Intervening role of realized absorptive capacity in organizational culture–open innovation relationship

2017 ◽  
Vol 42 (3) ◽  
pp. 5-20 ◽  
Author(s):  
M Muzamil Naqshbandi ◽  
Yehia Kamel
Keyword(s):  
Organizational Culture ◽  
United Arab Emirates ◽  
Absorptive Capacity ◽  
Open Innovation ◽  
Future Research ◽  
Mediating Role ◽  
Top Managers ◽  
Using Data ◽  
Realized Absorptive Capacity

Using data collected from middle and top managers working across different industries in the United Arab Emirates, this article examines the relationship between two contrasting organizational culture types and two types of open innovation (OI). It also takes into account the mediating role of realized absorptive capacity in these relationships. Results obtained using several statistical techniques show that a highly integrative culture relates positively, while a hierarchy culture relates negatively to the two types of OI. Results also establish the mediating role of realized absorptive capacity in these relationships. These findings contribute theoretically to OI and organizational culture literature and provide insights for practitioners on how to succeed or avoid failure in their OI initiatives. A discussion of the findings, along with limitations of the study and future research directions, is given.

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 The Mediating Role of Absorptive Capacity in the Relationship between Research Community Participation and Open Innovation

2021 ◽  
Vol 124 ◽  
pp. 08010
Author(s):  
Rabiah Eladwiah Abdul Rahim ◽  
Nor’ashikin Ali ◽  
Juraifa Jais
Keyword(s):  
Community Participation ◽  
Absorptive Capacity ◽  
Open Innovation ◽  
Structural Equation ◽  
Research Community ◽  
Management Support ◽  
Top Management Support ◽  
Mediating Role ◽  
The Relationship

This study aims to investigate the factors influencing research community participation and open innovation through the mediating role of absorptive capacity from the lens of Resource Based View and Dynamic Capability perspectives. Based on a survey of 115 senior engineering faculties from three research universities in Malaysia, this study applies the Structural Equation Modelling (SEM) to investigate the research model. The findings demonstrate that top management support has a major impact on research community participation. The findings also suggest that absorptive capacity mediates the association between research community participation and open innovation capability. This study provides a theoretical basis on the resources and capability that are pertinent for open innovation. From a practical perspective, the relationships among research community participation, absorptive capacity, and open innovation suggest how universities can promote research community participation and assess their absorptive capacity to achieve open innovation.

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.

How does IT capability affect open innovation performance? The mediating effect of absorptive capacity

2019 ◽  
Vol 24 (1) ◽  
pp. 43-65 ◽  
Author(s):  
Suming Wu ◽  
Xiuhao Ding ◽  
Ruihong Liu ◽  
Hui Gao
Keyword(s):  
Absorptive Capacity ◽  
Open Innovation ◽  
Innovation Performance ◽  
Mediating Effect ◽  
Firm Level ◽  
Content Type ◽  
Mediating Role ◽  
It Capability ◽  
The Relationship ◽  
Realized Absorptive Capacity

Purpose Open innovation and information systems have been key topics in the theoretical domain, but little empirical research thoroughly examines how information technology (IT) capability affects open innovation performance. Thus, the purpose of this paper is to explore the relationship between IT capability and open innovation performance and to expose the inner mechanism at the firm level. Design/methodology/approach This paper collected firm-level data in China; 232 usable questionnaires from different firms were collected. Then, the study used a structural equation model by AMOS for hypothesis testing. Findings The results indicate that both internal IT capability and external IT capability have positive impacts on open innovation performance; potential absorptive capacity and realized absorptive capacity mediate the relationship between external IT capability and open innovation performance. Additionally, realized absorptive capacity plays a mediating role in the relationship between internal IT capability and open innovation performance. Practical implications These findings indicate that practitioners should pay attention to the important relationship between absorptive capacity and IT capability and open innovation performance in Chinese businesses. Originality/value Existing research has emphasized the influence of IT on open innovation, but empirical studies have not thoroughly focused on the inner mechanisms of the effect of IT capability on open innovation performance. Drawing on firm capability theory, this paper classifies IT capability as internal and external IT capability and absorptive capacity as potential and realized absorptive capacity. Then, this paper confirms the mediating role of absorptive capacity between IT capability and open innovation performance.

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.

Organizational Citizenship Behaviors as a Mediator between Culture and Turnover Intentions

2017 ◽  
Vol 8 (2) ◽  
pp. 32-44
Author(s):  
Sulakshna Dwivedi
Keyword(s):  
Organizational Culture ◽  
Organizational Citizenship ◽  
Turnover Intentions ◽  
Organizational Citizenship Behaviors ◽  
Future Research ◽  
Citizenship Behaviors ◽  
Four Dimensions ◽  
Mediating Role ◽  
Practical Implications

An attempt has been made to investigate the mediating role of OCBs in culture and turnover intentions. Data was collected from 15 BPO units located in Chandigarh. Findings revealed that OCBs of employees in the BPO sector are mainly sensitive to four dimensions of organizational culture viz. proaction, confrontation, experimentation and openness. Finally, a partial mediation of OCBs had been found between organizational culture and turnover intentions. Taking into consideration the practical implications of the study, findings suggest that BPO Managers should pay special attention and recognition to employees' OCBs, as these could help in reducing their attrition. Further implications of the results and direction for future research have been elaborated.

scholarly journals Does Emotional Intelligence Contribute to Quality of Strategic Decisions? The Mediating Role of Open Innovation

2021 ◽  
Vol 7 (2) ◽  
pp. 130
Author(s):  
Haitham M. Alzoubi ◽  
Ramsha Aziz
Keyword(s):  
Decision Making ◽  
Emotional Intelligence ◽  
Open Innovation ◽  
Strategic Decisions ◽  
Mediating Role ◽  
Intelligent Information Systems ◽  
Top Managers ◽  
Intelligent Information

Purpose—The purpose of this research is to explore the direct relationship between the emotional intelligence of top management and the quality of strategic decisions they take for their companies. This relationship is further examined by the mediating role of open innovation in the context of intelligent information systems that can impact the way top managers take decisions. This research adopted a survey design as cross-sectional data were taken through questionnaires from top management of the UAE national banks. A final sample size of 213 questionnaires completed by managers was obtained and analyzed. As predicted, there was a strong, positive relationship between managers’ emotional intelligence and the quality of their strategic decisions. Open innovation has revolutionized the way top managers of banks take decisions that are later transformed into policies. Decision-makers are required to possess the skill of decision-making by being vigilant of their surroundings. Hence, they have emotional intelligence and intelligent information systems (IIS) only enhances the trait. IIS is the glorified version of open innovation that further contributes to the decision-making process and the quality of decisions. This research is one of a kind as no one has explored these dimensions of emotional intelligence in the UAE.

scholarly journals The Relationship between Gender, Tax Burdens, Corruption Practices, and Tax Compliance

2020 ◽  
Vol 55 (3) ◽  
Author(s):  
Theresia Woro Damayanti ◽  
Ronny Prabowo ◽  
Usil Sis Sucahyo ◽  
Supramono Supramano
Keyword(s):  
Negative Impact ◽  
Tax Compliance ◽  
Mediating Effect ◽  
Mediating Role ◽  
Top Managers ◽  
Research Gap ◽  
Using Data ◽  
The Impact ◽  
The Relationship

The article describes a new idea: the effect of top managers’ gender on tax compliance that is mediated by perceived tax burdens. This study also analyses the impact of perceived tax burdens on tax compliance as moderated by perceived corruption practices. Using data from the World Bank’s survey on 6,533 firms in the Association of Southeast Asian Nations countries and analyzing the data using a multiple regression analysis and Haye’s bootstrapping, the results confirm the mediating effect of perceived tax burdens on the effect of gender on tax compliance. The study also empirically shows that corruption strengthens the negative impact of perceived tax burdens on tax compliance. The contribution of this study is twofold. First, we fill in the research gap on the mediating role of perceived tax burdens and the moderating role of perceived corruption practices in the tax compliance context. Second, this study informs policymakers that they need to balance their gender equality policies with serious efforts to instill awareness on tax obligations and support anti-corruption institutions to prevent and crack down on corruption cases.

scholarly journals Intra-Organizational Social Capital and Product Innovation: The Mediating Role of Realized Absorptive Capacity

2021 ◽  
Vol 11 ◽  
Author(s):  
Beatriz Ortiz ◽  
Mario J. Donate ◽  
Fátima Guadamillas
Keyword(s):  
Social Capital ◽  
New Product Development ◽  
Absorptive Capacity ◽  
Product Innovation ◽  
Structural Equations ◽  
Organizational Social Capital ◽  
Mediating Role ◽  
Pharmaceutical Industries ◽  
Realized Absorptive Capacity

This paper examines the influence on product innovation of factors based on a company’s transformation and exploitation of knowledge gathered from its intra-organizational relationships. Specifically, this paper analyses the influence of intra-organizational social capital (SC) (i.e., comprised of structural, relational, and cognitive dimensions) on realized absorptive capacity (RACAP). Moreover, it analyses the mediating role of RACAP on the relationship between internal SC and product innovation. Based on a sample of companies from the Spanish biotechnological and pharmaceutical industries, two hypotheses were tested using a structural equations model and the partial least squares (PLS) technique. The results support both hypotheses, suggesting that the development of strong and tightly knit links based on a common understanding and trust among company members lead the firm to develop dynamic capabilities for transforming and exploiting knowledge acquired externally, which fosters innovation based on new product development. Research limitations, implications and future research are also discussed by the authors of the paper.

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