Revisiting the Concept of Absorptive Capacity: The Moderating Effects of Market Sensing and Responsiveness

Abstract

This study proposes new moderators acting on well-established antecedents of absorptive capacity. We treat separately the two dimensions of potential absorptive capacity and realized absorptive capacity. We first examine the moderating effect of market sensing on the relationship between coordination capability and potential absorptive capacity. Then, we assess the moderating effect of market responsiveness on the links between organizational systems and socialization processes and realized absorptive capacity. We draw on multilevel analysis with data from 205 managers from the banking sector in Turkey to test our hypothesized relationships. Our contribution reveals interesting insights on the contingent effects of market sensing and responsiveness for the emergence of absorptive capacity. Market sensing moderates the relationship between coordination capability and potential absorptive capacity, while market responsiveness moderates the relationships between organizational systems and socialization processes and realized absorptive capacity. The findings provide important implications for theory and practice on developing potential and realized absorptive capacity.

The role of absorptive capacity in the adoption of Smart Manufacturing

“…In particular, SM3 managers use detailed operational plans for SM projects, which include evaluation of and provision for technological compatibility issues and the identification of employees’ skill gaps. For the definition and monitoring of the implementation of these plans, SM3 firms rely on cross-functional project teams (Bouguerra et al. , 2021; Jansen et al.…”

“…At the same time, some of the practices adopted (e.g. gaining familiarity with start-ups and innovation incubators) can be seen as socialization tactics (Bouguerra et al. , 2021; Jansen et al.…”

“…The former consist of cross-functional interfaces, job rotation and participatory decision-making. The latter facilitate interpretation of new knowledge and enable peer-to-peer interactions through informal networks and, therefore, foster AC by conveying the value of new practices throughout the organization (Bouguerra et al, 2021;Jansen et al, 2005).…”

“…Adaptive and integrative capacities (Garrety et al, 2004;Robertson et al, 2012) Coordination capabilities (i.e. cross-functional teams, job rotation, participatory decision-making) (Bouguerra et al, 2021;Jansen et al, 2005) Socialization capabilities (Bouguerra et al, 2021;Jansen et al, 2005) Management cognition/ dominant logic (MC) Leadership (Flatten et al, 2015) Resources to support subordinates' learning (Li et al, 2018) Information provision by managers (Lenox and King, 2004) Individual knowledge development/sharing (KDC) Gatekeepers or boundary spanners (Cohen and Levinthal, 1990;Volberda, 1996) Interaction with technology intermediaries (Spithoven et al, 2010) Openness to external collaborations (de Ara ujo Burcharth et al, 2015;Fosfuri and Trib o, 2008;Laursen and Salter, 2006;Omidvar et al, 2017) Training and employees' skills development/ transformation capabilities (Lane et al, 2001;Xia and Roper, 2008;Wang et al, 2018) acquisition and transformation. The following sections present an exploratory study of how AC and managerial antecedents support firms in moving from baseline stages (SM1) to advanced stages (SM3).…”

“…the capacity of managers to create, extend or modify the knowledge base of an organization, have been pinpointed as crucial (Jansen et al, 2005). In fact, while an organization's prior knowledge is the root of its AC (Cohen and Levinthal, 1990), management sets the context for enhancing the potential to learn and then act on that knowledge (Bouguerra et al, 2021;Volberda et al, 2010). Key managerial antecedents to support knowledge absorption have been identified in combinative capabilities, i.e.…”