1,581 research outputs found

    Extending Absorptive Capacity from the Microfoundations Perspective

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    Success in a competitive business environment can be a question of innovation skills. One way to explore a firm’s innovative capabilities is to measure its absorptive capacity: the ability to acquire, assimilate, transform and exploit knowledge. The purpose of this study is to discover the practices and routines that support the development of high absorptive capacity. Identifying the microfoundations of the construct provides practical information about ways to improve firm performance. The study provides an overview of the absorptive capacity construct, its antecedents and outcomes. The emphasis is on Zahra and George’s (2002) reconceptualization, which is used as the framework of the study. The empirical part is based on the four-dimensional model of absorptive capacity and it examines the practices of knowledge acquisition, assimilation, transformation and exploitation in the Finnish food manufacturing industry. Examples from five case companies with above average absorptive capacity help to explain what kind of mechanisms firms can use and what kind of efforts they must make in order to improve their absorptive capacity. The study contributes to the research of the microfoundations of absorptive capacity and supports the operationalization of the construct. The results indicate that while there are common factors that enhance absorptive capacity in general, each of the four dimensions have their specificities. Analyzing and comparing the case companies shows certain practices in each dimension that together build up to a high absorptive capacity and thereby to gaining a competitive advantage.fi=Opinnäytetyö kokotekstinä PDF-muodossa.|en=Thesis fulltext in PDF format.|sv=Lärdomsprov tillgängligt som fulltext i PDF-format

    Microfoundations for learning within international joint ventures

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    IJV research highlights the importance of learning in international joint ventures (IJVs) but has not indicated how to achieve it. We combine organizational learning and internationalization process research within a microfoundations framework to understand learning in IJVs. We study a Samsung-Tesco IJV that successfully learned retail practice from one partner and applied it in a South Korean context known by the other. The managers used many learning processes, not just experiential learning emphasized in international business research, and used many more knowledge sources than assumed in prior research, including the IJV partners’ other subsidiaries. To build absorptive capacity, IJVs need appropriate microfoundations at individual, process and structural levels, and coherent interlinkages between them, especially by having IJV managers’ with extensive experience and orientation to learn who are given structural and process autonomy to invest in learning

    Exploring microfoundations and multilevel mechanisms of absorptive capacity in an emerging economy: empirical evidence from a leading car manufacturer

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    Purpose Despite the importance of knowledge processes in building absorptive capacity, we are less clear about the micro-processes of absorptive capacity development and particularly about the role of individuals’ knowledge processes. Design/methodology/approach This study empirically examined, via an in-depth case study, the microfoundations of absorptive capacity and their influence on building absorptive capacity in an automaker across the course of four product innovation projects. Findings Findings suggested that dynamics in a knowledge environment informed individual-level tacit and explicit knowledge processes. In return, knowledge processes at the individual level informed organizational learning processes and the emergence of knowledge processes at organization level for acquisition, assimilation, transformation, and exploitation of new knowledge. Originality This study contributes to the literature by revealing individuals’ knowledge processes from which absorptive capacity emerges. Practically, managers can use the findings of this study to promote certain knowledge processes to develop intended aspects of absorptive capacity at an individual level

    Behind the scenes:dominant logic’s influence on dynamic capabilities in M&As of a Finnish healthcare company

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    Abstract. This qualitative study examines the dominant logic’s influence on the development paths of microfoundations of dynamic capabilities of a Finnish healthcare company that has acquired dozens of smaller service providers in the same sector during the past five years. Moreover, the aim is to find out what kind of contradictions caused by distinctive dominant logics emerged in M&A processes, and how these contradictions were managed by the acquirer. In order to gain a comprehensive understanding of the often implicit phenomena that take place in the case organizations, qualitative data was gathered through interviews with the executives of the acquiring company and previous owner-managers of the acquired entities. The theoretical part of the study introduces the theories of dominant logic and dynamic capabilities framework. In order to comprehend the dominant logic’s influence on the development paths of firm-specific microfoundations, and further dynamic capabilities, a conceptual model of the theories is build and presented. The findings of this study implicate, that the dominant logic of a firm may explain the development of organizational capabilities, and therefore, it can contribute to the formation of a unique, firm-specific set of dynamic capabilities. The findings show that the level of innovativeness and orientation towards change corresponds with how weak versus strong the prevailing dominant logic in the organization is. The weaker the prevailing dominant logic of a firm, the higher the absorptive capacity of that specific firm, and followingly, the stronger the contained dynamic capabilities. On the other hand, the stronger the dominant logic, the lower the level of absorptive capability in the organization, and therefore, the more challenging it is for the organization to reconfigure its current assets. Due to different dominant logics and capabilities that these distinct mental schemas highlighted, contradictions between the parties emerged in the perception of relevant organizational processes. Contradictions were managed through pre- and post-acquisition interviews. Another means to handle the emerged contradictions was to operate under more than one dominant logics

    Firm Absorptive Capacity: Multidimensionality, Drivers, and Contextual Conditions

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    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

    Embracing stakeholder engagement in sustainability-oriented innovation: Internal capabilities and dynamics of open innovation in the Norwegian minerals industry

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    The transition towards a sustainable minerals industry will rely on pursuing sustainability-oriented innovation (SOI), requiring continuous innovations in extraction and production processes, product offerings and the way the industry deals with its social responsibilities. Considering the breadth of SOI, mineral firms have no choice but to engage with and seek knowledge from multiple key external stakeholders. However, this stakeholder multiplicity poses significant challenges to firms, bearing in mind the diverse knowledge backgrounds and interests of these stakeholders, as well as the internal capabilities required to integrate and apply the externally acquired knowledge. Despite the growing scholarly interest in studying stakeholder engagement in SOI processes, a considerable amount of knowledge in this research field is restricted to specific types of SOI that ignore the comprehensiveness of sustainability. Therefore, the overall aim of this thesis is to answer the following question: “Under which conditions and to what extent can engaging external stakeholders improve a firm’s SOI outputs and financial performance?”. This research question is explored through four sub-research questions in three empirical papers that draw on different theoretical perspectives and methodological approaches. The first and second papers provide insights into the conditions in which stakeholder engagement can be beneficial for SOI, focusing on internal and inter-organizational factors respectively. The third paper then positions SOI itself as a mediating condition that can assist firms to reap the financial benefits from stakeholder engagement practices. As far as the extent of the effect of stakeholder engagement is concerned, the second and third papers establish an empirical link between stakeholder engagement and SOI outputs. Overall, the thesis contributes to the literature and practice by uncovering the “what”, “how”, “why” and “when” of the phenomenon of stakeholder engagement in SOI

    Learning to create sustainable value in turbulent operational contexts: the role of leadership practices

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    © Emerald Group Publishing Limited. Purpose: This paper aims to report on case-study research that explores the role of leadership practices, in particular, in enhancing the capacity of an enterprise to learn to create new value from a diverse range of sources. The capacity to sustain value creation over time, and across turbulent environments, increasingly differentiates enterprise performance. Under the umbrella term of “dynamic capabilities”, a range of practices have been identified in the literature as contributing to an enterprise’s ability to learn to perform this task successfully.Design/methodology/approach: The paper is based on case studies of three enterprises whose founders have sustained the creation of new value for customers over decades. Through a series of unstructured interviews with each founder, the tacit knowledge gained from years of learning how to create, and re-create, value, is made explicit through hermeneutic analysis of the interview transcripts.Findings: The data identify four key areas of leadership practice that underpin the capacity to learn to continuously create new value over significant periods of time. The most important of these are the social practices that generate and leverage the intangible capital resources (in particular, the resource of trust) that underpin the collaborative learning on which value creation processes depend.Research limitations/implications: As interpretive research, the knowledge accessed through this research is context-dependent and cannot be readily generalised. The validity of the knowledge is high, however, as the epistemological and ontological assumptions of the interpretive research paradigm recognise the political nature of organisations and, thus, of learning and value creation. As such, the knowledge generated by the case analyses offers a rich alternative perspective on the issue under research.Practical implications: The cases illuminate the nature of learning that supports continuous value creation in enterprises. Such learning is framed by several leadership practices that enable the self-reflexivity that underpins the continuous conversion of action-generated tacit knowledge into more strategically useful explicit knowledge. At the core of these leadership practices is stakeholder collaboration and intellectual humility.Social implications: The results show that learning to create sustainable value over time and diverse contexts, has a socio-political dimension in that it depends heavily on generating and leveraging the intangible resources (such as trust, commitment, ideas) that reside within social relationships.Originality/value: The research is located within the interpretive research paradigm and thus offers an alternative view to that of conventional positivist research. Furthermore, the results indicate that learning is a strategic priority in rapidly changing environments and, thus, is a key leadership responsibility. Furthermore, the results show that value creation is a collaborative stakeholder achievement

    Strategic Agility and Product Development in Emerging Markets : The Role of Employee Resilience and Self-efficacy as Microfoundations

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    For the purpose of open access, the authors have applied a Creative Commons Attribution (CC BY) [or other appropriate open licence] licence to any Authors Accepted Manuscript version arising from this submissionPeer reviewedPostprin

    Introducing conflict as the microfoundation of organizational ambidexterity

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    This article contributes to our understanding of organizational ambidexterity by introducing conflict as its microfoundation. Existing research distinguishes between three approaches to how organizations can be ambidextrous, that is, engage in both exploitation and exploration. They may sequentially shift the strategic focus of the organization over time, they may establish structural arrangements enabling the simultaneous pursuit of being both exploitative and explorative, or they may provide a supportive organizational context for ambidextrous behavior. However, we know little about how exactly ambidexterity is accomplished and managed. We argue that ambidexterity is a dynamic and conflict-laden phenomenon, and we locate conflict at the level of individuals, units, and organizations. We develop the argument that conflicts in social interaction serve as the microfoundation to organizing ambidexterity, but that their function and type vary across the different approaches toward ambidexterity. The perspective developed in this article opens up promising research avenues to examine how organizations purposefully manage ambidexterity
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