The Effect of Absorptive Capacity on Innovativeness: Context and Information Systems Capability as Catalysts

Abstract

The purpose of this study is to examine the relationship between absorptive capacity and company innovativeness and to identify potential contexts and capabilities that can act as catalysts for these relationships. We also examine the relationship between absorptive capacity and the existence and enhancement of innovativeness. These relationships are examined through an empirical investigation of 286 large Spanish companies. Our results show that absorptive capacity is an important dynamic determinant for developing a company's innovativeness. Moreover, this relationship is best explained by two related constructs. First, the company's unlearning context is a crucial determinant for both potential capacity and realized absorptive capacity. Second, the results also indicate a tangible means for managers to enhance their absorptive capacity through information systems capabilities.

When moving information online diminishes change: advisory services to SMEs

“…The triggers for building capacity is a critical problem for entrepreneurship research (Autio, George and Alexy 2011). The advice to support internal processes has to delve more deeply within the firm to assist internal changes (Cepeda-Carrion et al 2012); whereas the advice that supports external change has to understand the market environment (Wren and Storey 2002). Second, programs that build on the extant capabilities of the firm, such as training or for marketing are more likely to be routinized (Lambrecht and Pirnay 2005, Boter and Lundström 2005, Branzei and Vertinsky 2006.…”

How does cultural intelligence influence the relationships between potential and realised absorptive capacity and innovativeness? Evidence from Poland

“…The strong positive relationship between the two distinct yet complementary dimensions of ACAP (Zahra & George, 2002) has been consistently confirmed (Cepeda-Carrion et al, 2012;Chang et al, 2013;Leal-Rodríguez et al, 2014). Firm innovativeness typically involves constant influx of new ideas, knowledge, and practices (Capaldo, 2007;Gölgeci & Ponomarov, 2015).…”

“…Despite extensive research on the enablers of firm innovativeness (e.g., Cepeda-Carrion et al, 2012;Chang et al, 2013), less attention has been paid to the cultural aspects regarding firm innovativeness, especially in emerging market contexts. The role of the socio-cultural factors in EMFs' innovative capabilities and behavior has been largely overlooked in the literature (Van Everdingen & Waarts, 2003) in spite of largely recognized pervasive influence of culture on firm behavior and structure (Taras, Kirkman, & Steel, 2010).…”

Evaluating Internal Technological Capabilities in Energy Companies

“…Firms should combine both in-and out-flow information through the absorption of new external information in order to be more responsive to their changing competitive environments [29]. Previous studies have found that this absorptive capacity has a positive impact on firm performance [30] and further product innovation [31]. Thus, absorptive capacity needs to be considered as one of the most critical attributes of technological capability.…”