HOW FIRMS ABSORB EXTERNAL KNOWLEDGE — MODELLING AND MANAGING THE ABSORPTIVE CAPACITY PROCESS

2019 ◽  
Vol 23 (01) ◽  
pp. 1950041 ◽  
Author(s):  
DJERDJ HORVAT ◽  
CARSTEN DREHER ◽  
OLIVER SOM
Keyword(s):  
Absorptive Capacity ◽  
Management Practice ◽  
Black Box ◽  
Process Research ◽  
External Information ◽  
Research Approach ◽  
Manufacturing Companies ◽  
Comparative Case Studies ◽  
A Company ◽  
Insight Into

This paper contributes to the literature and management practice by opening the “black box” of firms’ absorptive capacity (AC) processes. Following a process research approach and based on in-depth comparative case studies of four German manufacturing companies, we develop and empirically validate a procss model of the firm-internal AC process. Our model integrates the different single elements (e.g., individuals, teams, departments) as well as the different linear and nonlinear causal interactions that constitute the firm’s ability to identify, adopt, implement and exploit external information and knowledge. Furthermore, the paper elaborates on various organizational leverages to increase the effectiveness of the identified process flows. The findings provide explanatory insight into the organisational prerequisites of AC. Thus, the paper simultaneously contributes to enhance the academic and management’s understanding of firms’ AC by identifying its constitutional key elements, their different kinds of processual interrelation as well as organisational prerequisites and points of leverage to modify, measure, and improve the AC of a company.

scholarly journals Organizational Adaptability Influenced by Practice Strategy, Environmental Dynamism, and Absorptive Capacity

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-15
Author(s):  
Yunhao Gong ◽  
Yun Le ◽  
Xinyue Zhang ◽  
Xiaoyan Chen ◽  
Hui Zeng
Keyword(s):  
Absorptive Capacity ◽  
Management Practice ◽  
Strategic Alignment ◽  
Multiple Regression Model ◽  
Environmental Dynamism ◽  
Agent Based ◽  
Internal Fit ◽  
The Impact ◽  
Insight Into ◽  
Research Show

The adaptability of organizations to their environment has always been a key concern in both organizational theory and management practice. Different from the single perspective of previous studies, this research adopts an integrated, outside-in perspective. Employing an agent-based simulation model (ASM) and a multiple regression model (MRM), we examine the impact of the intensity of exploitative and exploratory practice on organizational adaptability, as well as the moderating effect of environmental dynamism and organizational absorptive capacity. The results of the research show that (1) the stable environment prefers organizations with a practice strategy of high exploitation and low exploration; (2) environmental dynamism inhibits the impact of both exploitative and exploratory practices on organizational adaptability; and (3) organizational absorptive capacity significantly reinforces the link between the intensity of exploitative practice, as well as exploratory practice, and organizational adaptability. The study investigates the external alignment of organizational exploratory and exploitative practices with environmental dynamism and internal fit with absorptive capacity. The findings provide new insight into the question of how organizations can resist the erosion of environmental dynamism through strategic alignment and capacity development.

scholarly journals Faktor-Faktor yang Mempengaruhi Nilai Perusahaan pada Perusahaan Manufaktur Industri Sektor Barang Konsumsi di Bursa Efek Indonesia Periode 2015-2019

2021 ◽  
Vol 5 (2) ◽  
pp. 468
Author(s):  
Sholikha Nur Rohmah ◽  
Endang Masitoh ◽  
Yuli Chomsatu
Keyword(s):  
Firm Value ◽  
Research Method ◽  
Quantitative Method ◽  
Stock Exchange ◽  
Secondary Data ◽  
Manufacturing Companies ◽  
Firm Age ◽  
Size Firm ◽  
A Company ◽  
Insight Into

This study aims to determine company size, company age, capita1 structure, financia1 performance and dividend po1icy on firm value. The research method used is a quantitative method. The data used in this study is secondary data in the form of financia1 reports from the website (www.idx.co.id). The popu1ation in this study are industria1 manufacturing companies in the consumer goods sector 1isted on the Indonesia Stock Exchange (IDX) from 2015 to 2019. The samp1e was se1ected from the purposive samp1ing method and obtained a samp1e of 19 companies from severa1 predetermined criteria. The ana1ytica1 technique used in this study is mu1tiple 1inear regression ana1ysis with the he1p of SPSS version 22 program. The resu1ts of the ana1ysis show that firm size, firm age and dividend po1icy affect firm value. Whi1e, capita1 structure and financia1 performance have no effect on firm value. The resu1ts of this study are expected to add insight into know1edge and become usefu1 inputs about the value of the company in a company and re1ated agencies.

scholarly journals Earning Management: From Agency and Signalling Theory Perspective in Ethiopia

2019 ◽  
pp. 1-12
Author(s):  
Kirubel Asegdew Yimenu ◽  
Sitina Akmel Surur
Keyword(s):  
Agency Theory ◽  
Audit Quality ◽  
Negative Impact ◽  
Management Practice ◽  
Addis Ababa ◽  
Random Effect ◽  
Earning Management ◽  
Research Approach ◽  
Manufacturing Companies ◽  
Signalling Theory

Aims: To examine earning management from agency and signalling theory perspectives. Agency theory was used as a clogging factor for earning management practice whereas, signalling theory relates to managements intention to reflect insider information for the market. Study Design: Considering the nature of the problem, explanatory research design with mixed research approach was employed. Place and Duration of Study: Sample: large manufacturing companies from the period of 2009 to 2017, Addis Ababa, Ethiopia. Methodology: The study used audited financial reports of 14 large manufacturing companies in Addis Ababa operating from the period of 2009 to 2017 for which random effect regression model was used. Results: From agency theory proxies, leverage and audit quality had significant positive and negative impact respectively on earning management. The finding for signalling theory proxies showed that, size of the firm had a positive significant relationship with earning management. Conclusion: The study concluded that signalling and agency theories partially explained earning management in Ethiopian Large Manufacturing Share companies. Originality/value: There were numerous studies explaining earning management from signalling and Agency theory self-reliantly, but this study has modeled earning maneuver motives of management (signalling motive) and controlling mechanisms (Agency theory proxies) set by stakeholders, in one model. Further, the study was conducted in developing country perspective with lower legal requirement on information asymmetry, higher reporting laxity and non-standard/mixed reporting experience.

Perancangan dan Pembuatan Aplikasi Pendeteksi Kesalahan Penempelan Barcode pada Kemasan Produk Menggunakan Sistem Arduino Uno dan Sistem Komputasi (Studi Kasus PT. Duta Nichirindo Pratama)

2020 ◽  
Vol 5 (1) ◽  
pp. 78
Author(s):  
Ade Sumaedi ◽  
Makhsun Makhsun ◽  
Achmad Hindasyah
Keyword(s):  
Unified Modeling Language ◽  
Database Design ◽  
Black Box ◽  
Design System ◽  
Modeling Language ◽  
Unified Modeling ◽  
Uml Diagrams ◽  
Arduino Uno ◽  
Menu Design ◽  
A Company

PT. Duta Nichirindo Pratama is a company engaged in the field of Autoparts Manufacture. Barcode is the identity of an item / product on the package. Barcode technology has been used as the identity of goods in a production. Barcodes are used to facilitate the identification of goods produced. Paste the barcode on the packaging of packaging results at PT. Duta Nichirindo Pratama is done manually, but there are often errors attached to the barcode on a similar packaging. This research will design and create a system based on Visual Basic.Net and Arduino to select barcode attachment errors that have the potential to be sent to consumers. The system is designed using Unified Modeling Language (UML) diagrams, database design and interface menu design. The system created will then be tested to detect the black box test. With a computing-based design system that functions to detect barcodes on the packaging automatically, the problem of sticking barcodes on the packaging can be detected.

Young Adults’ Contextualization of Environmental and Sustainability Issues: A Critical Issue for Environmental Education Intervention

2018 ◽  
Vol 3 (1) ◽  
Author(s):  
Anthony KOLA-OLUSANYA
Keyword(s):  
Young Adults ◽  
Environmental Education ◽  
Lived Experiences ◽  
Critical Issue ◽  
Decision Makers ◽  
Research Approach ◽  
Face To Face ◽  
Research Questions ◽  
Depth Interviews ◽  
Insight Into

As soon as decision makers are expected to make differences towards sustainable future, young adults’ ability to make informed and sound decisions is considered essential towards securing our planet. This study provides an insight into young adults’ knowledge of key environment and sustainability issues. To answer the key research questions, data were obtained using a qualitative phenomenographic research approach and collected through 18 face-to-face in-depth interviews with research participants. The findings of this study suggest that young adults lived experiences that play a huge role in their level of awareness of topical environmental and sustainability issues critical to humanity’s future on earth. 

The Effect of Bankruptcy Possibility on Audit Delay and Timeliness (Empirical Study on Manufacturing Companies Listed in Indonesian Stock Exchange in the Period of 2012-2016)

2019 ◽  
Vol 2 (2) ◽  
pp. 118-146
Author(s):  
Triana Meinarsih ◽  
Abdul Yusuf ◽  
Muhammad Zilal Hamzah
Keyword(s):  
Quantitative Research ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Z Score ◽  
Quality Of Accounting Information ◽  
Independent Variable ◽  
A Company

Audit delay and timeliness are important factors that influence the quality of accounting information in term of relevance. This study provides empirical evidence to answer the question of how bankruptcy possibility impacts on audit delay and timeliness.  This research studies manufacturing firms listed in Indonesian Stock Exchange (IDX) in the period of 2012-2016. Data are taken from official website of IDX. This study is a quantitative research that seek to find out relationship between independent variable and dependent variable. External secondary data used are annual reports accessed from IDX website. Measurement used is Z-Score Altman model prediction, while simple linear regression is employed as technical analysis. This study finds that bankruptcy possibility which is measured by ZScore is negatively influence audit delay and timeliness. Any decrease of Z-Score shows the possibility of a company experience bankruptcy and therefore causes audit delay and timeliness.

scholarly journals The Interactions of Absorptive Capacity, Buffer Inventory, and Toxic Emissions on Firm Value

2021 ◽  
Vol 18 (4) ◽  
pp. 1979
Author(s):  
Lik Man Daphne Yiu ◽  
Ka Yui Karl Wu
Keyword(s):  
Absorptive Capacity ◽  
Firm Value ◽  
Market Value ◽  
Organizational Capabilities ◽  
Toxic Chemicals ◽  
External Information ◽  
Sustainable Competitive Advantage ◽  
Toxic Emissions ◽  
Organizational Mechanism ◽  
Low Toxic

A significant amount of research has been conducted on the impacts of emissions reduction, absorptive capacity, and buffer inventory on firm performance. According to the resource-based view (RBV), absorptive capacity and buffer inventory are organizational capabilities and resources to create sustainable competitive advantages. Yet, the resource orchestration perspective (ROP) of the RBV emphasizes that firms need to develop a new capability to orchestrate and deploy their existing capabilities and resources. From an organizational learning perspective, firms with the low-level release of toxic chemicals have established a structured system and systematic organizational routines, strengthening their learning capabilities to share and use internal and external information across functional areas for continuous improvements. This study explores and seeks to understand toxic emissions through systematic operational routines as an organizational mechanism. These routines orchestrate and deploy the firm-specific absorptive capacity and buffer inventory to generate a sustainable competitive advantage. We examine the impacts of the absorptive capacity and buffer inventory on firm value in terms of Tobin’s Q, respectively. We also explore how such impacts are moderated by toxic emissions. Our results show that the absorptive capacity significantly enhances the market value of firms. However, the relationship between the buffer inventory and firm value is insignificant. Our additional analyses indicate that the impacts of the absorptive capacity and buffer inventory on the firm value are both significantly positive when firms release low toxic chemicals. Our results further suggest that firms can maximize their market value with a high absorptive capacity, high buffer inventory, and low toxic emissions.

From IMS and six sigma toward TQM: an empirical study from Serbia

2015 ◽  
Vol 27 (3) ◽  
pp. 341-355 ◽  
Author(s):  
Vidosav Majstorovic ◽  
Tatjana V. Sibalija
Keyword(s):  
Quality Management ◽  
Six Sigma ◽  
Management Practice ◽  
Current Status ◽  
Quality Engineering ◽  
Manufacturing Companies ◽  
Total Quality ◽  
Content Type ◽  
Dmaic Method ◽  
Comprehensive Study

Purpose – The purpose of this paper is to present the current status of a quality management practice in Serbia, in terms of the development and application of integrated managements systems (IMS), and research and implementation of Six Sigma and the related techniques. Design/methodology/approach – Two main aspects of total quality management (TQM) have been considered: institutional (organisational or strategic) aspect that corresponds to standardised management systems and their integration, and technical (quality engineering) aspect whose main contributor is Six Sigma. The findings of a comprehensive study on IMS implementation in Serbia have been presented, based on the results of a questionnaire that was sent to 54 organisations during 2013. Also, the significant technical improvements and tangible benefits of a recently conducted Six Sigma project were shown, including the application of the advanced quality engineering techniques within DMAIC method. Findings – Good QM practice in Serbia is improving, both in terms of the organisational (IMS) and technical (Six Sigma) aspect, that server as a good basis for the adoption of TQM in manufacturing companies from various sectors. It could be anticipated that these results will facilitate the adoption of an overall TQM culture in Serbia and leverage its future sustainability. Originality/value – This paper offers key insights into IMS and Six Sigma implementation in Serbia. This could encourage manufacturing organisations in developing countries to adopt IMS and Six Sigma, in order to boost the overall TQM culture and gain a competitive advantage.

Territorial capital as a company intangible

2016 ◽  
Vol 17 (1) ◽  
pp. 148-167 ◽  
Author(s):  
Mariachiara Barzotto ◽  
Giancarlo Corò ◽  
Mario Volpe
Keyword(s):  
Great Difficulty ◽  
Future Research ◽  
Manufacturing Companies ◽  
Policy Makers ◽  
Content Type ◽  
Capital Growth ◽  
Multiple Case ◽  
Definition Of ◽  
A Company

Purpose – The purpose of this paper is twofold. First, to explore to what extent being located in a territory is value-relevant for a company. Second, to understand if a company is aware of, and how it can sustain, the territorial tangible and intangible assets present in the economic area in which it is located. Design/methodology/approach – The study presents an empirical multiple case-study, investigating ten mid-/large-sized Italian companies in manufacturing sectors. Findings – The results indicate that the sampled manufacturing companies are intertwined with the environment in which they are embedded, both in their home country and in host ones. The domestic territorial capital has provided, and still provides, enterprises with workers endowed with the necessary technical skills that they can have great difficulty in finding in other places. In turn, companies support territorial capital generation through their activities. Research limitations/implications – To increase the generalisability of the results, future research should expand the sample and examine firms based in different countries and sectors. Practical implications – Implications for policy makers: developing effective initiatives to support and guide a sustainable territorial capital growth. Implications for managers and investors: improving managerial and investors’ decisions by disclosing a complete picture of the enterprise, also outside the firm boundaries. Originality/value – The study contributes to intangibles/intellectual capital literature by shedding light on the importance of including territorial capital in a company’s report to improve the definition of the firm’s value. Accounting of the territorial capital would increase the awareness of the socio-economic environment value in which companies are located and its use.

Augmenting Tools for Reverse Engineering Methods

2006 ◽  
Author(s):  
Mark Snider ◽  
Sudhakar Teegavarapu ◽  
D. Scott Hesser ◽  
Joshua D. Summers
Keyword(s):  
Reverse Engineering ◽  
Black Box ◽  
House Of Quality ◽  
Engineering Process ◽  
Design Efficiency ◽  
Design For Manufacture ◽  
The Past ◽  
Cad Models ◽  
Product And Process ◽  
A Company

Reverse engineering has gained importance over the past few years due to an intense competitive market aiding in the survivability of a company. This paper examines the reverse engineering process and what, how, and why it can assist in making a better design. Two well known reverse engineering methodologies are explored, the first by Otto and Wood and the second by Ingle. Each methodology is compared and contrasted according to the protocols and tools used. Among some of the reverse engineering tools detailed and illustrated are: Black box, Fishbone, Function Structure, Bill of Material, Exploded CAD models, Morphological Matrix, Subtract and Operate Procedure (SOP), House of Quality matrix, and FMEA. Even though both methodologies have highly valued tools, some of the areas in reverse engineering need additional robust tooling. This paper presents new and expanded tooling to augment the existing methods in hopes of furthering the understanding of the product, and process. Tools like Reverse Failure Mode and Effects Analysis (RFMEA), Connectivity graphs, and inter-relation matrix increase the design efficiency, quality, and the understanding of the reverse engineering process. These tools have been employed in two industry projects and one demonstrative purpose for a Design for Manufacture Class. In both of these scenarios, industry and academic, the users found that the augmented tools were useful in capturing and revealing information not previously realized.

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