge (Realized Capacity). This research aims to analyze the absorptive capacity in Colombian companies and to investigate whether the Realized capacity can be predicted from the Potential capacity. Likewise, due to the importance of the context on the absorptive capacity development, the mediating role of the organizational climate for innovation was tested. Through a cross-sectional study, a total of 260 employees from different companies completed the Absorptive Capacity Scale and the Organizational Climate for Innovation Scale. The results showed that Potential absorptive capacity is needed for Realized absorptive capacity, additionally, organizational climate for innovation exerted a mediator role in this transition. These findings highlight that companies should have an organizational climate that allows them to acquire and transform knowledge in order to increase their innovativeness and be more competitive. Further studies should analyze the organizational innovation in relation to the proposed and tested model, while considering employees from different industrial sectors.

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