Knowledge Absorptive Capacity for Technological Innovation Capabilities

2014 ◽  
pp. 418-443
Author(s):  
Murad Ali ◽  
Kichan Park
Keyword(s):  
Absorptive Capacity ◽  
Developing Economies ◽  
Qualitative Content Analysis ◽  
Case Study Research ◽  
Global Market ◽  
Development Stages ◽  
External Knowledge ◽  
Foreign Companies ◽  
Proposed Model ◽  
Past Experiences

This chapter presents the development stages of a theoretical model of Knowledge Absorptive Capacity (KAC) that shows how most, if not all, firms in developing countries initiate, implement, assimilate, improve, and develop external knowledge. The chapter reviews the literature, models, and frameworks related to knowledge absorptive capacity. The chapter utilizes a qualitative content analysis as an explanation method in case study research to validate the proposed model. The chapter then analyzes Korean firms as a case in point to illustrate how Korean firms have built their knowledge absorptive capacity. The model consists of four stages: 1) knowledge initiation, 2) knowledge imitation, 3) knowledge improvement, and finally, 4) knowledge innovation or 4KI. The framework shows four development stages at Korean firms as: 1) entrance of foreign companies into the Korean market and their reluctance to transfer their knowledge and information sharing to Korean firms, initiating its knowledge absorptive capacity, 2) Korean firms started knowledge absorptive capacity by means of imitating knowledge from external (especially foreign firms), 3) it then developed knowledge absorptive capacity by means of improving external knowledge, and finally, 4) capability to create their own knowledge and becoming one of the leading economy in the world which challenges firms from advanced countries in the global market. The chapter also highlights the developmental changes in the electronics industry of Korea. Keeping past experiences in consideration, the authors conclude that this model provides useful implications for developing economies, known as latecomers following the same pattern of KAC.

Knowledge Absorptive Capacity for Technological Innovation Capabilities

2016 ◽  
pp. 497-522
Author(s):  
Murad Ali ◽  
Kichan Park
Keyword(s):  
Absorptive Capacity ◽  
Developing Economies ◽  
Qualitative Content Analysis ◽  
Case Study Research ◽  
Global Market ◽  
Development Stages ◽  
External Knowledge ◽  
Foreign Companies ◽  
Proposed Model ◽  
Past Experiences

This chapter presents the development stages of a theoretical model of Knowledge Absorptive Capacity (KAC) that shows how most, if not all, firms in developing countries initiate, implement, assimilate, improve, and develop external knowledge. The chapter reviews the literature, models, and frameworks related to knowledge absorptive capacity. The chapter utilizes a qualitative content analysis as an explanation method in case study research to validate the proposed model. The chapter then analyzes Korean firms as a case in point to illustrate how Korean firms have built their knowledge absorptive capacity. The model consists of four stages: 1) knowledge initiation, 2) knowledge imitation, 3) knowledge improvement, and finally, 4) knowledge innovation or 4KI. The framework shows four development stages at Korean firms as: 1) entrance of foreign companies into the Korean market and their reluctance to transfer their knowledge and information sharing to Korean firms, initiating its knowledge absorptive capacity, 2) Korean firms started knowledge absorptive capacity by means of imitating knowledge from external (especially foreign firms), 3) it then developed knowledge absorptive capacity by means of improving external knowledge, and finally, 4) capability to create their own knowledge and becoming one of the leading economy in the world which challenges firms from advanced countries in the global market. The chapter also highlights the developmental changes in the electronics industry of Korea. Keeping past experiences in consideration, the authors conclude that this model provides useful implications for developing economies, known as latecomers following the same pattern of KAC.

Through the Lens of Recession 2.0: Diversification Dynamics Between the Leading Asian Stock Markets

2021 ◽  
pp. 097226292098395
Author(s):  
Manu K. S. ◽  
Surekha Nayak ◽  
Rameesha Kalra
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Market Integration ◽  
Developing Economies ◽  
Positive Impact ◽  
Global Market ◽  
Stock Market Integration ◽  
Developed Economies ◽  
Market Participants ◽  
Causality Tests

The focus of this article is to analyse the inter-linkages between eight leading stock markets in Asian continent from the period of July 2011 to February 2018. This period holds relevance as this was the time when Recession 2.0 set in, which adversely affected the developed economies; however, the developing economies withstood the crisis without much of an impact. Co-integration and Granger causality tests were conducted to probe the inter-linkages. Study revealed a positive impact on Asian stock market indices collectively on each of the indexes. The highest number of unidirectional causalities was to KOPSI and NIFTY from rest of the stock indices. Results confirmed that no co-integration relationship existed among the selected indices indicating favourable diversification opportunities. Thus, the study fosters global market participants and policymakers to consider the nitty-gritties of stock market integration so as to benefit from international stock market diversification in the Asian region.

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

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.

scholarly journals Responsible innovation among academic spin-offs: how responsible practices help developing absorptive capacity

2015 ◽  
Vol 15 (2) ◽  
pp. 165-179 ◽  
Author(s):  
V.E. Scholten ◽  
P.A. van der Duin
Keyword(s):  
Conceptual Model ◽  
Absorptive Capacity ◽  
Stakeholder Engagement ◽  
Innovation Process ◽  
Responsible Innovation ◽  
Social Responsiveness ◽  
External Knowledge ◽  
Negative Effect ◽  
Sustainability Practices ◽  
Start Ups

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.

Impact of knowledge sharing and absorptive capacity on project performance: the moderating role of social processes

2018 ◽  
Vol 22 (2) ◽  
pp. 453-477 ◽  
Author(s):  
Imran Ali ◽  
Ata Ul Musawir ◽  
Murad Ali
Keyword(s):  
Knowledge Management ◽  
Knowledge Sharing ◽  
Absorptive Capacity ◽  
Project Performance ◽  
Social Processes ◽  
Content Type ◽  
Proposed Model ◽  
Knowledge Governance ◽  
Moderating Role

Purpose This study aims to propose an integrated model to examine the impact of knowledge governance, knowledge sharing and absorptive capacity (ACAP) on project performance in the context of project-based organizations (PBOs). This study also examines the moderating role of social processes on the relationships among these variables. Design/methodology/approach To test the proposed model, cross-sectional data were collected regarding projects from 133 PBOs in Pakistan’s information technology/software industry. The data were analyzed using the partial least squares – structural equation modeling (PLS-SEM) method and PRCOESS tool. Finally, this study also uses causal asymmetry analysis to check asymmetric relationship in the key constructs. Findings The results generally support the proposed model. Knowledge governance and knowledge sharing are important antecedents for improving the ACAP of the project, which in turn significantly improves project performance. Additionally, social processes positively moderate the relationship between knowledge sharing and ACAP, as well as between ACAP and project performance. Research limitations/implications The findings suggest that PBOs should invest in developing a knowledge governance system that guides and stimulates knowledge sharing within and between projects. This would boost the ACAP of projects and lead to superior project performance. Originality/value This study addresses the important issue of knowledge management in IT/software projects. It proposes a unique model that integrates the key constructs of knowledge management and describes their effect on project performance.

The effect of foreign market knowledge on SME export performance: a study ofnon-traditional SMEs in Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aidatu Abubakari ◽  
Kwame Simpe Ofori ◽  
Henry Boateng ◽  
Koffi N’Da ◽  
Robert Ebo Hinson
Keyword(s):  
Multinational Corporations ◽  
Absorptive Capacity ◽  
Developing Economies ◽  
Export Performance ◽  
Foreign Market ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Market Knowledge ◽  
Content Type ◽  
The Relationship

Purpose It is well documented in the extant literature that knowledge plays a crucial role in small and medium enterprise (SME) internationalization. Exporting SMEs from developing economies faces many challenges, including lack of knowledge about institutions in foreign markets, inadequate knowledge about foreign institutions and limited internationalization knowledge (IK). However, research on the export performance of SMEs has thus far focused on the internationalization strategies of multinational corporations. This study aims to explore the effect of foreign market knowledge on SME export performance. The authors also assessed the moderating effect of employee absorptive capacity in the knowledge-performance nexus. Design/methodology/approach The authors adopted a survey design to collect data from owners/managers of SMEs exporters in the Greater Accra region of Ghana. A total of 350 questionnaires were distributed based on convenience. Of this number, 257 usable responses were used in the final analysis. The authors tested the proposed model using partial least squares-structural equation modeling. Findings The findings show that the three types of foreign market knowledge tested in this study, namely, foreign institutional knowledge (FIK), foreign business knowledge and IK have positive and significant effects on SME exporters’ performance. It also shows that employees’ absorptive capacity affects the relationship between FIK and SME exporters’ performance. Originality/value The study demonstrates the types of knowledge relevant to SME export performance. The study further demonstrates the moderating effect of employee absorptive capacity on the relationship between knowledge and export performance. The study advances existing knowledge on SME performance, especially from an emerging economy context.

How firms accumulate knowledge to innovate – an empirical study of Vietnamese firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Duy Quoc Nguyen
Keyword(s):  
Developing Countries ◽  
Knowledge Acquisition ◽  
Absorptive Capacity ◽  
Open Innovation ◽  
Content Type ◽  
Innovative Performance ◽  
External Knowledge ◽  
Knowledge Depth ◽  
Exploratory Innovation ◽  
External Knowledge Acquisition

PurposeOrganizational innovations are closely associated with organizational knowledge, and thus a firm builds its knowledge base to enhance its innovative performance. However, insights into this process are still limited, especially in the context of firms in developing countries. Building on the dynamic managerial capabilities literature and open innovation paradigm, this paper attempts to fill this gap by developing and empirically testing a model that investigates how firms in developing countries accumulate knowledge to innovate.Design/methodology/approachA model of a firm's knowledge accumulation and innovation is proposed in which it specifies relationships among absorptive capacity, knowledge breadth, research and development (R&D), knowledge depth, exploratory innovation and exploitative innovation, and then it is empirically tested by using the structural equation modeling (SEM) technique based on the surveyed data of Vietnamese firms.FindingsThe results indicate that absorptive capacity positively influences both knowledge breadth and knowledge depth, knowledge breadth positively influences R&D, R&D positively influences exploratory innovation and knowledge depth, and knowledge depth positively influences exploratory and exploitative innovation.Practical implicationsThe study proposes an “acquire and develop” open innovation model for firms in developing countries in which firms acquire external technologies and then develop R&D (develop and design) capability to adapt acquired technologies to their local conditions to create new organizational-specific capabilities and exploratory innovation.Originality/valueThis study argues that external knowledge acquisition is beneficial to innovative performance of firms in developing countries via renewing their knowledge base. Furthermore, the study provides the unique evidence that novel external knowledge acquisition and internal R&D are fit to each other in the fit-as-mediation form in which novel external knowledge acquisition is mediated by R&D to positively influence exploratory innovation.

Gamification Impact on Customer Relationship Development in Virtual Environment

2015 ◽  
pp. 108-128
Author(s):  
Rimantas Gatautis ◽  
Audrone Medziausiene
Keyword(s):  
Virtual Environment ◽  
Customer Relations ◽  
Perceived Value ◽  
Customer Relationship ◽  
Empirical Validation ◽  
Development Stages ◽  
Game Mechanics ◽  
Proposed Model ◽  
Main Component ◽  
Game Elements

The chapter analyzes gamification conception presenting different perspective towards gamification. Game elements, game mechanics and game dynamics are discussed within the chapter as a main component gamification. Customer relations development stages are presented analyzing acquisition, retention and enchantment stages. The proposed conceptual model describes game elements impact on customer relations development and perceived value. The proposed model empirical validation results in Lithuania market are discussed.

Determinants of the Use of Knowledge Sources in the Adoption of Open Source Server Software

2012 ◽  
pp. 287-304
Author(s):  
Kris Ven ◽  
Jan Verelst
Keyword(s):  
Open Source ◽  
Absorptive Capacity ◽  
Exploratory Study ◽  
Knowledge Sources ◽  
External Knowledge ◽  
Capacity Theory ◽  
Knowledge Barriers ◽  
Server Software ◽  
Use Of Knowledge ◽  
Insight Into

Previous research suggests that the adoption of open source server software (OSSS) may be subject to knowledge barriers. In order to overcome these barriers, organizations should engage in a process of organizational learning. This learning process is facilitated by exposure to external knowledge sources. Unfortunately, this leaves open the question of which factors determine which knowledge sources are used by organizations. In this study, the authors have performed an exploratory study on the determinants of the use of knowledge sources in the adoption of OSSS. The conceptual model developed in this study was based on the absorptive capacity theory. Data was gathered from 95 organizations to empirically investigate this model. Results provide a quite consistent view on how external knowledge sources are used by organizations in the adoption of OSSS. Moreover, results provide more insight into the context in which the adoption of OSSS takes place.

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