Causal Relationships among Technology Acquisition, Absorptive Capacity, and Innovation Performance: Evidence from the Pharmaceutical Industry

The increasing importance of innovation for companies, mergers and acquisitions, and the strengthening of project structures are leading to numerous rationalisations in the organisation of the research function. Although few works have analysed company R&D organisation and its impact on innovation performance, we elaborate on the concepts of economy of scope and absorptive capacity, introduced to compare the efficiency of various firms' R&D, so as to analyse the organisation of R&D departments. We focus on inter-project learning and argue that it must be viewed as an organisational question. "Organising by problem" constitutes a new means of cross-project learning and of enhancing absorptive capacity.

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Accelerating Green Innovation Performance from the Relations of Network Potential, Absorptive Capacity, and Environmental Turbulence

Sustainability ◽

10.3390/su13147765 ◽

2021 ◽

Vol 13 (14) ◽

pp. 7765

Author(s):

Shuizheng Song ◽

Md Altab Hossin ◽

Xiaohua Yin ◽

Md Sajjad Hosain

Keyword(s):

Sustainable Development ◽

Absorptive Capacity ◽

Bootstrap Method ◽

Manufacturing Firms ◽

Innovation Performance ◽

Mediation Effect ◽

Environmental Turbulence ◽

High Tech ◽

Green Innovation ◽

The Relationship

The demand for sustainable development and the advantages of industries are expediting over time with the triggering of green innovation performance (GIP). Improving a firm’s GIP, especially in manufacturing industries, can accelerate green development and mitigate the global-concerned environmental issues. Thus, to investigate GIP from its antecedent factors, we delineate the relationship between network potential, absorptive capacity, environmental turbulence, and GIP based on social network theory, organizational learning theory, and contingency theory. We tested our hypotheses based on 233 sets of questionnaire surveys from high-tech manufacturing firms in China through deploying the hierarchical regression and bootstrap method. Our empirical findings reveal that the network potential dimensions, including network position centrality (NPC), network structure richness (NSR), and network relationship closeness (NRC), significantly positively impacted the GIP. The absorptive capacity (AC) partially mediated the relationship between the network potential dimensions and GIP. Environmental turbulence (ET) as an essential mechanism not only positively moderated the relationship between AC and GIP but also enhanced the AC mediation effect. These findings indicate that manufacturing firms should continue to improve network potential and AC and respond rapidly to changes in the external environment to enhance GIP, consequently contributing to the sustainable development of the economy.

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Effects of Emerging-Economy Firms’ Knowledge Acquisition from an Advanced International Joint Venture Partner on Their Financial Performance Based on the Open Innovation Perspective

Journal of Open Innovation Technology Market and Complexity ◽

10.3390/joitmc7010067 ◽

2021 ◽

Vol 7 (1) ◽

pp. 67

Author(s):

Choo Yeon Kim ◽

Eun-Hwa Seo ◽

Canisha Booranabanyat ◽

Kwangsoo Kim

Keyword(s):

Financial Performance ◽

Knowledge Acquisition ◽

Absorptive Capacity ◽

Open Innovation ◽

Joint Venture ◽

Emerging Economy ◽

Innovation Performance ◽

Mediation Effect ◽

International Joint Venture ◽

International Joint

Although emerging-economy firms (E-E firms) must have a keen interest in improving their performance by utilizing knowledge transferred from their advanced international joint venture (IJV) partner, there has been little research on the performance implications of E-E firms’ knowledge transferred from their advanced IJV partner. So, drawing on open innovation and organizational learning perspectives, we examine whether, how, and when E-E firms’ knowledge acquisition from their IJV partner has a positive impact on their financial performance. Based on data collected from 127 Thai manufacturing firms with a local IJV partnered with an advanced overseas firm, our results reveal that E-E firms’ knowledge acquisition from their IJV partner has an overall positive influence on their financial performance in terms of growth and profitability. Our results further show that innovation performance mediates the relationship between E-E firms’ knowledge acquisition and their financial performance based on a moderated mediation analysis including innovation performance as a mediator and absorptive capacity as a moderator. It is also found that the positive mediation effect of innovation performance is more pronounced in the presence of higher absorptive capacity than otherwise. That is, our results show that even among E-E firms which have acquired much knowledge from their IJV partner, those with higher absorptive capacity achieve better innovation performance than those with lower absorptive capacity, and improved innovation performance subsequently contributes to producing superior financial performance. The key conclusions, implications, and limitations of our study are presented based on these findings.

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Comprehending a knowledge framework as a source of dynamic capabilities in IJVs through PLS-SEM

Journal of Knowledge Management ◽

10.1108/jkm-03-2020-0212 ◽

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.

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External technology acquisition, exploitation and process innovation performance in emerging market small and medium sized enterprises: the moderating role of organizational slack

European Journal of Innovation Management ◽

10.1108/ejim-07-2020-0263 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Thammanoon Charmjuree ◽

Yuosre F. Badir ◽

Umar Safdar

Keyword(s):

Open Innovation ◽

Emerging Market ◽

Process Innovation ◽

Innovation Performance ◽

Mediating Effect ◽

Content Type ◽

Technology Acquisition ◽

The Relationship ◽

Unabsorbed Slack ◽

Positive Effect

PurposeThis study is among the very few to examine the firm's simultaneous use of both dimensions of open innovation and its influences on the firm's process innovation performance (PIP). Specifically, the authors consider the relationship between firm's external technology acquisition (ETA) and external technology exploitation (ETE) and examine their direct, indirect and mediating effect on the firm's PIP. The authors also examine the moderating effect of the organizations' unabsorbed slack (UASL) on the relationship between ETA and ETE.Design/methodology/approachAnalyzing data collected from 311 small- and medium-sized software development firms in emerging market; Thailand, we show that both ETA and ETE have a positive effect on PIP and that ETE fully mediates the relationship between ETA and PIP.FindingsThe authors show that both ETA and ETE have a positive effect on PIP and that ETE fully mediates the relationship between ETA and PIP. Moreover, the relationship between ETA and ETE is positively moderated by the firms' unabsorbed slack (UASL) and that the influence of ETA on PIP through ETE is stronger under higher unabsorbed slack.Originality/valueThe authors extend the “traditional” performance outcome of outbound dimension of open innovation concept, which focuses exclusively on commercialization and market (Chesbrough, 2003b), by showing that ETE positively influences the firm's PIP. Moreover, the study explains the mechanism through which ETA influence the firm's PIP by proposing that ETE fully mediates the relationship between ETA and PIP.

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Technology Acquisition Strategies in the Pharmaceutical Industry in Mexico

Comparative Technology Transfer and Society ◽

10.1353/ctt.2007.0033 ◽

2007 ◽

Vol 5 (3) ◽

pp. 274-296 ◽

Cited By ~ 7

Author(s):

María Pluvia. Zuñiga ◽

Alenka. Guzmán ◽

Flor. Brown Grossman

Keyword(s):

Pharmaceutical Industry ◽

Technology Acquisition ◽

Acquisition Strategies

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The Assessment of Dimension Absorptive Capacity on Innovation Performance and Small Business Performance

Fokus Bisnis Media Pengkajian Manajemen dan Akuntansi ◽

10.32639/fokusbisnis.v15i2.529 ◽

2016 ◽

Vol 15 (2) ◽

pp. 127-140

Author(s):

Gunarso Wiwoho

Keyword(s):

Small Business ◽

Absorptive Capacity ◽

Small Businesses ◽

Business Performance ◽

Positive Influence ◽

Innovation Performance ◽

Capacity Dimension ◽

Spss Software ◽

Small Business Performance

This study aims to examine the role of the absorptive capacity dimension in improving innovation performance and small business performance. The sample used as many as 35 businesses in the business sector of handy crafts. The collected data were analyzed using path analysis and processed with SPSS software version 24.0. The results showed that all hypotheses were accepted. The absorptive capacity dimension consists of potential absorptive capacity and absorptive capacity, both of which are able to have a positive influence on the performance of innovation and the performance of small businesses. But realized absorptive capacity can have a greater influence on innovation and small business performance than potential absorptive capacity.

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DAMPAK PENDEKATAN OPEN INNOVATION TERHADAP KINERJA INOVASI PERUSAHAAN DI INDONESIA

Journal of Management and Business Review ◽

10.34149/jmbr.v15i2.125 ◽

2018 ◽

Vol 15 (2) ◽

pp. 235-259

Author(s):

Siti Fadhilah

Keyword(s):

Significant Influence ◽

Open Innovation ◽

Innovation Performance ◽

Business World ◽

Technology Acquisition ◽

Innovation Activities ◽

Industrial Sectors ◽

New Ideas ◽

Service Sectors ◽

Innovation Approach

Open innovation is an approach that involves not only internal company, but also external parties in developing and integrating new ideas optimally for the benefit of the company. This approach is more applied by companies in innovating to cope with the business world whom very competitive. However, research through this approach is still minimal and the concept has not been fully adopted in Indonesia. Therefore, the purpose of this research is to know how the influence of open innovation approach and the factors supporting the development of innovation on innovation performance in Indonesian companies. The scope of this research is Indonesian companies engaged in all industrial sectors (both manufacturing and service sectors), which conducts innovation activities for the last 3 years, from 2011 to 2013. The research method is quantitative with statistical data analysis descriptive and inferential ie regression analysis. The result of the research shows that the open innovation approach model has a significant influence on the innovation performance of the company, but only two of the three variables approach are inter-organizational collaboration and technology acquisition which has significant influence. For both factors supporting the development of innovation ie the source of information (both internal and external) and internal R D, factors that have a significant influence on innovation performance of the company only internal R D alone.

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