Problem formulation and organizational decision-making : biases and assumptions underlying alternative models of strategic problem formulation

Bibliography: p. 20-25

Crippling effects of 'hyper-rational' planning / 956

Includes bibliographical references

Effects of absorptive capacity, trust and information systems on product innovation

Purpose: This study aims to empirically investigate the mechanisms through which absorptive capacity (AC), trust and information systems jointly influence product innovation. Design/methodology/approach: This study proposes a research model to examine the mediating role of AC on the impacts of trust and information systems on product innovation and the moderating roles of trust and information systems on the relationship between AC and product innovation. The hypotheses are empirically tested using regression and bootstrapping methods and data collected from 276 manufacturing firms in China. Findings: This study finds that trust and information systems positively affect product innovation and the effects are fully mediated by AC. AC also significantly enhances product innovation and the effect is amplified by trust as well as information systems. In addition, the results show that trust and information systems improve AC both individually and interactively. Originality/value: The findings extend existing knowledge on the antecedents of AC and the contingent conditions under which a manufacturer’s AC is more effective than that of its rivals. The results also clarify the mechanisms through which trust and information systems improve product innovation. This study provides insights into the complex relationships among a manufacturer’s sociotechnical systems, knowledge management processes and new product development, and reveals how to design organisational systems to fully capitalise the value of AC on product innovation

The Case of Knowledge about Foreign Entry

The study explores what factors influence the reduction of managers’ perceived knowledge gaps in the context of the environments of foreign markets. Potential determinants are derived from traditional internationalization theory as well as organizational learning theory, including the concept of absorptive capacity. Building on these literature streams a conceptual model is developed and tested on a set of primary data of Danish firms and their foreign market operations. The empirical study suggests that the factors that pertain to the absorptive capacity concept – capabilities of recognizing, assimilating, and utilizing knowledge - are crucial determinants of knowledge gap elimination. In contrast, the two factors deemed essential in traditional internationalization process theory – elapsed time of operations and experiential learning – are found to have no or limited effect. Key words: Internationalization, knowledge gap, absorptive capacity, learning box

Absorptive capacity and mass customization capability

Purpose The purpose of this paper is to investigate the effects of a manufacturer’s absorptive capacity (AC) on its mass customization capability (MCC). Design/methodology/approach The authors conceptualize AC within the supply chain context as four processes: knowledge acquisition from customers, knowledge acquisition from suppliers, knowledge assimilation, and knowledge application. The authors then propose and empirically test a model on the relationships among AC processes and MCC using structural equation modeling and data collected from 276 manufacturing firms in China. Findings The results show that AC significantly improves MCC. In particular, knowledge sourced from customers and suppliers enhances MCC in three ways: directly, indirectly through knowledge application, and indirectly through knowledge assimilation and application. The study also finds that knowledge acquisition significantly enhances knowledge assimilation and knowledge application, and that knowledge assimilation leads to knowledge application. Originality/value This study provides empirical evidence of the effects of AC processes on MCC. It also indicates the relationships among AC processes. Moreover, it reveals the mechanisms through which knowledge sourced from customers and suppliers contributes to MCC development, and demonstrates the importance of internal knowledge management practices in exploiting knowledge from supply chain partners. Furthermore, it provides guidelines for executives to decide how to manage supply chain knowledge and devote their efforts and resources in absorbing new knowledge for MCC development

Learning and innovation of Chinese Firms along the paths of “Bring In” to “Go Global”

Over the past several decades, the “Bring In” and “Go Global” policies implemented in China have encouraged an unprecedented level of investment in and out of the country, creating unique opportunities for Chinese firms to learn and innovate along the paths of inward and outward internationalization. The international business (IB) literature has yet to satisfactorily explain what has been learnt by the Chinese firms and whether and how their learning and innovation have taken place over time. This special issue examines the specific content, nature, mechanisms, processes, and internal and external conditions and contexts of learning and innovation of Chinese firms during the course of inward and outward internationalization. We provide an overview of the “Bring In” and “Go Global” policies, assess the current state of the field, and explicate how the research articles in the special issue contribute to the understanding of learning and innovation of Chinese firms along the paths of inward and outward internationalization