The role of knowledge absorptive capacity on the relationship between cognitive social capital and entrepreneurial orientation

Abstract

Purpose The purpose of this paper is to study the effect of cognitive social capital (CSC) on firms’ entrepreneurial orientation (EO) and how knowledge absorptive capacity moderates this relationship. The purpose is aimed at completing the gap in the literature regarding determinants of EO linked with knowledge. Design/methodology/approach The empirical study was carried out on a sample of 292 Spanish firms in the agri-food industry. Partial least squares (SmartPLS software) was used to evaluate the measurement and structural models. Findings CSC has a curvilinear influence (U-shaped) on EO. In addition, this relationship is accentuated with higher knowledge absorptive capacity. Practical implications Managers should promote cognitively close networks and reinforce shared goals and culture with their contacts to maintain a high EO. Furthermore, managers should strengthen their knowledge absorptive capacity to boost innovativeness, risk taking and proactiveness derived from cognitive proximity with their contacts. Originality/value This study adds value to social capital literature by pointing out a curvilinear relationship (U-shaped) between CSC and EO, in contrast to studies focussed on other dimensions of social capital, which have obtained divergent results. Furthermore, this study reinforces the key contingent role of knowledge absorptive capacity. The study provides a valuable theoretical framework of EO determinants connecting the cognitive perspective of social capital theory with a dynamic capability view.

The Effect of Relational Embeddedness, Absorptive Capacity, and Learning Orientation on SMEs’ Competitive Advantage

“…This study summarizes the existed literature on competitive advantage by analyzing the effect of two factors that can enhance competitive advantage: relational embeddedness (RE) and knowledge absorptive capacity (AC). However, there is still an interesting research issue in the social capital literature ( Aribi and Dupouët, 2015 ; García-Villaverde et al, 2018 ) about the reason for verifying the impact of knowledge acquisition and knowledge learning on the effect of the relational dimension of social capital. Social capital view has increasingly been applied in the interdisciplinary field, especially in management and education ( García-Villaverde et al, 2018 ).…”

“…In the previous literatures, scholars have different views on the operationalization of AC. Specifically, some scholars believe that AC is a phase of knowledge processing, which can be divided into knowledge acquisition, assimilation, transformation, and exploitation ( García-Villaverde et al, 2018 ), whereas some other scholars divide AC as potential (PAC) and realized AC (RAC) ( Kang and Lee, 2017 ; Flor et al, 2018 ; Limaj and Bernroider, 2019 ). But there is a similarity in these views.…”

Performance, behaviour and organization of maize trading in Malawi

“…Using structural, relational and cognitive indicators for social capital, most literature from developed countries suggest a positive association between social capital and business performance (see Islam et al 2018;Liu and Li 2018;García-Villaverde et al 2018;Miao et al 2017). To illustrate, Islam et al (2018) found that cognitive ability, education, experience and the number of connections a manager possessed had a positive influence on a cooperative's performance.…”

The Role of Knowledge Adoptive Capacity towards Exports Performance

“…Therefore, firms should consider knowledge absorptive capacity as core competencies to achieve a competitive advantage as they play the role of key drivers for country' export performance. Most of the studies examined KAC as a whole construct (García-Villaverde et al, 2018;Keskin & Ayar, 2017;Li, Cui, & Liu, 2017;Wang & Han, 2011) but this research identifies each dimension and explained their relationship with export performance which is lacking in previously. Hence, current study contributes to the literature.…”