Configuring absorptive capacity as a key process for research intensive firms

Absorptive capacity is a dynamic capability which creates new firm resources by searching, acquiring, assimilating, transforming and exploiting external knowledge with internal resources and act as a process framework for innovation. Despite being one of the most frequently cited strategic management concepts, absorptive capacity as a dynamic capability has limited empirical evidence with unverified assumptions. The concept is at risk of reification. With this study we contribute to the literature by providing empirical evidence for absorptive capacity which challenge the assumptions of how the construct is configured. We follow the strategic factor of intellectual property rights (IPR) in European biopharmaceutical firms using a qualitative process study with temporal bracketing. By tracking IPR, we found evidence for absorptive capacity in all firms we studied, but the process framework in use is different to Zahra and George’s (2002. Acad. Manage. Rev. 27, 185–203) and Todorova and Durisin’s (2007. Acad. Manage. Rev. 32, 774–786) theoretical models. Based on our evidence and literature review we develop some theoretical insights and propose a modified absorptive capacity model. This new model puts a greater emphasis on assimilating knowledge from outside the firm and provides more clarity on how research intensive firms might use absorptive capacity.     

The moderating role of entrepreneurial management in the relationship between absorptive capacity and corporate entrepreneurship: an attention-based view

Despite a growing interest in corporate entrepreneurship, we know little of how managers can better utilise their firm’s absorptive capacity to increase levels of corporate entrepreneurship. Building on the attention-based view, we investigate entrepreneurial management as an attentional driver to channel absorptive capacity towards corporate entrepreneurship. From the analysis of a sample of 298 supplier companies providing products and services to the mining industries in Australia and Iran, we observed that absorptive capacity fosters corporate entrepreneurship. Our findings also demonstrate that the dimensions of entrepreneurial management differentially affect the relationship between absorptive capacity and corporate entrepreneurship. The results show that a firm’s absorptive capacity in tandem with other organisational factors may generate higher levels of corporate entrepreneurship.     

Absorptive capacity and the identification of opportunities in new technology-based firms

The purpose of this work is to investigate relationships between knowledge and opportunities in new ventures. More specifically, this work proposes and empirically tests how potential absorptive capacity is related with the identification of opportunities in new technology-based firms (NTBFs). To take into account the unique nature of NTBFs we divide potential absorptive capacity into problem absorptive capacity, i.e. the ability to identify and acquire knowledge of the goals, aspirations and needs of current and potential customers, and solution absorptive capacity, i.e. the ability to identify and acquire external knowledge of solutions to fulfill them. We develop three hypotheses, which predict that both problem absorptive capacity and solution absorptive capacity will be positively related with the identification of opportunities in NTBFs and that they will reinforce each other. The findings support the importance of making a distinction between the two proposed dimensions of potential absorptive capacity and shed light on their effectiveness and interaction for the identification of opportunities.     

The Driving Forces of Subsidiary Absorptive Capacity

The study investigates how a multinational corporation (MNC) can promote the absorptive capacity of its subsidiaries. The focus is on what drives the MNC subsidiary's ability to absorb marketing strategies that are initiated by the MNC parent, as well as how the subsidiary enacts on this absorptive capacity in order to compete in its focal market. The dual embeddedness of MNC subsidiaries plays a key role in this investigation, as subsidiaries belong to the MNC network and are simultaneously embedded in their host country environment. We argue that subsidiary absorptive capacity is formed as a purposeful response to this dual embeddedness. An analysis of marketing strategy absorptions undertaken by 213 subsidiaries reveals that MNCs can assist their subsidiaries to compete in competitive and dynamic focal markets by forming specific organizational mechanisms that are conducive to the development of subsidiary absorptive capacity. The findings hold important theoretical and practical implications.     

Absorptive Capacity,Research Output Sharing,and Research Output Capture in University-Industry Partnerships

At present, we have a very limited understanding of how the differences in partner absorptive capacity affect the distribution of innovative outcomes obtained in research-intensive collaborative projects. The current paper addresses this shortcoming by examining how firms and universities maintain the balance between the research output sharing and research output capture modes in their research partnerships. Through introducing a concept of the absorptive capacity gap, this study highlights the role of the relative/comparative dimensions of partner absorptive capacity in establishing the balance between relinquishing and taking control of the marketable innovative results achieved in university-industry collaborative projects. It offers a conceptual framework describing the joint impact of relative absorptive capacity and the absorptive capacity gap on the research output sharing/capture balance in university-industry collaboration. It also explores the potential shifts in this balance stemming from the influence of relationship-specific factors, such as mutual trust, positive prior ties, cognitive proximity, and cultural compatibility between the firms and universities. It concludes with theoretical and practical implications of the proposed framework for enhancing the knowledge-creating potential in university-industry collaboration.     

Development and validation of a measurement instrument for studying supply chain management practices

It is widely argued that competition is no longer between organizations, but among supply chains. Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage and improving organizational performance. This research conceptualizes, develops, and validates six dimensions of SCM practices (strategic supplier partnership, customer relationship, information sharing, information quality, internal lean practices, and postponement). Data for the study were collected from 196 organizations and the measurement scales were tested and validated using structural equation modeling. It is hoped that this study will provide a parsimonious measurement instrument to assess the performance of the overall supply chain.     

Green innovation to respond to environmental regulation: How external knowledge adoption and green absorptive capacity matter?

Although environmental regulations have been considered as important forces of conducting green innovation, how and under what conditions they affect green innovation are still unclear. Drawing from institutional theory, this study used survey data from 237 manufacturing firms in China to investigate how two dimensions of environmental regulations (i.e., command and control regulation and market‐based regulation) affect green product innovation and green process innovation. Further, this article examined the mediating role of external knowledge adoption and the moderating role of green absorptive capacity. Our results indicate that both command and control regulation and market‐based regulation have positive influences on external knowledge adoption. External knowledge adoption fully mediates these positive relationships. In addition, green absorptive capacity only strengthens the positive impact of market‐based regulation on external knowledge adoption. Our study contributes to institutional theory and green innovation literature.     

企业如何利用社会网络提升吸收能力

在知识经济的背景下,吸收能力被认为是企业提升绩效和增强创新的战略能力.社会网络被认为可以对潜在的吸收能力和实现的吸收能力都产生积极影响.本文从社会网络的关系层面,从外部和内部两个视角,分别阐述了社会网络如何影响吸收能力的两个维度.本文还从提升吸能力的视角,提出了有效构建和维护社会网络的措施.     

Corporate culture,absorptive capacity and IT success

This study examines absorptive capacity’s role in IT implementation success. Absorptive capacity is the organization’s ability to recognize the value of new information, assimilate it, and apply it to commercial ends [Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(March), 128–152]. Based on previous research, this study proposes a measure of absorptive capacity that includes managerial IT knowledge and communication channels and tests its relationship to the application of new technology in the form of expert systems implementation.Related to claims about the importance of absorptive capacity are claims that a “learning culture” or “knowledge-friendly culture” is necessary in order for knowledge to be gained and effectively used within the organization. This study examines the type of corporate culture that influences absorptive capacity. The results provide support for absorptive capacity’s proposed dimensions and its antecedent of corporate culture that act to influence the implementation of new technologies.     

Putting policy into practice: an exploratory study of SME innovation support in a peripheral UK region

Abstract

Focussing on a regional Government sponsored support programme for technology-based small and medium-sized enterprises (SMEs), the aim of this paper is to conduct a multi-level exploration of the relationships between policy interpretation and support programme design and the development of innovation capability among participant SMEs within a U.K peripheral region. The Innovplus programme was designed and implemented in Northern Ireland to help nascent high technology companies become more competitive and to contribute to the goals of the Regional Innovation Strategy. A knowledge-based absorptive capacity framework is used as the theoretical lens to explore the relationships between policy interpretation and programme design and the development of innovation capability within participant SMEs. The findings show that the design of the Innovplus programme, while linked to a coherent Regional Innovation Strategy, lacks consistency in relation to the policy and practical interpretation of knowledge and innovation. This inconsistency is reflected in the practical design of the programme, limiting its effectiveness as a result. In terms of the development of innovation capability, it was found that recognition and development of nascent absorptive capacity drivers in potential form was essential before participant SMEs could transition to realised absorptive capacity.     

服务代理企业知识吸收能力的概念及构成

知识吸收能力对服务代理企业培养竞争优势实现可持续发展有着重要的意义。从组织层次的角度来看,服务代理企业的知识吸收能力由三部分构成:个体知识吸收能力、团队知识吸收能力、企业知识吸收能力。     

Emergence of innovation networks from R&D cooperation with endogenous absorptive capacity

This paper extends the existing literature on strategic R&D alliances by presenting a model of innovation networks with endogenous absorptive capacity. The networks emerge as a result of dynamic cooperation between firms occupying different locations in the knowledge space. Partner selection is driven by absorptive capacity which is itself influenced by cognitive distance and R&D investment allocation. Under different knowledge regimes, we examine the structure of networks that emerge and how firms perform within such networks. We find networks that exhibit small world properties which are generally robust to changes in the knowledge regime. Certain network strategies such as occupying brokerage positions or maximising accessibility to potential partners pay off, especially in ‘young’ industries with limited involuntary but abundant voluntary spillovers. This particular result is driven by endogenous absorptive capacity.     

Coping with rivals’ absorptive capacity in innovation activities

Two factors jointly determine the likelihood of a firm′s competitors obtaining information on its intangible assets and using it to damage the firm′s innovation performance. Those factors are the absorptive capacity of the rival firm and the appropriability regime of the innovating firm. However, the precise roles of the two factors in affecting performance outcomes are not well documented. Furthermore, we lack knowledge of the interplay between an appropriability regime and absorptive capacity, although they clearly have the capacity to exert positive and negative effects both on each other and on innovativeness. This study presents findings derived from theoretical discussion and an empirical examination of 155 firms that suggest that while competitors’ absorptive capacity does not play a direct negative or positive role on the innovation performance of a firm, an appropriability regime exerts a strong positive influence. Nevertheless, high rival absorptive capacity is not without importance, since the significant interaction effects suggest that a strong appropriability regime has positive effects on innovation performance especially in the context of a rival having high absorptive capacity.     

Collaborative modes with Cultural and Creative Industries and innovation performance: The moderating role of heterogeneous sources of knowledge and absorptive capacity

Organizations can no longer be isolated entities in the current dynamic competitive environment but tend to establish alliances and networks with external parties. Recently, research has suggested that organizations develop collaborative modes with Cultural and Creative Industries (CCIs) to acquire and combine Heterogeneous Sources of Knowledge (HSK) within their organizational environment. Innovation thus becomes increasingly generated by a cross-process involving a diverse set of industries. Nevertheless, few studies have assessed how knowledge from distant industries, such as CCIs, can affect firms’ innovation performance. Accordingly, this empirical research on a sample of 187 firms evaluates whether formal and informal collaboration modes with CCIs affect innovation performance. Moreover, it assesses the moderating role of both HSK and absorptive capacity. In particular, it aims to answer the following questions. What are the effects of collaboration modes with CCIs on firms’ innovation performance? What are the differences (in terms of effects) between Formal Collaboration Modes (FCMs) and Informal Collaboration Modes (ICMs) with CCIs on firms’ innovation performance? Do heterogeneity of knowledge sources and absorptive capacity increase the possibility of benefiting from FCMs and ICMs with CCIs in terms of innovation performance? The results contribute to the theory indicating that HSK are important to benefit from knowledge from CCIs, while absorptive capacity does not fulfil the same role.     

THE MEASUREMENT OF ABSORPTIVE CAPACITY FROM AN ECONOMICS PERSPECTIVE: DEFINITION,MEASUREMENT AND IMPORTANCE

This paper starts by recognizing that despite the importance of absorptive capacity, economists in particular have made only limited use of the concept. Most theoretical and empirical studies derive from other fields of research. Thus, the first task is to compare and contrast the different approaches taken in measuring absorptive capacity. The rest of the paper then sets out an example of how typically economists have proceeded, using nationally representative CIS data to measure absorptive capacity across a 10‐year period and investigating if it remains stable in the long term. This is followed by considering how firms’ characteristics vary across lower to higher levels of absorptive capacity and whether such capacity determines firms’ productivity performance across both goods and service industries. Our results show that relative to other influences, absorptive capacity as measured here — net of the impact of foreign‐ownership and human capital — has a substantial influence on exporting, innovation and undertaking R&D and thus consequently firm‐level productivity. Finally, there is a discussion of why governments should consider helping firms to boost their levels of absorptive capacity.     

企业核心竞争力价值测度、计量与会计报告研究

本文以企业核心竞争力是企业过去超额收益的价值表示为基本出发点,设计了包括直接测度法、间接测度法和评估测度法等三类企业核心竞争力的价值测度方法,还设计了“企业核心竞争力资源报表”等六张会计报表,对企业核心竞争力的存量、变量、存在状态和收益能力等进行会计报告。本文认为,企业核心竞争力既是可以计量的,又是可以记录的,而且还可以通过改进现有的财务会计报告体系与格式,对企业核心竞争力的状态予以报告。     

Absorptive capacity, its determinants, and influence on innovation output: Cross-cultural validation of the structural model

The main purpose of this study is to provide stronger quantitative evidence in the field of organizational absorptive capacity research by using a more direct measure of absorptive capacity and a wide range of variables in a cross-nationally tested structural model. The results show that there exist two kinds of absorptive capacity: demand-pull and science-push. Their most important determinants proved to be internal R&D, training of personnel, innovation co-operation and attitude toward change. Both kinds of absorptive capacity are positively related to product and process innovation output. Therefore, absorptive capacity is to be given more attention in the future research and innovation policy considerations.     

Obtaining collaboration benefits: the role of collaboration-specific investment and absorptive capacity in China

This study examines the role of collaboration-specific investment and absorptive capacity on the attainment of interorganizational collaboration benefits. Grounded in the extended resource-based view, and using survey data from Chinese executives, we study the driver for, and test the impacts of, collaboration-specific investment and organizational learning on collaboration performance. Our findings indicate that resource similarity between the collaborative partners affects the level of collaboration-specific investment and learning, and demonstrate an approach that firms can use to obtain both abnormal common and private benefits from participation in an interorganizational collaboration. Specifically, the findings suggest that collaboration-specific investment has a direct effect on the enhancement of absorptive capacity and attainment of common and private collaboration benefits. Furthermore, due to the direct effect of absorptive capacity on attainment of collaboration benefits, commitment of collaboration-specific investment has an indirect effect on the attainment of common and private collaboration benefits. This study is the first to apply both the competence-capability framework and extended resource-based view to study interorganizational collaboration. In fact, this study aims to determine mechanisms for a collaboration-participating firm to obtain more benefit, whether common or private. Our findings provide support for the importance of learning capability as a factor in the acquisition of collaboration benefits.     

How do stock price indices absorb the COVID-19 pandemic shocks?

To assess the resiliency of stock price indices during the COVID-19 crisis, this study provides a distinctive perspective; that is, we evaluate the ability of stock price indices to absorb COVID-19 shocks. We construct the measures of absorptive intensity and duration to identify a stock price’s absorptive capacity. We then employ the Granger causality test and a topology network approach to investigate the interactions of absorptivity among stock price indices. Our results show that stock price absorptivity varies over time and across countries and industries. The US and the Brazil stock indices have relatively high absorptive intensity while short duration. The health care industry shows distinctive trend in absorptive intensity from the other industries. The intensity of the non-cyclical industries such as utilities and consumer staples is high, while the cyclical industries such as banking, real estate, and energy have lower absorptive intensity. Moreover, the utilities, consumer staples, and financials industries are the main resiliency transmitters.     

Developing an instrument to assess seaport effectiveness in service delivery

The purpose of the research was to develop a standard instrument that can accurately and reliably measure port service effectiveness performance for port authorities. The study population was customers and users of container ports in the USA and Canada. We have named the instrument SEAPORT (Seaport Effectiveness Assessment for PORT managers) and it is designed to be used as a standalone measurement tool as well as input into the strategic management decisions of port managers. The paper details the methodology used in surveying three port user groups and explains the development of the construct for performance measurement by each, using variance inflation factors to finalise the formative construct components. The paper also discusses the potential future deployment of the instrument.