Abstract:The objective of this study is to understand how organizational size influences dynamic capabilities in Brazil. To arrive at this understanding, structural equation modeling analysis was performed using the Brazilian Innovation Survey (PINTEC) database to test for differences between SMEs and large companies in respect to the relationship between absorptive capacity (AC) dimensions and innovation performance. The results show that in large companies, Potential AC and Realized AC impact innovation performance, … Show more
“…In practical terms, this allows for the elimination of any indicator from the set of indicators assigned to each construct because they share the same theoretical basis (Hoyle, 2012). This understanding that the model is reflective is shared by previous studies on the theme (Alves et al , 2016).…”
Section: Validating the Measurement Instrumentsupporting
confidence: 60%
“…Overall, there is massive empirical evidence on the importance of AC for innovation and performance in firms in general (c.f. Alves et al , 2016; Jiménez-Barrionuevo et al , 2019). Moreover, the literature shows the relevance of AC for modern innovation strategies such as open innovation, as noted by Naqshbandi and Kamel (2017), who empirically examined the role of AC in mediating the effect of culture on open innovation.…”
Section: Conceptualization and Operationalization Of The Constructmentioning
PurposeThe dynamic capability view reshaped the understanding of how firms can achieve a sustained competitive advantage through innovation. However, studies based on national innovation surveys have not incorporated this vision when measuring absorptive capacity, especially the evolutionary aspects of dynamic capabilities. This study addresses this gap.Design/methodology/approachWe empirically validate a scale using a national innovation survey based on the Oslo Manual standards. Using a five-wave survey, we demonstrate the scale's reliability, convergent and discriminant validity and stable structure across industries and over time.FindingsThis research integrates the dynamic capability literature with absorptive capacity measurement to propose and validate a multi-item and bidimensional scale for national innovation surveys.Originality/valueWe provide a measurement model that captures an evolutionary conceptualization of absorptive capacity as a dynamic capability. Hence, our contribution enhances the quality and validity of studies on absorptive capacity and advances the understanding of how firms develop and deploy absorptive capacity to drive performance.
“…In practical terms, this allows for the elimination of any indicator from the set of indicators assigned to each construct because they share the same theoretical basis (Hoyle, 2012). This understanding that the model is reflective is shared by previous studies on the theme (Alves et al , 2016).…”
Section: Validating the Measurement Instrumentsupporting
confidence: 60%
“…Overall, there is massive empirical evidence on the importance of AC for innovation and performance in firms in general (c.f. Alves et al , 2016; Jiménez-Barrionuevo et al , 2019). Moreover, the literature shows the relevance of AC for modern innovation strategies such as open innovation, as noted by Naqshbandi and Kamel (2017), who empirically examined the role of AC in mediating the effect of culture on open innovation.…”
Section: Conceptualization and Operationalization Of The Constructmentioning
PurposeThe dynamic capability view reshaped the understanding of how firms can achieve a sustained competitive advantage through innovation. However, studies based on national innovation surveys have not incorporated this vision when measuring absorptive capacity, especially the evolutionary aspects of dynamic capabilities. This study addresses this gap.Design/methodology/approachWe empirically validate a scale using a national innovation survey based on the Oslo Manual standards. Using a five-wave survey, we demonstrate the scale's reliability, convergent and discriminant validity and stable structure across industries and over time.FindingsThis research integrates the dynamic capability literature with absorptive capacity measurement to propose and validate a multi-item and bidimensional scale for national innovation surveys.Originality/valueWe provide a measurement model that captures an evolutionary conceptualization of absorptive capacity as a dynamic capability. Hence, our contribution enhances the quality and validity of studies on absorptive capacity and advances the understanding of how firms develop and deploy absorptive capacity to drive performance.
“…On the other hand, the realized absorptive capacity gathers the processes related to interpretation and use of external knowledge for commercial ends, namely transformation and exploitation processes. It is important to highlight that capabilities are usually better captured when measured by routines and processes adopted by a company (Alves, Salvini, Bansi, Neto, & Galina, 2016), rather than evaluating performance outputs. This is because capabilities can be evident in several organizational processes (Helfat & Winter, 2011), and to avoid vague and generic measures it is necessary to search for a set of business processes in which they manifest (Schilke, 2014).…”
Section: The Moderating Role Of Green Absorptive Capacitymentioning
Supported by the dynamic capabilities literature, this study examines the linkages between environmental factors, organizational factors and green innovation performance in light of the moderating effect of green absorptive capacity. Based on a sample of 78 firms in the electric power industry in Brazil, a mediation‐moderation model is proposed and tested using partial least squares structural equation modelling, which allows the analysis of both direct and indirect relationships. The results yielded general support for the study hypotheses, suggesting that (i) environmental factors have both a direct and indirect positive effect on green innovation performance, (ii) organizational factors fully mediate the effect of environmental factors on green innovation performance, and (iii) green absorptive capacity has a positive moderating impact on the mediation model. These findings provide empirical evidence of a better understanding of the antecedents of green innovation performance by highlighting the role of green absorptive capacity.
“…Size negatively affects REM and positively affects AEM. Size shows more capabilities (Alves et al, 2016), so that it will decrease REM. Meanwhile, leverage positively affects REM.…”
Section: Correlation and Regression Testmentioning
Islamic banks have tendency to tinker the earnings to present positive income. Therefore, it requires the examination of the relationship between Real Earnings Management (REM) and Accrual-based Earnings Management (AEM) that have contribution in promoting earnings. There are 2 theories used including prospect theory is to explain the negative relationship between REM and AEM, and agency theory is to explain whether the variables can be costs of REM or AEM. There are 63 financial reports of Islamic banks during the 2013-2018 period are determined by using purposive sampling and gathered from the banks' website. Correlation and regression test were conducted. This study found that REM is done through generating operational revenue and reducing distributed revenue sharing beyond the normal activities. REM negatively affects AEM that managers will adjust AEM based on the results of REM during the financial period. These findings confirm the prospect theory when the realized income is less than profit expectation, managers will employ accrual manipulation with the motive of prospect theory to achieve income target. Market share is found as a cost of AEM and institutional shows different result which drives REM more. The implication of this study is to provide findings how Islamic banks engage in earnings management. The relationship between REM and AEM shows the reliability of earnings that needs concern to restrict.
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