Effects of Absorptive Capacity on Organizational Predisposition Toward Information Systems

This paper draws on the theory of absorptive capacity and related work to identify its dimensions and examine its impact on organizational propensity to adopt novel, complex interorganizational technologies. Specifically, it seeks to examine the causal pathway through which absorptive capacity affects organizational adoption intention. Survey-based research was carried out to test this theory. Data was collected from the CEO, the CFO, and the CIO to measure the level of absorptive capacity and its dimensions, and their intentions to adopt financial electronic data interchange (FEDI). A firm-level structural model was developed. LISREL and PLS were used for testing the measurement and structural models respectively. The results indicate that absorptive capacity’s relationship with adoption intention is mediated by decision-makers’ attitudes toward using FEDI. Preexisting related knowledge and aggressiveness of technology policy contribute significantly to absorptive capacity’s impact on adoption intention. Implications for theory and practice are discussed

Toward an Integrative Research Framework for New Venture Legitimacy Judgement Formation

 Legitimacy is a critical resource for new ventures. Yet, our review of the literature indicates that the process through which new venture legitimacy judgments are bestowed by stakeholders is under-theorized. Additionally, the consequences of the legitimacy judgment for the stakeholder have not been adequately incorporated in prior research frameworks. We employ the absorptive capacity construct to address these limitations and propose an integrative research framework that includes the stakeholder in the legitimacy judgment formation process, and paves the way for empirical testing of these underlying processes

Impact of Institutional Pressures on Absorptive Capacity of a Firm and Web 2.0 Assimilation

We investigate a theoretical model that combines two streams of research in IT adoption. The first is the institutional theoryperspective, which provides the institutional pressures that induce a firm to align itself with the members of the institution ofwhich it is a part. The second is the learning perspective on organization, which has been used to study firm characteristicsthat promote technology assimilation; it provides the mediating factor of absorptive capacity. In this study we empiricallystudy the role of institutional factors as they are mediated by absorptive capacity in the assimilation of Web 2.0 technologies.Linear structural equation model using formative constructs are developed. Preliminary results are promising. Full resultswill be discussed at the conference

Why Do SME Owners Use Web-Based Technologies?

The purpose of this research is to explore why SME owners use web-based technologies (social media) in their daily work and how this use influences their individual performance in the SME. Drawing on the theoretical insight of cognitive psychology, the process model of absorptive capacity, literature on web-based technologies, literature on business management and strategy, the technology acceptance model (TAM) (Davis, Bagozzi & Warshaw 1989), and the unified theory of acceptance and use of technology (UTAUT) (Venkatesh, Thong & Xu 2012), the goals of this research are four-fold. First, establish past experience (PE), past related knowledge (PK), and cognition (COG) as being antecedents of individual absorptive capacity. Second, empirically test IAC at the individual level by showing influence on individual performance in the SME (IPSME). Third, introduce the term cognitive-influenced valuation (CV) from cognitive psychology to explain how it is the case that individual SME owners were willing to follow a technologically-enabled trend (WFTET). Empirical results show that CV is a significant motivator of learning in two ways: i) increased self-confidence on the part of individual SME owners when they have a good grasp of how to serve their clients well through use of social media and, ii) individual SME owners assign a high valuation to those things which motivate them to learn; motives are what drive SME owners' willingness to follow a technologically-enabled trend. Last, introduce the term adaptive behaviors (AB) from business management and strategy to explain how individual SME owners adapted their use of social media from low or moderate to high centrality in order to use social media as a strategically viable business tool (VBT). Empirical results show that when individual SME owners want to be highly competitive as a business goal, then incorporating social media as a strategic business tool would assist them in achieving long-term enterprise success. The first innovative contribution of this thesis is the explanation of the construct absorptive capacity as being the development of the ability to absorb and exploit past experience and past related knowledge (behavior -- up to current) from the environment (Cohen & Levinthal 1990, 1989). Secondly, establish the antecedents of absorptive capacity as being past experience, past related knowledge, and cognition (learning -- up to the current moment) (Cohen & Levinthal 1990). Thirdly, this thesis contributes to existing theory a conceptual framework based on the process perspective of Lane, Koka & Pathak (2006). This research demonstrates the conceptual connection between IAC and IPSME, which might in turn be influenced by WFTET and VBT. A mixed methods convergent exploratory strategy of inquiry is utilized to conduct quantitative and qualitative studies to engage directly with the individual SME owners to better understand why they make the choice to use social media in their everyday work lives and to explore how this use influences their individual performance in the SME. The statistical quantitative proxies were selected from the Global Entrepreneurship Monitor (GEM) Adult Population Survey of SME owners' attitudinal and behavioral choices involving their willingness to try new/existing social media to improve their working life (UK only: n=169,280). A qualitative study was conducted of SME owners. The data for this study were collected from one-to-one semi-structured interviews using theoretical concepts from TAM (Davis et al. 1989), TAM2 (Venkatesh & Davis 2000), and UTAUT2 (Venkatesh, Thong & Xu 2012) to guide the interview process (UK only: n=50). The collected data were analysed through the lens of content analysis. Three case studies explore the reason(s) for five SME owners' use of social media in their everyday work lives. The first limitation of this study is the small sample size and the locus of this study being County Kent, UK, where a larger sample size and/or a larger collection radius would yield additional comparative data. Future research including these factors would be beneficial. Secondly, a striking feature of this study has been the lack of correlation between the quantitative data and the qualitative data, which could be addressed by the above, as well. Future research with greater correlation between research focus and subject matter would also be beneficial and yield additional areas of theoretical development. The outcomes of this research confirm that in the context of SME owners in the UK using social media in their daily work lives, they assign a high value to the drive for continuous learning, goal setting, and successful project outcomes. In a much broader more general context, learning for any individual, regardless of the organizational size, is very important and the drive for it is likely no different from any place else. Lastly, in each instance of goal setting and project execution, individual SME owners will select the most useful tool from their social media option

Social Media Assimilation in Firms: Investigating the Roles of Absorptive Capacity and Institutional Pressures

Firms are increasingly employing social media to manage relationships with partner organizations, yet the role of institutional pressures in social media assimilation has not been studied. We investigate social media assimilation in firms using a model that combines the two theoretical streams of IT adoption: organizational innovation and institutional theory. The study uses a composite view of absorptive capacity that includes both previous experience with similar technology and the general ability to learn and exploit new technologies. We find that institutional pressures are an important antecedent to absorptive capacity, an important measure of organizational learning capability. The paper augments theory in finding the role and limits of institutional pressures. Institutional pressures are found to have no direct effect on social media assimilation but to impact absorptive capacity, which mediates its influence on assimilation

A dynamic human capital perspective on corporate opportunity identification

Hughes, Ucbasaran and Lewis observe that, despite a plethora of prior studies, little systematic and careful attention has been given to internal variables in studying corporate entrepreneurship (CE). Rather, most research has focused on external variables, such as the environment. Given the paucity of research on internal variables, the authors focus on the role of human capital in promoting CE. In conceptualizing CE, Hughes et al. emphasize corporate opportunity identification—an issue that has not been well studied in the literature. They propose that companies with better skilled human capital would be better positioned to identify more opportunities than companies with lower quality human capital. Hughes et al. make a distinction between two types of human capital: firm-specific and entrepreneurial-specific. They further observe that the relationship with opportunity identification will be higher (stronger) for firm-specific and entrepreneurial-specific human capital. Moreover, they advance that the relationship between human capital and opportunity identification will be moderated by the firm’s systems and processes. Next, they propose that increases in corporate opportunity recognition can lead to increased and higher skilled human capital, thereby recognizing the importance of CE as an important mechanism for employee engagement that enhances firm capabilities

Configuring HRM Practices for Open Innovation: But Can It Deliver?

Though current scholarly interest generates a sustained growth of literature on open innovation, we need to learn more about human resource practices relating to open innovation. Building on the ability-motivation-opportunity (AMO) framework, we demonstrate the differential impact of human resources practice bundles on open innovation. We also find evidence that motivation-enhancing and competency-enhancing practices share a compensating effect on open innovation. Using firm-level data from 2540 Italian manufacturing firms, our study, if not first, contributes to the growing bodies of research on open innovation by bringing forth the human dimension to the forefront and offering a drilled-down practice-level view that needs to be addressed in the literature

Utilizing End-user Requirements to Inform the Knowledge Supply Strategies of IT Project Teams

This research investigates the knowledge sourcing requirements of teams that implement novel IT projects. It then compares those requirements to the mainstream strategy proffered in the literature for knowledge reuse within project environments. Using a grounded theory approach, this research found that the knowledge sourcing requirements do not align with the mainstream strategy, which is based on a codification approach. Rather, the findings indicate the teams that implement novel IT projects rely primarily on a personalization strategy for sourcing complex, incipient, and sensitive knowledge and the Internet for sourcing simple knowledge. These teams generally did not use internal knowledge repositories to fulfill their knowledge sourcing needs

The Effect of Technology Readiness on Individual Absorptive Capacity Toward Learning Behavior in Australian Universities

Recipient's absorptive capacity (ACAP) is a barrier to knowledge transfer in organizations. The technology readiness (TR) dimensions measure an individual's technological beliefs and aligns with the individual's ACAP. The purpose of this research is to study if technological beliefs have a causal effect onto individual learning capability and behaviour. University's knowledge transfer makes them an ideal context for this research. Through surveying individuals and conducting statistical analysis, the authors provide empirical evidence that there is a causal effect from the TR dimensions to individuals ACAP and their technological learning behaviour at the individual level. The findings could potentially help leverage technology to address said recipient's ACAP. It would also benefit the development of new technologies, in particular in e-learning and tailoring pedagogy.</p