This study investigates the organizational factors including firm size, adaptive capability, absorptive capability, innovative capability, and executive support to determine internet of things, production and services, and organizational performance. Research design, data, and methodology: A quantitative methodology was employed, involving the distribution of surveys to 460 employees occupying managerial and strategic roles. These individuals have accrued a minimum of one year of experience within 20 leading manufacturing and distribution companies in Thailand, each boasting a workforce exceeding 250 employees. Sampling techniques utilized encompass judgmental, quota, and snowball sampling. Furthermore, analysis of the data was conducted through Confirmatory Factor Analysis (CFA) and Structural Equation Model (SEM). Results: The findings indicate that factors such as firm size, adaptive capability, absorptive capability, and innovative capability exert significant influence on the Internet of Things (IoT). In addition, IoT significantly impacts both production and services. Furthermore, the study highlights the significant influence of production and services on organizational performance. However, the anticipated relationship between executive support and IoT lacks support according to the results. Conclusions: This study highlights the transformative potential of IoT for the manufacturing and distribution sector, paving the way for enhanced efficiency, competitiveness, and sustainability in a rapidly evolving business landscape.
Technological innovation is one of critical challenges for small and medium enterprises(SMEs) as well as larger firms. This study focuses on empirical test about the role of absorptive capacity on the relationship between technological collaboration and technological innovation outcomes in the context of SMEs. To achieve the purpose, we conducted hierarchical regression analysis through 266 samples from Korean manufacturing SMEs that is defined as an enterprise less than 300 employees. As a result, more diverse exploitations for types of technological collaboration have significant and positive impact on technological innovation outcomes. Additionally, the results show that absorptive capacity based on knowledge realization capability strengthens the impact on which external sources and types of technological collaboration affect technological innovation outcomes. Based on the results, we propose that SMEs require intense management efforts in establishing capability to create new knowledges, by combining existing knowledges, because excessive exploitations for external sources of technological collaboration necessarily do not help enhance technological innovation outcomes.
This study analyzes business performance factors for young startup, one of the solutions to the youth unemployment problem, and explored the effects of individual characteristics, capability, and environmental factors of young entrepreneurs on business performance. The study targets young traders operating in traditional markets and shopping streets nationwide. The 159 sample data were statistically analyzed using SPSS 25.0 and Smart PLS 2.0 for frequency analysis, reliability and validity analysis. The Entrepreneur's individual characteristics such as challenge spirit, start-up capability, and market characteristics affect absorptive capacity and interorganizational network. And absorptive capacity and interorganizational network affect financial and non-financial business performance. As a result, it was found that young traders need to reinforce their individual characteristics, start-up capability, and interorganizational networks in order to improve business performance. This study is intended to provide theoretical and practical implications.
Asia-Pacific Journal of Business Venturing and Entrepreneurship
/
v.18
no.3
/
pp.191-209
/
2023
Amid rapid changes in technological innovation due to the influence of the 4th Industrial Revolution and COVID-19, research related to absorption capacity and patent activities to promote technological innovation of Korean technology start-ups is important in this uncertain environment. This study aims to examine the effects on entrepreneurial performance and patent activities by reconstructing absorptive capacity, an organizational capability, for technology-based startups in fields such as BT and ICT with less than seven years of establishment, distinguishing between potential absorptive capacity and realized absorptive capacity. The study also seeks to develop a theoretical research model. To accomplish this, data was collected from managerial executives, including CEOs of 215 technology startups. The following hypotheses were tested: Firstly, potential absorptive capacity had a significant impact on patent activities, while realized absorptive capacity did not. Secondly, potential absorptive capacity had a significant impact on technological performance, while realized absorptive capacity did not. Thirdly, both potential and realized absorptive capacity had a significant impact on financial and non-financial performance. Fourthly, patent activities indirectly influenced potential absorptive capacity and technological performance, but did not affect realized absorptive capacity. Fifthly, patent activities indirectly influenced potential absorptive capacity and financial performance, but did not affect realized absorptive capacity. Lastly, patent activities indirectly influenced potential absorptive capacity and non-financial performance, but did not affect realized absorptive capacity. The practical significance of this study lies in providing useful guidelines for building the core capabilities of organizations through absorptive capacity and patent activities. Furthermore, it is expected that startups that have not recognized the formation process of absorptive capacity for patent activities will perceive the formation mechanism of absorptive capability anew and show considerable interest in future potential and realized absorptive capacity as part of their management strategies. This is anticipated to play an important role in adapting to rapidly changing technological advancements, the startup ecosystem, and securing sustainable competitive advantages.
Intellectual Property Rights (IPR) system is one of the major institutions for incentivizing innovation. However, a strong IPR regime does not necessarily encourage innovation every time. This is because a variety of factors come into play in configuring the ways the IPR system interacts with the dynamics of innovation. In the present study, we examine whether different degrees of absorptive capacity at the industry level bring about heterogeneous effects of a strong IPR regime on the innovation capability of innovators across different industries in developing country. Using the case of the 1986 IPR reform in Korea, which permitted patenting pharmaceutical products and copyrighting computer programs, we analyze the quality of patents produced by Korean applicants between 1982 and 1991. Our analysis finds no evidence that the IPR reform improved the innovation capability of innovators in the two aforementioned sectors, but rather affected their patenting behavior differently.
Knowledge1 is considered to be a key element of understanding how organizations gain and sustain competitive advantages. But very few firms are capable of creating the requisite knowledge and thus, firms should acquire and exploit new knowledge through knowledge transfer processes. The empirical part of this study involves examining relationships among adaptability of knowledge and knowledge transfer and marketing performance and testing the moderating roles of absorptive capacity, socialization and local marketing knowledge. This study is organized as follows: (1) Previous literature on knowledge, knowledge transfer and absorptive capacity is summarized, followed by the development of hypotheses derived from the knowledge-based view and absorptive capacity. (2) The hypotheses are tested with data collected from MNCs' subsidiaries performing marketing activities in Korea.Thestudyisclosedwithfindings,implications,andconclusions. Following six research hypotheses are drawn from literature review in related areas: H1: Adaptability of knowledge transferred from the MNCs' headquarters and other subsidiaries is positively associated with knowledge inflows into the receiving subsidiary. H2: The level of marketing knowledge transferred from the MNCs' headquarters and other subsidiaries is positively associated with marketing performance of the receiving subsidiary. H3: Increases in potential absorptive capacity will enhance the relationship between adaptability of knowledge and the level of marketing knowledge transfer. H4: Increases in realized absorptive capacity will enhance the relationship between the level of knowledge transfer and marketing performance of the receiving subsidiary. H5: Increases in socialization activity among the headquarters and subsidiaries will enhance the relationship between adaptability of knowledge and the level of marketing knowledge transfer. H6: Increases in the level of locally developed marketing knowledge will enhance the relationship between the level of knowledge transfer and marketing performance of the receiving subsidiary. The research framework that illustrates the proposed hypotheses is presented in figure 1. The unit of analysis for this study is knowledge transfer from the MNCs' headquarters and other subsidiaries to their subsidiaries operating in South Korea. The population for this study consists of subsidiaries established either as joint ventures or as wholly-owned subsidiaries. A group of 603 foreign firms were drawn from diverse industry organizations and business societies. After personal contact, telephone, fax, and e-mail to request that the respondents complete the questionnaire, 282 valid questionnaires from 133 initial sample companies were collected. The results of the empirical analyses significantly support all of the proposed hypotheses except hypothesis 3. Adaptability of external knowledge promotes knowledge transfer and the relationship is moderated by a firm's potential knowledge absorptive capacity. On the other hand, knowledge transfer improves a firm's marketing performance and a firm's realized knowledge absorptive capacity and local marketing knowledge moderate the relationship. The theoretical and practical implications of the findings in this study are as follows: (1) firms must take seeking, transferring, sharing and exploiting of external knowledge into serious consideration, while simultaneously creating knowledge to support the necessary business operations, remain competitive, and achieve superior performance. (2) Firms should continuously seek to develop their knowledge absorptive capacity (both potential and realized capacity) to absorb, learn and utilize valuable external knowledge. (3) Firms should emphasize not only absorptive capacity, but also development of local knowledge. Firms with strong absorptive capability and local knowledge can learn and transfer more external knowledge, which can be translated into greater levels of competence and performance.
Comtemporary firms need capability of acquiring external knowledge and internalizing it to cope with environmental fluctuation. The paper analyzes the impact of absorptive capacity, an ability to recognize and utilize external knowledge, on knowledge acquisition of the firm, and examines the role of trust in the knowledge acquisition process. Data were collected from 84 domestic companies that had adopted ERP packages. The results indicate that prior experiences of knowledge acquisition, communication mechanism, and conflict resolution mechanism affect knowledge acquisition positively. Among those independent variables, communication mechanism and conflict resolution mechanism significantly and positively related with trust. Trust is, in turn, positively associated with knowledge acquisition. Meanwhile, previous knowledge base and prior relationship with the knowledge provider do not affect knowledge acquisition. Further, the results provide evidence that trust plays a mediating role between other absorptive capacity factors and knowledge acquisition.
Employee's agility is becoming a primary factor of improving individual work performance. Employee's agility refers to responsiveness or behavior of employees in the context of work environment change. The purpose of this study is to examine the relationship between employee's agility and work performance in the perspective of agility's influence factors(absorptive capacity, IT resource use, readiness to change) and knowledge-oriented leadership, A survey was conducted for gathering data (a total of 262 employees from 35 industrial organizations) to test the relationships. The results of analysis show that employee's agility is a driving force leading to individual work performance, that employee's absorptive capacity, IT resource use, readiness to change, and knowledge-oriented leadership are the significant influential factors of employee's agility, and that knowledge-oriented leadership strengthens the link between employee's absorptive capacity and agility. For theoretical and practical contributions, the research presents the grounds for arguments that employee's agility is employee's dynamic capability for individual work performance under work environment change, and that organizations trying to improve employee's agility need to explore employee's behavioral attitudes under individual, leader, and organizational dimensions. Limitations arisen in the course of the research and suggestions for future research directions are also discussed.
This study aims at investigating the path in which entrepreneurial orientation and absorptive capacity, which have a significant influence on the corporate performance of SMEs, are mediated through product innovation performance (product speed, product quality). For the empirical study, 233 questionnaires collected from 1775 SMEs including in Daejeon Techno Park start-ups were analyzed by using structural equation model. The empirical analysis shows that absorptive capacity and entrepreneurial orientation have a positive effect on performance through product innovation performance. Therefore, it is suggested that entrepreneurial orientation and absorptive capacity increase product innovation performance in terms of corporate strategy and external information utilization capability, and product innovation performance leads to performance. This paper suggests that entrepreneurial strategy and capacity to utilize external information are important for introducing high quality products faster than others in response to the external environment.
Technology evaluation for technology innovation of venture firms should take the rapidly changing corporate environment, the ambiguity of language used in evaluation, and the inaccuracy of evaluation index into consideration. In this paper, targeting the absorptive capacity and technological entrepreneurship which are typical evaluation factors of venture firms, an ACTEM model to calculate the importance, priority, and dynamic capability of factors, applying Fuzzy-AHP was proposed. The fuzzy theory was introduced to compensate for the ambiguity of cognitive judgments when calculating weighted values for the factors that made up an assessment scale. An assessment criteria framework for absorptive capacity, technological entrepreneurship, and dynamic capability, which were not considered in previous studies on the evaluation and measurement of technological prowess, so that the users could have a realistic alternative to choose. The study compared the ACTEM model with the old AHP assessment method and found that "knowledge acquisition" and "producing ability" were the highest in absorptive capacity and technological entrepreneurship, respectively, thus demonstrating its validity.
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