scholarly journals Should Organisations Compete or Collaborate when Absorbing New External Knowledge?

Author(s):  
Muhammad Rafique ◽  
Richard David Evans ◽  
Muhammad Tahir Nawaz ◽  
Mujtaba Hassan Agha

Organisations possessing significant resources (Resource Based View) or knowledge, as their significant capability (Dynamic Capability View), are often unaware of their own ability to acquire new knowledge entering the enterprise (level of absorptive capacity); this unawareness can lead to reduced marketplace performance and incorrect decision making, which may result in the wastage of organisational resources, including employee knowledge. This study highlights the key differences in absorptive capacity which firms possess, in the context of resource based and dynamic capability views. Based on these differing perspectives, options are provided for companies who wish to compete or mate/merge with competitors in the market, while discussion is given on the considerations that organisations must take before adopting a suggested option.

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kumar Verma Bhupendra ◽  
Shirish Sangle

Purpose This paper aims to present empirical test to analyse a structural process model based on the constructs of absorptive capacity considering sustainability aspects. It integrates dynamic capability perspective to strengthen the existing literature. Findings of the study may help organisations to renovate business processes related to absorptive capacity and improve decision-making considering sustainability attributes. Design/methodology/approach Sample for data analysis covers 389 managers of firms demonstrating some traits of sustainability orientation and operating in a developing economy like India. Structural equation modelling is applied to test a casual model. Findings Result of this study reveals that a formal system that drives knowledge sharing, storing and exploitation of knowledge, a structured way to appropriate and reward intellectual property rights can be fundamental to development of absorptive capacity. Such a system conducive to knowledge exploration and acquisition must lead to exploration of new knowledge sources and new knowledge. A firm’s knowledge acquisition system shall be able to deliver to acquire external as well as internal knowledge spread across departments. Research limitations/implications This study considers commercial output as an aspect of innovative capability, so this attribute is not included in absorptive capacity. Practical implications The study may help organisations to develop a systemic approach to evolve decision-making and develop suitable processes linked to absorptive capacity considering sustainability challenges and uncertain market conditions. Social implications The study presents a comprehensive view of absorptive capacity considering societal stakeholder’s knowledge in addition to technological and market knowledge. Originality/value There are hardly any research articles which link absorptive capacity, dynamic capability and sustainability strategies.


Author(s):  
Eng K. Chew ◽  
Petter Gottschalk

As described in Chapter X, fundamental to the company’s innovation capabilities is the level of collaboration and knowledge management capabilities available to support the innovation process. The ability of an organization to identify, acquire, and utilize external knowledge, known as knowledge absorption, can be critical to the firm’s operational success (Adams, Bessant, & Phelps, 2006). A survey by Adams et al. (2006) shows that three areas of knowledge management are critical for innovation management: idea generation, knowledge repository (including the management of tacit and explicit knowledge), and information flows (including information gathering and networking). Further they note that several researchers have found that the firm’s ability to “absorb and put to use new knowledge,” known as knowledge “absorptive capacity,” has direct impact on the firm’s innovation and performance (Chen, 2004; Tsai, 2001). Popadiuk and Choo (2006) have further shown that innovation and knowledge creation are related. Innovation is a result of knowledge creation. Innovation is related to the firm’s ability to combine new knowledge with existing knowledge to create new knowledge that is unique to the firm. It is also related to the firm’s ability to diffuse knowledge throughout the organization so that the organization as a whole increases its absorptive capacity. Knowledge diffusion can be facilitated by IT infrastructure and knowledge management system. Knowledge management is aimed at leveraging internal and external knowledge to create value from the firm’s intangible assets. According to Metaxiotis and Psarras (2006), knowledge management contributes to value creation by enhancing: intellectual asset management, operational efficiency, customer and competitor intelligence, continuous improvement, organizational learning, innovation in products and services, and time to market. They report of findings from American Productivity and Quality Center that greater emphasis should be made by firms on “using knowledge management to become more efficient innovators.” To leverage knowledge management for business innovation, IT managers must first understand the basic principles, theories, and practices of knowledge management. Next, they must understand how knowledge management will contribute to innovation. This chapter aims to address both topics to help make IT managers become the IT innovators.


2020 ◽  
Vol 68 (1) ◽  
pp. 31-55
Author(s):  
Philipp Schulz

Zusammenfassung Kleine und mittlere Unternehmen (KMU) sind stark auf externes Wissen angewiesen. Gleichzeitig weisen KMU einen geringen Strukturierungsgrad in der unternehmensinternen Forschung und Entwicklung (F&E) auf, wodurch der Zugriff auf externes Wissen auch über kooperative F&E hinaus erfolgen muss. Basierend auf Argumenten aus der ressourcenbasierten Sicht auf das Unternehmen (RBV) und aus der Forschung zu organisationaler Absorptionsfähigkeit wird argumentiert, dass KMU in verschiedenen Phasen des Innovationsprozesses von der Kooperation mit unternehmensexternen Partnern profitieren. Die aufgestellten Hypothesen werden anhand von Daten aus dem Mannheimer Innovation Panel (MIP) getestet. Der Datensatz umfasst 1.475 KMU. Der Einfluss von phasenspezifischer Kooperation auf den innovativen Umsatz geht weit über F&E hinaus und ist vom gewählten Partner abhängig. Abstract Small and medium sized enterprises (SMEs) strongly depend on external knowledge. At the same time, SMEs face several resource constraints. Especially the marginally structured internal research and development (R&D) function leads to knowledge sourcing beyond cooperative R&D. Using arguments from the Resource-Based View of the firm (RBV) and Absorptive Capacity (AC), this study hypothesizes on external collaboration and innovative sales taking partner- and stage-specificity into account. Data originates from the Mannheim Innovation Panel (MIP) comprising 1.475 SMEs Results suggest a broad impact of stage-specific collaboration on innovative sales, which depends on the type of partner.


2014 ◽  
Vol 8 (2) ◽  
pp. 258-272 ◽  
Author(s):  
Bin Guo ◽  
Yueqi Wang

Purpose – This paper tests which theoretical perspective(s) can better explain firms’ external knowledge search behavior. Information processing and resource-based view theories propose a positive relationship between environmental turbulence and knowledge search breadth, whereas transaction cost economics and managerial attention theoretical perspectives posit that knowledge search breadth will be negatively influenced by environmental turbulence. In the context of Chinese small- and medium-sized enterprises (SMEs), this study examines the direct effect of environmental turbulence and the interactive effect of environmental turbulence and absorptive capacity (ACAP) on external knowledge search breadth. Design/methodology/approach – This study adopted firm-level data collected via questionnaires from SMEs within the manufacturing sector in China. The partial least squares method was used to explore the determinants of the external knowledge search breadth of Chinese SMEs. Findings – The results reveal that external search breadth tends to increase with an increase in a firm’s perceived environmental turbulence. In addition, the interaction between ACAP and environmental turbulence will be negatively related to external knowledge search breadth. The empirical evidence indicates information processing and resource-based view theories are more powerful in explaining the external knowledge search behavior of Chinese SMEs. Originality/value – Unlike most of the innovation search literature, which have focused on the effect on performance of external search, this study focuses on the antecedents of firms’ innovation search behavior. The study contributes to the understanding of the relationship between environmental turbulence and knowledge search breadth as well as the understanding of the influence of ACAP on external knowledge search in the context of SMEs from emerging economies.


2016 ◽  
Vol 65 (6/7) ◽  
pp. 386-403
Author(s):  
Jorge Tiago Martins ◽  
Rosa Canhoto

Purpose This paper aims to identify and conceptualize a set of relational capabilities that school libraries in the Alentejo region of Portugal develop for acquiring new knowledge that exists externally in the wider community. Design/methodology/approach A qualitative research design operationalized via case studies was followed for the empirical analysis. Empirical findings are based on the analysis of the 84 narrative reports submitted by school libraries as part of a national performance evaluation exercise that took place between 2010 and 2012. Data analysis followed the techniques of inductive data categorization, within case-analysis, and cross-case analysis. Findings The exploration of the relational capabilities that school libraries in the Alentejo region of Portugal develop for acquiring new knowledge that exists externally in the community resulted in the identification of relationships that school libraries in the region have established to acquire new knowledge: connecting with and supporting organizations committed to civic engagement; facilitating discussions about challenging issues through strategic partnerships; convening community conversations to identify shared concerns and solutions; and embracing local culture to foster endogenous development. Originality/value The ability to seek and recognize the value of new and external knowledge, assimilate it and apply it to organizational ends has been traditionally linked to the concept of absorptive capacity. While absorptive capacity literature in business settings is prolific, literature that focuses on school libraries’ ability to identify and explore external knowledge and applying it to improve their performance is scarce. Focusing on the specific context of the Alentejo region of Portugal as an archetypical rural area, this paper identifies how knowledge existing externally in the community is absorbed by rural school libraries through specific relational capabilities that reflect school libraries’ community orientation and engagement in participatory processes that develop social resilience.


2014 ◽  
Vol 1006-1007 ◽  
pp. 685-688
Author(s):  
Guo Bao Ding ◽  
Hao Xing ◽  
Lian Bing Wang ◽  
Dan Li

Acquiring causal knowledge of abnormity is essential to Missile-Launching reliably. There are lots of Knowledge Acquisition methods. But it is absence for usage and maintenance support process. So it is necessary to start the research on new knowledge acquisition technology of aid Decision-Making for Missile-Launching. Based on the Usage and Maintenance-Support Process, this thesis acquires knowledge with the ESD and CESD (Converse Event Sequence Diagram) method. First, this thesis gives the concept of CESD. Then, in order to adapt the CESD model of the complex systems more effectively, this paper expands the CESD framework and provides a software frame of computer aided ESD study. Finally, the operation of pulse power supply system is analyzed on the basis of the improved ESD and CESD. This sample shows the applicability of ESD and CESD methodology in knowledge acquisition technology of aid Decision-Making for Missile-Launching.


2016 ◽  
Vol 42 (12) ◽  
pp. 809-814 ◽  
Author(s):  
Jennifer C Kesselheim ◽  
Julie Najita ◽  
Debra Morley ◽  
Elizabeth Bair ◽  
Steven Joffe

ObjectiveTo evaluate the relationship between recently trained paediatricians' ethics knowledge and exposure to a formal ethics or professionalism curriculum during residency.MethodsWe conducted a cross-sectional survey of recently trained paediatricians which included a validated 23-item instrument called the Test of Residents' Ethics Knowledge for Pediatrics. The sample included paediatricians who completed medical school in 2006–2008, whose primary specialty was paediatrics or a paediatric subspecialty, and who completed paediatric residency training in 2010–2011. This sample was stratified based on residency programme variables: presence of a formal curriculum in ethics or professionalism, programme size and American Board of Pediatrics certifying exam passage rate. Paediatricians were randomly selected from each stratum for survey participation.ResultsAmong the 370 responding paediatricians (55%), the mean knowledge score was 17.3 (SD 2.2) out of a possible 23. Presence of a formal curriculum in ethics and/or professionalism was not significantly associated with knowledge. Knowledge was lowest on items about parental requests for a child to undergo genetic testing (2 items, 44% and 85% incorrect), preserving patient confidentiality over email (55% incorrect), decision-making regarding life-sustaining technologies (61% incorrect), and decision-making principles such as assent and parental permission (2 items, 47% and 49% incorrect).ConclusionsThis study highlights several areas in which paediatricians' knowledge may be low and that are amenable to targeted educational interventions. These findings should prompt discussion and research among ethicists and educators about how ethics and professionalism curricula can more consistently influence paediatricians' knowledge.


2015 ◽  
Vol 15 (2) ◽  
pp. 165-179 ◽  
Author(s):  
V.E. Scholten ◽  
P.A. van der Duin

Responsible innovation (RI) among technology-based start-ups has received little attention, while these firms are known to operate on the edges of what is socially desirable or ethically acceptable. In this paper we develop a conceptual model that captures the RI practices among 61 academic spin-offs and investigate how it affects the capacity of the firm to absorb external knowledge to better the exploitation of the innovation. The findings indicate that potential absorptive capacity is increased by both stakeholder engagement and social responsiveness, while realized absorptive capacity is moderately increased through social responsiveness. Remarkable is the finding that the extent that sustainability practices resonate in the start-ups operations does have a negative effect on the potential absorptive capacity. These results provide insight in the way in which start-ups adopt a RI philosophy to their innovation process and help to better understand how they learn and acquire external knowledge to increase the acceptance of their innovations. The findings provide clear recommendations for entrepreneurs and policymakers in the field of entrepreneurship and innovation.


2014 ◽  
Vol 45 (4) ◽  
pp. 11-20 ◽  
Author(s):  
G. Ammetller ◽  
I. Rodriguez-Ardurab ◽  
J. Llados-Masllorens

This research presents an integrative model about the use of those services that have been specifically designed to support entrepreneurial initiative. By contrast with conventional perspectives from the entrepreneurship field, mainly drawn from a resource-based view, we propose a two-fold approach to explain the utilization of services that are oriented to new business creation: by considering the role of resources within the start-up's reach (internal and external); by incorporating a behavioral and decision-making approach. On the basis of the suggested decision-making framework, a multi-stage decision model is developed and tested by means of a representative sample of entrepreneurs linked to a local development agency. The results show that the adoption and use of support services for new business creation is a complex and reflexive process, triggered by the entrepreneur's internal forces.The entrepreneur searches for information throughout the process and, with assistance from internal teams and external networks, evaluates the choices of businesssupport services. Our findings offer relevant implications and recommendations for business incubators and institutions.


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