An examination of the individual and interaction effect of absorptive capacity and corporate political activity on product innovation

Li, Yanyan; Gao, Shanxing

doi:10.1080/19761597.2021.2020671

Cited by 3 publications

(1 citation statement)

References 85 publications

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“…Existing knowledge base plays a crucial role in acquiring external knowledge, as it provides the capacity to absorb acquired knowledge (Pu and Liu, 2023). On the other hand, combining external knowledge into the existing knowledge base helps the firm to new technological capabilities which leads the firm to prepare better for innovation in products or services (Li and Gao, 2023). We can thus argue that by following diversification strategy, a firm takes advantage of its accumulated knowledge breadth to acquire and recombine external (complementary) knowledge and integrate them with existing knowledge and other R&D Management 54, 4, 2024 869 micro-foundations (i.e., tools and skills) to create new technologies.…”

Section: The Moderating Role Of Diversification Strategymentioning

confidence: 99%

From depth and breadth of knowledge to technological capability: a journey inside a firm's intellectual capital

Esfandyarpour,

Arasti,

Farazi

et al. 2024

R & D Management

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In the current knowledge‐intensive economy, a firm's intellectual capital refers to its idiosyncratic internal and external knowledge‐related assets. While technological knowledge is a major constituent of intellectual capital, past research has often equated it with technological capability. However, technological capability includes not only codified knowledge, but also tacit know‐how that is not captured by formal intellectual property. We argue that while a firm's patents might serve as a proxy for measuring its base of technological knowledge, they are not a good proxy for a firm's technological capabilities. Therefore, we offer a novel approach based on a machine learning technique to capture a biopharmaceutical firm's technological capabilities using the clinical trials that it carries out. Picturing a hypothetical journey where firms transform and exploit technological knowledge to move towards building technological capabilities, we address a research gap on the link between a firm's depth and breadth of technological knowledge on the one hand, and its technology diversity on the other. Analyzing a sample of 204 biopharma firms from 2006 to 2018, we find a positive relationship between the breadth of technological knowledge and technology diversity in a firm. In contrast, the relationship between the depth of technological knowledge and technology diversity is negative. We also find that in the presence of product/market diversification, the positive relationship between the breadth of technological knowledge and technology diversity is stronger. Implications for research and practice are also discussed.

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Section: The Moderating Role Of Diversification Strategymentioning

confidence: 99%

From depth and breadth of knowledge to technological capability: a journey inside a firm's intellectual capital

Esfandyarpour,

Arasti,

Farazi

et al. 2024

R & D Management

View full text Add to dashboard Cite

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Nonmarket strategy and innovation performance in pharmaceutical industry: the moderating effect of internal capability and external IT environment

Li,

Gao,

Kwok

2024

CMS

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Purpose The purpose of this study is to explore the relationship between nonmarket strategy and innovation performance, as well as the boundary factors that influence this relationship in the context of the pharmaceutical industry in emerging markets. Design/methodology/approach This study analyzed matched data of 227 Chinese pharmaceutical firms and two secondary databases with SPSS to examine the hypotheses. Findings Nonmarket strategy promotes the innovation performance. High level of firm internal knowledge utilization ability and strategic flexibility strengthens the effect of nonmarket strategy in promoting innovation performance, while information technology (IT) environment weakens the effect of nonmarket strategy in promoting innovation performance. Originality/value The research studies the positive impact of nonmarket strategy on innovation performance in the specific context of Chinese pharmaceutical industry, and it introduces the internal capabilities and external IT environment of the firm as moderators of the relationship between nonmarket strategy and innovation performance. More importantly, this research echoes the call for research on moderator of nonmarket strategy and identifies important boundary conditions. To the best of the authors’ knowledge, it also explores the impact of the IT environment on the implementation of nonmarket strategy for the first time, which deepens the research on nonmarket strategy’s effect on innovation.

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Entrepreneurial Orientation and Performance Outcomes in Palestinian SMEs: The Role of Absorptive Capacity and Industry Type

Jallad,

Karadas

2024

Sustainability

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Entrepreneurship lies at the heart of Small and Medium Enterprises, serving as the driving force behind their inception and development. By examining the mediating role of absorptive capacity and the moderating effect of industry type, this paper looks at how an entrepreneurial orientation affects business sustainability performance, knowledge management capacity, and innovation performance. This study will examine this critical role played by entrepreneurial orientation in SMEs’ success in a competitive business environment. A quantitative research method was used with questionnaires sent to 303 manufacturing SME owners or managers in the North West bank of Palestine. The demographic background of the participants was varied, and contributed to this diverse description of the manufacturing sector. The hypothesized relationships were tested using PLS structural equation modeling. The research findings indicate that entrepreneurial orientation influences absorptive capacity, business sustainability performance, and knowledge management capacity and innovation performance directly and significantly. These findings were consistent with the study’s hypothesis that absorptive capacity mediates the relationship between entrepreneurial orientation and both business sustainability performance and knowledge management capability, as well as innovation performance. Furthermore, the nature of the industry influences the relationship between absorptive capacity and business sustainability performance. This research is original and of great value because it relies on the managers’ knowledge about the application of entrepreneurial orientation in order to improve the results of SMEs. Since the appropriate moderating variables differ across industry types, it may be best for each industry to develop industry-specific benchmarks and standards for industry-level business sustainability performance that the SMEs can use to see what pertains to them and what are the opportunities, and then compare the success of this industry to what they are in.

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An examination of the individual and interaction effect of absorptive capacity and corporate political activity on product innovation

Cited by 3 publications

References 85 publications

From depth and breadth of knowledge to technological capability: a journey inside a firm's intellectual capital

From depth and breadth of knowledge to technological capability: a journey inside a firm's intellectual capital

Nonmarket strategy and innovation performance in pharmaceutical industry: the moderating effect of internal capability and external IT environment

Entrepreneurial Orientation and Performance Outcomes in Palestinian SMEs: The Role of Absorptive Capacity and Industry Type

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