Exploitative and exploratory innovations in emerging economies: The role of realized absorptive capacity and learning intent

Abstract

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How firms in emerging economies can learn industry 4.0 by extracting knowledge from their foreign partners? A view point from strategic management perspective

“…Indeed, resource scarcities such as low availability of domestically produced capital equipment and technologies [5] Emerging economy firms usually operate in an environment which is dynamic and evolving. It is also characterized by lack of intermediaries, weak institutions, nascent innovation ecosystem and limited financial support for innovative activities from government which is key institutional player [10]. Such institutional immaturity is often referred to as "Institutional voids" making it very difficult for the firms in emerging economy to perform innovative activities [10,11].…”

“…It is also characterized by lack of intermediaries, weak institutions, nascent innovation ecosystem and limited financial support for innovative activities from government which is key institutional player [10]. Such institutional immaturity is often referred to as "Institutional voids" making it very difficult for the firms in emerging economy to perform innovative activities [10,11]. In such a context, sources of external knowledge becomes extremely important for the firms in emerging economy to pursue revolutionary activities [10], such as Industry 4.0.…”

“…Such institutional immaturity is often referred to as "Institutional voids" making it very difficult for the firms in emerging economy to perform innovative activities [10,11]. In such a context, sources of external knowledge becomes extremely important for the firms in emerging economy to pursue revolutionary activities [10], such as Industry 4.0. [10] argued that foreign partners e.g.…”

“…In such a context, sources of external knowledge becomes extremely important for the firms in emerging economy to pursue revolutionary activities [10], such as Industry 4.0. [10] argued that foreign partners e.g. suppliers and other players in value chain from developed economies are important source of knowledge extraction for firms in emerging economies.…”

“…suppliers and other players in value chain from developed economies are important source of knowledge extraction for firms in emerging economies. [10] Emphasis on the importance of absorptive capacity in the process of knowledge extraction from foreign partners. Furthermore importance of dynamic capabilities [DCs] to operate in digital environment such as Industry 4.0 is acknowledge by researcher [12].…”