The Moderating Role of Absorptive Capacity in the Assimilation of Enterprise Information Systems

We attempt to understand how external institutional forces affecting ERP assimilation within organizations need not impact all organizations uniformly but instead can be moderated by the enterprises\u27knowledge-based capabilities. Building on an institutional model of ERP assimilation, we investigate the role of absorptive capacity (ACAP) in ERP assimilation. Specifically we examine how the ACAP of an organization can enhance or retard the effect of institutional forces on the degree of ERP assimilation. Following a recent framework we operationalize ACAP as potential ACAP (PACAP) and realized ACAP (RACAP) and find that both dimensions affect ERP assimilation in different ways. While both, PACAP and RACAP, have a direct positive impact on assimilation, PACAP moderates the impact of mimetic forces on assimilation whereas RACAP moderates the effect of normative pressures. While we find overall a strong support for our hypothesized model, interestingly, we also find that RACAP negatively moderates the effect of mimetic pressures on assimilation. We discuss the contributions of this study to a better understanding of IT assimilation processes

Innovation in tourism: Re-conceptualising and measuring the absorptive capacity of the hotel sector

Recent reviews of research on innovation in tourism have highlighted a number of weaknesses in the literature. Among these is the limited theorising and empirical investigation of innovative practices by tourism organisations. This paper responds to these concerns by examining one important dimension of innovation within commercial tourism organisations, namely their ability to acquire, assimilate and utilise external knowledge (absorptive capacity) for competitive advantage. The topic is pertinent because there is evidence to suggest that tourism organisations are particularly dependent on external sources of knowledge when compared with businesses in other sectors. Following a discussion of the conceptual antecedents of absorptive capacity and its dimensions, a validated instrument for its measurement is developed and used to measure the absorptive capacity of the British hotel sector. The results suggest that current conceptions of absorptive capacity have limitations when applied to tourism enterprises. Absorptive capacity is re-conceptualised to overcome these deficiencies. The research and policy implications of the findings are discussed. © 2014 Elsevier Ltd

The "potential" face of absorptive capacity. An empirical investigation for an area of 3 European countries

This paper draws on the multi-dimensional characterization of absorptive capacity (AC) to empirically investigate the antecedents and the effects of its "potential" dimension (PAC): i.e., the firm's capacity of acquiring and assimilating external knowledge, as distinguished from its "realized" transformation and exploitation (RAC). Based on a sample of about 10,500 firms for an area of 3 EU countries (Italy, Germany and Spain) we find that the firm's reliance on external knowledge in general increases its PAC, and that this effect is magnified by the internal shocks the firm faces. However, both these effects find relevant exceptions when different kinds of external sources are considered, at different kinds of distance from the absorbing firm. Unexpectedly, social integration mechanisms in the firm makes PAC less, rather than more, inductive of innovation outcomes. On the contrary, the human capital of the firm has a positive moderating role on the PAC effects. A possible trade-off in the exploitation of the externally assimilated knowledge is suggested.absorptive capacity; external knowledge; innovation

ENTREPRENEURIAL LEADERSHIP AND MARKET TURBULENCE IN THE PERSPECTIVE OF THE EFFECT OF ABSORPTIVE CAPACITY ON INNOVATION AMBIDEXTERITY

The primary objective of this research is to examine the impact of absorptive capacity on innovation ambidexterity. Additionally, this study seeks to investigate the moderating effects of entrepreneurial leadership and market turbulence on the relationship between absorptive capacity and innovation ambidexterity. The research employed a survey methodology, wherein the participants consisted of leaders, specifically founders or key managers, from a total of 265 small and medium-sized enterprises (SMEs) across diverse industries in the region of East Java. The research model was constructed utilizing the structural equation modeling (SEM) approach, and the association between variables was examined employing partial least squares structural equation modeling (PLS-SEM). The findings of this study demonstrate the significance of absorptive capacity in enhancing innovation ambidexterity strategies. Furthermore, it is imperative to acknowledge that the pivotal factor that enhances the connection between the aforementioned entities lies in the involvement of entrepreneurial leaders. The impact of a company's dynamic capability to effectively manage external knowledge on its innovation ambidexterity strategy is further heightened in situations where the external environmental conditions are characterized by uncertainty. To the best of our knowledge, there is limited existing research that has comprehensively investigated the relationship among absorptive capacity, innovation ambidexterity, entrepreneurial leadership, and market turbulence within a single research model. The findings of this study provide a comprehensive description of the innovation process phenomenon observed in small and medium-sized enterprises (SMEs). Furthermore, it has been observed that the involvement of company executives significantly influences the level of intensity with which the innovation strategy is implemented. Moreover, the unpredictability of the company's environmental circumstances may influence the company's ability to effectively absorb and leverage innovation ambidexterity

The Impact Of Knowledge From Learning-About Electronic Health Records On It Innovation Adoption: The Moderating Role Of Absorptive Capacity

Learning-by-doing is a crucial process to successful IT adoption. Yet, this type of organizational learning process is necessary but not sufficient to the adoption success. Learning-about, the pre-adoption learning activity, plays an equally important role in an organization’s IT adoption. In healthcare industry, hospitals are not always able to utilize healthcare information technologies (HITs), such as electronic healthcare records (EHRs), to generate high quality information for decision making. Having pre-adoption knowledge and the capacity to absorb the knowledge is likely to better the adoption results. This research proposes a conceptual model to explain the importance of the knowledge from learning-about EHR technology and explore the role absorptive capacity plays in EHR pre-adoption. This study contributes to the existing EHR literature by (1) adding pre-adoption knowledge into the ingredients of successful adoption, and (2) discussing the moderating effect of absorptive capacity to the relationship between pre-adoption knowledge and outcomes of adoption

Individuals\u27 absorptive capacity in enterprise system assimilation

The capability of an individual to absorb knowledge about enterprise resource planning (ERP) is a critical element in the development of an organisation&rsquo;s absorptive capacity (ACAP) during assimilation phase of ERP. Prior research have tended to overlook the roles that individuals play in identify external and internal knowledge, assimilate and exploit ERP knowledge. By defining ACAP at the individual level, we seek to enrich our understanding of how individual learn ERP knowledge and how such efforts facilitate the ERP assimilation within organisations. We develop a theoretical model to investigate the assimilation of enterprise systems in the post-implementation stage. Specifically, this model explains how communication climate and top management participation moderates the impact of Individuals&rsquo; ACAP on the assimilation of ERP systems.<br /

Exploring A Strategic Links between Absorptive Capacity, Supply Chain Agility, It Capability and the Organizational Performance of Indonesian Manufacturing Firms

The present research attempts to discover this supply chain management as an important issue of strategic management research. This study particularly examines two important IT capabilities which are expected to have influence on firm performance, these capabilities are 1) IT assimilation, the ability to synchronize and diffuse the applications of information technology under business structure, and 2) flexible IT infrastructure, a well-developed and carefully planned technological foundation which provides basis for present as well as future applications to be developed. Based on the dynamic capability’s perspective and the view of a hierarchy of capabilities, the prime objective of the currents study is investigating the direct relationship between absorptive capacity, supply chain agility, IT capability and organizational performance in the Indonesian manufacturing firms. In addition to that the mediating effect of absorptive capacity and supply chain agility is also examined. Employing the survey-based methodology, the SEM-PLS technique is used to test the hypothesized relationships. So, current study has used SEM-PLS as statistical tool to answer the research questions raised in this study and research objectives envisaged in the current study. The findings of the study have provided support to the theoretical foundation and proposed hypothesis of the current study. Current study will be helpful for policymakers and practitioners in understanding the issues related to supply chain agility, IT capability, absorptive capacity and the firm performance. In author knowledge this is among very few pioneering studies on this issue

Antecedents of Information Privacy Assimilation in Indian IT Organizations: An Empirical Investigation

Information privacy at the organizational level is receiving increased attention due to the huge amount of personal information being stored, transmitted across national boundaries, and ownership being shared between organizations due to change in business dynamics. This study develops a framework for understanding the mechanisms of information privacy assimilation in Information Technology (IT) organizations. There is a great need for investigating the interplay between external forces and internal influencers that impact the privacy assimilation practices within an organization. To fill this gap, we empirically examined the interplay between the external forces and internal influencers following the institutional theory. Specifically, we have examined the nature and relative significance of influencing forces, and the mediating role of senior management participation. Also, the moderating effects of process capability and cultural aspects have been investigated. This study treats information privacy as a distinct dimension separate from information security. Our findings show that mediating role of senior management participation for coercive and normative forces. Mimetic forces appears to have direct impact on assimilation. Also, positive moderating effect of process capability and negative moderating effect of cultural aspects is observed for coercive forces. These findings would enable senior managers identify and respond to institutional pressures by focusing on appropriate factors within the organization

Examining The Factors That Affect ERP Assimilation

The aim of this study is to identify the factors that influence the assimilation of enterprise resource planning (ERP) systems in the post-implementation stage. Building on organizational information processing theory (OIPT) and absorptive capacity (AC), we propose an integrated model, which examines the relationship among organizational fit, absorptive capacity, environmental uncertainty, and ERP assimilation. Based on the survey data from 98 firms that have implemented ERP, most of the proposed hypotheses were supported, showing that initial fit, potential AC, realized AC, and heterogeneity jointly affect ERP assimilation. Task uncertainty (hostility and heterogeneity) negatively moderates the relationship between initial fit and ERP assimilation. The implications for both theory and practice are discussed