Absorptive Capacity and Performance Amongst Manufacturing SMEs

Absorptive Capacity and Performance Amongst Manufacturing SMEs
Author: Zarina Denan
Publisher: LAP Lambert Academic Publishing
Total Pages: 276
Release: 2013
Genre:
ISBN: 9783659358395

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In today's global business environment, global organizations must utilize all possible sources of intangible and tangible advantage, and human assets are one of these sources (Barney, 1991; Schuler & Rogovsky, 1998). The success or failure in a global context will be determined by its managerial capabilities, and the development of globally sophisticated managers is a major challenge in order to obtain global competitiveness (Hax, 1989). With knowledge & experience, they have the advantage to recognize the opportunities in the market.

Industry 4.0 for SMEs

Industry 4.0 for SMEs
Author: Dominik T. Matt
Publisher: Springer Nature
Total Pages: 435
Release: 2020-01-03
Genre: Business & Economics
ISBN: 3030254259

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This open access book explores the concept of Industry 4.0, which presents a considerable challenge for the production and service sectors. While digitization initiatives are usually integrated into the central corporate strategy of larger companies, smaller firms often have problems putting Industry 4.0 paradigms into practice. Small and medium-sized enterprises (SMEs) possess neither the human nor financial resources to systematically investigate the potential and risks of introducing Industry 4.0. Addressing this obstacle, the international team of authors focuses on the development of smart manufacturing concepts, logistics solutions and managerial models specifically for SMEs. Aiming to provide methodological frameworks and pilot solutions for SMEs during their digital transformation, this innovative and timely book will be of great use to scholars researching technology management, digitization and small business, as well as practitioners within manufacturing companies.

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.

Determinants of Absorptive Capacity

Determinants of Absorptive Capacity
Author: Ching-Hsun Chang
Publisher:
Total Pages: 0
Release: 2014
Genre:
ISBN:

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The purpose of this study is to explore the determinants and the consequent of absorptive capacity from the resource-capability-performance framework in the Taiwanese manufacturing and service industries. Structural equation modeling is applied to verify the conceptual model. In both of the Taiwanese manufacturing industry and the Taiwanese service industry, this study verifies that resource commitment and resource flexibility are two antecedents of absorptive capacity, and that new product development performance or service innovation performance is its consequent. Besides, the empirical results show that absorptive capacity plays a partial mediator in the manufacturing industry but a full mediator in the service industry. If companies would like to raise their new product development performance or service innovation performance, they have to enhance their resource commitment, resource flexibility, and absorptive capacity. Moreover, this study finds that the resource commitment of small and medium enterprises is significantly less than that of large enterprises in Taiwanese manufacturing industry. This study also finds that resource flexibility of established companies is significantly higher than that of younger companies in Taiwan.

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.

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.

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.

The Mediating Role of Absorptive Capacity on the Relationship Between Intellectual Capital and Firm Performance in High-tech SMEs, UK

The Mediating Role of Absorptive Capacity on the Relationship Between Intellectual Capital and Firm Performance in High-tech SMEs, UK
Author: Saher Ajeeli
Publisher:
Total Pages: 0
Release: 2018
Genre:
ISBN:

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In a fast changing business environment with accelerated technological development, new knowledge resources and developing dynamic capabilities are becoming vital issues in economic knowledge. Drawing on the Resource-based View in small and medium-sized enterprises (SMEs) and competitive dynamics perspectives, there has been a recent rise in the number of practitioners and academics integrating the knowledge resources of SMEs, which are intellectual capital (IC) and absorptive capacity (ACAP) to achieve superior performance. The main objective of this study is to investigate the mediating role of absorptive capacity on the relationship between intellectual capital and firm performance in high-tech sector SMEs in the UK.Current research proposed a model for the direct and indirect relationships of IC- performance through ACAP, thereby increasing contributions to knowledge in the field of strategic management. A research conceptual framework was developed with reliance on an existing body of literature in the field of study. It integrates the effects of intellectual capital with absorptive capacity to create and develop dynamic capabilities in pharmaceutical, biotechnology, and the publishing of computer games firms. A quantitative research employing surveys, the selected method of study was justified, because of the number of SMEs and their being geographically widespread around the UK. A five-point Likert-type scale has been used to measure research variables.A research conceptual framework has been developed and tested by using a structural equational modelling methodology. The results of this study suggested that high-tech SMEs could enhance and improve their financial outcome, if they associate and integrate the firm's intellectual capital with the firm's absorptive capacity to create or develop dynamic capabilities, which has greater significant effects on firm performance. This research concludes by saying that high performance firms respond rapidly to new knowledge and also that there is a strong association between IC and ACAP affecting the performance of SMEs. It is also concluded that CEOs and managers are able to enhance the level of performance in high-tech SMEs by the creation or development of dynamic capabilities through the integration between firm IC and ACAP.

Organizational Culture and Absorptive Capacity

Organizational Culture and Absorptive Capacity
Author: Dorothée Zerwas
Publisher: Springer Science & Business Media
Total Pages: 297
Release: 2014-04-02
Genre: Business & Economics
ISBN: 3658055529

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Firms are increasingly collaborating with outside partners to access external knowledge that will enable them to successfully innovate and remain competitive in the marketplace. To apply external knowledge, they must have a distinctive capacity to absorb knowledge. One of the main influencing factors for absorptive capacity is a knowledge-friendly organizational culture, because the knowledge absorbing behavior of individuals can be better coordinated through implicit values and norms than through structural coordination instruments. When focusing on an organization’s overall behavior, it is important to investigate in detail how a knowledge-friendly organizational culture influences absorptive capacity. Therefore, the author analysis the relationship between organizational culture and absorptive capacity and shows how a knowledge-friendly organizational culture should be designed to support the absorption of external knowledge in SMEs.