Absorptive capacity, technological innovation, and product life cycle: a system dynamics model

Abstract

BackgroundWhile past research has recognized the importance of the dynamic nature of absorptive capacity, there is limited knowledge on how to generate a fair and comprehensive analytical framework. Based on interviews with 24 Chinese firms, this study develops a system-dynamics model that incorporates an important feedback loop among absorptive capacity, technological innovation, and product life cycle (PLC).ResultsThe simulation results reveal that (1) PLC affects the dynamic process of absorptive capacity; (2) the absorptive capacity of a firm peaks in the growth stage of PLC, and (3) the market demand at different PLC stages is the main driving force in firms’ technological innovations. This study also explores a sensitivity simulation using the variables of (1) time spent in founding an external knowledge network, (2) research and development period, and (3) knowledge diversity. The sensitivity simulation results show that the changes of these three variables have a greater impact on absorptive capacity and technological innovation during growth and maturity stages than in the introduction and declining stages of PLC.ConclusionsWe provide suggestions on how firms can adjust management policies to improve their absorptive capacity and technological innovation performance during different PLC stages.

The mediating effect of knowledge exploitability and organizational agility on the relationship between marketing adaptation strategy and sustainable competitive advantage

“…Differences in products or brands that are relevant, have meaning, and have customer value is a form of product differentiation (Almeida & Garrod, 2018). Product diversity refers to the degree of linkage of different product segments by offering a unique, diverse product differential, unique product to market (Zou et al, 2016), the competing products and brands that are needed by the customer (J. S. C. Hsu et al, 2017), and to the planned corporate activity to make the value of local consumers with product differentiation (Jirawuttinaunt & Ussahawanitchakit, 2011). These activities can affect knowledge exploitability, agility, and sustainable competitive advantage (Joshi & Sharma (2004), Sambamurthy et al (2003) Kim et al (2015).…”

Modelo Conceitual e Proposições sobre Capacidade Absortiva em Projetos de P&D Vinculados à Alianças Estratégicas: Um Ensaio Teórico

“…Mas a inovação também pode ser uma forma de retroalimentar a Capacidade Absortiva, gerando um processo cíclico de manutenção da vantagem competitiva e nova geração de inovações (Lane et al, 2006). Esta retroalimentação e a escalabilidade da CA conferem dinamismo (Zou, Guo, & Guo, 2016) ao modelo conceitual proposto. Assim, apresenta-se o modelo conceitual:…”

Reconciliation of deterministic and knowledge management approaches for a better understanding of SFA’s impact on salespersons’ performance

“…Organizational determinism is based on the primacy of the organizational aspects over the technological aspects and conveys a sequence based on a linear causality ranging from the organization and users to the information system. Huang et al (2015) and Zou et al (2016) negatively criticized the deterministic approach by stating that the technological determinist seems to consider technological tools as unequivocal and unable to take into account the unexpected consequences of the use or even the appropriation of technology (Yayla and Hu, 2007). As for the organizational deterministic approach, Huang et al (2015) state that information systems are losing their specificity and cannot predict, with certainty, the behavior of the players involved in the process.…”

“…The growing importance of knowledge management is reflected in the fact that this area of research has been an important topic in recent scientific and practical management studies (Huang et al, 2015;Zou et al, 2016). Thus, the successful management of knowledge has become a crucial differentiator for Western businesses and it can be used to understand the individual and organizational performance (Chen and Huang, 2009).…”