The Moderator of Innovation Culture and the Mediator of Realized Absorptive Capacity in Enhancing Organizations' Absorptive Capacity for SPI Success

Software process improvement (SPI) is critical to information system development. In the context of successful SPI, this research focuses on a firm's dynamic learning ability to see how it facilitates an effective means of acquiring and utilizing external SPI knowledge in responding to changing software development environments. Specifically, the authors propose a research model to investigate how two mechanisms of absorptive capacity are incorporated with innovation culture as a contextual factor to enable successful software process improvement. A survey was conducted including 125 SPI certified firms in China and Taiwan to examine the model. The findings indicate that a firm's potential absorptive capacity significantly influences realized absorptive capacity, which has a significant impact on SPI success and acts as a partial mediator between potential absorptive capacity and SPI success. Moreover, the results suggest that the mediating effect of potential absorptive capacity on SPI success via realized absorptive capacity is amplified when innovation culture is imposed.

Potential and Realized Absorptive Capacity in Colombian Firms: The Mediating Role of the Organizational Climate for Innovation

The absorptive capacity is related to knowledge evaluation and acquisition (Potential Capacity), as well as to the transformation and exploitation of such knowledge (Realized Capacity). This research aims to analyze the absorptive capacity in Colombian companies and to investigate whether the Realized capacity can be predicted from the Potential capacity. Likewise, due to the importance of the context on the absorptive capacity development, the mediating role of the organizational climate for innovation was tested. Through a cross-sectional study, a total of 260 employees from different companies completed the Absorptive Capacity Scale and the Organizational Climate for Innovation Scale. The results showed that Potential absorptive capacity is needed for Realized absorptive capacity, additionally, organizational climate for innovation exerted a mediator role in this transition. These findings highlight that companies should have an organizational climate that allows them to acquire and transform knowledge in order to increase their innovativeness and be more competitive. Further studies should analyze the organizational innovation in relation to the proposed and tested model, while considering employees from different industrial sectors.

INNOVATIVE POTENTIAL, INTELLECTUAL CAPITAL AND ABSORPTIVE CAPACITY OF UNIVERSITIES IN ENTREPRENEURIAL ECOSYSTEMS

The article is devoted to the problem of methods and means development of knowledge exchange management between universities and innovative firms in entrepreneurial ecosystems. It is noted that the indicators of attracting business funds for research and development in higher education in Ukraine, compared to other countries, indicate a dissonance in the economic and cognitive dimension between innovative entrepreneurship and research groups of universities. Our previous research shows that, unlike leading countries, the formation of entrepreneurial ecosystems in Ukraine should be not only about targeted support for high-growth firms, but also about ensuring effective bilateral knowledge exchange of universities with all interested firms and startups. The concept of absorptive capacity of individuals and organizations, the concept of innovation potential, intellectual capital, human capital and the relationship between them are considered. It is shown that the usefulness of the absorptive capacity concept is that it contributes to the formation of methods and means to increase the efficiency of knowledge exchange in entrepreneurial ecosystems with the participation of universities. It is substantiated that the university has a more complex range of absorptive abilities of employees than organizations with a strictly dominant type of activity and field of knowledge used. It is proved that the absorptive capacity of employees in universities should be considered in the dimensions of teaching, research and development, training and start-up innovative entrepreneurship, as well as taken into account the diversity of fields and types of knowledge used. Our addition to the concept of absorptive capacity with the thesis on the limitations of cognitive communication between persons with different cognitive orientations is original. One of the main difficulties in the knowledge exchange between university scientists and employees of companies is that they deal with different types of knowledge and carry out significantly different activities. In our previous studies, this was associated with cognitive gaps that occur when transferring the mental knowledge of subjects to material media in the form of information, and then - its awareness by individuals who have experience other than the authors. The phenomena that cause them are an important factor in the problems of cognitive exchange of university scientists with entrepreneurs. Based on the wide range of knowledge, activities and absorptive capacities of individuals and communities in university, it is proposed to differentiate between measures to ensure and stimulate educational, research and innovative entrepreneurial activities in order to adequately support them. In our opinion, the indicators that indirectly represent the realized absorptive capacity include those results that are traditional for the relevant categories of employees in universities. The absorptive capacity of teachers, in particular, is realized in the content of those courses that they personally form, while the main achievement of the researcher is new scientific or related knowledge. Criteria and indicators of the realized absorptive capacity can be specified, and it will be a subject of our further researches.

Innovation Capability Performance through Potential and Realized Absorptive Capacity: an Empirical Study in the West Java Mini Market

This study explores how potential and realized absorptive capacity affects innovation capability. This study aims to empirically examine the path relationship between potential absorptive capacity, realized absorptive capacity, and innovation capability in mini market in West Java, thus enhance our understanding of the mechanism between absorptive capacity and innovation capability. The authors have conducted a survey among employees with a valid response from 597 respondents. Multiple regression was used to assess the research model. The results provide evidence to show that potential and realized absorptive capacity are positively related to innovation capability, but in different proportions, and potential absorptive capacity affects positively to realize absorptive capacity. This study will contribute in an acceptable way to highlight the effects and role of both the potential absorptive capacity and the realized absorptive capacity in their role as independent variables and the results of this in innovation capability in turn as a dependent variable.Keywords: potential absorptive capacity realized absorptive capacity innovation capability

Intra-Organizational Social Capital and Product Innovation: The Mediating Role of Realized Absorptive Capacity

This paper examines the influence on product innovation of factors based on a company’s transformation and exploitation of knowledge gathered from its intra-organizational relationships. Specifically, this paper analyses the influence of intra-organizational social capital (SC) (i.e., comprised of structural, relational, and cognitive dimensions) on realized absorptive capacity (RACAP). Moreover, it analyses the mediating role of RACAP on the relationship between internal SC and product innovation. Based on a sample of companies from the Spanish biotechnological and pharmaceutical industries, two hypotheses were tested using a structural equations model and the partial least squares (PLS) technique. The results support both hypotheses, suggesting that the development of strong and tightly knit links based on a common understanding and trust among company members lead the firm to develop dynamic capabilities for transforming and exploiting knowledge acquired externally, which fosters innovation based on new product development. Research limitations, implications and future research are also discussed by the authors of the paper.

Empirical analysis of intellectual capital, potential absorptive capacity, realized absorptive capacity and cultural intelligence on innovation

The purpose of this research is to reveal the influence of intellectual capital, potential absorptive capacity, realized absorptive capacity, and cultural intelligence on innovation in the tourism sector in Batam City. Batam has geopolitical and geographic advantages, located in the Malacca Strait, adjacent to and directly facing Singapore and Malaysia. It has not been optimal in exploring the potential for innovation in the tourism sector. Thus, this sector does not yet have a significant contribution to economic development. The research was conducted on the management of companies that are members of the Association of the Indonesian Tours and Travel Agencies in Batam City, totaling 54 people. By using the analysis of Structural Equation Model (SEM) with SmartPLS version 3.0, the results show that 1) intellectual capital has no effect on innovation; 2) potential absorptive capacity has no effect on innovation; 3) Realized absorptive capacity has a significant positive effect on innovation, and 4) Cultural Intelligence has a significant positive effect on innovation. The results of this study will give some insight to company managers in the tourism sector for developing innovation to maintain business continuity.

A Comparative Analysis of Corporate R&D Capability and Innovation: Focused on the Korean Manufacturing Industry

In order to improve innovation performance, it is necessary to analyze a series of processes that are connected to innovation performance, as well as R&D input. Since industrial characteristics affect innovation performance, the differences between corporate R&D capabilities in the industrial sector should also be considered. This study verified the effect of R&D capabilities and absorptive capacities on innovation using a structural equation model for Korean manufacturing companies, and analyzed in-depth the relationship between capability and performance of high- and low-tech sectors through multi-group analysis. The results show that internal and external R&D capabilities had a positive effect on absorptive capacities, and potential absorptive capability had a positive effect on realized absorptive capacity. In addition, internal R&D capability and realized absorptive capacity had a positive effect on innovation, and the mediating effect of absorption capacities could be identified. As a result of industry sector-specific analysis, the latent mean of internal R&D capability and innovation of the high-tech sector were higher, and the path coefficient of the high-tech sector from the internal R&D capability to potential absorptive capacity and innovation performance was more strongly identified than those of the low-tech sector. Based on the results of this study, we would like to present policies for the development of firm’s R&D capabilities by the industry sector.

External knowledge sourcing and innovation in family firms

Purpose This study aims to investigate the external knowledge search behaviors in terms of search breadth and search depth in family firms and the resultant product innovation in Indian context. The authors theorize the mediating role of absorptive capacity (potential and realized absorptive capacity) between knowledge sourcing from external sources and product innovation. Further, the authors examine the moderating role of crucial internal social capital of the family firm in enhancing the use of external knowledge for firm innovation activities. Design/methodology/approach The study uses a quantitative research design taking single informant for collection of data from 151 family small and medium enterprises in automotive sector in India. The authors use structural equation modeling to test hypothesized relationships. Findings The findings indicate that both search breadth and search depth of family firms are positively associated with product innovation in family firms. The authors also find evidence for partial mediating role of potential and realized absorptive capacity in the relationship between search breadth and innovation and search depth and innovation. The results show how family firms learning taking place while scanning external knowledge sources in terms of external absorptive capacity routines. Finally, the authors find that family firm internal social capital positively moderate the relationship between search breadth and depth, and product innovation. Practical implications Family firms need to innovate to remain relevant in the long-run and as such development of superior capabilities is of great significance to them. Family firm managers must be open to external knowledge as such knowledge help them improve the firm level of innovation through absorptive capacity. Further, family firms must realize and act upon the importance of their social capital for the integration and utilization of acquired knowledge. Originality/value This paper is amongst a few papers that take dynamic capability views of innovation in family firms wherein the authors theorize how external search breadth and depth lead to the development of potential and realized absorptive capacity in family firms. The importance of family firm internal social capital as a strong integrating and knowledge sharing mechanism that helps family firms transform external knowledge into innovation is also highlighted.

Lean, Six Sigma and its influence on potential and realized absorptive capacity

Purpose The purpose of this paper is to explore how Lean and Six Sigma’s distinctive practices relate to potential absorptive capacity (PACAP) and realized absorptive capacity (RACAP). The paper seeks to understand which of the practices in Lean Six Sigma are needed to manage absorptive capacity systematically. Design/methodology/approach Partial least square based structural equation modeling (PLS-SEM) was used to test the theoretical model drawing on a sample of 125 manufacturing organizations in Malaysia. In addition to examining direct effects, the study also examines indirect effects using bootstrapping method to identify possible mediation effects proposed in the model. Findings The results explain that Lean’s social practices (LSP), Six Sigma’s roles structure (RS) and structured improvement procedure (SIP) positively influence potential absorptive capacity (PACAP). Meanwhile LSP, RS and focus on metrics (FOM) positively influence realized absorptive capacity (RACAP). SIP was found to influence RACAP through PACAP. The analysis reveals the combination of Lean Six Sigma practices that are required in managing PACAP and RACAP differentially. Research limitations/implications The study is only confined to manufacturing industries in Peninsular Malaysia. Data collected were cross-sectional in nature. The application of Lean Six Sigma and how it influences absorptive capacity may get sturdier across time, and this may change the effect toward sustainability of firm’s competitive advantage. A longitudinal study may be useful in that context. The study also makes specific recommendations for future research. Practical implications The results of this study can be used by Lean Six Sigma practitioners to prioritize the implementation of Lean Six Sigma practices to develop absorptive capacity of the organization through PACAP and RACAP, which needs to be managed differentially as they exert differential outcomes. This would enable organizations to tactfully navigate and balance between PACAP and RACAP in accordance to business strategies and market conditions. Originality/value Absorptive capacity in Lean and Six Sigma context has largely been studied as a unidimensional construct or used as a grounding theoretical support. Therefore, understanding the multidimensionality through PACAP and RACAP provide insights on how to enhance and maneuver absorptive capacity through Lean Six Sigma systematically. The findings may pave the way for future research in enhancing the current knowledge threshold in Lean Six Sigma.