A framework and model for absorptive capacity in a dynamic multi-firm environment

D′Souza, Derrick E.; Kulkarni, Shailesh

doi:10.1016/j.ijpe.2015.05.008

Cited by 17 publications

(15 citation statements)

References 77 publications

(79 reference statements)

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“…This routine will assist the market response through continuous development and improvements in the organization. So, in accordance with authors such as Bagchi et al ; Jansen, Van den Bosch, and Volberda ; Lane, Koka, and Pathak ; Kostopoulos et al ; Tzokas et al , and Zahra and George , we have confirmed the potential of absorption capacity to contribute to the explanation of these business results; in accordance, for example, with the works of D'Souza and Kulkarni ; Engelen et al , and Tzokas et al , we have also corroborated it in SMEs. However, our results have in addition shown that such a potential is also present in the complex context of born‐global SMEs and early internationalization.…”

Section: Resultssupporting

confidence: 91%

“…However, it is the skill of obtaining that knowledge, recognizing its value, assimilating it, and using it that can provide a competitive advantage (Bagchi et al ; Jansen, Van den Bosch, and Volberda ; Jiao et al ; Kostopoulos et al ; Lane, Koka, and Pathak ; Rialp, Rialp, and Knight ; Tzokas et al ; Zahra, Ireland, and Hitt ; Zahra and George ). This superior skill is defined as a dynamic absorption capacity, although over recent years, its important role has been explored in the context of SMEs in dynamic environments (D'Souza and Kulkarni ; Engelen et al ; Tzokas et al ); to date the literature on born‐global SMEs contains no studies on the effect of this dynamic capability on the results of such companies. So, with the purpose of filling the existing gap, our work proposes that dynamic absorption capacity becomes the fundamental grounds for the development of competitive advantages and value creation in born‐global SMEs.…”

Section: Dynamic Absorption Capacity In Born‐global Smesmentioning

confidence: 99%

“…In fact, Cavusgil and Knight (, p. 11) had already highlighted the possible value of this dynamic capability in their own work, preparing the following question for future research: “What is the role of absorptive capacity in acquiring capabilities for early and successful internationalization?”—an as yet unexplored issue in the research on born‐global firms. Numerous works may be found in the literature that highlight the potential of absorption capacity to further competitive advantage (e.g., Bagchi et al ; Jansen, Van den Bosch, and Volberda ; Kostopoulos et al ; Lane, Koka, and Pathak ; Tzokas et al ; Zahra and George ; Zahra, Ireland, and Hitt ), and only recently in the context of SMEs in dynamic environments (D'Souza and Kulkarni ; Engelen et al ; Tzokas et al ). However, the literature on born‐global SMEs would benefit from a study that analyzes the role of dynamic absorption capacity in the performance of these firms.…”

Section: Introductionmentioning

confidence: 99%

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Born‐Global SMEs, Performance, and Dynamic Absorptive Capacity: Evidence from Spanish Firms

Rodríguez‐Serrano

Martín‐Armario²

2019

Journal of Small Business Management

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Interest has grown in explaining the positive performance of small businesses that internationalize from start up. In response to this question, we have empirically confirmed the relevant role played by dynamic absorption capacity in these firms and the influence of an entrepreneurial market‐oriented culture, on the basis of the Dynamic Capabilities Approach, through a sample of 102 Spanish born‐global SMEs. The success of these firms is determined by their ability to assimilate and to use knowledge in accordance with the demands of the market.

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Section: Resultssupporting

confidence: 91%

Section: Dynamic Absorption Capacity In Born‐global Smesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Born‐Global SMEs, Performance, and Dynamic Absorptive Capacity: Evidence from Spanish Firms

Rodríguez‐Serrano

Martín‐Armario²

2019

Journal of Small Business Management

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“…This ability captures the concept of realized absorptive capacity (RACAP) – a dimension of absorptive capability (ACAP) (Zahra and George, ). Although it has been reported that ACAP as a dynamic capability, which is built on higher‐order routines (Lewin et al, ; Wuyts and Dutta, ), can influence organizational outcomes (D’Souza and Kulkarni, ), limited if any empirical research on ACAP’s effect on organizational change has been undertaken. The above discussion leads to three specific research questions: (1) Whether and to what extent does ACAP facilitate organizational change ?…”

Section: Introductionmentioning

confidence: 99%

“…This research makes several contributions. First, by clarifying the relationships of transformation and exploitation capability with organizational change, we respond to research calls for more attention to the effects of resources and capabilities on organizational change (Kuusela et al, ), in particular the effects of ACAP in organizations from emerging economies (D’Souza and Kulkarni, ). Our research provides insights on the extent to which RACAP is likely to be used as a facilitator for organizational change, including the differential effects of different dimensions of RACAP on organizational change.…”

Section: Introductionmentioning

confidence: 99%

Realized absorptive capacity and entrepreneurial universities’ organizational change: the role of process innovation practices

2019

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Although essential to all institutions, organizational change is a complex and high risk activity. In this paper, we examine how organizations develop and implement capabilities to facilitate organizational change. Drawing on the dynamic capability perspective and a 'resourcing' synergy view, we investigate how realized absorptive capacity in terms of transformation and exploitation capability directly affects organizational change, and how process innovation practices act as an effective mechanism that link transformation and exploitation capability with organizational change. To distinguish our analysis, we focus on both an emerging organizational form and an emerging economy context. Specifically, on the basis of a questionnaire survey of 316 academics from entrepreneurial universities in Malaysia, we find that both transformation and exploitation capability are facilitators of organizational change. However, the relationship of transformation capability with organizational change is fully mediated by process innovation practices, while the relationship between exploitation capability and organizational change is partially mediated by process innovation practices. Our research therefore contributes to the dynamic capability perspective of organizational change and absorptive capacity by highlighting the importance of integrating organizational transformation and exploitation capability with process innovation practices in different ways to facilitate organizational change. Our findings and accompanying discussion on how process innovation practices can generate moves towards universities that are more entrepreneurial will also be of interest to university managers and policy makers.

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Linking Digital Capacity to Innovation Performance: the Mediating Role of Absorptive Capacity

et al. 2022

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Digital technologies are considered as factors that accelerate the pace of innovation and increase the firm’s innovation performance. However, few studies have investigated whether this claim is conditioned by other elements that contribute to innovation. Furthermore, firms increasingly rely on external knowledge sources to expand their internal knowledge base for the development of innovations. In this context, absorptive capacity can be considered as an essential organizational capability to embrace adoption of digital technologies and enhance their positive effect on innovation performance. This paper builds on this discussion and studies the contribution of digital capacity on innovation performance, proposing the mediating role of absorptive capacity in the context of the digital transformation. It uses evidence from an extensive Greek survey in 1014 manufacturing firms and analyzes the complex relationships underlying the role of digital transformation to innovation. The contribution of the paper is two-fold: (i) it provides a deeper insight into the underlying mechanisms through which firms can leverage their digital capacity to accelerate innovation, and (ii) it highlights the important mediating role of absorptive capacity in enhancing the positive effects of digitalization indicating that digital capacity is not an unquestionable asset for innovation performance. Accordingly, our results show a positive direct contribution of digital capacity to innovation performance, which is enhanced in the presence of absorptive capacity as a mediator. In fact, the indirect effect of digital capacity to innovation performance through absorptive capacity is stronger. These findings present important policy implications, as there is need for improvement in other innovation-related aspects of the business ecosystem to efficiently address the challenge of digital transformation, such as R&D efforts, training, interaction among actors, and building of communities of practice.

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A framework and model for absorptive capacity in a dynamic multi-firm environment

Cited by 17 publications

References 77 publications

Born‐Global SMEs, Performance, and Dynamic Absorptive Capacity: Evidence from Spanish Firms

Born‐Global SMEs, Performance, and Dynamic Absorptive Capacity: Evidence from Spanish Firms

Realized absorptive capacity and entrepreneurial universities’ organizational change: the role of process innovation practices

Linking Digital Capacity to Innovation Performance: the Mediating Role of Absorptive Capacity

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