“…Absorptive capacity has been investigated in a number of performance models in prior research, and many of these studies have proven positive relationship with firm performance (Yeoh, 2009;Lichtenthaler, 2009;Bergh & Lim, 2008;Murray & Peyrefitte, 2007;Ng, 2011;Parida, 2009). Deeds (2001) found absorptive capacity to positively influence new wealth creation, while Huang and Rice (2009) and Jolly and Therin (2007) found that firms easily assimilate knowledge to develop innovations. Muscio (2007) proved that absorptive capacity improves the collaboration with other organizations, and Hayton and Zahra (2005) found that it increases the ability to acquire additional resources.…”
Section: Absorptive Capacity and Firm Performancementioning
This paper examines the effect of recent configuration of strategic orientation on SME performance and the moderating effect of absorptive capacity of the firm. Data from 350 owner-managers of small and medium scale hotel and restaurants in Sri Lanka were used with structural equation modelling. The structural model investigates the direct effects of market, entrepreneurial, and learning orientations on firm performance and moderating effect of absorptive capacity. Results indicate that SMEs with high level of absorptive capacity would achieve higher performance by maintaining higher level of strategic orientation.
“…Absorptive capacity has been investigated in a number of performance models in prior research, and many of these studies have proven positive relationship with firm performance (Yeoh, 2009;Lichtenthaler, 2009;Bergh & Lim, 2008;Murray & Peyrefitte, 2007;Ng, 2011;Parida, 2009). Deeds (2001) found absorptive capacity to positively influence new wealth creation, while Huang and Rice (2009) and Jolly and Therin (2007) found that firms easily assimilate knowledge to develop innovations. Muscio (2007) proved that absorptive capacity improves the collaboration with other organizations, and Hayton and Zahra (2005) found that it increases the ability to acquire additional resources.…”
Section: Absorptive Capacity and Firm Performancementioning
This paper examines the effect of recent configuration of strategic orientation on SME performance and the moderating effect of absorptive capacity of the firm. Data from 350 owner-managers of small and medium scale hotel and restaurants in Sri Lanka were used with structural equation modelling. The structural model investigates the direct effects of market, entrepreneurial, and learning orientations on firm performance and moderating effect of absorptive capacity. Results indicate that SMEs with high level of absorptive capacity would achieve higher performance by maintaining higher level of strategic orientation.
“…Commitment to learning is the readiness of the organization to change the way it does things by combining existing knowledge or incorporating new knowledge. It encompasses the acquisition, communication, acceptation and assimilation of the knowledge in the company (Jolly and Therin, 2007). The committed organizations consider learning as an important factor for the survival of the company.…”
PurposeThe present study aims to examine the effect of learning orientation (commitment to learning, shared vision, open‐mindedness) on the product innovation performance (product innovation efficacy and efficiency) of companies in Turkey.Design/methodology/approachA structural equation‐modeling approach was applied to identify the variables that significantly affected the product innovation performance. Using LISREL 8.54, the data collected from 150 companies were used to test the proposed research model.FindingsEmpirical testing of the research model revealed that open‐mindedness was the sole predictor of product innovation efficacy as well as efficiency. However, the effects of shared vision and commitment to learning on the product innovation performance were found to be insignificant.Practical implicationsRelevant implications are provided for management as to how to improve product innovation performance.Originality/valueThe present study puts forward a theoretical model that identifies and explains the relation between the learning orientation and product innovation performance of companies operating in Turkey.
“…Jansen et al (2005) (see also van den Bosch et al, 1999) highlight systems capabilities as the antecedent of ACAP, but defined them rather narrowly as formalisation ( ex ante rules and/or procedures) and routinisation (sequences of routine tasks), which fall short of capturing the broader systems thinking concept as explained earlier. Finally, in a recent study of 110 high-tech ventures, Jolly and Therin (2007) found that small firms with diverse experience in modes of accessing external technologies can assimilate and implement these technologies better than others. Thus, the following hypothesis is suggested:H1: An SME’s systems thinking has a positive effect on its absorptive capacity.…”
Section: Literature Review and Hypothesesmentioning
This article develops and tests absorptive capacity’s relationship with one of its important forerunners – systems thinking – which, although postulated as an important element, has received little empirical attention in the absorptive capacity literature. Our contribution lies in the introduction of unique pathways through which systems thinking influences absorptive capacity and how it affects various interrelated dimensions of high-tech small and medium-sized enterprises’ performance, by examining evidence from South Korea’s semiconductor industry.
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