scholarly journals A Multidimensional Study of Absorptive Capacity and Innovation Capacity and Their Impact on Business Performance

2021 ◽  
Vol 12 ◽  
Author(s):  
Rafael Sancho-Zamora ◽  
Santiago Gutiérrez-Broncano ◽  
Felipe Hernández-Perlines ◽  
Isidro Peña-García
Keyword(s):  
Organizational Performance ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Business Performance ◽  
Business Processes ◽  
Equation Modeling ◽  
Future Research ◽  
Innovation Capacity ◽  
Different Dimensions ◽  
Positive Effect

The aim of this paper is to understand how absorptive capacity and innovativeness influence business performance. Most previous studies have not considered the different dimensions of absorptive capacity and innovativeness. As a consequence, they have not analyzed the relationships between these dimensions, such as potential and realized absorptive capacity (RACAP) and product and process innovation. In our study, we analyzed the relationships between each of these dimensions and their effect on organizational performance. To achieve this, in addition to the theoretical foundation provided by the working hypotheses, a questionnaire was sent to 800 CEOs of Spanish companies in different sectors, obtaining a response rate of 38.25%. Structural equation modeling was applied to test the hypotheses. This study confirms the positive effect of absorptive capacity on innovation capacity, which in turn has a positive effect on business performance. Moreover, different dimensions of absorptive capacity and innovativeness play an important role in these relationships. This study contributes to a better understanding of how potential and RACAP influence the innovativeness of firms, both in their ability to innovate products and to improve business processes. In addition, it explores how these different innovations impact business performance and provide firms with knowledge on how to invest resources to increase profits. Future research should further study the inner workings of each of the dimensions analyzed to determine the importance of each dimension for business performance.

Organizational performance through the donation and collection of interorganizational knowledge

2016 ◽  
Vol 46 (1) ◽  
pp. 85-103 ◽  
Author(s):  
Felipe Nodari ◽  
Mirian Oliveira ◽  
Antonio Carlos Gastaud Maçada
Keyword(s):  
Knowledge Sharing ◽  
Organizational Performance ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Equation Modeling ◽  
Future Research ◽  
Quantitative Methodology ◽  
Content Type ◽  
The Relationship ◽  
Positive Effect

Purpose – This paper aims to provide empirical evidence to support the relationship between interorganizational knowledge sharing, absorptive capacity and organizational performance, and proposes that interorganizational knowledge sharing is composed of two processes: knowledge donation and collection. Design/methodology/approach – A quantitative methodology is adopted to examine the proposed relationship between interorganizational knowledge sharing, absorptive capacity and organizational performance. The study uses survey data from 269 companies in Brazil. Structural equation modeling is applied to test the stated hypotheses and the model. Findings – The empirical findings indicate that interorganizational knowledge sharing is composed of the donation and collection of knowledge. Interorganizational knowledge collection is found to have a positive effect on interorganizational knowledge donation, while collection is found to have a positive effect, mediated by absorptive capacity, on organizational performance. Research limitations/implications – One limitation of this research was the predominant participation of smaller companies. Another is that the data were only collected from Brazilian companies. Moreover, an instrument to measure these constructs was proposed and validated to enable future research to be conducted into the process of interorganizational knowledge sharing and its components: knowledge donation and knowledge collection. Practical implications – Managers can enhance organizational performance by developing both the donation and collection of knowledge. Knowledge donation is particularly important because, in addition to its impact on absorptive capacity and organizational performance, it contributes to the development of knowledge collection, which is also indirectly related to performance. Originality value – The donation and collection of knowledge were validated as components of the interorganizational knowledge-sharing process, and the relationship between these processes and organizational performance is mediated by the absorptive capacity of the organization.

scholarly journals Moderating Effect of Proactivity on Firm Absorptive Capacity and Performance: Empirical Evidence from Spanish Firms

Mathematics ◽  
2021 ◽  
Vol 9 (17) ◽  
pp. 2099
Author(s):  
Rafael Sancho-Zamora ◽  
Isidro Peña-García ◽  
Santiago Gutiérrez-Broncano ◽  
Felipe Hernández-Perlines
Keyword(s):  
Absorptive Capacity ◽  
Structural Equation ◽  
Business Performance ◽  
Equation Model ◽  
Future Research ◽  
Learning Capability ◽  
Proactive Behaviour ◽  
Innovation Capacity ◽  
And Performance

The purpose of this study was to understand how proactivity can affect the relationship between absorptive capacity and organisational performance. Most previous studies have ignored the role of proactivity in this relationship and have not considered the multidimensional nature of absorptive capacity. A questionnaire was sent to 800 CEOs of Spanish companies from different sectors, procuring a response rate of 38.25%. A structural equation model was applied to test the hypothesis. This study confirms the positive effect that absorptive capacity has on business performance and the moderating role of proactivity in this relationship. Companies that develop their capacity to absorb information from the environment achieve better results. Furthermore, if they engage in proactive behaviour within their company, this relationship is stronger. Future research should include more capacities that are related to knowledge and business performance (i.e., learning capability, innovation capacity, etc.). This study contributes to the understanding of how to manage a company’s knowledge in an appropriate way. It sheds new light on how knowledge management should be conducted, emphasising not only the gathering of information but also the promotion of a proactive attitude on the part of employees to achieve the goal of better performance.

scholarly journals Corporate Entrepreneurship and Business Performance: The Mediating Role of Employee Engagement

SAGE Open ◽  
2020 ◽  
Vol 10 (4) ◽  
pp. 215824402096277 ◽  
Author(s):  
Umair Ahmed ◽  
Waheed Ali Umrani ◽  
Umer Zaman ◽  
Sheraz Mustafa Rajput ◽  
Tariq Aziz
Keyword(s):  
Employee Engagement ◽  
Structural Equation ◽  
Business Performance ◽  
Corporate Entrepreneurship ◽  
Equation Modeling ◽  
Future Research ◽  
Critical Gap ◽  
Mediating Role ◽  
Future Research Directions

The present study examined corporate entrepreneurship (CE) influence upon business performance following the mediation of employee engagement. In all, 201 middle managers from big 5 banks in Pakistan were sampled for the present study. Through applying structural equation modeling to test statistical relationship, the results revealed significant positive relationship between CE and business performance. Accordingly, the results also indicated mediation of employee engagement in this relationship thus, supporting both the hypothesized relationships. The study is first of its kind, addressing critical gap concerning employee engagement in the domain of CE and business performance. The study presents critical explanations and potential implications through which CE prospects could help employees to feel obliged to respond back with higher engagement and business performance. Toward the end, the chapter also discusses future research directions and scope for further study.

scholarly journals The Role of Green Innovation between Green Market Orientation and Business Performance: Its Implication for Open Innovation

2020 ◽  
Vol 6 (4) ◽  
pp. 173
Author(s):  
Bambang Tjahjadi ◽  
Noorlailie Soewarno ◽  
Hariyati Hariyati ◽  
Lina Nasihatun Nafidah ◽  
Nanik Kustiningsih ◽  
...  
Keyword(s):  
Market Orientation ◽  
Direct Effect ◽  
Structural Equation ◽  
Quantitative Research ◽  
Business Performance ◽  
Business Processes ◽  
Social Issues ◽  
Equation Modeling ◽  
Green Innovation ◽  
Green Market

The focus of this research was to investigate the effect of green market orientation on business performance. For that purpose, this research tested that green market orientation has a direct effect on business performance, that green market orientation affects green innovation, and that green innovation affects business performance. As a quantitative research, partial least squares structural equation modeling (PLS–SEM) was used to test the hypotheses. Data were collected by using both online and offline questionnaires from owners/managers of the manufacturing micro, small- and medium-sized enterprises (MSMEs) in the East Java Province of Indonesia. A total of 175 respondents participated in this study. The results show that green market orientation has a positive and direct effect on business performance. The results empirically support the theory of sustainability and entrepreneurship in the research setting of Indonesian MSMEs. The results also imply that the owners/managers of MSMEs need to balance economic, environmental, and social issues in their business. In the era of sustainable development and environmental awareness, manufacturing MSMEs need to adopt a green market orientation and carry out green innovation in their business processes to obtain a better business performance.

scholarly journals Knowledge Hiding Behaviors and Team Creativity: The Contingent Role of Perceived Mastery Motivational Climate

SAGE Open ◽  
2019 ◽  
Vol 9 (3) ◽  
pp. 215824401987629 ◽  
Author(s):  
Muhammad Waseem Bari ◽  
Muhammad Abrar ◽  
Sadia Shaheen ◽  
Mohsin Bashir ◽  
Meng Fanchen
Keyword(s):  
Absorptive Capacity ◽  
Structural Equation ◽  
Time Lag ◽  
Negative Relationship ◽  
Motivational Climate ◽  
Equation Modeling ◽  
Future Research ◽  
Team Creativity ◽  
Mastery Motivational Climate ◽  
Knowledge Hiding

The present study explains how different factors of knowledge hiding (e.g., evasive, playing dumb, and rationalized) influence on team creativity. Drawn on social exchange theory, the present study theorizes that factors of knowledge hiding have a negative relationship with team creativity, and absorptive capacity mediates this relationship. In addition, the perceived mastery motivational climate (PMMC) as a moderator attenuates the negative relationship between factors of knowledge hiding and team creativity. Study 1, an investigation (through the experience sampling method) from 41 participants of social media, confirms the existence of knowledge hiding practices in Pakistan. Study 2 applied a partial least squares, structural equation modeling approach on randomly selected time lag data of 282 respondents from state-owned universities of Pakistan. Results show that evasive hiding and playing dumb have a significant negative relationship with team creativity; however, rationalized hiding does not affect significantly on team creativity. The absorptive capacity also does not mediate the relationship between factors of knowledge hiding and team creativity. The PMMC attenuates the negative influence of evasive hiding and playing dumb on team creativity; however, the PMMC does not moderate the influence of rationalized hiding on team creativity. The implications and future research directions are discussed in the last section of this study.

Antecedents of cross-functional integration level and their organizational impact

2019 ◽  
Vol 34 (8) ◽  
pp. 1706-1723 ◽  
Author(s):  
Ana Cristina Ferreira ◽  
Marcio Lopes Pimenta ◽  
Paraskeva Wlazlak
Keyword(s):  
Organizational Performance ◽  
Structural Equation ◽  
Functional Integration ◽  
Equation Modeling ◽  
Future Research ◽  
Content Type ◽  
Four Dimensions ◽  
Probabilistic Sampling ◽  
Parsimonious Model ◽  
The Impact

Purpose The purpose of this paper is to develop a model to predict the antecedents of the integration level among marketing, logistics and production, considering the influence of formal and informal factors that generate integration and the existence of conflicts. Design/methodology/approach A survey of 179 participants from all regions of Brazil was conducted. A parsimonious model including four dimensions and 34 variables was developed through confirmatory factor analysis and structural equation modeling. Findings The field data corroborate studies dealing with the impact of various formal and informal integration factors on the cross-functional integration level as a construct. Furthermore, this paper concludes that the level of cross-functional can be defined as: the intensity of the relationship among internal functions which can be measured by the mutual existence of formal and informal factors and the absence of manifest conflicts. Research limitations/implications The findings of this paper cannot be generalized because of the convenience sampling. Future research could apply a probabilistic sampling and try to explore other geographical settings in both national and international contexts. Practical implications The proposed model can generate important information for managers by pointing out variables that can predict the integration level and their impacts on the organizational performance. The paper concludes with examples about how the model could be useful in several practical situations. Originality/value This paper proposes a model with reasonable accuracy to predict the integration level and overcomes prior research limitations with respect to models to predict the antecedents of the integration level, particularly the role of conflicts in the integration processes.

Organizational learning capability, innovation and organizational performance

2019 ◽  
Vol 24 (1) ◽  
pp. 151-172 ◽  
Author(s):  
Mahmoud M. Migdadi
Keyword(s):  
Organizational Learning ◽  
Organizational Performance ◽  
Structural Equation ◽  
Measurement Model ◽  
Research Literature ◽  
Equation Modeling ◽  
Future Research ◽  
Learning Capability ◽  
Content Type ◽  
Managerial Practices

Purpose The purpose of this paper is to introduce a comprehensive, delineated and integrated conceptual model which includes organizational learning capability, innovation and organizational performance (OP). Then, an empirical investigation is undertaken to test the relationships among the proposed study model variables. Design/methodology/approach In total, 274 questionnaires were completed and returned. Statistical techniques employed included confirmatory factor analysis to examine the validity of the measurement model, and structural equation modeling to test the hypotheses. Findings The findings of this study suggest that OLC influences innovation and innovation affects OP. Finally, the results show that OLC affects OP indirectly through innovation (mediator). Research limitations/implications Future research should pay more attention to the influence of different mixture (variables) of influences on innovation and also examine other consequences of introducing innovation in organizations. In addition, more empirical papers supporting (or rejecting) the results in different contexts would be welcomed, especially longitudinal studies. Practical implications The results of this study help managers to ascertain the managerial practices that can be employed as well as determine the level of effort and resources necessary to enhance OLC. Additionally, managers should shed additional light on the innovation’s positive implications for OP. Originality/value This study focuses on the conceptualization of OLC and effects of these capabilities on innovation. It conceptualizes innovation as a multidimensional construct and tests its relationship with OP. Finally, the relationship between learning capability and OP, although implied, needs to be addressed empirically in the research literature, an objective that this study tries to achieve.

scholarly journals Keep Innovating: Absorptive Capacity and the Performance of Brazilian Information Technology Companies

2019 ◽  
Vol 23 (4) ◽  
pp. 499-519 ◽  
Author(s):  
Claudio Testoni Cardozo ◽  
Oscar Rudy Kronmeyer Filho ◽  
Guilherme Luis Roehe Vaccaro
Keyword(s):  
Organizational Performance ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Equation Modeling ◽  
Continuous Innovation ◽  
Jel Code ◽  
Information Technology Companies ◽  
Adaptation Ability ◽  
Realized Absorptive Capacity

Abstract Continuous innovation is considered a major challenge for companies. By deepening this issue, this article highlights the absorptive capacity, which is the ability to explore external knowledge. This study analyzes the extent to which absorptive capacity affects the organizational performance of Brazilian IT companies. A theoretical model containing three hypotheses related to potential absorptive capacity, realized absorptive capacity, and organizational performance is analyzed by using factor analysis and structural equation modeling using an instrument applied to 130 companies between the months of July and August of 2017. The results show significant relations between the dimensions of absorptive capacity and organizational performance, indicating that a characteristic of the technological market is translated by adaptation ability, which demonstrates the influence of potential and realized absorptive capacity in performance as explained by the firm’s dynamic capabilities. JEL Code: N76, O32, L25.

scholarly journals Human Resources or Information Technology: What is More Important for Companies in the Digital Era?

2016 ◽  
Vol 7 (1) ◽  
pp. 35-45 ◽  
Author(s):  
Lejla Turulja ◽  
Nijaz Bajgorić
Keyword(s):  
Information Technology ◽  
Structural Equation ◽  
Business Performance ◽  
Business Processes ◽  
Performance Outcomes ◽  
Equation Modeling ◽  
It Capability ◽  
Knowledge Based ◽  
Knowledge Based Economy ◽  
Changing Knowledge

AbstractBackground:Companies can improve their business performance, increase revenues and reduce costs by enhancing their information technology (IT) capability. On the other side, there is an increasing importance of human resource management (HRM) practices related to IT utilization, which are important for the business performance of a company in the rapidly changing knowledge-based economy.Objectives:The objective of this paper is to analyze the relations among IT capability, HRM capability and the firm’s performance outcomes.Methods/Approach:The paper uses survey data and Structural Equation Modeling to analyze the relationships among IT capability, HRM capability and firms’ performance.Results:This paper reveals that IT capability to some extent determines firms’ business performance but it plays more important role in enhancing HRM capability. In addition, HRM capability significantly impacts business performance.Conclusions:The findings indicate that managers should not focus on allocating resources only for IT investments. In order to achieve better business performances, these technologies need to be used to support all business processes including HRM activities.

scholarly journals Are altruistic leaders worthy? The role of organizational learning capability

2015 ◽  
Vol 36 (3) ◽  
pp. 271-295 ◽  
Author(s):  
Fermín Mallén ◽  
Ricardo Chiva ◽  
Joaquín Alegre ◽  
Jacob Guinot
Keyword(s):  
Organizational Learning ◽  
Organizational Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Future Research ◽  
Leader Behaviors ◽  
Learning Capability ◽  
Content Type ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the relationship between altruistic leader behaviors, organizational learning capability and organizational performance. Design/methodology/approach – The sampling frame consists of several databases or listings of business that consider people as a key element of the organization and are considered by their employees to be good firms to work for or organizational environments where human resources management has high priority (n=251). The authors use structural equation modeling to test if the relationship between altruistic leader behaviors and organizational performance is mediated by organizational learning capability. Findings – Results suggest that organizational learning capability fully mediates between altruistic leader behaviors and organizational performance. Thus, organizational learning capability plays a key role in explaining how altruistic leader behaviors affect organizational performance, essentially because it facilitates the creation of a creative, participatory and dialogue-based environment that promotes organizational learning. Research limitations/implications – The database used in the study is very heterogeneous. Future research might delimit the database by organization size or sector. Qualitative studies may also improve our understanding of the relationships studied and enable other concepts to be included. Practical implications – This study provides evidence of the positive relationship between altruistic leaders and performance. However, recruiting and fomenting altruistic leaders is not sufficient on its own to improve performance, and should be accompanied by implementing other facilitating factors of organizational learning such as dialogue or experimentation. Originality/value – In recent years some studies have linked leadership with organizational learning. However, this is one of the first studies to concentrate on altruistic leader behaviors as such, a concept that has received scant mention in the literature despite its importance in a number of leadership styles, and its relevance today as an alternative to the egotistic leader. The authors offer empirical evidence of the role of altruistic leader behavior as an antecedent of organizational learning capability and subjective measures of performance.

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