Investigating Absorptive Capacity Strategies via Simulation

Absorptive capacity, defined as the organizational capability to identify, absorb and exploit knowledge, is one of the most discussed topics in the management literature. Yet, its complex nature makes it almost impossible to empirically test it. This paper develops SimAC, an agent-based simulation tool that enables studying and comparing different absorptive capacity strategies, their related financial payoffs, and their knowledge creation potential through time

Absorptive capacity and relationship learning mechanisms as complementary drivers of green innovation performance

This paper aims to explore in depth how internal and external knowledge-based drivers actually affect the firms\u2019 green innovation performance. Subsequently, this study analyzes the relationships between absorptive capacity (internal knowledge-based driver), relationship learning (external knowledge-based driver) and green innovation performance. This study relies on a sample of 112 firms belonging to the Spanish automotive components manufacturing sector (ACMS) and uses partial least squares path modeling to test the hypotheses proposed. The empirical results show that both absorptive capacity and relationship learning exert a significant positive effect on the dependent variable and that relationship learning moderates the link between absorptive capacity and green innovation performance. This paper presents some limitations with respect to the particular sector (i.e. the ACMS) and geographical context (Spain). For this reason, researchers must be thoughtful while generalizing these results to distinct scenarios. Managers should devote more time and resources to reinforce their absorptive capacity as an important strategic tool to generate new knowledge and hence foster green innovation performance in manufacturing industries. The paper shows the importance of encouraging decision-makers to cultivate and rely on relationship learning mechanisms with their main stakeholders and to acquire the necessary information and knowledge that might be valuable in the maturity of green innovations. This study proposes that relationship learning plays a moderating role in the relationship between absorptive capacity and green innovation performance

The mediation between participative leadership and employee exploratory innovation: Examining intermediate knowledge mechanisms

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.We examine mediation effects of coworker knowledge sharing and absorptive capacity on the participative leadership–employee exploratory innovation relationship in R&D units of Taiwanese technology firms. Deploying a time-lagged questionnaire method implemented over four business quarters, data is generated from 1600 paired samples (managers and employees) in R&D units of Taiwanese technology firms. The structural equation modeling results reveal that (1) participative leadership is positively related to employee exploratory innovation; (2) coworker knowledge and (3) absorptive capacity partially mediate the relationship between participative leadership and employee exploratory innovation independently; and, (4) coworker knowledge sharing in combination with absorptive capacity partially mediates this relationship. The results extend previous research on participative leadership and innovation by demonstrating that participative leadership is related to employee exploratory innovation (Lee and Meyer-Doyle, 2017; Mom et al., 2009).Results also confirm that participative leadership drives employee exploratory innovation through employee absorptive capacity. This reinforces the need highlighted by Lane et al. (2006) to investigate the role of absorptive capacity at the individual-level. Collectively, while participative leadership is important for employee exploratory innovation it is the knowledge mechanisms existing and interacting at the employee-level that are central to generating increased employee exploratory innovation from this leadership approach

Challenges of open innovation: the paradox of firm investment in open-source software

Open innovation is a powerful framework encompassing the generation, capture, and employment of intellectual property at the firm level. We identify three fundamental challenges for firms in applying the concept of open innovation: finding creative ways to exploit internal innovation, incorporating external innovation into internal development, and motivating outsiders to supply an ongoing stream of external innovations. This latter challenge involves a paradox, why would firms spend money on R&D efforts if the results of these efforts are available to rival firms? To explore these challenges, we examine the activity of firms in opensource software to support their innovation strategies. Firms involved in open-source software often make investments that will be shared with real and potential rivals. We identify four strategies firms employ – pooled R&D/product development, spinouts, selling complements and attracting donated complements – and discuss how they address the three key challenges of open innovation. We conclude with suggestions for how similar strategies may apply in other industries and offer some possible avenues for future research on open innovation

A relational approach to knowledge spillovers in biotech. Network structures as drivers of inter-organizational citation patterns

In this paper, we analyze the geography of knowledge spillovers in biotech by investigating the way in which knowledge ties are organized. Following a relational account on knowledge spillovers, we depict knowledge networks as complex evolving structures that build on pre-existing knowledge and previously formed ties. In economic geography, there is still little understanding of how structural network forces (like preferential attachment and closure) shape the structure and formation of knowledge spillover networks in space. Our study investigates the knowledge spillover networks of biotech firms by means of inter-organizational citation patterns based on USPTO biotech patents in the years 2008-2010. Using a Stochastic Actor-Oriented Model (SAOM), we explain the driving forces behind the decision of actors to cite patents produced by other actors. Doing so, we address directly the endogenous forces of knowledge dynamics.knowledge spillovers, network structure, patent citations, biotech, proximity

The evolution of alliance capabilities

evolution, alliance

Absorptive capacity and the growth and investment effects of regional transfers : a regression discontinuity design with heterogeneous treatment effects

Researchers often estimate average treatment effects of programs without investigating heterogeneity across units. Yet, individuals, firms, regions, or countries vary in their ability, e.g., to utilize transfers. We analyze Objective 1 Structural Funds transfers of the European Commission to regions of EU member states below a certain income level by way of a regression discontinuity design with systematically heterogeneous treatment effects. Only about 30% and 21% of the regions - those with sufficient human capital and good-enough institutions - are able to turn transfers into faster per-capita income growth and per-capita investment. In general, the variance of the treatment effect is much bigger than its mean

Product Development Teams Formation:Effects of Organizational and Product Related Factors

While teams are an essential means for developing products in organizations, how to assemble product development teams remains largely unexplored. According to the social network research, teams might be arranged in either closely connected or sparse structures. Conceptualizing a product development project as collective problem solving endeavour, we develop a computational model of these projects in which a number of designers, who are arranged in teams with a particular structure, conduct search over an NK(C) performance landscape. Simulation of this model enables us to compare the design performance of teams with either closely connected or sparse structures. Our results indicate that how effectively organizations can integrate design solutions determines which of these two structures results in higher development performance. In addition, with our simulation model, design performance of strategies that employ both closely connected and sparse teams, is contrasted with that of those policies which solely use either of these structures. We find that, regardless of product development project integration capability, strategies that simultaneously utilize both closely connected and sparse teams are likely to achieve higher development performance than the other strategies that only use teams with one particular structure. We discuss the implications of our findings in managing product development project

Investigation of Innovation In Wine Industry Via Meta-Analysis

This study provides a systematic review of 76 relevant wine business studies published in the last 30 years. Our meta-analysis investigates six commonly used variables to explain wine innovation: absorptive capacity, technology adoption, sustainable practices, export orientation, firm size, and firm age. We also investigate the association between innovation and financial performance, using the reported effect sizes in the literature. Our meta-analysis reveals that absorptive capacity, technology adoption, sustainable practices, export orientation, and firm size positively correlate with innovation efforts, and innovation is positively associated with financial performance. However, we find no correlation between firm age and innovation. In addition to the meta-analysis, we apply basic text analytics and narrative review methodologies to identify a taxonomy of wine industry innovation according to four types of innovation. Based on our systematic literature review results, we make a series of managerial and policy recommendations for wine firms. Finally, we identify gaps in the literature and suggest future research directions

Investigating the impact of networking capability on firm innovation performance:using the resource-action-performance framework

The author's final peer reviewed version can be found by following the URI link. The Publisher's final version can be found by following the DOI link.Purpose The experience of successful firms has proven that one of the most important ways to promote co-learning and create successful networked innovations is the proper application of inter-organizational knowledge mechanisms. This study aims to use a resource-action-performance framework to open the black box on the relationship between networking capability and innovation performance. The research population embraces companies in the Iranian automotive industry. Design/methodology/approach Due to the latent nature of the variables studied, the required data are collected through a web-based cross-sectional survey. First, the content validity of the measurement tool is evaluated by experts. Then, a pre-test is conducted to assess the reliability of the measurement tool. All data are gathered by the Iranian Vehicle Manufacturers Association (IVMA) and Iranian Auto Parts Manufacturers Association (IAPMA) samples. The power analysis method and G*Power software are used to determine the sample size. Moreover, SmartPLS 3 and IBM SPSS 25 software are used for data analysis of the conceptual model and relating hypotheses. Findings The results of this study indicated that the relationships between networking capability, inter-organizational knowledge mechanisms and inter-organizational learning result in a self-reinforcing loop, with a marked impact on firm innovation performance. Originality/value Since there is little understanding of the interdependencies of networking capability, inter-organizational knowledge mechanisms, co-learning and their effect on firm innovation performance, most previous research studies have focused on only one or two of the above-mentioned variables. Thus, their cumulative effect has not examined yet. Looking at inter-organizational relationships from a network perspective and knowledge-based view (KBV), and to consider the simultaneous effect of knowledge mechanisms and learning as intermediary actions alongside, to consider the performance effect of the capability-building process, are the main advantages of this research