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

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

Technological and Non-Technological Aspects of Web 2.0 Institutionalisation

Organizational responsiveness is a critical factor for success of any business. It requires business organizations to understand and respond to changes in its external and internal environment. As a consequence, organizations are required to create a dynamic internal environment. This dynamism is built around exchanging information and ideas relating to business sustainability, progress, and growth. Social technologies like web 2.0 are, therefore, becoming more popular among contemporary businesses. These technologies are evolving at an increasing pace, which brings about many technological and non-technological considerations for organizations interested adopting them. These are social technologies and their implementation and usage need to be socially composed. This composition requires challenging the status quo and inviting workforce to embrace change by legitimizing and institutionalizing these technologies. Institutionalisation of information technologies is a nonlinear process. It is dependent upon various technical, social, and organizational sub-institutions of the organization, which themselves evolve in response to isomorphic pressures. The aim of this paper is to facilitate the diffusion and usage of web 2.0 technologies in organizations by suggesting a research framework. It examines how web 2.0 applications are characterized, shaped, and institutionalised by mutual interaction of various technical, organizational, social, cultural, and other institutional dimensions

Determinants of organisational social media adoption: the role of innovativeness and sustainability orientation

Experts are convinced that, next to globalisation, economies are about to enter the new era of digitisation which will bring massive and disruptive changes for all economic operators. Use of social media may be considered as a first step to digitisation which has the potential to not only revolutionise communication but also all kinds of interactions between businesses and their major stakeholders. Although the level of engagement varies widely, many companies are already using social media as an important instrument for value creation by managing relationships with consumers and business partners. In light of growing active user numbers and the considerable amount of time internet users spend daily on major social networking platforms, the interest of academia and practitioners in social media is higher than ever before. Current research is focused on business relevance and determinants of social media adoption, with almost exclusive use of large multinational companies listed in leading global stock indices as study subjects. While published literature has utilised technology and innovation adoption theories for explaining differences in adoption, the present study extends this approach by drawing on ideas of stakeholder theory in explaining not only adoption but also success in social media. Specifically, the roles of firm innovativeness and corporate sustainability orientation on social media adoption were examined, using a SEM-PLS approach. Firm innovativeness was found to be a significant predictor of the speed of social media adoption, while sustainability orientation determines the scope and success in online social networks. Implications for practice and theory were discussed. The proposed structural model appears to be promising although some opportunities for improvement were identified

Leveraging Open-standard Interorganizational Information Systems for Process Adaptability and Alignment: An Empirical Analysis

PurposeThe purpose of this paper is to understand the value creation mechanisms of open-standard inter-organizational information system (OSIOS), which is a key technology to achieve Industry 4.0. Specifically, this study investigates how the internal assimilation and external diffusion of OSIOS help manufactures facilitate process adaptability and alignment in supply chain network.Design/methodology/approachA survey instrument was designed and administrated to collect data for this research. Using three-stage least squares estimation, the authors empirically tested a number of hypothesized relationships based on a sample of 308 manufacturing firms in China.FindingsThe results of the study show that OSIOS can perform as value creation mechanisms to enable process adaptability and alignment. In addition, the impact of OSIOS internal assimilation is inversely U-shaped where the positive effect on process adaptability will become negative after an extremum point is reached.Originality/valueThis study contributes to the existing literature by providing insights on how OSIOS can improve supply chain integration and thus promote the achievement of industry 4.0. By revealing a U-shaped relationship between OSIOS assimilation and process adaptability, this study fills previous research gap by advancing the understanding on the value creation mechanisms of information systems deployment

The role of absorptive capacity and organizational unlearning in the link between social media and service dominant orientation

Purpose – This paper aims to study the relationship between the knowledge obtained in social networks by firms together with the firms’ knowledge absorptive capacity and organizational unlearning as influencers of service-dominant (S-D) orientation, as well as the mediating role of absorption capacity and organizational unlearning in this process. Design/methodology/approach – The sample amounts to 101 responding companies, obtained from the SABI database. The companies belong to the service sector in Spain and have at least 50 employees and 5 years or more of existence in the market. The model was estimated through partial least squares structural equation modeling with smartPLS software 3.2.6. Findings – The results show that the use of social media is very important for firms to acquire knowledge and capabilities that help them to become S-D oriented. In addition, absorptive capacity and unlearning processes are dynamic capabilities necessary to transform the knowledge acquired in social media and to become S-D oriented. Research limitations/implications – Companies’ managers draw conclusions that can generate great value, while better meeting the needs and desires of the market, the more knowledge is obtained. In addition, the use of the knowledge generated in this process will reduce the risk of sudden changes in the market. Practical implications – The more knowledge is gained using social networks, the better the companies’ managers will be able to draw conclusions that can generate great value, while at the same time better satisfying the needs and desires of the market, and thus create capacities that allow the company to be service-oriented. In addition, the use of these knowledge platforms strengthens the strategic advantage of companies through the promotion of innovation and by relating dynamic capabilities with the orientation toward sustainable development. As mentioned above, a process will be generated that will reduce the risk of sudden changes in the market. Originality/value – This is one of the few studies trying to study the antecedents of S-D orientation and the first to study the direct effect of social media use, and the direct and indirect effect of absorptive capacity and organizational unlearning on S-D orientation as dynamic capabilities.Foundation for Science and Technology UIDB/04630/202

Assimilation of Tracking Technology in the Supply Chain

While tracking technology has become increasingly accessible, firms still struggle with deploying these technologies into the supply chain. Using the complementary perspectives of transaction cost and institutional theory, we develop an understanding of how supply network, product, and environmental characteristics jointly impact tracking technology assimilation. We empirically test our model on a global dataset of 535 supply chain executives and decision makers. The results suggest that assimilation is frequently initiated by an external stakeholder in a firm\u27s supply chain and that firms must develop strong collaborative ties with their partners in order to take full advantage of this technology

The Performance Effects of Latent Factors on Assimilation of Commercial Open-Source ERP Software on Small-Medium Enterprises

This study tests a theoretical model developed to investigate the impact of assimilation of commercial open source enterprise resource planning software (COSES) in small and medium sized enterprises (SMEs). Specifically, the model explains how the top management team’s (TMT’s) information technology (IT) knowledge and experience impact both assimilation and firm performance. The hypotheses were tested using survey data from SMEs that have implemented COSES. Results from structural equation modeling suggest that SMEs benefit, through higher levels of assimilation and performance, from adopting innovative enterprise resource planning (ERP) systems such as COSES when they have a TMT that has experience with and is knowledgeable about technology. The study also highlights the importance of the TMT in facilitating IT assimilation