The Role of Absorptive Capacity in Acquisition Knowledge Transfer.

This article examines the role of absorptive capacity in acquisitions. We propose that absorptive capacity is an important determinant of acquisition knowledge transfer. Also, we identify antecedents of absorptive capacity in the specific context of acquisitions. These include contextual (national cultural differences), individual (employee withdrawal), and organizational design level (integration process communication, knowledge processing system) antecedents. We test our hypotheses on a sample of domestic and foreign acquisitions conducted by Finnish companies. This study contributes to the acquisition literature by elaborating on the role of absorptive capacity in acquisitions and to the general absorptive capacity literature by highlighting the importance of previously underexplored antecedents and outcomes of absorptive capacity

Success factors for service innovation: a meta-analysis

Service sectors form a considerable part of the world economy. Contrary to the logical assumption that service innovation research should represent a significant share of all innovation research, the vast majority of innovation studies focus on products as opposed to services. This research presents a meta-analysis of the antecedents of service innovation performance conducted on 92 independent samples obtained from 114 articles published between 1989 and 2015. This research contributes to our understanding of service innovation in three major ways. First, this is the first meta-analysis that specifically assesses the relative importance of antecedents of service innovation performance, while also pinpointing the differences in meta-analytic findings between antecedents of service and product innovation performance. Whilst there are some universal success factors that transcend the boundaries between services and products, the presence of marked differences implies that it would be wrong to treat the development of new services and new products as the same. Second, the meta-analysis demonstrates that the antecedents of service innovation performance are contingent on the sector context (i.e., explicit versus tacit services). Comparing results between products and services, and between tacit and explicit services, there appears to be a continuum where explicit services sit interstitial between tacit services on one side and products on the other. Third, the meta-analysis compares and contrasts the antecedents of two dimensions of service innovation performance (i.e., commercial success and strategic competitive advantage). Previous meta-analyses treated these two dependent variables collectively, which falls short of identifying issues that may affect management decisions when faced with different objectives. Additionally, this research investigates the effect of several other moderators (i.e., culture, unit of analysis, journal quality, and year of publication) on the relationships between the antecedents and service innovation performance. The results are discussed in relation to their implications for research and managerial practice

Entrepreneurial orientation, absorptive capacity, market orientation and technological innovation capabalities of SMEs in Kurdistan, Iraq

Innovation capabilities have become an important component for small and medium enterprises (SMEs) in the industrial sector to cope with intense competition and to meet customers’ needs. Due to inconsistency in the findings of previous studies on the antecedent factors that may influence these capabilities, this study intended to empirically examine the relationships between entrepreneurial orientation, absorptive capacity, market orientation, and technological innovation capabilities among the industrial SMEs in an unstable environment, and also to determine whether market orientation has a mediating role in the relationship between entrepreneurial orientation, absorptive capacity, and technological innovation capabilities . This study adopted the Resource-Based Theory as an underpinning theory for its assumptions and to develop its model. Self-administered questionnaires were distributed to the industrial SMEs owners in the Kurdistan region of Iraq. A total of 432 innovative enterprises were involved in this study, making an overall 63.9% response rate. This study utilized the partial least squares structural equation modelling (PLS-SEM) to establish the validity and reliability of the measurement model and to test the relationships. The outcomes of this study show that both absorptive capacity and entrepreneurial orientation have significant influences on technological innovation capabilities. Furthermore, the results indicate that market orientation has a partial mediating role in the nexus between absorptive capacity and technological innovation capabilities, but it has not been found to mediate the relationship between entrepreneurial orientation and technological innovation capabilities. This study offers theoretical and practical contributions for academics and professionals. The limitations of the study have been addressed and some valuable suggestions for future research work are offered

Firm Absorptive Capacity: Multidimensionality, Drivers, and Contextual Conditions

Purpose: This paper aims to enrich absorptive capacity literature by specifically highlighting and adding environmental conditions and internationalisation process to the original conceptualisation. Design/methodology/approach: The authors undertake a conceptual analysis and present an enhanced framework of absorptive capacity by integrating multiple literature streams. The authors have analysed the most relevant literature to provide underlying justifications for the proposed conceptual model. Findings: Absorptive capacity ensures the long-term survival and success of a business. To develop absorptive capacity successfully, firms should focus on its various dimensions and existing intangible assets and external environment. The multidimensionality and richness of absorptive capacity is an under-explored area in the existing literature. The authors revisit the conceptualisation of absorptive capacity and add environmental conditions and the internationalisation process to the original conceptualisation. Absorptive capacity does not lead to a competitive advantage independent of its environment. To successfully develop it, firms have to adopt a holistic approach by considering the multi-dimensions, drivers and contextual conditions of absorptive capacity. Originality/value: This study contributes by conceptualising absorptive capacity as a dynamic capability. It is one of the first studies to specifically propose a framework that combines antecedents (prior knowledge, combinative capabilities and IT capabilities), moderators (environmental conditions, namely, market and technological turbulence, competitiveness and the internationalisation process) and consequences (competitive advantage). The study offers a unique conceptualisation with implications for researchers and managers. As a result, managers will have a well-defined blueprint to create value by using firm capabilities

The Mediating Role Of Absorptive Capacity On The Relationship Between Climate And Commitment

Much of prior research on organizational learning studied the role of firm’s absorptive capacity. While there is an implicit research consensus on the definitions and outcomes of absorptive capacity, researchers do not seem to have reached a collective understanding of the process by which organizations become able to absorb external knowledge and then produce valuable outcomes. With this purpose we identify a well reviewed valuable outcome by the literature, i.e. the relation between climate and commitment, and we attempt to investigate the mediating role of absorptive capacity on the relation between organizational climate and commitment. The research model we propose was tested on a sample of 143 individuals belonging to some Italian organizations. Our findings show that absorptive capacity can act as leverage for achieving a higher level of employees’ commitment to the organization