scholarly journals International high-tech SMEs innovative foreign knowledge inflows: effects of host country weak network ties and absorptive capacity

2020 ◽  
Vol 28 (3) ◽  
pp. 333-354 ◽  
Author(s):  
David Freund ◽  
Robert Lee ◽  
Heinz Tüselmann ◽  
Qi Cao
Keyword(s):  
Host Country ◽  
Absorptive Capacity ◽  
Action Plan ◽  
High Tech ◽  
Network Ties ◽  
Content Type ◽  
Capacity Theory ◽  
Combine Network ◽  
Tailored Advice ◽  
The Eu

Purpose The main purpose of this study is to explain the combined effects of host country weak network ties and absorptive capacity on the innovative foreign knowledge inflows of international high-tech small- and medium-sized enterprises (SMEs). Design/methodology/approach Data are drawn from the two largest and most authoritative German Federal Government census-databases of biotech and nanotech SMEs. A structured survey questionnaire was administered and regression analysis adopted. Findings This study demonstrates weak network ties in the host country and developing absorptive capacity produce a combined effect that positively influences international high-tech SMEs innovative foreign knowledge inflows. Also, host country weak network ties and absorptive capacity when considered separately, each respectively, positively influence innovative foreign knowledge inflows. Practical implications The results help inform key personnel in international high-tech SMEs about the relevance of host country weak network ties and absorptive capacity for foreign knowledge inflows. In addition, the results help policymakers and think-tanks to promote tailored advice and guidance e.g. those policymakers implementing the EU Entrepreneurship 2020 Action Plan. Originality/value There is a recent call in the literature to combine network theory and absorptive capacity theory to better explain knowledge creation in the context of international high-tech SMEs knowledge sourcing. By addressing this call, the study provides a more refined and comprehensive account of international high-tech SMEs innovative foreign knowledge inflows.

Absorptive capacity and NPD: salient issues in bipolar entrepreneurial SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sujinda Popaitoon ◽  
Tanyanart Yanpiboon ◽  
Chutikarn Tapjarern
Keyword(s):  
Absorptive Capacity ◽  
Strategic Alliances ◽  
New Ventures ◽  
New Products ◽  
Critical Role ◽  
High Tech ◽  
Network Ties ◽  
Content Type ◽  
Useful Knowledge ◽  
External Sources

Purpose The purpose of this study is to explore knowledge absorptive capacity (ACAP) (both potential and realized) and new product development (NPD) in bipolar entrepreneurial small- and medium-sized enterprises (SMEs). Design/methodology/approach In response to recent calls for research on knowledge ACAP and NPD in entrepreneurial SMEs, particularly in different contexts, this research aims to answer a specific question: What are the characteristics of ACAP (both potential and realized) and the salient issues concerning working complementarily between both types of ACAP to foster NPD in bipolar entrepreneurial SMEs (in this case, three new low-tech and three established high-tech cases)? The authors conduct case study research based on cross-case and within case analyses to answer the question. Findings The findings show that, in the established high-tech cases, realized ACAP plays an outsized role in developing new products and prior-related knowledge acts as a precondition for capturing useful knowledge from external sources (potential ACAP). On the contrary, in the new low-tech cases, potential ACAP is the key driver of NPD, so external knowledge from network ties becomes a crucial source of acquiring new knowledge, along with entrepreneurs’ level of skill at applying useful knowledge (realized ACAP) to achieve NPD. Research limitations/implications On the basis of the bipolar entrepreneurial SMEs (i.e. established high-tech and new low-tech ventures), the characteristics of entrepreneurial SMEs (i.e. firm’s age, size and level of technology) affect the different roles of realized and potential ACAP in driving NPD successes. Realized ACAP plays a critical role for NPD in established high-tech SMEs, whereas potential ACAP is the main driver of NPD in new low-tech SMEs. This research has some limitations that future research should conduct quantitative research in other industries’ context as well as in other countries. Practical implications For new ventures, they should be aware that to strengthen their network ties with customers and suppliers can be an important tool for not only overcoming their limitations of existing knowledge but also acquiring tacit knowledge from the external sources. For established high-tech ventures, they should focus not only on the short-term NPD (the achievement of current NPD) but also the long-term NPD (e.g. series of new products and new strategic alliances) that can help avoid a not-invented-here syndrome situation. Social implications The government should customize the policy to suit each targeted SME. Policymakers should play a crucial role of a linking pin among key external sources (e.g. R&D national and international institutions, SME banks and marketing agents) in different stages of the business cycle. Originality/value This research contributes to the literature of knowledge ACAP in SMEs to the understanding of the distinction roles of potential and realized ACAP as a mechanism in the different natures of entrepreneurial SMEs.

Measuring the impact of relational capital on customer performance in the SME B2B sector

2017 ◽  
Vol 23 (6) ◽  
pp. 1144-1166 ◽  
Author(s):  
Lara Agostini ◽  
Anna Nosella ◽  
Benedetta Soranzo
Keyword(s):  
Absorptive Capacity ◽  
Open Innovation ◽  
Moderating Effect ◽  
High Tech ◽  
Relational Capital ◽  
Marketing Capability ◽  
Content Type ◽  
Innovation Practices ◽  
External Actors ◽  
The Impact

Purpose The purpose of this paper is to investigate the influence that different components of relational capital (marketing capability, open innovation with business and scientific partners, technological reputation, brand) have on customer performance (CP). Moreover, the moderating effect of absorptive capacity on such relationships is tested. Design/methodology/approach First, the direct relationship between the different components of relational capital and CP is analyzed through a linear regression model. Then, to test the moderating effect, two distinct regression analyses are conducted into two sub-samples, defined according to the level of absorptive capacity. The authors carried out these analyses on a sample of 150 small- and medium-sized enterprises (SMEs) in the medium- and high-tech B2B context. Findings Results of this study prove that CP is enhanced through firm marketing capability, open innovation with business partners and technological reputation, while brand and open innovation with scientific partner do not have an association with CP. In particular, the impact of marketing capability and open innovation with business actors on CP is greater for firms with higher absorptive capacity. Research limitations/implications This paper, highlighting the relevance of relational capital and absorptive capacity in improving CP, enhances our knowledge about the factors that help to strengthen the relationships with customers, which is an under-investigated issue especially for SMEs competing in B2B industries, and extends our knowledge on open innovation practices. Practical implications Findings of this paper suggest that, to achieve better CP, managers should pay special attention to nurturing their marketing capability and high-quality relationships with external actors and invest in absorptive capacity to enhance the positive effect of such linkages. Originality/value This work, combining the external perspective of relational capital and the internal organizational dimension of absorptive capacity, provides valuable insights about the knowledge and resource mix that firms might rely on to achieve better customer satisfaction and loyalty.

Turkish-EU migrant policies will continue to diverge

2015 ◽  
Keyword(s):  
Prime Minister ◽  
Action Plan ◽  
Press Conference ◽  
Syrian Refugees ◽  
Eu Accession ◽  
Member States ◽  
Content Type ◽  
Eu Member States ◽  
Angela Merkel ◽  
The Eu

Significance German Chancellor Angela Merkel has said Germany is "ready to offer support" on four Turkish demands in return for cooperating with the EU in the migrant crisis. At a joint press conference in Istanbul yesterday, Turkish Prime Minister Ahmet Davutoglu repeated Ankara's four conditions for implementing an action plan against the influx of Syrian refugees into Europe. It wants more EU aid for those refugees inside Turkey; three chapters opened in Turkey's EU accession negotiations; visa liberalisation for Turks travelling to the EU; and a seat for Turkey at EU summits. Impacts Erdogan's resentment over EU condemnations of growing authoritarianism is so deep that any EU softening will have little impact. Davutoglu and Erdogan present Turkey as so important globally, that the EU is desperate that it join; they have no interest in accession. Several EU member states have severe reservations about visa liberalisation, funding aid and opening new accession chapters.

US tensions prompt closer China-Russia cooperation

2019 ◽  
Keyword(s):  
Natural Gas ◽  
Consumer Goods ◽  
The Other ◽  
High Tech ◽  
Content Type ◽  
Economic Relations ◽  
Economic Interaction ◽  
Economic Ties ◽  
The Eu

Subject China-Russia cooperation. Significance Beijing and Moscow are compensating for deteriorating ties with Washington by building -- or at least declaring -- close political and economic relations with each other. Chinese exporters of production and consumer goods are replacing Western companies that are curtailing activities due to Western sanctions and Moscow’s countersanctions. However, neither Beijing nor Moscow sees the other as a true substitute for normal relations with Washington. Impacts China and Russia will more actively use the renminbi and ruble as settlement currencies. Russia will preserve its position as China’s key supplier of oil and will significantly expand deliveries of natural gas. Russia will press for closer ties in high-tech industries; China will be wary, fearing this might prompt new US sanctions. The epicentre of Russia’s foreign economic ties will shift further from the EU to China. Greater economic interaction with Russia will help China cement its relations with other former Soviet countries.

scholarly journals Effective knowledge transfer between the headquarters and a subsidiary in a MNC: the need for heeding capacity

2017 ◽  
Vol 32 (6) ◽  
pp. 813-824 ◽  
Author(s):  
Hiroyuki Ishihara ◽  
Judy Zolkiewski
Keyword(s):  
Knowledge Transfer ◽  
Absorptive Capacity ◽  
Multinational Corporation ◽  
Design Methodology ◽  
Cultural Influences ◽  
Tie Strength ◽  
Network Ties ◽  
Content Type ◽  
Alliance Partners ◽  
Practical Implications

Purpose This paper aims to focus on knowledge transfer between the headquarters and a subsidiary of a multinational corporation (MNC). A framework with type of knowledge, absorptive capacity, disseminative capacity and tie strength is proposed. The framework is verified qualitatively and then further developed by adding another capacity needed by the headquarters: heeding capacity. Design/methodology/approach To check the validity of the proposed conceptual framework empirically, interview-based qualitative studies were conducted for two partner programs implemented in the Japanese subsidiary of a US-based IT company. Interviews were undertaken with 17 respondents in the headquarters, the Japanese subsidiary and two alliance partners in Japan. Findings It is confirmed that type of knowledge and absorptive capacity clearly affect the effectiveness of knowledge transfer. Also, it is found that the knowledge sender’s disseminative capacity matters. Additionally, a case is found in which network ties mitigate the ineffectiveness caused by low disseminative/absorptive capacity. Research limitations/implications In this research, cultural influences have not been considered. Also, this research has not paid attention to inter-organizational knowledge transfer. These provides potential for further research which could explore this complexity in more depth. Practical implications It is suggested that the headquarters of a MNC need to have a “heeding capacity” in cases where the target subsidiary’s disseminative capacity is low and tie strength between the subsidiary and the headquarters is weak. It is a capacity for the headquarters to heed what a subsidiary would like to transmit but cannot do well, and this is achieved by listening carefully and not letting language barriers or cultural differences obfuscate the meaning. Originality/value By focusing on a dyad between the headquarters and the Japanese subsidiary, the importance of disseminative capacity of a subsidiary is highlighted, which is not often the case in the extant literature. Also, headquarters’ heeding capacity is proposed.

The impacts of inward knowledge transfer and absorptive capacity on the turnover of host country nationals in MNE subsidiaries: a multilevel modeling approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jin Suk Park ◽  
Jae Yoon Chang ◽  
Taehun Lee
Keyword(s):  
Knowledge Transfer ◽  
Host Country ◽  
Absorptive Capacity ◽  
Critical Factor ◽  
Negative Consequences ◽  
Content Type ◽  
Host Country Nationals ◽  
Nonlinear Trends ◽  
Multilevel Survival Analysis ◽  
Actual Turnover

Purpose This study aims to find how the turnover of host country nationals (HCNs) would be affected by the knowledge transfer from a headquarter to a subsidiary. Knowledge transfer in a multinational corporation (MNC) has been discussed as a critical factor in the MNC’s success. Because HCNs are essential to synergizing with a new knowledge inflow during this knowledge transfer process, their turnover entails negative consequences such as knowledge loss. Design/methodology/approach This paper empirically tests the unbalance between knowledge received (KR) and absorptive capacity (AC) as the most critical organizational predictor by using the secondary longitudinal records and survey data of 4,915 employees. Multilevel survival analysis is used to calculate the individuals’ turnover hazard. Findings While finding that the primary effect of transferred knowledge is to reduce turnover, the study demonstrates the unbalance between a subsidiary’s AC and KR increases the likelihood of HCNs’ turnover within the organization. The authors also recognize the possibility of nonlinear trends of KR and AC on the turnover hazard. Originality/value The authors answer how knowledge transfer shapes a subsidiary’s work environment to prevent or increase turnover, which has been barely examined for HCNs who comprise the crucial demographic group in knowledge transfer. To enhance the originality further, this study empirically observes the actual turnover of HCNs with a conceptually comprehensive view incorporating both learning and political approaches.

scholarly journals Motivators of SME initial export choice and the European Union regional effect in manufacturing

2017 ◽  
Vol 23 (1) ◽  
pp. 35-55 ◽  
Author(s):  
Vassilios Stouraitis ◽  
Mior Harris Mior Harun ◽  
Markos Kyritsis
Keyword(s):  
Host Country ◽  
Home Country ◽  
Empirical Work ◽  
The European Union ◽  
Regional Effect ◽  
Resource Based View ◽  
Content Type ◽  
Eu Membership ◽  
Practical Implications ◽  
The Eu

Purpose A global reach in exporting has been linked to profitability. The purpose of this paper is to answer the influence of EU regulations on exporting decisions of UK manufacturing small- and medium-sized firms (SMEs) by investigating the home and host country-based motivators behind SMEs’ choice to export, and export regionally, within the EU. Design/methodology/approach Contrasting the Uppsala and resource-based view perspectives (using a sample of UK independent manufacturing SMEs and utilizing a survey, correlation analysis and factor analysis), the paper finds and describes the effect of the most recurrent motivators from the literature on the SMEs’ decision to export within the EU or not. Findings The paper finds that SMEs whose latest international market entry was not in the EU scored significantly higher in the factor scorings for the motivators in the external dimension than participants whose latest entry was in the EU. Several motivators show an association with the choice to export per se. The importance of regionalization to export initiation (and EU membership) within the EU is emphasized in the results. Research limitations/implications The sample size is limited. Practical implications In the current climate, how can SMEs reduce market research costs for managers by relying solely and proactively on home country and internal advantages and motivators and being more aware of their surroundings? Managers and policymakers can direct their strategy, resources and policy more efficiently according to motivators; internal home country motivators (e.g. strengths of prices of products) direct the SME to overcome inter-regional liability of foreignness, while host country motivators (e.g. legal restrictions in the host country) direct them to regional ventures. Originality/value The theoretical and empirical work on the topic, until recently, has been fragmented and inconsistent focusing on specific motivators but not necessarily justifying the selection or origin of variables even less on SMEs.

Advancing US small business apparel production: a state-level mixed-method exploration

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nancy J. Miller ◽  
Carol Engel-Enright ◽  
Kayna Hobbs ◽  
David A. Brown
Keyword(s):  
Social Interaction ◽  
Absorptive Capacity ◽  
Ordinary Least Squares ◽  
Absorption Capacity ◽  
Exploratory Research ◽  
Theoretical Frameworks ◽  
Network Ties ◽  
Content Type ◽  
Apparel Production ◽  
The Impact

PurposeThis study highlights the impact of attaining and incorporating knowledge and building relationships with other firms in US apparel production.Design/methodology/approachProducers of apparel and sewn products operating within a US state form the sample for this mixed methods exploration. Study 1 involves a qualitative analysis of the producers highlighting knowledge in interorganizational discussions. Study 2 quantitatively measures responses from 38 producing firms. Ordinary least squares (OLS) regression was used to measure associations, and simple slopes were computed to examine interactions.FindingsThe knowledge exchanged, according to participants in study 1, was limited, thus warranting further examination. Results from study 2 revealed strong associations among knowledge absorptive capacity, social interaction and people-oriented culture with network ties. A two-way interaction effect was found for absorptive capacity and social interaction, indicating association between social interaction and network ties was more positive at higher levels of absorption capacity and vice versa.Research limitations/implicationsFindings provide theoretical and applied support for building network ties. This research operationalizes complicated-to-measure constructs critical to the empirical measurement of junctions from two theoretical frameworks, in the context of a specific industry. Though acceptable for exploratory research, additional work is needed to refine reliability measures and to examine a national sample.Originality/valueThis study links elements of social capital- and knowledge-based views of the firm necessary for reviving US apparel production. Broader outcomes from this research include job creation providing support and growth in the US sewn apparel and goods industry that will drive US economy.

Effect of supplier supply network resources on buyer–supplier collaborative product innovation: a contingency perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuzhong Li ◽  
Suicheng Li ◽  
Hecheng Cui
Keyword(s):  
Absorptive Capacity ◽  
Product Innovation ◽  
Empirical Test ◽  
High Tech ◽  
Supply Network ◽  
Sustainable Competitive Advantage ◽  
Network Resources ◽  
Content Type ◽  
Contingency Perspective ◽  
New Research

Purpose This study aims to examine the effect of supplier supply network (SSN) resources on buyer–supplier collaborative product innovation. The existing relevant studies from the network perspective are focused more horizontally on the mobilization of the firm’s entire supplier network resources and less vertically on the utilization of the individual supplier's supply network resources. Therefore, this paper takes a contingency perspective, regards the buyer as the receiver of a supplier’s supply network resources and, based on the theoretical motivation–opportunity–ability framework, explores the important motivation and ability factors that may weaken or enhance the product innovation value of the network resources. Design/methodology/approach This paper develops a new research model that assesses how the innovation utilization effectiveness of SSN resources is contingent on a buyer’s perception of the SSN effects and relative absorptive capacity on the SSN. A large sample questionnaire is designed and collected from 300 Chinese high-tech manufacturing firms and their suppliers. An empirical test is carried out in which multiple regression analysis is applied to 246 valid sample data. Findings The results show that SSN resources can significantly enhance buyer–supplier collaborative product innovation; however, the innovation utilization effectiveness is limited by the buyer’s relative absorptive capacity for the SSN and perception of the SSN effects. Specifically, if a buyer perceives that a greater innovation effect of a supplier’s supply network is correlated with an improved relative position in the SSN or with higher network structural equivalence and network cognitive congruence between the buyer and the supplier on the SSN, then the buyer will be more motivated and capable of transforming the SSN resources into actual product innovation value. Practical implications The research results provide useful guidance for firms to effectively mobilize their SSN resources to tap into the supplier innovation value for a sustainable competitive advantage. Originality/value This paper extends the research on supplier innovation value to the SSN field. Through linking dyadic and network levels of analysis, this paper reveals the value and uniqueness of product innovation utilization of a specific supplier’s supply network resources in the buyer–supplier relationship and provides a new research perspective for future studies on related issues.

Information technology competencies as antecedents for absorptive capacity and innovation capabilities in a high-tech industry

foresight ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samer Al-Shami ◽  
Mohammed Hariri Bakri ◽  
Hayder Adil ◽  
Abdullah Al Mamun
Keyword(s):  
Information Technology ◽  
Competitive Advantage ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Equation Model ◽  
High Tech ◽  
It Infrastructure ◽  
Content Type ◽  
Analyse Data ◽  
The Relationship

Purpose Previous studies equated information technology (IT) with the notion of effective resources. ITs improved firms’ competitive advantage and innovativeness. Yet, far fewer studies investigated types of IT competencies that corresponded to innovation capabilities, particularly in developing countries. The aim of this paper is to provide an investigation concerning the types of IT competencies and examine their influence on the innovation capabilities across high-tech firms. Design/methodology/approach A survey was randomly distributed to 274 respondents across four main sectors of Malaysian high-tech firms. The main sectors were electric and electronic, aerospace, computers and office machinery and pharmaceuticals. A structural equation model, Amos, was used to analyse data. Findings Three findings were surmised. First, IT competencies driven by IT infrastructure, alignment, management affected high-tech firms’ innovation capabilities. Second, absorptive capacity (AC) partially determined the relationship between IT infrastructure and IT alignment and innovation capabilities. AC also determined the relationship between IT management and innovation capabilities. The significance of IT competencies in the improvement of innovation capabilities was presented as a key predictor in bolstering high-tech manufacturing firms’ competitive advantage. Originality/value Two points on novelty were presented. First, by conceptualising IT competencies from resource-based theory (RBV), a shift in understanding RBV was presented. Second, alternative key predictors concerning how IT competencies could improve aspects of AC and innovation capabilities were presented.

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