The Impact of Corporate Culture on the Absorptive Capacity and Innovative Capacity of Companies

2013 ◽  
Vol 4 (3) ◽  
pp. 36-51
Author(s):  
Enric Serradell López ◽  
Carlos Grau Alguero
Keyword(s):  
Cultural Values ◽  
Corporate Culture ◽  
Absorptive Capacity ◽  
Significant Influence ◽  
Latent Variable ◽  
Management Strategies ◽  
Radical Innovation ◽  
Structural Equations ◽  
The Impact ◽  
Innovative Capacity

The purpose of this study is to gain a better understanding of the influence of corporate culture in the absorptive and innovative capacities of Spanish enterprises. This is an exploratory study conducted involving top managers from a sample of 53 large Spanish companies. An empirical analysis is performed using a structural equations model and bootstrapping methodology. The paper highlights the role of corporate culture as a concept that has a significant influence on the absorptive capacity and also on the innovative capacity of enterprises. The absorptive capacity is presented as a system that makes a work of observation, identification, collection and use of information and knowledge from abroad, which is considered essential to achieving and sustaining competitive advantage. The research performed shows how the different components of absorptive capacity, found in the literature are significant configuring the capacity as a latent variable with economic sense. Furthermore, regarding the sample studied, corporate culture has a significant influence on the innovative capacity. The model explains the influence of culture in the innovative capacity, and in the two components of it, incremental and radical innovation. The investigation has found also some interactions not included in the model proposed, as for example the relationship between the recognition as the part of the absorptive capacity component more related with radical innovation. The empirical model performed need to be replicated with other samples for further findings and possible generalization. Deconstructing corporate culture in eight dimensions permits to use some of them in a prescriptive way. The adoption of certain cultural values and attitudes and the use of management strategies designed to promote these values and attitudes, encourage the company to more easily benefit from the opportunities of their environment, increasing the ability to manage information of the environment.

ICT SMEs, Performance, Absorptive Capacity and Transformative Capacity

2019 ◽  
Vol 118 (3) ◽  
pp. 178-188
Author(s):  
Yeon-Sung Cho ◽  
Kyung-Il Khoe
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Empirical Analysis ◽  
Absorptive Capacity ◽  
Latent Variables ◽  
Equation Modeling ◽  
Transformative Capacity ◽  
The Impact ◽  
The Empirical Analysis ◽  
Innovative Capacity

This study intends to integrate the relationship of market orientation, innovative capacity and firm performance to Information and Communication Technology(ICT) SMEs. The purpose of this study is to identify the role of absorptive capacity and transformative capacity that affect the performance of ICT SMEs. Hypotheses were established between five latent variables. A total of six hypotheses were established including the moderated effects of absorptive capacity and transformative capacity. Of the data collected after the survey, 112 valid surveys were selected as the final sample, except for 17 questionnaires with high non - response and insincere response. The empirical analysis of this study used smartpls3.0, Partial Least Squares (PLS), a variance-based structural equation modeling. The empirical analysis of this study revealed that the impact of market orientation on innovative capacity was significant. Moreover, the innovative capacity had a positive effect on the performance of ICT SMEs. In addition, the absorptive activity had a positive moderated effect between the market orientation and the innovative capacity. On the other hand, the transformative capacity showed a positive moderated effect in relation to innovative capacity and firm performance. Our empirical results have demonstrated the importance of knowledge based capacity in the ICT SMEs.

scholarly journals Firm’s strategic choices and network knowledge dynamics: how do they affect innovation?

2018 ◽  
Vol 22 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Jose Antonio Belso-Martinez ◽  
Isabel Diez-Vial
Keyword(s):  
Absorptive Capacity ◽  
Knowledge Networks ◽  
Knowledge Network ◽  
Strategic Choices ◽  
Network Growth ◽  
Content Type ◽  
Endogenous Factors ◽  
The Impact ◽  
Innovative Capacity ◽  
Over Time

Purpose This paper aims to explain how the evolution of knowledge networks and firms’ strategic choices affect innovation. Endogenous factors associated with a path-dependent evolution of the knowledge network are jointly considered with a firm’s development of international relationships and increasing internal absorptive capacity over time. Design/methodology/approach In a biotech cluster, the authors gathered data on the firms’ characteristics and network relationships by asking about the technological knowledge they received in the cluster in 2007 and 2012 – “roster-recall” method. Estimation results were obtained using moderated regression analysis. Findings Firms that increase their involvement in knowledge networks over time also tend to increase their innovative capacity. However, efforts devoted to building international links or absorptive capacity negatively moderate the impact of network growth on innovation. Practical implications Practitioners have two alternative ways of increasing innovation inside knowledge networks: they can increase their centrality by developing their knowledge network interactions or invest in developing their internal absorptive capacity and new international sources of knowledge. Investing in both of these simultaneously does not seem to improve a firm’s innovative capacity. Originality/value Coupling firms’ strategic options with knowledge network dynamics provide a more complete way of explaining how firms can improve their innovative capacity.

scholarly journals Impact of Cultural Indicators on the Economic Performance of International Companies

2021 ◽  
Vol 17 (2) ◽  
pp. 593-606
Author(s):  
Tamara V. Kuprina ◽  
Galina O. Ivanova
Keyword(s):  
Cultural Values ◽  
Employee Engagement ◽  
Corporate Culture ◽  
Economic Performance ◽  
Interdisciplinary Studies ◽  
Economic Indicators ◽  
Economic Activities ◽  
Important Indicator ◽  
The Impact ◽  
International Companies

Nowadays, international companies are looking for new ways to improve their performance. Most studies on this issue do not consider the social environment and established corporate culture that have a direct impact on economic indicators. Based on econometric data, this research confirms the impact of cultural indicators on the economic activities of international companies in Russia, Germany and Japan, representing national, European and Asian cultures. The quantitative Denison’s method allowed us to examine the corporate culture and assign numerical values to its characteristics. The impact of cultural indicators (engagement, consistency, adaptability, mission) was assessed by means of correlation and regression analysis. According to the data obtained, even though employee engagement is shown to be the most important indicator in general, the performance and economic indicators of various enterprises are affected differently. For Russian companies, the most significant cultural indicators determining the overall performance are adaptability and engagement, as the mission indicator has the least impact. The factors of mission and engagement are of utmost importance for German organisations, while consistency and adaptability are less relevant. The economic performance in Japanese companies is strongly influenced by their mission and consistency, and the indicators of engagement and adaptability are secondary. However, the conducted research does not cover the whole variety of interactions between international companies. Future interdisciplinary studies should examine how cultural indicators influence the economic activity of companies of countries in different world regions. In the context of globalisation and localisation processes, international companies need to adapt their activities, taking into account the local cultural values.

When it comes to the impact of absorptive capacity on co-innovation, how really harmful is knowledge leakage?

2020 ◽  
Vol 24 (8) ◽  
pp. 1841-1857
Author(s):  
José Arias-Pérez ◽  
Nelson Lozada ◽  
Edwin Henao-García
Keyword(s):  
Absorptive Capacity ◽  
Least Squares Method ◽  
Traditional Approach ◽  
Collaborative Work ◽  
Structural Equations ◽  
Moderating Effect ◽  
Surprising Result ◽  
Content Type ◽  
Knowledge Leakage ◽  
The Impact

Purpose This paper aims to analyze the moderating effect of knowledge leakage on the relationship between absorptive capacity and co-innovation, which implies collaborative work and knowledge exchange with external actors on virtual innovation platforms. Design/methodology/approach The research model was tested in a sample of companies through the use of structural equations by the partial least squares method. Findings The results confirm that absorptive capacity is a prior condition for co-innovation. However, the most interesting and surprising result has to do with knowledge leakage, which actually has a negative moderating effect, but whose size is modest, which dismisses the great damages that such leakage could generate. Originality/value This study is pioneering in analyzing knowledge leakage in the context of virtual innovation platforms, which occurs in a different manner as compared to leakage in the context of collaborative research and development, widely analyzed in the literature. However, the main contribution of the paper lies in the fact that the results evidence the existence of an intermediate position between the traditional approach that insists on demonstrating the devastating consequences of the leakage and the emerging approach that dismisses these negative repercussions and conceives leakage as a positive organizational phenomenon, natural and inherent to the interaction of the firm with the environment. The results also contradict recent empirical evidence that completely dismisses the negative repercussions of knowledge leakage in contexts where incremental innovations prevail.

scholarly journals The Effects of Organizational Absorptive Capacity, Professional Experience and Training over the Use of Sales Force Automation

2021 ◽  
Vol 19 (1) ◽  
pp. 15-32
Author(s):  
Kaouther Jridi ◽  
Amel Chaabouni
Keyword(s):  
Absorptive Capacity ◽  
Positive Impact ◽  
Positive Influence ◽  
Sales Force ◽  
Structural Equations ◽  
Professional Experience ◽  
Continuous Training ◽  
Sales Force Automation ◽  
Absorptive Capacities ◽  
The Impact

This research brings out the impact of training and professional experience on organizational absorptive capacity and the use of Sales Force Automation (SFA). A quantitative study was conducted on a sample of 186 medical sales representatives who work in the pharmaceutical industry. The method of structural equations based on the PLS approach and linear regression have been deployed for data analysis. The results reveal a positive impact of the training over organizational absorptive capacity (potential absorptive capacity and realized absorptive capacity) and the use of SFA as well as a positive impact of professional experience on organizational absorptive capacity. Furthermore, the organizational absorptive capacity has a positive influence on the use of the SFA. This study contributes to the literature on SFA use by examining the role of training, professional experience, realized and potential absorptive capacities in the SFA use. This research is appropriate for managers of pharmaceutical companies who constantly seek to improve the use of SFA technologies. Thus, the staff of these companies is more likely to perform their duties in a way that promotes their realized and potential absorptive capacities and the best use of SFA through continuous training for inexperienced and experienced salespeople.

The impact of customer value types on customer outcomes for different retail formats

2016 ◽  
Vol 27 (4) ◽  
pp. 591-618 ◽  
Author(s):  
Kim Willems ◽  
Sara Leroi-Werelds ◽  
Gilbert Swinnen
Keyword(s):  
Latent Variable ◽  
Customer Value ◽  
Three Dimensional ◽  
Structural Equations ◽  
Content Type ◽  
Strategic Objectives ◽  
Value Types ◽  
Retail Format ◽  
The Impact ◽  
Retail Formats

Purpose – The purpose of this paper is to profile grocery retailers in terms of seven value types based on Holbrook’s value typology; to link these value types to three key outcomes (i.e. satisfaction, repurchase intention, and word-of-mouth); and to evaluate the impact of the retail format on performance and importance of the seven value types. Design/methodology/approach – For each retail format, the authors administered a consumer survey, resulting in an aggregate sample of 392 respondents. The authors used partial least squares structural equations modeling to test the relationships between the value types and key outcomes (i.e. importance) and ANOVAs to examine cross-format differences between latent variable scores of the value types (i.e. performance). Findings – The three retail formats included in the study perform differently on Holbrook’s value types (e.g. non-discounters excel in terms of aesthetic value and play, compared to hard and soft discounters). Furthermore, this study reveals that the strategic importance of each value type depends on the key outcome (e.g. whereas efficiency is the main source of satisfaction, play mainly drives the other two outcomes). Research limitations/implications – The authors randomly assigned respondents to one of the three retail formats irrespective of their personal preference or patronage. To conduct value-based segmentation, respondents should evaluate either their preferred format or all supermarkets. Practical implications – This study offers positioning advice to retail managers, according to their format and strategic objectives. Originality/value – Unlike previous research, this paper provides a cross-format comparison of retailers based on a three-dimensional value typology and its key outcomes.

Organizational leadership as a factor of building corporate culture and performance

2018 ◽  
Vol 2 (2) ◽  
pp. 15-24
Author(s):  
Jiaqi Sun
Keyword(s):  
Leadership Development ◽  
Cultural Values ◽  
Leadership Style ◽  
Corporate Culture ◽  
Management System ◽  
Health And Safety ◽  
Development Trend ◽  
Review Literature ◽  
Future Research ◽  
The Impact

Organizations encounter the challenge of lacking leadership development pipelines and changing demographics in the workplace. The paper aims to review literature on leadership and its relationship with organizational culture and motivate organizations to embark on change initiatives to continually improve their occupational health and safety (OHS) operations. The key objectives are helping organizations understand the relationship between leadership and OHS performance and how cultural values help connect the dot between them, putting leadership styles into context by focusing on internal factors that impact on an organization, highlighting the development trend of OHS risk management industry throughout the discussion, focusing on some practical guideline on implementing OHS improvement initiatives, introducing the correlation between leading and lagging indicators as a measure of the effectiveness of leadership in enhancing OHS performance. The study develops a framework of operation transmission mechanism that embraces an OHS management system (OHSMS), describes the delivery of cultural value and the impact on workers’ behavior. The outcome of this applied research presents industry good practices that are field tested expertise and guides organizations implement an OHSMS that facilitates organizational leaders to deliver cultural values with appropriate leadership style and organizational health. The OHSMS encompasses, amongst others, policy, process, procedure, standards and techniques. And the design of such a management system is recommended for future research.

scholarly journals The effect of digital marketing on customer relationship management in the education sector: Peruvian case

2021 ◽  
Vol 9 (3) ◽  
pp. 549-554 ◽  
Author(s):  
Sofía Oré-Calixto ◽  
Wagner Vicente-Ramos
Keyword(s):  
Customer Relationship Management ◽  
Significant Influence ◽  
Educational Institution ◽  
Relationship Management ◽  
Structural Equations ◽  
Customer Relationships ◽  
Customer Relationship ◽  
Digital Marketing ◽  
Operational Management ◽  
The Impact

The objective of the research was to determine the impact of Digital Marketing on customer relationship management (CRM) in an educational institution in central Peru. The study was carried out from the quantitative approach, with a non-experimental correlational transactional research design. A questionnaire was applied to 228 parents between the ages of 30 and 50 who belong to an educational institution in the city of Concepción in Peru. Using the structural equations model, it was found that Content Marketing has a significant influence on the operational management of customer relationships (p <0.05), as well as on the analytical management of customer relationships (p <0.05). Regarding the Marketing of social networks, it was identified that it has a significant influence on the operational management of customer relationships (p <0.05), as well as on the analytical management of customer relationships (p <0, 05), because the media used by educational institutions are attractive to parents. It is concluded that Digital Marketing has a great impact on customer relationship management (CRM) in the educational sector of a city in central Peru.

Information and Communication Technology and Cultural Change

2012 ◽  
Vol 43 (4) ◽  
pp. 222-231 ◽  
Author(s):  
Nina Hansen ◽  
Tom Postmes ◽  
Nikita van der Vinne ◽  
Wendy van Thiel
Keyword(s):  
Cultural Values ◽  
Information And Communication Technology ◽  
Communication Technology ◽  
Cultural Change ◽  
Control Group ◽  
Self Construal ◽  
Information And Communication ◽  
The Impact ◽  
Ict For Development ◽  
Practical Implications

This paper studies whether and how information and communication technology (ICT) changes self-construal and cultural values in a developing country. Ethiopian children were given laptops in the context of an ICT for development scheme. We compared children who used laptops (n = 69) with a control group without laptops (n = 76) and a second control group of children whose laptop had broken down (n = 24). Results confirmed that after 1 year of laptop usage, the children’s self-concept had become more independent and children endorsed individualist values more strongly. Interestingly, the impact of laptop usage on cultural values was mediated by self-construal (moderated mediation). Importantly, modernization did not “crowd out” traditional culture: ICT usage was not associated with a reduction in traditional expressions (interdependent self-construal, collectivist values). Theoretical and practical implications are discussed.

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