Consulting knowledge and organisation's absorptive capacity: A communication chain perspective

This study investigates the communication chain of consulting knowledge constituted by consultants and internal lecturers. We analyse the differences between consultants and internal lecturers in their capability of knowledge training and discuss its influence on organisations' absorption of consulting knowledge. Based on a Mann–Whitney U test of data from 47 quality management consultants and 235 internal lecturers in Taiwan, we found that internal lecturers significantly exhibited weaker capability than consultants, especially in knowledge structure, knowledge transformation, trainee orientation and training ethics. The capability gap was disadvantageous for organisations to absorb consulting knowledge and suggestions for improving this problem were provided finally.     

Family firm performance: The influence of entrepreneurial orientation and absorptive capacity

This article investigates the influence of entrepreneurial orientation and absorptive capacity on family firm performance. Partial least squares structural equation modeling (PLS‐SEM) was used to analyze empirical data for 218 Spanish family firms. Absorptive capacity positively mediated the relationship between entrepreneurial orientation and family firm performance. This total mediation effect suppressed the direct effect of entrepreneurial orientation on family firm performance. A major implication of this finding is that for family firms to improve their performance through entrepreneurial orientation, absorptive capacity must act as a mediator.     

The effect of experience and absorptive capacity on foreign market knowledge

Learning about foreign markets often occurs through collaboration with other firms who have this knowledge. In this paper, we focus on one aspect of foreign market knowledge, which is the knowledge a partner in a dyadic relationship, has of the other partner and of their respective business network relationships. The concept ‘absorptive capacity’ [Admin. Sci. Q. 35 (1990) 128] is used to describe the firm’s ability to use its prior related knowledge and diverse background to identify the value of new information and to develop this into something creative. We develop and empirically test a model of how depth and diversity of experience affect absorptive capacity, and how this absorptive capacity affects the way a lack of foreign market knowledge is perceived as an obstacle in carrying out the ongoing business activity.The results show that the lack of foreign market knowledge in the ongoing business is determined both by the firm’s absorptive capacity generated in dyadic relationships with foreign customers and the customer’s network. The dyadic and network absorptive capacities, however, appear to be used differently in the ongoing business. Dyadic absorptive capacity seems to decrease the lack of foreign market knowledge, whereas customer network absorptive capacity seems to increase it.     

The effect of international venturing on firm performance: The moderating influence of absorptive capacity

Companies have vigorously pursued opportunities for profitability and growth through international venturing. Yet, research evidence on the performance benefits of international venturing activities has been contradictory. Applying an organizational learning framework, we propose that the expected effects of international venturing activities on financial performance depend on companies' absorptive capacity. Data from 217 global manufacturing companies show that absorptive capacity moderates the relationship between international venturing and firms' profitability and revenue growth. These results urge executives to build internal R&D and innovative capabilities in order to successfully exploit the new knowledge acquired from foreign markets.     

A note on export-platform Foreign Direct Investment,training and absorptive capacity

The empirical literature on FDI suggests that investment in training is the major source of human resource development activities undertaken by MNEs, particularly those with sophisticated technologies, and host countries' absorptive capacity plays an important role in attracting FDI. We develop a model of export-platform FDI that provides theoretical rationalisation of the role played by a host country's absorptive capacity in determining MNEs' location decisions as well as their level of investment and training–and, through this, the extent to which they contribute to human capital formation in the host country.     

Concurrent sourcing strategy of multinational firms in China: Drivers and performance implications

Concurrent sourcing is critical to multinational firms’ operations in emerging economies, such as China. Despite its prominence, research is lacking on the underlying conditions and performance implications of this strategy. We investigate the driving factors of multinational firms’ concurrent sourcing strategy and test whether concurrent sourcing outperforms other types of sourcing strategies. Our empirical findings suggest that multinational firms tend to choose concurrent sourcing under high levels of institutional regulations. Furthermore, the results show that concurrent sourcing generates better performance at high levels of uncertainties and the performance deficiency of concurrent sourcing can be mitigated when institutional regulations are high.     

Interactive effects of marketing strategy formulation and implementation upon firm performance

Abstract

This study employed an integrative approach to investigate the influence of external business environment, strategy formulation, viability of marketing strategy, and strategy implementation upon firm performance. The findings show that while technological change and market competition negatively influence the credibility of the strategy, market attractiveness has a positive influence upon the viability of strategy employed. Moreover, market competition has a positive influence upon the involvement of marketing managers in terms of strategy making and that the presence of an innovative culture is strongly required in executing a strategic marketing plan. In addition, the study shows that the involvement of marketing managers in strategy making, which is strongly supported by an innovative culture, generates their commitment to the strategy, which positively influences strategy viability.     

Realised absorptive capacity,technology acquisition and performance in international collaborative formations: an empirical examination in the Korean context

The research objectives of this paper are twofold. First, it attempts to identify the critical factors facilitating the acquisition of technology from foreign partner firms and performance enhancement in international collaborative formations. Second, it compares these factors across Western and Japanese sub-samples. A new concept, realised absorptive capacity, is employed to achieve these objectives. Using a sample collected through a questionnaire-based survey, our results show that trust and communication are critical components in transforming new knowledge, while active managerial involvement of the foreign firm and the participation of foreign expatriates are the keys to applying it for business operations. In particular, components consisting of the ability to exploit new knowledge (i.e. active managerial involvement of foreign firm, participation of foreign expatriates and provision of training) are closely associated with performance enhancement. In addition, our results confirm that there clearly exist different patterns of learning mechanisms and incompatible behaviours in improving performance between the two sub-samples. Based on the results, the authors suggest implications and future research avenues.     

Exploring the effects of international sourcing on manufacturing versus service firms

As the extent of international sourcing rises and the number of functional activities spreading across-national borders increases, there is a call for a better understanding of its impact on structural change. In this work, we explore the effects of international sourcing comparatively and look for differences between manufacturing and service firms. This study is based on a unique Slovenian data set that links the recently conducted Eurostats survey on international sourcing with a detailed financial firm-level data. The results from the matching methodology suggest that service firms involved in international sourcing gain an improvement in the quality and technological learning, resulting in the employment growth and development. This is not the case for manufacturing firms driven primarily by cost cutting. In our view, a better understanding of these effects is vital for both manufacturing as well as service firms that are influenced by this new trend.     

Exploitative and exploratory innovations in emerging economies: The role of realized absorptive capacity and learning intent

This paper investigates the mediating effect of learning intent in transforming local suppliers’ potential absorptive capacity into realized absorptive capacity and its impact on exploitative and exploratory innovation. Using survey data from 155 auto parts manufacturers in Pakistan, we find that local firms’ realized absorptive capacity enables them to develop both exploitative and exploratory innovations. The findings further suggest that local suppliers’ learning intent mediates the relationship between potential and realized absorptive capacity which in turn lead to both types of innovation. In the context of the emerging economy of Pakistan, local suppliers’ absorptive capacity is found to be critically important in spurring exploitative and exploratory innovation, but learning intent enables realized absorptive capacity and thus in conjunction with realized absorptive capacity supports innovation. Consequently, there would be a strong case for policy intervention to assist emerging economy firms in building their absorptive capacity and strengthening their learning intent as a route for promoting innovation and improving their value added position in the global value chains of multinational enterprises.     

The role of international hubs in a fashion retailer's sourcing strategy

The purpose of this paper is to evaluate the role of international hubs in a fashion retailer's sourcing strategy. In order to compete more effectively in a dynamic fashion market, retailers have adopted a low cost, offshore sourcing model to supplying their domestic market. There are three approaches which have been used to implement an offshore sourcing strategy; direct sourcing from the HQ, the use of intermediaries and international hubs. The aims of the research were to understand the motives behind the development of international hubs, identify their stages of development and determine both their strategic and operational role within fashion companies' global strategies. Research was carried out through semi-structured interviews with the heads of 3 international hubs, one buying office and the head of merchandising at the HQ in the UK of a subsidiary of a major UK fashion chain. Results show that hubs evolve from buying offices to multifunctional units, specialising in supplying particular products to the market. Although hubs perform important operational functions, there was little intra hub coordination and the headquarters exerted considerable control over their hubs with regard to overall sourcing strategies.     

Driving dynamic knowledge articulation and dynamic capabilities development of service alliance firms

By investigating drivers of dynamic learning in service alliance firms, this empirical study demonstrates the locus of dynamic knowledge articulation (DKA) and dynamic capabilities (DCs) development. This study uses a sample of 363 service alliance firms to test the distinctive role of drivers of dynamic learning in DKA and DC development. The results show that manager integration powers, external linkages, codification of experience, and ambiguity have positive effects on DKA. Moreover, DKA has a strong positive influence on DC development. This study contributes to the literature by focusing on DKA and DC development from the perspective of processes, structure, and DCs of service alliance firms.     

Threshold effects,technology purchasing,and firm outcomes: An absorptive capacity perspective

External technology purchasing is frequently adopted as a strategy to facilitate technology innovation and to enhance firm performance. However, research shows that there is considerable heterogeneity across firms with respect to innovation output and firm performance after technology purchasing. This study uses an absorptive capacity perspective in proposing the existence of an R&D employees threshold and a technology purchasing scale threshold. Using a sample of 1460 high-tech companies in China, we find support for both thresholds. We also find that the two variables are complementary with each other, jointly promoting innovation when both thresholds are crossed.     

How absorptive capacity moderates the value of firm innovativeness in turbulent markets

Drawing on the complementarity perspective and contingent resource‐based theory, this study develops a moderated moderation framework to investigate how absorptive capacity moderates the value of firm innovativeness under market turbulence. The results of the survey data from 402 firms reveal that the efficacy of firm innovativeness is not universal but simultaneously contingent on absorptive capacity and market turbulence. Furthermore, absorptive capacity does not always enhance the value of firm innovativeness; the positive moderating effect of absorptive capacity manifests itself only when market turbulence is relatively high. These findings also highlight that change in customer needs is a key factor affecting the complementarity of relevant resources and capabilities. Thus, this study contributes to advances in theory and has new practical implications. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

基于三方演化博弈的跨境物流联盟定价策略研究

通过探究跨境物流联盟中运费的定价决策过程,以跨境电商小包专线速邮联盟模式为例,建立由国内物流企业、航空公司、国外物流企业组成的三方演化博弈模型,分析跨境物流联盟中成员在初始意愿、额外成本付出、额外收益因素影响下的定价决策演化过程。以德邦-东航英国电商小包物流为原型,利用MATLAB进行实证检验与数值仿真,为三方企业采取提高联盟整体收益、保持联盟持续稳定合作的定价策略提供理论依据。结果表明:联盟中一方企业的合作意愿值增加,由于博弈心理,其他企业的意愿值也会随之增加;三方企业的自身降价意愿值随着成本的降低或额外利益的增加而增加,且成本降低程度与额外收益程度越大,企业决策速度就越快;实际经营中的联盟内部决策过程复杂多样,企业成本、收益等因素的较小偏差则会产生不同的企业决策结果。     

The OFDI patterns and firm performance of Chinese firms: The moderating effects of multinationality strategy and external factors

The purpose of this paper is to examine how multinationality strategy, home political influence, and host-country risk explain the performance consequences of OFDI patterns of firms in the most important emerging economy, China. Two main patterns of OFDI (‘born global’ natured multiple simultaneous and IP-natured gradually growing) have been dominant in China during its first OFDI as a latecomer. In contrast to the conventional IP argument, we hypothesize that the multiple simultaneous pattern of a born-global nature leads to better performance. We also hypothesize that firm multinationality strategy and home political influence play greater roles in enhancing the performance effect of the multiple simultaneous pattern than another pattern, i.e., IP-natured gradually growing pattern. Using panel data of 4619 observations from 261Chinese publicly listed firms from 1991 to 2011, we find a superior performance effect for the multiple simultaneous pattern. Further, we find a greater moderating effect of firm multinationality strategy and home political influence affecting the OFDI and performance relationship undertaken by the multiple simultaneous pattern than by the gradually growing pattern. Our study extends understanding of OFDI patterns in emerging economies and suggests that the analysis of performance consequences should focus on external and firm factors that may facilitate the performance effect.     

Fostering integration through HRM practices: An empirical examination of absorptive capacity and knowledge transfer in cross-border M&As

Transfer of knowledge-based resources from acquirers to the acquired units has been ubiquitously emphasized as an important driver of post-acquisition integration. Equally emphasized is the importance of recipient unit’s absorptive capacity for the success of knowledge transfer and the facilitating role of HRM practices in developing absorptive capacity. In this paper, we integrate different streams of research on post-acquisition integration, knowledge transfer, absorptive capacity and HRM practices. Different from most past research, we pay attention theoretically and empirically to the multi-dimensional nature of both knowledge transfer and absorptive capacity. We test our hypotheses on a sample of acquired Chinese subsidiaries of 181 multinational corporations from seven countries. We find that successful inflow and implementation of knowledge require the acquired unit to have distinct types of capabilities each of which can be developed by a specific HRM practice. These results contribute literature by recognizing absorptive capacity as a manageable capability and identifying how different components of this capability could be developed by specific HRM practices. Furthermore, our results shed light on human side of M&As by examining how companies can foster post-acquisition integration by fine-tuning the absorptive capacity of acquired units.     

Acquisition of managerial knowledge from foreign parents: evidence from Korean joint ventures

This paper contributes to the literature on intra- and inter-firm knowledge transfer by examining knowledge acquisition by Korean international joint ventures from their foreign parents. A conceptual model is presented which identifies the factors that have been found to influence knowledge transfer, organised into variables related to the local recipient firm, the foreign sender firm and the relationship between the two. The model is examined by means of a series of multiple regressions using a sample of 128 Korean international joint ventures. We find that: (1) the international joint ventures intent to learn and international experience; (2) the level of trust between parents and their business relatedness; and (3) the active managerial engagement of the foreign parent are the most important factors explaining the level of knowledge acquisition within the international joint ventures.     

Absorptive capacity, innovation, and financial performance

This study here examines the role of absorptive capacity as both a mechanism to identify and translate external knowledge inflows into tangible benefits, as well as a means of achieving superior innovation and time-lagged financial performance. Using path analysis in a sample of 461 Greek enterprises participating in the third Community Innovation Survey, this study demonstrates that external knowledge inflows are directly related to absorptive capacity and indirectly related to innovation. Absorptive capacity contributes, directly and indirectly, to innovation and financial performance but in different time spans. This study, therefore, contributes to the understanding of absorptive capacity's antecedents and outcomes by providing empirical evidence of longitudinal form that offers important research and practical implications.     

基于不同动机的联盟控制方式选择及其对联盟绩效的影响——中国企业联盟的实证分析

Strategic alliance can aid firms to build and sustain their competitive advantages. Firms set up strategic alliance mainly for two purposes: resource acquisition and capability learning. Formal control and social control are two widely adopted control mechanisms to secure the effectiveness of strategic alliance. In this study, we construct a model to analyze the choice of control mechanisms based on alliance motivations and the influence of control mechanisms on alliance performance. Based on a survey of 607 Chinese firms, we find that when resource acquisition is the key motivation behind alliance, formal control should be enhanced. Whereas when capability learning is the main purpose of alliance, social control becomes a better choice. Furthermore, this research also finds that the impact of both formal control and social control on alliance performance are nonlinear. Suggestions are provided on how to effectively use control mechanisms to attain the purposes of strategic alliance and on how to use control mechanisms to enhance alliance performance. __________ Translated and revised from Nankai guanli pinglun 南开맜理评论 (Nankai Business Review), 2007, (5): 4–11