scholarly journals Competitive intelligence and absorptive capacity for enhancing innovation performance of SMEs

2021 ◽  
Vol 1 (1) ◽  
Author(s):  
Abdeslam Hassani ◽  
Elaine Mosconi
Keyword(s):  
Economic Growth ◽  
Absorptive Capacity ◽  
Empirical Data ◽  
Business Performance ◽  
Innovation Performance ◽  
Competitive Intelligence ◽  
Theoretical Studies ◽  
Complex Environments ◽  
The Relationship

In dynamic and complex environments, it can be difficult for small and mediumsizedenterprises (SMEs) to achieve business performance, innovate and survive, even thoughthese actions are crucial for economic growth and competitiveness. Competitive intelligence (CI)appears as a strategic practice to help them. Although there are many theoretical studies thatpropose the relationship between CI and innovation, few studies have conducted empiricalstudies in the context of SMEs. The objective of this paper is to investigate how competitiveintelligence enhances innovation performance in the context of a SME. Based on a literaturereview and empirical data from several interviews with managers of one SME, our findingsallowed us to propose a framework showing the contribution of CI to innovation performancerelying on absorptive capacity. Our findings also highlight that a prospector owner-managercan improve the results of CI in the SME and contribute to better innovation performance.

INNOVATION CAPABILITY, ABSORPTIVE CAPACITY AND SMES PERFORMANCE IN PAKISTAN: THE MODERATING EFFECT OF BUSINESS STRATEGY

2018 ◽  
Vol 13 (Number 2) ◽  
pp. 1-11
Author(s):  
Muhammad Zulqarnain Arshad ◽  
Darwina Arshad
Keyword(s):  
Economic Growth ◽  
Absorptive Capacity ◽  
Business Strategy ◽  
Innovation Capability ◽  
Research Directions ◽  
Conceptual Paper ◽  
And Performance ◽  
New Research ◽  
The Relationship ◽  
Crucial Part

The small and medium-sized enterprises (SMEs) play a crucial part in county’s economic growth and a key contributor in country’s GDP. In Pakistan SMEs hold about 90 percent of the total businesses. The performance of SMEs depends upon many factors. The main aim for the research is to examine the relationship between Innovation Capability, Absorptive Capacity and Performance of SMEs in Pakistan. This conceptual paper also extends to the vague revelation on Business Strategy in which act as a moderator between Innovation Capability, Absorptive Capacity and SMEs Performance. Conclusively, this study proposes a new research directions and hypotheses development to examine the relationship among the variables in Pakistan’s SMEs context.

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

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.

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

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.

scholarly journals The Impact of Organizational Learning Capability on Product Innovation Performance: Evidence from the Turkish Manufacturing Sector

2016 ◽  
Vol 6 (1) ◽  
pp. 70-84 ◽  
Author(s):  
Özlem Yaşar Uğurlu ◽  
Mustafa Kurt
Keyword(s):  
Organizational Learning ◽  
Empirical Data ◽  
Product Innovation ◽  
Positive Relationship ◽  
Manufacturing Sector ◽  
Innovation Performance ◽  
Learning Capability ◽  
The Impact ◽  
The Relationship

This study aims to examine the effect of organizational learning capability on product innovation performance in the manufacturing sector using empirical data. A survey was conducted with 120 firms that were on the list of Top 1000 Firms of Turkey and registered with the Istanbul Chamber of Industry, to examine the relationship between the dimensions of organizational learning capability and the dimensions of product innovation performance. The findings of the study indicate a positive relationship between organizational learning capability and product innovation performance.

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.

Measuring Top Management's IT Governance Knowledge Absorptive Capacity

2012 ◽  
Vol 27 (1) ◽  
pp. 137-155 ◽  
Author(s):  
Syaiful Ali ◽  
Peter Green ◽  
Alastair Robb
Keyword(s):  
Communication Network ◽  
Absorptive Capacity ◽  
Empirical Data ◽  
It Governance ◽  
Effective Communication ◽  
Top Management ◽  
Communication Climate ◽  
Theoretical Underpinning ◽  
Four Dimensions ◽  
The Relationship

ABSTRACT Top management's involvement in IT governance appears to positively influence the establishment and implementation of effective IT governance within organizations. Considering the lack of advancement in the area in practice, this study offers a deeper understanding of dimensions that help to explain top management's knowledge of IT governance. Using absorptive capacity as its theoretical underpinning, and based on Australian empirical data, this study shows that for top management to achieve higher levels of absorptive capacity of IT governance knowledge (ACAP-ITG), they need to focus on four dimensions: prior relevant knowledge, effective communication network, appropriate communication climate, and effective knowledge scanning. To further support the usefulness of the ACAP-ITG construct, this study empirically tested the relationship between the construct and corporate performance. This study presents top management in organizations with useful measures that can help them assess their organization's strengths and weaknesses related to ACAP-ITG.

scholarly journals Research on the Influence of Firm’s Innovation Driven on New Product Innovation Performance

2018 ◽  
Vol 11 (8) ◽  
pp. 110
Author(s):  
Qu Yan ◽  
Chun-Shuo Chen
Keyword(s):  
Absorptive Capacity ◽  
Product Innovation ◽  
New Product ◽  
Innovation Performance ◽  
Product Performance ◽  
Core Element ◽  
New Product Performance ◽  
Internet Firms ◽  
The Relationship ◽  
New Product Innovation

New product innovation and R&D are important sources for firms to obtain competitive advantages, and market knowledge is the core element for firms to obtain new product innovation performance. However, it can be also found out that the relevant discussion upon innovation has been still limited to restricted theories and the developing empirical researching area by reviewing the literature. Based on knowledge-based theory, a questionnaire survey of 220 high-technology and internet firms in China was conducted to empirically analyze the relationship between innovation driven, potential absorptive capacity, and new product innovation performance. The study found that: the potential absorptive capacity mediates the relationship between market orientation and new product performance, technological opportunity and new product performance, and the potential absorptive capability positively adjusts the relationship between technological opportunities and realized absorptive capacity. It is possible to understand more clearly the process of firms acquiring and digesting information, transforming and mining knowledge to achieve new product innovation performance by analyzing the process of knowledge absorption and conversion.

Absorptive capacity and technology: influences on innovative firms

2019 ◽  
Vol 17 (3) ◽  
pp. 250-265
Author(s):  
Angel Martinez-Sanchez ◽  
Manuela Perez-Perez ◽  
Silvia Vicente-Oliva
Keyword(s):  
Production Technology ◽  
Absorptive Capacity ◽  
Production Systems ◽  
Innovation Performance ◽  
Flexible Production ◽  
Content Type ◽  
Technology And Innovation ◽  
Production Processes ◽  
The Relationship ◽  
Agile Production

Purpose The purpose of this paper is to analyze the relationship between agile production (flexible production technology) and absorptive capacity. Design/methodology/approach We use a database of 1,864 Spanish industrial firms from the Survey of Business Strategies (the largest Spanish database of its kind). Our theoretical approach is based on the resource-based view and the dynamic capabilities perspective. The methodology includes descriptive statistics analysis and lineal regression with moderator effect. Findings High-agile firms with greater absorptive capacity are more innovative and better performers than low-agile firms. Absorptive capacity moderates the relationship between flexible production technology and innovation performance. Research limitations/implications This is a cross-sectional study, which may limit the establishment of causal relationships. We give evidence to the importance of studying absorptive capacity in the agile production implementation process. Practical implications There are several managerial implications. First, agile production systems should be integrated into the firm’s innovation system because the continuous improvement of agile production has to be reinforced by the outputs of external knowledge and in-house innovation activities. Second firms that use external sources of knowledge to improve production processes could leverage that benefit better, not only in Operations but also in innovation performance. The adoption of flexible production technology cannot be kept apart from the firm´s organizational learning processes based on external knowledge. Our results also support the contribution of clusters of collaborative firms to improve their production processes throughout absorptive capacity and thus the implementation of agile production systems. Originality/value This is the first study, to the best of our knowledge, has involved the role of absorptive capacity, as an internal capability/competence, to influence the relationship between agility/flexible technology and innovation performance.

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.

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