Absorptive capacity and internationalization of New Zealand high-tech SMEs in the agro-technology sector

This study investigates the relationships between firm's technology, absorptive capacity and the internationalization process in the high-tech SMEs. The research identifies the most influential factors that affect the international activities and expansion decisions of New Zealand high-tech SMEs with core capabilities in agro-technology. Mixed methods, qualitative and quantitative elements in the data collection and analysis, were employed in this research for a reason that a deeper understanding of the research subject and the analysis of complex issues such as the internationalization process and absorptive capacity required methodological variety. The use of qualitative and quantitative methods took place in parallel. Both methods were used to study the same subject but they had specific objective related purposes and they offered the possibility of developing rich empirical data as well as a more comprehensive understanding of the subject under the study. The findings show that it is absorptive capacity that explains internationalization process, not internationalization process that explains absorptive capacity. The practice of internationalizing is as much a reflection of a firm's absorptive capacity as it is its determinant. The research identifies that high-tech SMEs possess technological and non-core absorptive capacity which in a different way influence firms' strategies. The research suggests that firm's technological capabilities and the advantage of specialized knowledge along with their limited non-core absorptive capacity act as constraints to the development of the future international strategy in high-tech SMEs. The study expands the existing literature on internationalization by developing variables for evaluating absorptive capacity in firms. This helped develop an absorptive capacity model which can be used as a valuable tool for self-assessment by firms to facilitate gaining insight towards further growth and development. The research suggested that if firms were able to measure its absorptive capacity this may result in improved business activities and enhanced presence in the world market. The results of this study should encourage firms to identify, capture and articulate knowledge achieved by their ventures. Managers must develop and nurture skills that ensure effective integration of learning as their firms expand, particularly internationally. These findings and absorptive capacity model offered as a tool should encourage managers to explore when, where, and how to best use firm's resources in the business operations. This is particularly important in regards to the research context (high-tech SMEs) where scientists are managers as well

Technological imperatives in the internationalization process: Results from a qualitative investigation of high-tech SMEs

Purpose: The purpose of this paper is to empirically examine how a firm's leading-edge technology affects the way international business is conducted. Design/methodology/approach: The paper presents the issues faced by high-tech, small to medium-sized enterprises (SMEs) from New Zealand in the internationalization process. Since the research is anchored within a realism framework, case studies and semi-structured in-depth interviews were applied. Findings: The research suggests that current foreign activities result in a stream of indicators closely related to the firm's technology, which are instrumental in shaping and driving future international activities. The paper demonstrates that firms tend to be influenced by the entry decisions made by other firms in the same/similar industry targeting the same market; and that a firm's technological capabilities and the advantages of specialized knowledge act as the constraints in the development of the firm's future international strategy. Practical implications: The paper helps to increase the understanding of how lack of foreign market knowledge can be perceived as an obstacle to carrying out international business. Originality/value: The paper presents the internationalization process as a dynamic process in an approach which is an extension of past thinking. However, past research has been motivated by generalizing findings across firms, to understand shared patterns in the process of internationalization. This approach overlooks the unique distinctiveness of firms in different sectors and contexts where idiosyncratic behavior is the norm rather than the exception to the rule

Broken links: Absorptive Capacity and the internationalisation process of high-tech companies

This study develops propositions regarding the impact of Absorptive Capacity (AC) on the internationalisation process. It generates a conceptual model based on the empirical examination of small-to-medium sized agro-technology companies. The paper demonstrates that the extent to which firms capture and exploit new information is highly influenced by their AC. The goal is to determine the type of knowledge which firms need, to exploit new and emerging markets. We suggest that AC in high-tech companies exists as two subsets: technological AC and non-core AC. The two ACs affect the daily activities of firms in different ways and influence their strategies, particularly their international strategies

Measuring absorptive capacity in high-tech companies: Mixing qualitative and quantitative methods

The objective of this article is to show how mixed methods can be used to develop a deeper understanding of the construct, absorptive capacity (AC). We used qualitative data from eight case studies to identify which types of AC knowledge firms have. Then we identified variables for measuring AC. We identified two types of AC: “technological” AC and “non-core” AC. Using a Karnaugh Map and a Fuzzy Logic Design, we developed a quantitative model to measure overall AC. By focusing on interpretive integration, our results from using both qualitative and quantitative methods yielded complementary rather than contradictory findings, and the goal of “knowing more” about AC was achieved

Broken links: Absorptive Capacity and the internationalisation process of high-tech companies

This study develops propositions regarding the impact of Absorptive Capacity (AC) on the internationalisation process. It generates a conceptual model based on the empirical examination of small-to-medium sized agro-technology companies. The paper demonstrates that the extent to which firms capture and exploit new information is highly influenced by their AC. The goal is to determine the type of knowledge which firms need, to exploit new and emerging markets. We suggest that AC in high-tech companies exists as two subsets: technological AC and non-core AC. The two ACs affect the daily activities of firms in different ways and influence their strategies, particularly their international strategies.absorptive capacity; internationalisation process; high-tech SMEs; organisational capabilities; high technology; small and medium-sized enterprises.

The role of career adaptability in predicting entrepreneurial intentions: A moderated mediation model

Guided by the Career Construction Theory (Savickas, 2013), we view entrepreneurship as an adaptive vocational behavior driven by an individual's self-regulatory capacity to thrive in a complex entrepreneurial career context. Our research model posited that individuals rely on their adaptive resources and entrepreneurial self-efficacy as they form entrepreneurial intentions. Career adaptability, as self-regulatory competencies, is further strengthened by prior exposure to family business. We collected data over three measurement periods from Serbian business students (n. = 380) and validated the Career Adapt-Abilities Scale (CAAS). The moderated mediation model was supported and as predicted: (a) career adaptability was positively associated with entrepreneurial intentions and (b) the mediated relationship between career adaptability and entrepreneurial intentions via entrepreneurial self-efficacy was stronger for individuals with prior exposure to family business. In addition, we provide evidence for the psychometric properties of CAAS by examining its internal consistency, test-retest reliability, and factor structure. Taken together, our study offers the groundwork for understanding successful adaptation in the entrepreneurial career context and supports the cross-national measurement equivalence and utility of CAAS in a developing economy

The role of career adaptability in predicting entrepreneurial intentions: A moderated mediation model

Guided by the Career Construction Theory (Savickas, 2013), we view entrepreneurship as an adaptive vocational behavior driven by an individual's self-regulatory capacity to thrive in a complex entrepreneurial career context. Our research model posited that individuals rely on their adaptive resources and entrepreneurial self-efficacy as they form entrepreneurial intentions. Career adaptability, as self-regulatory competencies, is further strengthened by prior exposure to family business. We collected data over three measurement periods from Serbian business students (n = 380) and validated the Career Adapt-Abilities Scale (CAAS). The moderated mediation model was supported and as predicted: (a) career adaptability was positively associated with entrepreneurial intentions and (b) the mediated relationship between career adaptability and entrepreneurial intentions via entrepreneurial self-efficacy was stronger for individuals with prior exposure to family business. In addition, we provide evidence for the psychometric properties of CAAS by examining its internal consistency, test–retest reliability, and factor structure. Taken together, our study offers the groundwork for understanding successful adaptation in the entrepreneurial career context and supports the cross-national measurement equivalence and utility of CAAS in a developing economy