What Fosters Individual-Level Absorptive Capacity in MNCs? An Extended Motivation–Ability–Opportunity Framework

Abstract

Absorptive capacity has been marked as one of the most important capabilities of Multinational Corporations for effective management of knowledge. To address calls for research on micro-level origins of the concept, this paper focuses on the determinants of individual-level absorptive capacity. We examine the extent to which individuals' capability to recognize, assimilate and exploit new knowledge from the environment is shaped by different forms of work motivation (i.e., intrinsic and extrinsic), overall ability, exposure to diverse country contexts and personal characteristics. Drawing on and extending the Motivation-Ability-Opportunity framework, we develop and test a set of hypotheses. Using a unique dataset collected from 648 individuals in a multinational corporation, we show that individuals' intrinsic motivation and overall ability are the key antecedents of absorptive capacity. In contrast, extrinsic motivation does not emerge as a significant predictor. We find that past international assignments to distant countries could be detrimental to individuals' absorptive capacity. However, our results suggest that for those individuals who are open to new experiences, assignments to distant countries become useful opportunity for absorptive capacity development. These findings contribute to existing literature by showing effects of alternative types of motivation and underscoring the importance of using selective assignment when considering exposure to diverse country context as a tool for employee capability development.

The Sustainable Positive Effects of Enterprise Social Media on Employees: The Visibility and Vicarious Learning Lens

“…Such characteristics are in line with the early findings of ESM's use that focused on its potential to identify and interact with relevant external information [14]. Prior studies in the field of knowledge management indicate that successful knowledge management depends on opportunities [21,22]. The opportunities for transferring knowledge often reside in social relationships [23,24] that can be Sustainability 2020, 12, 2855 3 of 32 enhanced by ESM's visibility.…”

“…Collaboration visibility affords individuals the opportunity to visualize various ways of digesting contradictory knowledge, exploring different perspectives of problem solving, and helping them generate new ideas [88], so that they know how to apply the retained external knowledge. External knowledge is novel and diverse compared with the knowledge they already have [22]. The diversity of external knowledge will drive continuous innovations for internal applications, allowing workers to easily apply newly acquired knowledge to possible areas.…”

Individual Absorptive Capacity and Entrepreneurial Intention in Successors of Rural Properties

“…AS step is fundamental to transform information into knowledge, for both individual development and rural property management. To summarize, we can mention Hotho et al (2012), Minbaeva et al (2014) and Yildiz et al (2019), who assert that individuals play a crucial role in the absorption and transfer of knowledge.…”

“…and Yildiz et al (2019) since it expands studies in the field of IAC. In addition, it has been shown that the study presents potential empirical gains, since the association between the constructs suggests an important source of competitive advantage for the rural properties, offering elements for cooperative managers to formulate strategies to help in the preparation of the rural successors' dilemma.…”

“…The absorptive capacity, associated with innovation and learning, is a type of dynamic capacity that leads to the creation and use of knowledge, which can improve a company's ability to obtain and sustain competitive advantage (Cohen & Levinthal, 1990;Yildiz, Murtic, Zander, & Richtnér, 2019;Zahra & George, 2002). Other studies have broadened the approach of the phenomenon by focusing on the influence of the individuals' ability to absorb knowledge and use them for organizational purposes (Jones, 2006;Lowik, Kraaijenbrink, & Groen, 2016).…”