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Capable but not able : the effect of institutional context and search breadth on the absorptive capacity-corporate entrepreneurship relationship

By Kamal Sakhdari, Henri Burgers and Per Davidsson

Abstract

This study investigates how the interaction of institutional market orientation and external search breadth influence the ability to use absorptive capacity to raise the level of corporate entrepreneurship. The findings of a sample of 331 supplier companies providing products and services to the mining industry of Australia and Iran indicate that the positive association between absorptive capacity and corporate entrepreneurship is stronger for companies with greater external knowledge search breadth. Moreover, operating in a less market-oriented institutional context such as, Iran diminishes the ability to utilise a firm’s absorptive capacity to raise their level of corporate entrepreneurship. Yet, firms operating in such contexts are able to overcome these disadvantages posed by their institutional context by engaging in broader external search of knowledge

Topics: 150304 Entrepreneurship, Absorptive Capacity, External Knowledge Search Breadth, Institutional Market Orientation, Corporate Entrepreneurship
Publisher: Queensland University of Technology
Year: 2014
OAI identifier: oai:eprints.qut.edu.au:71119

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