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.

Many studies have highlighted that EMNEs are utilizing strategic asset-seeking (SAS) internationalization as a means to upgrade their capabilities and build up their competitive advantages (Lecraw, 1993; Makino et al., 2002; Child and Rodrigues, 2005). However, no research has specifically examined or directly studied how a firm's internal capability, with the particular focus on absorptive capacity, influences the outcome of EMNEs' SAS international activities. The overall aim of this research is to explore how absorptive capacity of EMNEs influences the outcome of their SAS internationalization, specifically focusing on two key dimensions of absorptive capacity, i.e. the ability to identify external assets, and the ability to acquire external assets. Given the exploratory nature of this research, a qualitative multiple case study method was adopted. Altogether, four Chinese MNEs were selected with a total of 10 SAS events conducted by them respectively. We clearly demonstrated the linkages between firms' absorptive capacity and SAS outcomes. We found that the outcome of case companies' SAS events were not effective in terms of gaining substantial assets, rather case companies can gain reputation and other benefits through the events. We found a new element comprising absorptive capacity, i.e. the ability to retain the acquired assets. We argued that it is a precondition for assimilation to happen. We demonstrated how firms' absorptive capacity in the dimensions of identification, acquisition and the new emerged dimension, i.e. retention ability, together influenced their SAS outcomes. We also explored the underpinning factors for each dimension of absorptive capacity. An integrated model was developed. Our study is the first to specifically explore the linkage between absorptive capacity and EMNEs' SAS internationalization. We made several contributions to international business literature on SAS events and literature on absorptive capacity respectively. Specifically, we attempted to gain understanding of why EMNEs' SAS strategies may or may not be fully effective, to enhance our understanding of absorptive capacity issues in emerging country contexts, and to achieve potential conceptual enrichment.

This study investigates the relationships between firm's technology, absorptive capacity and the internationalization process in the high-tech SMEs. The research identifies the most influential factors that affect the international activities and expansion decisions of New Zealand high-tech SMEs with core capabilities in agro-technology. Mixed methods, qualitative and quantitative elements in the data collection and analysis, were employed in this research for a reason that a deeper understanding of the research subject and the analysis of complex issues such as the internationalization process and absorptive capacity required methodological variety. The use of qualitative and quantitative methods took place in parallel. Both methods were used to study the same subject but they had specific objective related purposes and they offered the possibility of developing rich empirical data as well as a more comprehensive understanding of the subject under the study. The findings show that it is absorptive capacity that explains internationalization process, not internationalization process that explains absorptive capacity. The practice of internationalizing is as much a reflection of a firm's absorptive capacity as it is its determinant. The research identifies that high-tech SMEs possess technological and non-core absorptive capacity which in a different way influence firms' strategies. The research suggests that firm's technological capabilities and the advantage of specialized knowledge along with their limited non-core absorptive capacity act as constraints to the development of the future international strategy in high-tech SMEs. The study expands the existing literature on internationalization by developing variables for evaluating absorptive capacity in firms. This helped develop an absorptive capacity model which can be used as a valuable tool for self-assessment by firms to facilitate gaining insight towards further growth and development. The research suggested that if firms were able to measure its absorptive capacity this may result in improved business activities and enhanced presence in the world market. The results of this study should encourage firms to identify, capture and articulate knowledge achieved by their ventures. Managers must develop and nurture skills that ensure effective integration of learning as their firms expand, particularly internationally. These findings and absorptive capacity model offered as a tool should encourage managers to explore when, where, and how to best use firm's resources in the business operations. This is particularly important in regards to the research context (high-tech SMEs) where scientists are managers as well.

This study has investigated and attempted to enhance understanding of the role of absorptive capacity in influencing a firm to adopt green innovation. Absorptive capacity which has been argued by previous study as an important factor to facilitate the adoption of innovation, may require some degree of pressure from regulators and customers, to be exerted on particular firms, to influence them to become involved in green innovation. Therefore, this study has also attempted to evaluate the extent of the moderating effect of regulatory and customer requirements on the relationship between a firm's absorptive capacity and its adoption of green innovation. A research framework was developed and three research questions were posited. An electronic questionnaire survey was created and distributed to general building firms from the construction industry in Scotland. Subsequent semi-structured interviews were conducted with a subset of participants from the survey as well as with a number of construction industry experts, to investigate further the results of the survey. A total of 84 respondents participated in the survey, while 13 respondents contributed invaluable input from the interview sessions. The findings suggest that, on the whole, the level of green innovation adoption by most of the general building firms in Scotland can be considered as relatively low. Their engagement in green-related activities, however, was focusing more on the technical and process side, which was directly influenced by firms' high levels of existing knowledge and efforts to build new knowledge through employee training. The green administrative practices, on the other hand, had not really been given attention by the building firms as it is a voluntary-based act, which does not demonstrate tangible, financial benefit to them. The evidence from the study also shows that neither environmental requirements from regulators nor customers could encourage the building firms to adopt green practices even when they have high levels of absorptive capacity. The low levels of compliance as well as poor environmental demand from the customers indicate the number one concern within the industry, that is, cost, which hinders the building firms from becoming 'greener'. Additionally, this study provided insights and further understanding regarding knowledge-based factors that could facilitate the adoption of green innovation. This study has also made a methodological contribution by providing evidence and support for the use of mixed method approach to enhance understanding of the construction industry, which has tended to be the focus of quantitative studies. The findings of this study also have a number of implications, especially for policy makers, to explore into strategy and stringent regulations that could encourage more firms in the construction sector, which are operating in one of the industries that contributes most to environmental problems, to seek to reduce their impact on the natural environment. As the government takes a leadership role in this regard, participation from the other stakeholders within the industry is of importance to prompt a wider adoption of green practices. Here, architects, in particular, are in a potentially useful position to have a very strong influence in encouraging building firms to become involved in green practices. Besides, both individuals within the organisations (e.g. the top management and decision makers) and the society outside the organisations (e.g. customers and users of construction outputs) need to be educated to motivate them to make better environmental choices in order to contribute to environmental protection or sustainability.

Alliance has become a necessary part of firms¡¦ strategy due to fast-paced diffusion of technologies, rising costs and protectionism. While the forms of strategy alliances evolve from simple contracts into multiple cooperation modes, factors needed to be considered are also gaining amount. Different kinds of strategy alliances possess different kinds of pros and cons, and will have effect on integration of resources and techniques. This research aims at analyzing whether the property of knowledge, firms¡¦ capacity and partner relations had effect on the selection of the strategy alliance modes. This study also formed a questionnaire survey which empirically tested the hypotheses set up in the study with data from public offering electronic firms. The results are indicating that contractual alliances are more likely to be formed when the absorptive capacity and risks are high, which are supported by numerous papers. The reason is that the strategy alliance is a channel of knowledge transferring, and higher the potential of gaining knowledge, then easier the process would be ¡V no resource-committing equity alliances are needed. The risk part is talking similar story: while risks are high, firms tend to serve contract as a tool of controlling loses. The level of implicit and complexity of knowledge are also positively related with the preference of committing equity alliances. The reason is that these kinds of alliances would serve better for firms to cooperate with each others and to transfer complex and tacit knowledge easier

This report attempts to assess the degree to which China is developing a framework that supports domestic innovative capacity. This framework is not a predefined set of components, but is instead a combination of political, institutional, market, and technology factors and linkages that support information flows, interactions between entities, and incentives necessary to increase domestic innovation. Literature suggests that factors contributing to this framework may be influenced by domestic policy, and this report attempts to identify Chinese policies that contribute to the development of this framework within the Chinese solar photovoltaic (PV) and automotive industries. This report uses patent and export data as proxies for innovation in these two industries to measure the presence of this framework. The data suggest that the framework supporting domestic innovation in China is further developed for the solar PV industry than the automotive industry, but that the solar PV industry is still far from leading global innovation. Finally, the report identifies potential factors that have contributed to the variations between these two industries, and challenges that both industries may face in the near future. / text

Yes / This study investigates how buyer-supplier interfirm networks with foreign affiliates affect the internationalization of local firms in developing countries. In a study of 1601 sub-Saharan African manufacturing firms, we find that foreign supply linkages positively influence firm internationalization, but this does not relate to marketing linkages. We further examine the role of absorptive capacity and find that both potential and realized absorptive capacity has positive and independent effects on firm internationalization. However, potential absorptive capacity has no moderating effect and realized absorptive capacity negatively moderates the relationship between foreign supplying networks and internationalization. Finally, implications for public policy and managerial practice are discussed.

Innovations as a source of economic wellbeing and social prosperity has been well researched, albeit primarily done in the context of developed economies. However, of late, interest in the effect of innovation on economic performance and quality of life has been renewed as the world observes the rise of emerging economies, and at the same time, the prolonged recession in the more developed economies (i.e. North America and European countries). There has been a marked increase in the quantity and quality of research and development, spawn by innovative companies from emerging economies that are making their mark in global marketplace. These phenomena challenge the traditional concept that innovation flows from the resource rich developed countries to less developed countries, and that the latter are at a disadvantage in terms of knowledge, technology and competitiveness. Existing studies on national innovation highlight the relationships between innovative capability and its outcomes; however, few have tried to explain the determinants of a nation’s innovative capabilities. Using a sample of 95 countries and panel data analysis covering 28 years of observation, this study attempts to model the determinants of innovative capability at national level, and focuses on absorptive capacity and institutional framework as the main determinants of innovative capability. Further, this study identifies different aspects of absorptive capacity: creation and exploitation of innovation. Findings offer support on the importance of various sources of external knowledge in the creation of innovation, with FDI inflow and High Technology Export as the strongest sources. Corruption as institutional factor has negative effect on innovative capability, whereas openness shows no effect. National absorptive capacity moderates the effect of external knowledge on innovative capability, except on FDI outflow in which a negative effect on trademark application as a measure of innovative capability. The findings suggest that innovative capability and moderating role of absorptive capacity enhance economic wellbeing. Findings show that economic wellbeing increases happiness and income inequality (as the measures of quality of life); same thing as innovative capability, which also increases both happiness and income inequality. This study demonstrates that for happiness, higher education and better infrastructure (as the measure of foundational absorptive capacity) decrease the level of happiness. Higher education and ease access to information may increase expectation, which lead to unhappiness when the expectation is not met. For income inequality, negative effect of the moderating role of absorptive capacity means that higher education and better infrastructure contribute to lowering income inequality. Based on these findings, a nation should continue to attract FDI and trade in high technology because these sources of knowledge contribute to innovative capability. Policy makers can develop country positioning and country’s marketing activities by using the combination of the improvement of national factors and policy reforms. The upgrading of national factors helps to achieve higher economic wellbeing and quality of life in general.

Africa has long been considered as the next big growth market, according to both experts and economic organisations alike (World Economic Forum, African Union, The Economist, McKinsey). With a youthful population, a burgeoning consumption market, and its increased digital advancement, Africa has unrivalled potential. However, economic progress has lagged, necessitating the need to leapfrog, i.e., harness technological innovation to accelerate economic growth, to contribute towards realising the 2030 Sustainable Development Goal “Decent Work and Economic Growth”. Additionally, Africa cannot afford not to, given the downsides of the lack of economic growth (instability and extremism). In academic research, technological innovation is driven by firms’ and individuals’ absorptive capacity (AC), i.e., their ability to recognise new knowledge, assimilate it, and apply it for commercial ends. However, there remains a lack of understanding on how to operationalise and leverage AC. The research was undertaken with the aim to understand AC from a micro-foundational perspective within the Africa and 4IR contexts. Qualitative research was conducted across 6 African countries (Ethiopia, Ghana, Kenya, Nigeria, Rwanda, South Africa), with 16 social actors, to gain insights on the processes, mechanisms and factors that contribute towards micro-foundational AC. The key findings of this research underscore the importance of the individual within the AC process. Additionally, the importance of contextualising AC to a developing market is highlighted. Other key findings reveal the enabling and hindering factors for successful AC. This research aimed to offer a contribution towards AC micro foundational research, and to offer practical insights for African firms, within the context of the 4IR era. / Mini Dissertation (MBA)--University of Pretoria, 2021. / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

The ability of firms to innovate has become a cornerstone in the economy of many developed and developing countries. The performance of firms is not exclusively linked to their internal capability. Other external factors, such as technology, globalisation of the market, knowledge, and evolving approaches to value offering, force them to constantly change their approaches to wealth creation. Innovation is vital for firms’ competitive advantage. Hence, a firm with higher innovation prosperity compared to its rivals has a crucial advantage that enables it to compete in local and global markets. However, innovation is a complex phenomenon, and a holistic view is required for a deep understanding of the factors that influence firms’ innovation performance. Day after day, markets are becoming more dynamic, increasing the necessity to understand how such momentum affects innovation performance. With a focus on how they develop strategic routines that enhance their assessment of opportunities and resource-configuration capabilities, firms may better align their products and services with market demands. Using state-of-the-art dynamic-capability theory, this research highlights the routines of firms that influence their abilities to acquire and multiply knowledge and technology consistent with market status, leading to more novel and successful innovative products and processes as well as better economic advantage. This research aims to provide a framework that comprises factors that may influence Saudi firms’ innovation performance. Furthermore, the research aim attempts to understand the impact of information technology on firms’ innovation performance. The research is based on survey data from 203 Saudi firms registered at the Riyadh Chamber of Commerce and Industry. The empirical results suggest that firms may enhance their ability to acquire, assimilate, transform, and exploit knowledge by increasing their breadth of knowledge sources and by internationalizing their searching activities for knowledge and skills. Moreover, both explorative and exploitative innovation strategies, although paradoxes, are significant to increasing firms’ overall innovative performance. Mutually, information technology (IT) plays a critical role in complementing firms’ dynamic capabilities through better provision of IT infrastructure, while IT effectiveness and IT flexibility are vital to increasing firms’ abilities to maintain both long-term and short-term competitiveness.