This dissertation examines the development and renewal of capabilities through acquisitions by drawing from absorptive capacity literature (Cohen and Levinthal, 1990; Zahra and George, 2002). This dissertation examines four interrelated questions concerning (1) the impact of acquisition experience on a firm’s absorptive capacity, (2) the role of absorptive capacity in the renewal of capabilities through acquisition, (3) the impact of capabilities renewal through acquisition on a firm’s choice of future growth mode, and (4) the impact of capabilities renewal through acquisition on post-acquisition performance. These questions are examined using FDIC data and surveys administered to top managers of banks that conducted acquisitions between October 2004 and October 2006. Results of this study suggest that a firm’s past experience with internal development and acquisition impacts the development of its absorptive capacity. Furthermore, results suggest that absorptive capacity has multiple dimensions and that the respective absorptive capacity dimensions have unique independent and joint effects on a firm’s ability to renew its capabilities through acquisition. Results also suggest that the impact of the change in capabilities on the firm’s choice of future growth mechanism largely depends on the nature of capability that changed through acquisition. When firms experience an improvement or decline in important revenue-generating capabilities that are fundamental to firm performance, the firm is more likely to pursue future acquisition to either compensate for its inability to grow by its own internal means or to exploit its improved capability in a new setting. However, when management capabilities or operational capabilities experience an improvement or a decline, the firms is less likely to pursue future acquisition in order to avoid taxing the already strained capability or to take time to fully internalize the improved capability. Results also suggest that the change in capabilities through acquisition is positively associated with a change in post-acquisition performance.

The topic of regional innovation systems is one that has been covered extensively in prior research. It has influenced regional policy by providing context of how regional actors and firms interact and how they are affected by institutional guidance and formal structuring tools. An aspect that has not been covered to a sufficient extent is the prospect of self-sustaining or spontaneous collaborative efforts. This is an interesting area to consider because it questions the idea that regional innovation systems need institutional support to survive. Instead, it suggests that firms can collaborate simply through a mutual understanding of their situation and how an integration of their competences can prove beneficial to their system. The bottom line for well-functioning regional innovation systems are its ability to facilitate knowledge transfer for its actors. This raises the question of how firms’ knowledge transfer processes, its absorptive capacity is affected by regional innovation systems. The purpose of this study is to create a conceptual framework exploring how and why regional innovation systems facilitates firms’ absorptive capacity, as well as how they are affected by being either institutional or entrepreneurial. This has been done through an inductive multiple case study where 18 different cases of regional innovation systems were surveyed. The study resulted in a process model of how regional innovation systems evolve, its facilitating effect on firms’ absorptive capacity, and how entrepreneurial or institutional setups influence this evolution. Our findings suggest that regardless of being institutional or entrepreneurial, regional innovation systems follow a similar evolutionary process to facilitate firms’ absorptive capacity. It is rather suggested that each system has individually negative and positive effects on the process. Firms’ absorptive capacity is facilitated by regional innovation systems as they provide firms with an environment driving similar knowledge and problem sets, being a source of complementary knowledge and social integration mechanisms. The process model provides implications for regional policy makers to facilitate optimal conditions for actors in their regions, as well as for firms active in regional innovation systems.

This study investigates whether balanced forms of organizational cultures moderate the effects of potential and realized absorptive capacities (ACs) to simultaneously generate exploratory and exploitative innovations. Using empirical survey data collected from 138 small to medium-sized enterprises (SMEs), we applied partial least squares (PLS) structural equation modeling (SEM) combined with mediation and moderation analyses to test our hypotheses. Our results show that the effects of potential AC on organizations' exploratory and exploitative innovations are fully mediated by the organizations' realized AC. The positive effects of realized AC on innovation are contingent on the overall cultural balance of the organization, which, however, does not affect the strong link between potential AC and realized AC. We thus provide novel empirical insights into the multi-dimensional nature of AC and the importance of cultural equilibrium for both exploratory and exploitative innovation, which is of particular importance for ambidextrous SMEs facing dynamic markets.

A capacidade de absorção está relacionada com a maneira pela qual uma organização desenvolve processos estratégicos e rotinas de internalizar e aplicar o conhecimento externo. Esse processo organizacional é descrito por quatro dimensões: aquisição, assimilação, transformação e aplicação. Estudos recentes colocam que o ambiente influencia o modo como às empresas se organizam, expandem e transferem conhecimento. Este estudo pretende avançar nessa linha de pesquisa; em específico desenvolve uma análise comparativa sobre a capacidade de absorção em redes de franquias brasileiras e estrangeiras que operam no Brasil. A pergunta principal da pesquisa busca compreender se as redes de franquias brasileiras e estrangeiras desenvolvem a capacidade de absorção de maneira diferente. Para resolver essa questão foi desenvolvida uma metodologia com abordagens qualitativas e quantitativas, tendo uma amostra de 103 empresas. Os resultados mostram aspectos importantes do processo de transferência de conhecimento e do desenvolvimento da capacidade de absorção das empresas analisadas. De forma geral, as unidades franqueadas em redes brasileiras apresentaram níveis menores nas variáveis relativas à aquisição e aplicação do conhecimento. Assim, esta pesquisa pretende contribuir para a literatura existente sobre o processo de gestão estratégica e do conhecimento, centrando-se sobre o desenvolvimento da capacidade de absorção em redes de franchising, especificamente em uma economia emergente como o Brasil. / Absorptive capacity is related to the way in which an organization develops strategic processes and routines to internalize and apply external knowledge. This organizational process is described by four dimensions: acquisition, assimilation, transformation and application. Since recent studies state that the institutional environment influences the way firms organize, expand and transfer knowledge. This thesis seeks to advance in that research path developing an analysis on the absorptive capacity in networks of Brazilian and foreign franchises operating in Brazil. The main research question seeks to understand: do Brazilian and foreign franchise networks develop absorptive capacity differently? To address this issue we developed a methodology with qualitative and quantitative approaches in a sample of 103 companies. The results show important aspects of the knowledge transfer process, and the development of absorptive capacity by the companies analyzed. Overall, the franchisees in Brazilian networks showed lower levels in the variables concerning the acquisition and application of knowledge. Thus, this research aims to contribute to the existing literature on the strategic and knowledge management process, focusing on the development of absorptive capacity in franchising networks, specifically for an emerging economy like Brazil.

The point of departure for this thesis is how a traditional service sector shifts towards becoming more energy efficient and the processes that enable environmental action. Traditional services are generally considered to be poorly innovative and inclined towards routine activity; this leaves a gap in understanding how these adapt to the challenge of taking environmental action. The study argues that service firms adapt by deploying capabilities to multitask or to carry out innovative activity alongside routine activities related to service delivery. The research problem is addressed through three objectives: i) explicating how dynamic capabilities enable environmental action in traditional services with a focus on energy efficiency; ii) investigating the interface between the service firm and a type of intermediary, the knowledge intensive business service firm (KIBS), and how this acts as a locus for intermediation activity, or the exchange of knowledge about energy efficient technologies and measures; and iii) exploring how developments in the external context may influence the firm’s capabilities to adapt.The key contributions are two-fold. Firstly, the research links different combinations of capabilities with particular innovative behaviours in service firms; this underscores the presence of a differential multitasking potential across firms in the same sector. Secondly, it demonstrates a link between the service firm’s internal capabilities and the extent to which it mobilizes absorptive capacity to obtain knowledge about energy efficiency measures from its relation with KIBS.A qualitative study is designed with the hotel sector in Malta as the empirical setting. The fieldwork was undertaken through interviews with 26 hotel managers, 14 engineering consulting firms and 16 actors in the broader institutional environment. The data from the hotels were clustered to derive different adaptation modes characterized by particular capabilities and patterns of environmental action. Then, pairs of hotels and engineering consulting firms were identified in order to investigate the relational dynamics that may be influencing intermediation activity. The findings distinguish between hotels with a low multitasking potential that adopt a narrow range of energy efficient measures and those with a higher multitasking potential that modify activities and make deeper structural changes to shift towards improved energy efficiency. Accounting for the range of multitasking potential are different combinations of capabilities to sense signals in the external environment and interpret these in the firm and the capability for problem-solving for energy efficiency. The findings demonstrate a different pattern of KIBS use by hotels that is suggestive of a cluster differentiation. This is linked to different levels of absorptive capacity in hotels that determines whether intermediation activity and therefore the exchange of knowledge and learning about energy efficient measures is constrained or otherwise enhanced at the KIBS-client interface. The conclusion provides policy implications and areas for future research.

This study uses the absorptive capacity perspective and adds the firm's commitment to enhance the internationalization process of small and medium enterprises (SMEs). It is proposed that each of the dimensions of absorptive capacity should be considered a separate capability that exists prior to internationalization and that enhances and reinforces the firm's ability to take advantage of its resources to advance international expansion and that internationalization has an effect on firm performance. Based on the absorptive capacity perspective, it is further proposed that an SME's organizational learning, which is gained from international expansion, will influence the relationship between internationalization and the firm's performance. The central theme of the proposed model is, therefore, that understanding the relationships among an SME's absorptive capacity, its abilities, and its commitments to internationalization can improve understanding of the relationship between internationalization and performance. The conceptual framework presented in this study indicates that the process of absorptive capacity which flows across SMEs is complex and it involves multiple levels of analysis. I argued that the moderating effect of absorptive capacity needs to be explicitly transferred to SMEs if it is to have a sustained effect on firm performance through internationalization. Adapting absorptive capacity perspective, my model derives key determinants that influence SMEs' performance, through internationalization, and examines how absorptive capacity leads to the creation of internationalization of SMEs. The perspective advanced here describes how all four facets of absorptive capacity -acquiring, assimilating, transforming, and exploiting -are geared toward internationalization of SMEs and produced competitive advantage for SMEs.

archives@tulane.edu / The purpose of this dissertation was to develop, propose, and test a model of knowledge transfer for expatriates. The transfer of knowledge from expatriates to subsidiaries and the knowledge that is gained by expatriates during their international assignment was considered in this study. The model included the antecedents of expatriate absorptive capacity (EXACAP), and the effect of EXACAP on knowledge outcomes, according to purposes posed by Hocking et al. (2004). The relationship between expatriate success and knowledge transfer outcomes were discussed in terms of knowledge application and experiential learning. Two samples were utilized to provide empirical evidence, one composed of 149 expatriates assigned in 34 countries and the other sample comprised of 80 dyads of expatriates and host country nationals (HCNs). Results show that cognitive flexibility, language fluency, the frequent interaction with HCNs, and cultural distance were predictors of EXACAP. Additionally, EXACAP had a positive effect on knowledge transferred and knowledge received by expatriates. It is showed that expatriates who transfer more knowledge were more successful in their international positions and report higher levels of their performance were additionally observed. This work contributes to the expatriate literature by enhancing the understanding of expatriate failure and by providing an alternative explanation of expatriate success from a knowledge transfer approach. / 1 / Wilson Antonio Florez Vanegas

The growth of FDI inflow to developing countries is increasing, so have the questions of why some developing countries have succeeded in attracting and absorbing FDI benefits. These countries are seen to have found the right fit between the FDI attraction and the developmental agenda. Profound questions about the true value of FDI to host countries are addressed in this study. While FDI attraction may be justified on the basis of FDI benefits by foreign firms, it still remains critical to establish whether these benefits are automatic. As an attempt to answer these questions, this dissertation uses both firm level and country level data to investigate the effects of foreign direct investment (FDI) on developing countries.Interesting findings emerge from this study. The findings are in form of an interrelated structure setting, the study showed that technology, skills transfer and employment benefits via FDI take place only when the host country has the sufficient level of human capital, infrastructure and good local firms. And that the country must have stable political environment, consistent macroeconomic policy and good institutions in order to continue attracting FDI. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

The field of strategic management addresses challenges that firms encounter in an attempt to remain competitive. The ability to explain variation in firm success through examination of knowledge flows has become a prominent focus of research in the strategic management literature. Specifically, researchers have sought to further examine how firms convert knowledge, a phenomenon conceptualized as absorptive capacity. Absorptive capacity is the firm’s ability to acquire, assimilate, transform, and exploit knowledge. Few studies have captured the richness and multi-dimensionality of absorptive capacity, and it remains to be understood how the dimensions of the phenomenon convert knowledge. Furthermore, how absorptive capacity influences the firm remains to be understood. To address these research gaps, this dissertation seeks to (1) determine how absorptive capacity converts knowledge, and (2) determine how absorptive capacity influences firm capabilities. The research questions are investigated using structural modeling techniques to analyze data collected from software-industry firms. The findings offer contributions to the absorptive capacity and capability literatures. For example, absorptive capacity is hypothesized to consist of complex relationships among its internal dimensions. However, findings of this study suggest the relationships among the dimensions are linear in nature. This finding is in line with the theoretical foundations of and early literature on absorptive capacity but contrary to recent conceptualizations, which suggests relationships among the dimensions are more closely related to the theoretical origins of absorptive capacity. Additionally, to examine how absorptive capacity influences the firm, a capability-based perspective is used to hypothesize the influence of absorptive capacity on firm capabilities. Findings suggest absorptive capacity positively influences each dimension of firm capabilities (e.g., operational, customer, and innovation capabilities); thus, absorptive capacity influences the firm by altering firm capabilities. Given the richness of the findings, numerous fields are likely to benefit from this investigation. Through an examination of absorptive capacity and capabilities, this study contributes to the understanding of the absorptive capacity phenomenon and offers insight into how the phenomenon influences the firm. Furthermore, practical implications are offered for managers interested in enhancing firm competitiveness.

Collaborative innovation has become increasingly relevant for maintaining competitive advantage. Recent researchers posit that trust, which is core for collaborative innovation can be built through corporate social responsibility (CSR). Yet relatively little is known about the impact of CSR and its dimensions on collaborative innovation. Based on a panel data analysis covering the period 2009 to 2018, this thesis examines the relationship between Collaborative innovation and CSR on publicly listed manufacturing firms around the world and extends the literature by proposing that a firm's absorptive capacity exerts a moderating effect on this relationship. The study finds empirical evidence that supports the assertion that CSR promotes collaborative innovation. Importantly, the effect only manifests through the environmental dimension of CSR. The results also show that firms with higher absorptive capacities are more inclined to collaborate for innovation. However, the effect of CSR, especially the social and corporate governance dimensions on collaborative innovation dwindles in the presence of high absorptive capacity. These results have theoretical implications and provide valuable managerial recommendations for socially responsible firms that seek to form strategic alliances for innovation.