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.     

Validation of an instrument to measure absorptive capacity

Absorptive capacity is an ability firms should develop if they wish to adapt to changes in an increasingly competitive and changing environment and to achieve and sustain competitive advantage. Despite the increase in literature on absorptive capacity, some ambiguity remains in determining the dimensions that shape the construct. Thus, no measurement instrument can be adapted to these dimensions. The aim of this paper is to contribute to the literature on absorptive capacity by using a resource-based view to present an alternative measurement instrument for absorptive capacity. This instrument differentiates between the phases of acquisition, assimilation, transformation and exploitation of knowledge, as well as between the two dimensions of absorptive capacity (potential and realized), to reduce the problem of measuring and identifying the dimensions that shape this important construct. The instrument’s validity and reliability are guaranteed and have been tested using data from 168 Spanish organizations.     

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.     

Enhancing effects of manufacturing flexibility through operational absorptive capacity and operational ambidexterity

A large body of research investigates how manufacturing flexibility in uncertain environments leads to firm performance, with mixed results. The mixed findings could be due to differences across firms in terms of the capabilities to acquire, assimilate, and transform knowledge and to simultaneously pursue both the exploitation of existing operational capabilities and the exploration for new operational capabilities. Building on the literature that suggests that manufacturing flexibility mediates the relationship between environmental uncertainty and firm performance, we explore the applicability of two organizational learning contingencies to the operations environment: operational absorptive capability and operational ambidexterity. Absorptive capacity enables the recognition and assimilation of new knowledge. Ambidexterity determines whether this knowledge will be applied for both exploration and exploitation. Using a sample of 852 manufacturing firms, we find that environmental uncertainty affects firm performance directly and indirectly through manufacturing flexibility. Furthermore, both operational absorptive capacity and operational ambidexterity moderate the relationship between environmental uncertainty and manufacturing flexibility and the relationship between manufacturing flexibility and firm performance. Theoretical and practical implications are discussed.     

Social capital,internationalization and absorptive capacity: The electronics and ICT cluster of the Basque Country

This article analyses the case of a successful young high technology cluster in an old industrialized European region, the electronics and information and communications technology cluster in the Basque Country (Spain). Based on the findings of this case study, we propose that social capital and internationalization play an important role in increasing the absorptive capacity of clusters (thus, the capacity of a cluster to absorb, diffuse and creatively exploit extra-cluster knowledge), and hence, in sustaining their growth and dynamism. Absorptive capacity depends on the capacity of firms to establish intra- and extra-cluster knowledge linkages. We put forward in this article the fact that social capital fosters intra-cluster knowledge linkages, and cluster's internationalization the extra-cluster knowledge ones. Therefore, social capital and internationalization are key elements to increase the absorptive capacity of a cluster and its growth. Given the accumulative, path- and place-dependent nature of social capital and knowledge creation and accumulation, we employed a largely qualitative and historical analysis, combining statistical and qualitative cluster data and interviews with key actors.     

Balancing global and local strategic contexts: Expatriate knowledge transfer,applications, and learning within a transnational organization

We investigate how expatriates contribute to the transnational firm's strategic objectives of global efficiency, national (”local”) responsiveness, and worldwide learning. We focus on expatriate knowledge application and experiential learning achievements, two assignment‐based outcomes of potential strategic value to the firm. We assess how the individual's everyday knowledge access and communication activities, measured by frequency and geographic extent, affect these assignment outcomes. Within our case organization, a prototype transnational firm, we find that expatriate knowledge applications result from frequent knowledge access and communication with the corporate headquarters and other global units of the firm. In contrast, their experiential learning derives from frequent access to hostcountry (local) knowledge that subsequently is adapted to the global corporate context. From a practical perspective, we conclude that experiential learning is an invaluable resource for both present and future corporate assignments. © 2007 Wiley Periodicals, Inc.     

Absorptive capacity—one size fits all? A firm‐level analysis of absorptive capacity for different kinds of knowledge

This paper empirically analyzes the effect of R&D activities, human resource and knowledge management, and the organization of knowledge sharing within a firm on the absorptive capacity of innovative firms for three different types of knowledge, namely absorptive capacity to use knowledge from a firm's own industry, knowledge from other industries and knowledge from research institutions. Using data from the German innovation survey, we investigate how firms are able to exploit knowledge from external partners for successful innovation activities. The estimation results show that the determinants of absorptive capacity differ with respect to the type of knowledge absorbed for innovation activities. In particular, we find that the R&D intensity does not significantly influence absorptive capacity for intra‐ and inter‐industry knowledge. Additionally, our results suggest that absorptive capacity is path dependent and firms can influence their ability to exploit external knowledge by encouraging individuals' involvement in a firm's innovation projects. Copyright © 2009 John Wiley & Sons, Ltd.     

Absorptive Capacity in a Non-Market Environment

Abstract

Improved performance by public sector organizations is a political imperative in numerous countries. There are particular challenges in turnaround of poorly performing organizations. Theoretical explanations of the performance trajectories of public organizations, and especially the causes of failure, highlight the importance of knowledge processes, often from an organizational learning perspective. Absorptive capacity provides an alternative way of theorizing the relationships between organizational performance and knowledge processes, derived from the resource-based view of the firm and the broader concept of dynamic capabilities. The article reviews the conceptual, theoretical, and methodological implications of applying absorptive capacity to the performance of public organizations. It concludes that the approach has value and presents a number of propositions to be tested through empirical study, alongside some more general challenges for researchers who wish to study the concept further. The high political salience of public organizations' performance, and the costs of failure, mandates a major research effort on these issues.     

Durkheim and the Limits of Corporate Culture: Whose Culture? Which Durkheim

Recent years have seen a resurgence of interest in Durkheimian perspectives on management. P. Dahler-Larsen uses such a perspective to critique theories of corporate culture. He is particularly critical of corporate culture’s claim that the locus of morality can exist in organizations. This, he argues, is inimical to Durkheim’s view of morality as a societal phenomenon. This paper argues that this criticism of corporate culture is limited on two counts. First, it is limited in its failure to deal with those proponents of corporate culture who are themselves critical of culture as a form of ideological control. Secondly, it is based on only one of several possible readings of Durkheim. In his later work, Durkheim analyses the construction and destruction of social solidarities. A Durkheimian reading of organizational culture and the related phenomenon of the learning organization allows us to develop a view of management and organization in which culture is conceived as a heterogeneous rather than homogeneous.     

Coming unstuck? In search of the “corporate glue” in an international professional service firm

Much has been made of “networks” and corporate “culture” as sources of cohesion in increasingly loosely structured international firms. But how strong is the “corporate glue”? Using a case study of human resource management (HRM) in an international accounting firm, this article shows that growth and internationalization may themselves weaken the corporate glue, just as the need for global integration of activities increases. The resulting stresses lead to a greater emphasis on formal bureaucratic structures and processes, further calling into question the role of traditional culture. Alternative strategies for managing these tensions are proposed. © 1995 by John Wiley & Sons, Inc.     

Fluidity,Identity, and Organizationality: The Communicative Constitution of Anonymous

This paper examines how fluid social collectives, where membership is latent, contested, or unclear, achieve ‘organizationality’, that is, how they achieve organizational identity and actorhood. Drawing on the “communicative constitution of organizations” perspective, we argue that the organizationality of a social collective is accomplished through ‘identity claims’ – i.e., speech acts that concern what the social collective is or does – and negotiations on whether or not these claims have been made on the collective's behalf. We empirically examine the case of the hacker collective Anonymous and analyse relevant identity claims to investigate two critical episodes in which the organizationality of Anonymous was contested. Our study contributes to organization studies by showing that fluid social collectives are able to temporarily reinstate organizational actorhood through the performance of carefully prepared and staged identity claims.     

Leading corporate sustainability: The role of top management team composition for triple bottom line performance

Sustainable development at the corporate level requires balancing social, environmental, and financial performance goals. Achieving such “triple bottom line” (TBL) performance is a very challenging task. In this study, we explore the role the organization's top management team (TMT) plays in leading their organization towards corporate sustainability. We focus on how two distinct aspects of the TMT's structural composition—the presence of a “chief sustainability officer” (CSO) and the TMT's functional diversity—affect the organization's ability to reach high levels of TBL performance. We follow the presence of 22 global energy companies in Corporate Knight's “Global 100” sustainability index for a period of 11 years and find that, surprisingly, the presence of a CSO does not boost TBL performance. However, we do find a positive effect for TMT functional diversity, suggesting that more diverse TMTs are better able to lead their organization to higher levels of TBL performance.     

Learning times: A key factor in managerial personnel decisions

How often should a man be inducted, socialized, trained, developed, and then promoted or transferred from one department to another? The answer should depend to some extent on the average learning time for the manager's new job, and the company's feeling about a “break-even” or “pay-back” period when the employee works to “pay back” the organization for providing him with the job learning opportunity.     

Engaging Employees in Sustainable Development – a Case Study of Environmental Education and Awareness Training in Hong Kong

Environmental education and awareness training can help to develop and encourage a transition to a greener corporate culture. A series of environmental education and awareness training programmes of The Hongkong and Shanghai Banking Corporation Limited (HSBC) (Hong Kong) was used as a case study to assess how learning transfers through nature‐based environmental education and awareness training and to investigate the possible outcomes of providing nature‐based training to employees. Evaluation of the training outcomes, in terms of changes in employees’ environmental knowledge, attitudes and behaviour, was surveyed by using retrospective post‐ and then‐test questionnaires. Results showed that employees who joined these programmes gained knowledge and changed their values and behaviour towards the environment significantly. The study also indicated the establishment of trust in and satisfaction with the organization among employees through the training, which in turn promoted employees’ organizational commitment towards corporate sustainability. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

Market orientation practices enhancing corporate environmental performance via knowledge creation: Does environmental management system implementation matter?

The academic literature on environmental management has provided extensive insights into the determinants of corporate environmental performance. However, few empirical studies have explored whether and how three core components of corporate market orientation (i.e., customer orientation, competitor orientation, and interfunctional coordination) affect environmental performance. Building on institutional theory and the absorptive capacity perspective, this study investigates the relationships among market orientation, knowledge creation, and environmental performance, as well as the moderating effects of environmental management system implementation. On the basis of survey data from 237 Chinese manufacturing firms, we used hierarchical multiple regression analyses to test the hypotheses. The findings indicate that knowledge creation completely mediates the influence of competitor orientation on environmental performance and partially mediates the influence of customer orientation and interfunctional coordination on environmental performance. In addition, environmental management system implementation positively moderates the relationship between knowledge exchange and environmental performance.     

Flexible learning systems and obsolete organization structures: steps towards bridging the gap

This study explores the mismatch between existing learning systems and the members’ needs for learning in a large international organization. It responds to recent research which argues that members’ learning modes need to be understood and catered for in modern age organizations. Rather than arguing from “what should be”, however, it explores “what is”, by analysing the mismatch developing in a classical organization. Based on the findings, an instrumental model is elaborated, which combines structural and cognitive factors. A main argument is that learning systems and organization structure inhibit one another mutually, which prevents lasting change from taking place. The key to resolving mutual inhibition is to engage in a process of inquiry which focuses on the overall structure and also the learning systems. Three characteristics of such a process of inquiry are proposed as requirements for the resolution of mutual inhibition: social context, setting and proximity.     

知识搜索对企业创新质量的影响研究——冗余资源和吸收能力的调节作用

基于106家中国上市的制造业企业2013—2018年的数据，采用面板数据模型，研究知识搜索宽度和知识搜索深度与企业创新质量之间的关系，并分析冗余资源和吸收能力对上述关系的影响。研究发现：知识搜索宽度和知识搜索深度均正向促进企业创新质量；冗余资源对知识搜索深度与企业创新质量的正向关系存在显著的正向调节效应，对知识搜索宽度与企业创新质量的正向关系调节效应不显著；吸收能力负向调节知识搜索宽度与企业创新质量的正向关系，对知识搜索深度与企业创新质量的正向关系调节效应不显著。     

Balancing on a tightrope: Managing the boundaries of a firm-sponsored OSS community and its impact on innovation and absorptive capacity

Realizing the innovation potential of OSS communities, firms now create or sponsor their own open source software (OSS) communities, generally as part of an open innovation strategy. However, maximizing the innovation capability of a sponsored OSS community is a challenging task since firms cannot rely on traditional hierarchical authority to control community members. Furthermore, a firm's efforts to manage its sponsored community may also impact the firm's absorptive capacity, or its ability to effectively absorb and leverage the valuable knowledge created by the community. Thus, the purpose of this article is to investigate two research questions: 1) How does the boundary management of a firm-sponsored OSS community impact the community's innovation capacity? and 2) How does the boundary management of a firm-sponsored OSS community impact the firm's absorptive capacity? Using the results from our qualitative analysis of eZ Systems and its successfully sponsored OSS community – eZ Publish – we develop a theoretical model depicting how the boundary management of a firm-sponsored OSS community influences both the community's innovation capacity and the absorptive capacity of the firm. In addition, the results of our study highlight the central importance of an integrative IT platform in boundary management activities.     

Intellectual Capital–Enhancing HR,Absorptive Capacity,and Innovation

This study investigates the role of intellectual capital (i.e., human, social, and organization capital)–enhancing human resource (HR) practices in the development of a firm's absorptive capacity, as well as the mediating role of absorptive capacity in its relationship to the firm's innovation performance. Results show that while human capital–enhancing HR (acquisition and developmental HR) is positively related to absorptive capacity, social capital–enhancing HR affects absorptive capacity through egalitarian HR practices. Organization capital–enhancing HR practices contribute to absorptive capacity through effective information systems. Finally, our findings confirm that the various intellectual capital–enhancing HR practices affect innovation performance through their impact on the firm's absorptive capacity. © 2016 Wiley Periodicals, Inc.     

Logics' shift and depletion of innovation: A multi-level study of agile use in a multinational telco company

The use of Agile practices is typically associated to a wide array of benefits for organizations. This paper extends growing research on the ‘dark’ side of Agile by investigating the depletion of innovation in a large telco company following the large-scale implementation of Agile in R&D units. Our qualitative study reveals a shift in the organizational logics underpinning new product development, from a “navigating through unchartered waters” to a “putting out fires” logic. We tracked the change in key components of logics (goals of teams, source of legitimacy of team members and support and control systems) and explained the multi-level mechanisms through which the shift occurred, i.e., changes in processes of workflow management, work allocation, and performance management. We found that the new organizational logic negatively impacted individual attitudes towards the generation of new ideas by promoting the internalization of short-termism, a perceived drain in competences and confidence, and the lack of accountability for innovation. By focusing on changes in organizational logics, our insights expand current knowledge about the relationship between Agile implementation and individual attitudes. We also explain why unexpected effects of Agile implementation may go undetected in organizations, because they derive from multi-level, diffused, changes in the organization.