The impact of environmental dynamism on knowledge absorptive capacity-innovation performance relationship amongst manufacturing SMEs in Malaysia

2009 ◽  
Vol 6 (1) ◽  
pp. 63 ◽  
Author(s):  
Zarina Denan ◽  
Noraini Ismail ◽  
Noormala Amir Ishak
Keyword(s):  
Absorptive Capacity ◽  
Innovation Performance ◽  
Three Dimensions ◽  
Incremental Innovation ◽  
Environmental Dynamism ◽  
Analysis Technique ◽  
Product Service ◽  
Method Of Production ◽  
Using Data ◽  
The Impact

This study examines the absorptive capacity construct at the organization level: its influence on the innovation performance. The primary question this study sought to answer was: How does absorptive capacity affect innovation performance? More specifically, the study examines the relationships of absorptive capacity dimensions and innovation performance. Also, the role of environmental dynamism, as a moderator on absorptive capacity-innovation performance relationship was also investigated. Absorptive capacity is defined as a firm’s capability to complete the entire process from acquiring, disseminating and exploiting knowledge for commercial ends. This study focuses on three dimensions only; knowledge acquisition, knowledge dissemination and knowledge exploitation. The innovation performance concentrates on incremental innovation which includes product, service, method of production, market, sources of supply and ways of organizing. The study used a survey research method and regression analysis technique to examine the hypothesized relationships among constructs using data collected from 180 manufacturing SMEs in Malaysia. It was found that absorptive capacity is positively and significantly related to firms’ innovation performance. Nevertheless, none of the dimensions of absorptive capacity was found significant. The environmental dynamism significantly moderates the relationship between absorptive capacity and innovation performance. The results indicated that both researchers and managers need to pay more attention on SMEs capability in acquiring, disseminating and exploiting knowledge and these capabilities must be integrated in order to achieve superior innovation performance. Also Malaysian SMEs are seen to be more absorptive in more stable environment which eventually enhances the innovation performance.

scholarly journals How Can a Firm Innovate When Embedded in a Cluster?—Evidence from the Automobile Industrial Cluster in China

2019 ◽  
Vol 11 (7) ◽  
pp. 1837 ◽  
Author(s):  
Shuaishuai Li ◽  
Suyang Han ◽  
Tiyan Shen
Keyword(s):  
Knowledge Management ◽  
Absorptive Capacity ◽  
Automobile Industry ◽  
Structural Equation ◽  
Equation Model ◽  
Innovation Performance ◽  
Three Dimensions ◽  
Firm Level ◽  
The Impact ◽  
The Relationship

In the era of the knowledge economy, knowledge management is increasingly important. Knowledge management ability is one of the core factors influencing enterprise competitiveness, affecting innovation performance and sustainable development. To test the impact mechanism of the knowledge management of enterprises on innovation performance, a multilevel structural equation model was established using data from the automobile industry in China, with “knowledge management” (KM) as the independent variable, the three dimensions of absorptive capacity as the mediating variables, and “innovation performance” (IP) as the dependent variable at the firm level. At the cluster level, the innovation milieu of the cluster was introduced into the model. The results show that the three dimensions of absorptive capacity all significantly mediate the relationship between knowledge management and innovation performance. The innovation milieu of the cluster had a direct cross-level effect on the innovation performance of enterprises and a positive cross-level moderated effect on the relationship between explorative learning and innovation performance. These results support the promotion of enterprise innovation ability and the creation of an innovation milieu in the automobile industry in China.

Relationship quality, absorptive capacity and innovation performance of industry university research cooperative enterprises

2021 ◽  
pp. 1-10
Author(s):  
Zhihong Ai
Keyword(s):  
Relationship Quality ◽  
Absorptive Capacity ◽  
Absorption Capacity ◽  
Innovation Performance ◽  
University Research ◽  
Three Dimensions ◽  
Research Cooperation ◽  
Research Perspective ◽  
Cooperative Enterprises ◽  
The Impact

Based on the research perspective of industry university research cooperation, taking 227 industry university research cooperation enterprises as the research object, this paper studies the impact of relationship quality on absorptive capacity under the background of industry university research cooperation by using the calculation method of science and engineering SPSS. The results show that the three dimensions of relationship quality significantly improve potential absorptive capacity, potential absorptive capacity is conducive to actual absorptive capacity, the organizational learning plays a regulatory role between potential absorption capacity and actual absorptive capacity, actual absorptive capacity is conducive to the improvement of innovation performance, absorptive capacity plays a mediating role between relationship quality and innovation performance. It can be seen absorptive capacity plays a key role in industry university research cooperation, and cooperative enterprises should attach importance to the cultivation of their own absorptive capacity.

Cultivating product innovation performance through creativity: the impact of organizational agility and flexibility under technological turbulence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wilert Puriwat ◽  
Danupol Hoonsopon
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Product Innovation ◽  
New Product ◽  
Innovation Performance ◽  
Incremental Innovation ◽  
Organizational Agility ◽  
Content Type ◽  
Technological Turbulence ◽  
The Impact

PurposeThis study is to compare the impact of organizational agility and flexibility on performance of each type of product innovation (radical vs incremental innovation). Additionally, the moderating effect of technological turbulence on the relationship between the two types of organization is examined.Design/methodology/approachBased on gaps in the existing literature, the survey data are collected from managers who are in charge of developing new products in three industries: food and beverage, chemical and machinery (N = 431). Confirmatory factory analysis is used to verify measurement items and regression analysis is used to test hypotheses.FindingsThe results show that organizational agility increases performance in radical innovation both in a certain situation and an environment with technological turbulence. In contrast, the impact of organizational flexibility is limited to increasing performance in both radical and incremental innovation performance in a certain situation.Originality/valueOur study extends the knowledge of organizational agility and flexibility in the domain of product innovation. Adaptation of organization to respond the technological turbulence will stimulate creativity of new product development teams to produce new useful ideas and transform these ideas to product innovation. The different types of organizing a new product development team to handle technological turbulence will provide different results in product innovation performance. In addition, the findings provide a recommendation on how the organization of a new product development team can improve performance in each type of product innovation under technological turbulence.

The impact of intellectual capital and knowledge flows on incremental and radical innovation

2018 ◽  
Vol 10 (2/3) ◽  
pp. 149-170 ◽  
Author(s):  
Duy Quoc Nguyen
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Intellectual Capital ◽  
Radical Innovation ◽  
Knowledge Flows ◽  
Innovation Performance ◽  
Incremental Innovation ◽  
Content Type ◽  
Radical Innovations ◽  
The Impact

PurposeThe purpose of this paper is to develop a theoretical and empirical exploration of link between organization intellectual capital and knowledge flows with its incremental and radical innovation performance.Design/methodology/approachThis paper adopts relevant literature of social capital and organizational learning to examine the impact of intellectual capital and knowledge flows on incremental and radical innovation based on surveying 95 firms. To test the research hypotheses, regression analysis is used.FindingsResults of the study show that human capital and top-down knowledge flows significantly and positively influence both incremental and radical innovations. Social capital and bottom-up knowledge flows do not have any significant impact on incremental or/and radical innovation. Organizational capital has a positive impact on incremental innovation as expected.Practical implicationsThe results offer several practical implications for business managers to harvest its knowledge bases resident in the firm’s different forms appropriately to make innovation successful. Particularly, knowledge resident in human capital and organizational capital is useful for making incremental innovation. Especially, new knowledge, new skills and new perspectives resident in human capital are crucial important for making radical innovation. Both incremental and radical innovations are positively influenced by dynamic managerial capabilities.Originality/valueThis study contributes to literature by providing new evidence linking organization intellectual capital and knowledge flows with its innovation performance. Especially, the missing link between top-down knowledge flows and radical innovation is empirically examined. Value of this study is that social capital and bottom-up knowledge flows are not universally beneficial for enhancing innovation and their impacts on innovation performance are context dependent and more sophisticated than it is recognized in the literature.

scholarly journals Innovation outcomes of knowledge-seeking Chinese foreign direct investment

2015 ◽  
Vol 9 (1) ◽  
pp. 73-96 ◽  
Author(s):  
Xianming Wu ◽  
Nathaniel C. Lupton ◽  
Yuping Du
Keyword(s):  
Organizational Learning ◽  
Absorptive Capacity ◽  
Multinational Enterprises ◽  
Innovation Performance ◽  
Primary Data ◽  
Content Type ◽  
Chinese Multinationals ◽  
Positive Direct ◽  
Knowledge Seeking ◽  
The Impact

Purpose – The purpose of this paper is to investigates how organizational learning, absorptive capacity, cultural integration, specialization of the acquired firm and characteristics of transferred knowledge impact innovation performance subsequent to overseas acquisitions. Design/methodology/approach – Survey responses from 222 Chinese multinational enterprises engaged in overseas acquisitions. Findings – Differences between acquiring and acquired firms’ capabilities, while having a positive direct influence, suppress the positive impact of organizational learning and absorptive capacity, suggesting that multinationals require some basic level of capabilities to appropriate value from overseas acquisitions. Research limitations/implications – This paper investigates the impact of knowledge-seeking overseas acquisition of Chinese multinationals on innovation performance, as this appears to be the primary motive for making such acquisitions. Practical implications – Knowledge-seeking overseas acquisition should be based upon the absorptive capacity of the acquiring firm and complementarity between both firms. In knowledge-seeking overseas acquisitions, establishing an effective organizational learning mechanism is necessary for improving innovation performance. Originality/value – This paper reports on the behaviour and innovation performance of Chinese multinationals through analysis of primary data.

Does intellectual capital allow improving innovation performance? A quantitative analysis in the SME context

2017 ◽  
Vol 18 (2) ◽  
pp. 400-418 ◽  
Author(s):  
Lara Agostini ◽  
Anna Nosella ◽  
Roberto Filippini
Keyword(s):  
Intellectual Capital ◽  
Innovation Performance ◽  
Three Dimensions ◽  
Incremental Innovation ◽  
Primary Data ◽  
High Tech ◽  
Content Type ◽  
Significant Difference ◽  
Confirmatory Factor ◽  
Innovation Capital

Purpose The purpose of this paper is to investigate the association between the strength of intellectual capital (IC) and small- and medium-sized enterprise (SME) innovation performance. Design/methodology/approach Primary data of 150 SMEs belonging to manufacturing medium-high tech industries were collected through a survey. The methodology consists of a confirmatory factor analysis and a cluster analysis, complemented by a t-test, to assess whether there is a significant difference in terms of innovation performance of SMEs characterized by a different strength of IC. Findings Overall, the findings show that SMEs of the sample can be divided into two groups characterized by a different strength of IC, and those SMEs disclosing a higher strength of IC, in terms of human capital, innovation capital and relational capital, exhibit a significantly higher radical and incremental innovation performance. Practical implications The present study provides SME entrepreneurs and managers with an empirical evidence that possessing strong IC in its three dimensions seems to help SMEs reinforce their ability to generate both radical and incremental innovation. This calls that SME entrepreneurs and managers need to identify and effectively manage IC in order to strengthen and effectively leverage their investments on IC. Originality/value This study is particularly relevant because, instead of focusing on single categories of IC as previous studies mainly do, it adopts an overarching perspective of the dimensions of IC and their impact on both radical and incremental innovation performance. Moreover, it focuses on the SME context which has been less investigated than large firms within the domain of IC.

scholarly journals Innovation in the Hungarian food economy  

2017 ◽  
Vol 63 (No. 1) ◽  
pp. 43-51 ◽  
Author(s):  
Toth Jozsef ◽  
Ferto Imre
Keyword(s):  
Absorptive Capacity ◽  
Open Innovation ◽  
Innovation Process ◽  
Innovation Performance ◽  
Medium Size ◽  
Food Sector ◽  
Agricultural Producers ◽  
Food Economy ◽  
The Impact ◽  
The Empirical Analysis

The paper investigates the innovation process in the Hungarian agri-food sector using the concept of open innovation. The empirical analysis is based on the data from a 2011 survey of more than 200 small and medium size agricultural producers, food processors and retailers. There is determined the impact of open innovation and a company’s absorptive capacity on the innovation performance employing two stage approaches. First, a cluster analysis is applied to categorise companies based on their open innovation absorptive capacity, firm and managerial characteristics. Second, using semi-non parametric probit models, there is found that open innovation positively influences the innovation performance for the product and market innovation. Estimations indicate that the absorptive capacity has positive impacts on the technological- and organisational innovation and on innovation propensity. The results suggest that there exists a considerable heterogeneity both within and between the supply chain segments regarding to the innovation performance.  

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.

THE IMPACT OF IT ASSETS ON INNOVATION PERFORMANCE – THE MEDIATING ROLE OF DEVELOPMENTAL CULTURE AND ABSORPTIVE CAPACITY

2018 ◽  
Vol 22 (08) ◽  
pp. 1840011 ◽  
Author(s):  
MARIUS STOFFELS ◽  
JENS LEKER
Keyword(s):  
Absorptive Capacity ◽  
Innovation Performance ◽  
Research Model ◽  
Water Industry ◽  
Mediation Effects ◽  
Resource Based View ◽  
Mediating Role ◽  
Organisational Factors ◽  
The Impact

Information technology (IT) has been acknowledged as a driver of innovation performance and scholars agree that the impact of IT is mediated by additional organisational factors. Among those mediators between IT and innovation performance, a firm’s absorptive capacity and developmental culture received considerable attention. Empirical evidence suggests that both fully mediate the impact of IT on innovation performance; however, research that jointly considers both dimensions is scarce. Thus, we follow the resource-based view to operationalise IT assets, absorptive capacity, and developmental culture in one research model and apply SEM to test it with a sample of 58 firms from the water industry in Germany. We find simultaneous full mediation effects for both mediators. The fact that both mediation effects are significant in the presence of each other indicates that absorptive capacity and developmental culture explain complementary portions of the variance in innovation performance — a finding we relate to sociomateriality theory.

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