Absorptive Capacity and Innovative Performance Frameworks for SMEs

Absorptive Capacity and Innovative Performance Frameworks for SMEs
Author: Nyoman Anjani
Publisher:
Total Pages: 97
Release: 2021
Genre:
ISBN:

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As the fourth most populous country globally, Indonesia is the world's 10th-largest manufacturing power, according to the United Nations (Schonhardt, 2016). The manufacturing sector employs 14.72% of the total Indonesian workforces (BPS, 2018). With the demographic bonus that will happen in 2045, around 208 million Indonesians will enter the workforces. Thus, Indonesia has the potential to become the hub of the manufacturing industry in Southeast Asia. This thesis aims to help industry practitioners in the manufacturing industry improve their competitive advantages and innovative performance by building the absorptive capacity. Absorptive capacity is a firm's ability to acquire, assimilate, and transform new knowledge and valuable information to upgrade its core capabilities in response to the changing economic environment. It indicates a firm's innovative activities and influences the sustainability of a firm's competitive advantages. This thesis answers the question that has not been explored previously: how should the absorptive capacity and innovative performance of Small Medium Enterprises (SMEs) in developing countries, where resources for research and development (R&D) are limited, be evaluated. All the factors that drive a firm's absorptive capacity and innovative performance were evaluated using a case study approach and direct field interviews with twelve manufacturers in Indonesia. The case studies provide vivid illustrations about Indonesia's SMEs and manufacturing industry conditions: the capabilities, challenges, and opportunities for further improvements. Finally, the case studies' findings were used to build conceptual frameworks that guide practitioners. Absorptive capacity is a multidimensional construct that can drive a firm's innovative performance. It is driven by a firm's capabilities and efforts to learn new knowledge and adapt to the environment. This thesis is seed research for multi-year research collaboration between MIT and Indonesia to build an integrated sustainable design and supply chain model to enhance Indonesia's manufacturing industry.

Managing Knowledge, Absorptive Capacity And Innovation

Managing Knowledge, Absorptive Capacity And Innovation
Author: Joe Tidd
Publisher: World Scientific
Total Pages: 551
Release: 2021-05-05
Genre: Business & Economics
ISBN: 1800610327

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Knowledge Management focuses on identifying, sharing, storing, and exploiting internal knowledge, whereas Open Innovation is more concerned with sources of external knowledge. However, this simple dichotomy between open and closed approaches is unhelpful and not realistic. Instead, it is the interaction between internal and external knowledge that creates dynamic capabilities and the ability to innovate. In particular, we need to better understand the interactions between internal and external knowledge, and how these influence innovation outcomes under different conditions. This edited volume, Managing Knowledge, Absorptive Capacity, and Innovation, provides an opportunity to combine contemporary interests in Open Innovation with the classic notion of absorptive capacity, to better understand how organisations can manage the absorption and exploitation of inbound external sources of knowledge in order to innovate.

Exploring the Antecedents of Potential Absorptive Capacity and Its Impact on Innovation Performance

Exploring the Antecedents of Potential Absorptive Capacity and Its Impact on Innovation Performance
Author: Andrea Fosfuri
Publisher:
Total Pages: 0
Release: 2014
Genre:
ISBN:

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This paper builds upon the theoretical framework developed by Zahra and George [Absorptive capacity: a review, reconceptualization, and extension. Academy of Management Review 2002;27:185-203] to empirically explore the antecedents of potential absorptive capacity (PAC), i.e. the ability to identify and assimilate external knowledge flows. Based on a sample of 2464 innovative Spanish firms, we find evidence that R&D cooperation, external knowledge acquisition and experience with knowledge search are key antecedents of a firm's PAC. Also, during periods of important internal reshaping, when there are significant changes in strategy, design of the organization and marketing, firms exert more effort to accumulate PAC. Finally, we find that PAC is a source of competitive advantage in innovation, especially in the presence of efficient internal knowledge flows that help reduce the distance between potential and realized capacity.

Knowledge Engineering

Knowledge Engineering
Author: Hamed Fazlollahtabar
Publisher: CRC Press
Total Pages: 101
Release: 2020-11-09
Genre: Technology & Engineering
ISBN: 100016327X

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Knowledge management is far-reaching. It can dramatically reduce costs such as costs of office work repetition, human resource retirement, information reuse, etc. Rather than "reinventing the wheel" and having it be a costly and inefficient activity, systematic reuse of knowledge can show substantial cost benefits immediately. This book shows how to develop process-oriented methodologies, covers both interorganizational and enterprises models, discusses how knowledge management can dramatically reduce costs and increase speed of response, presents a wide range of quantitative methods applied to various knowledge engineering problems, and offers several graphical presentations of models and processes. Academicians and practitioners in the area of knowledge management and engineering, especially managers in industries will fine this book useful. The material might also be useful in knowledge management graduate studies.

The New SME Definition

The New SME Definition
Author: European Commission
Publisher:
Total Pages: 56
Release: 2005
Genre: Business & Economics
ISBN:

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Recoge:1. Introduction - 2. Why a new definition? - 3. Applying the new SME definition - 4. Conclusion.

Mid-sized Manufacturing Companies: The New Driver of Italian Competitiveness

Mid-sized Manufacturing Companies: The New Driver of Italian Competitiveness
Author: Fulvio Coltorti
Publisher: Springer Science & Business Media
Total Pages: 202
Release: 2013-06-15
Genre: Business & Economics
ISBN: 8847025893

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The structure of Italian industry is characterized by a predominance of small sized companies and the presence of very few large companies. For a long time a conviction was shared among scholars and practitioners that the strength and safety of Italian industry were based on its industrial districts, that is, the system of interdependent and co-localized small companies which derive their competitive force from an effective and efficient division of labour. This book stresses the idea that a new, vital and promising phenomenon for the competitiveness of Italian industry is focused on mid-sized companies, and the systems of interconnected firms that form a constituent part of their business model. These companies, which originate largely from districts and other local production systems, are a strong entrepreneurial force complementing the districts that have characterized Italy and made Italian industry famous worldwide. A quantitative and qualitative analysis of these firms is provided in this book. Business models and strategies implemented by a number of successful Italian mid-sized manufacturing companies are also explored. Consequences in terms of management and industrial policies are provided. A final look at the German Mittelstand gives a useful comparison.

Absorptive Capacity and Firm Performance in SMEs

Absorptive Capacity and Firm Performance in SMEs
Author: Tessa Christina Flatten
Publisher:
Total Pages: 0
Release: 2011
Genre:
ISBN:

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Absorptive capacity (ACAP) is a firm's ability to innovate by identifying, assimilating, and exploiting knowledge available in its environment. ACAP has been widely researched, but this research has not sufficiently analyzed the influence of ACAP on an interfirm level, especially regarding the multidimensional character of this construct. The present study intends to reveal whether the relationship between ACAP and firm performance in small and mediun sized enterprises (SMEs) is mediated by strategic alliances. Furthermore, different moderating characteristics such as age and size of the companies are taken into consideration. The findings indicate that strategic alliances of SMEs mediate both the relationship between ACAP and firm performance and the relationship between each dimension of ACAP and firm performance. However, these results might not be valid under certain circumstances since strategic alliances have no mediating influence when it comes to young SMEs, for example.

Knowledge-Based Dynamic Capabilities

Knowledge-Based Dynamic Capabilities
Author: Vaneet Kaur
Publisher: Springer
Total Pages: 267
Release: 2019-06-29
Genre: Business & Economics
ISBN: 3030216497

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This book provides a knowledge-based view to the dynamic capabilities in an organization. The author integrates two existing views on gaining competitive advantage: the Knowledge View which suggests that the capability of organizations to learn faster than competitors is the only source of competitiveness; and the Dynamic Capability View which speculates that a firm’s competitive advantage rests on dynamic capabilities which enable a firm to constantly renew the stock of ordinary organizational capabilities in accordance with the changes in the business environment. Using the IT sector in India as a case study, this book provides and tests a new framework--Knowledge-Based Dynamic Capabilities—in the prediction of competitive advantage in organizations.