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.

Speed and measure of the fourth industrial revolution (Industry 4.0) is bringing about shifts in power, wealth and knowledge. For entrepreneurs, who are known to drive innovation, Industry 4.0 offers a wide scope of opportunities in the future. As a middle-income country, South Africa needs to use its knowledge and innovations to sharpen its innovative edge in order to compete globally and stimulate innovation. Hence, this research attempts to determine the relationships between entrepreneurial competencies, entrepreneurial absorptive capacity and innovation capacity. Three conceptual frameworks of the interrelationships between these constructs were synthesised from the literature. As ample research on entrepreneurial competencies is widely available, a Delphi study was employed, together with a concept matrix to determine which entrepreneurial competencies should be included specifically significant for innovation within the 4IR context in South Africa. Four entrepreneurial competency categories emerged: cognitive (knowledge), functional (skills), social (attitudes and behaviours) and meta (facilitating learning) categories. Using a survey method, the analysis on a sample of 452 innovative entrepreneurs in South Africa was mainly done by empirically testing the causal linear relationship through structural equation modelling (SEM). Furthermore, an Artificial Neural Networking (ANN) technique which tests non-linear relationships and develop pattern recognition as well as modelling was conducted to compare the results of a non-linear relationship with those of a linear relationship. However, explorative comparisons of the performance of linear SEM models with non-linear NN indicated that the SEM models in this case performed better in explaining the variance in the dependent variables than did the ANN. Through the theories of innovative performance, person-entrepreneurial fit and knowledge spillover, the findings of the study indicate the importance of incorporating a unified entrepreneurial competency typology perspective on innovation. The cognitive, functional, social and meta competencies as well as entrepreneurial absorptive capacity are significant predictors of innovation capacity. The implications of this extend to transmitting knowledge through absorptive capacity, which allows entrepreneurs to identify and exploit opportunities, identified from new knowledge sources and incorporated into new innovations. Additionally, entrepreneurial absorptive capacity mediates the relationship between social, meta, and functional competencies and innovation capacity. Entrepreneurial absorptive capacity was also found to be a moderator between cognitive competencies and innovation capacity. Therefore, the development of certain entrepreneurial competencies, significant for innovation, is crucial for improving the strength of the relationship between entrepreneurial absorptive capacity and innovation capacity of entrepreneurs. These results have important implications for Industry 4.0 entrepreneurs, educators, policy makers as well as entrepreneurship models. / Thesis (PhD (Entrepreneurship))--University of Pretoria, 2020. / Business Management / PhD / Unrestricted

The impact of knowledge on firm performance has been seen as one explanation of firm performance heterogeneity, which is a central question in the area of Strategic Management. However, there has been surprisingly limited research into the role of new knowledge internalization within firms. Further, the ubiquitous role of external knowledge providers, especially those that explicitly exist to provide knowledge to firms (Consulting Service Firms) has been negligibly studied. Specifically this dissertation looked at how firms first understand new knowledge and suggested that firms differ in their ability to discern the impact of this new knowledge based on the absorptive capacity that they already possess. I examine how firms internalize this new knowledge and suggest that they can either use existing internal resources or seek external assistance to achieve this internalization. This dissertation has empirically examined these linkages. A survey sent to the top management of 2015 Indian firms, yielded 277 usable responses, which have provided insights into the new knowledge internalization pathways in firms. I use structural equation modeling and hierarchical regressions to test my hypotheses. I find that firms do differ in their use of internal and external knowledge providers, while attempting to internalize new knowledge and that the quality of the relationship impacts the outcomes of any external engagement. I also find that firms with absorptive capacity benefit both by having better short term financial performance and also by being well situated to increase their stocks of knowledge assets, which can help long term performance. This dissertation contributes to several streams of literature in the field of strategic management. I add to the knowledge based view literature and more specifically to the absorptive capacity literature by partially opening the black box of organizational routines. This dissertation also contributes to the professional service literature by suggesting that consultants can help firms generate performance, although this is particularly beneficial to firms that already posses high absorptive capacity. Implications of the results from both practice and research perspectives are discussed and areas of future research are suggested.

In today’s dynamic corporate environment where firms struggle to maintain a competitive advantage, ambidextrous firms focusing on both exploration and exploitation are more likely to survive and prosper in the long run. Scholars have identified and examined a number of antecedents of organizational ambidexterity, but extant studies have not fully explored the role of a firm’s absorptive capacity in developing its organizational ambidexterity. The relevance of the absorptive capacity concept is paramount since new sources of competitive advantage would very likely come from outside the organizations. In this research, I explore the relationship between a firm’s absorptive capacity and organizational ambidexterity by focusing on two levels of absorptive capacity and three dimensions of organizational ambidexterity. Using a survey of 5,600 companies performed by the Government of Chile in 2015, and then a subsample of panel data that includes 760 companies for the 2009-2014 period, I find that both strategic and operational absorptive capacity contribute to the incremental exploitation dimension of organizational ambidexterity. My study contributes to our understanding of the absorptive capacity construct and illuminates how it affects organizational ambidexterity. The study also provides managerial implications as to what kind of external knowledge to procure and how to leverage it based on the firm’s ambidexterity goals. / Business Administration/Strategic Management

In this dissertation, I systematically explore the nature and role of two firm capabilities: absorptive capacity (or external learning capability) and technological capability. I examine how firm capability interacts with intra-firm and industry factors, and how it impacts organizational outcomes. In the first paper, I review literature on absorptive capacity and distill its distinct effect on various organizational outcomes. I identify key theoretical underpinnings behind the diverse conceptualizations of absorptive capacity and their corresponding measures, and use meta-analytical techniques to synthesize the effects of absorptive capacity. The second and third papers of my dissertation examine how technological capability interacts with certain internal and external contingency factors in influencing firm innovation and industry evolution. In the second paper, I take an intra-firm focus, and I identify managerial cognition as an important internal factor that impacts the relationship between technological capability and innovation. More specifically, I study how a firm's technological competence interacts with managerial experience in shaping that firm's innovation choices. Using data from the satellite industry, I show that diversity and relatedness of technological resource, as well as CEO experience, work differently in shaping product versus application innovations. In the third paper, I investigate how capabilities beyond focal technology producers influence industry evolution. Based on longitudinal analyses of the evolution of the satellite industry, I show that complementors, component suppliers, and customers are important external factors that shape industry evolution. Overall, my dissertation demonstrates the interrelated roles of firm capability, managerial cognition, and innovation ecosystem on firm and industry-level outcomes. / Ph. D. / In this dissertation, I examine how firm capability interacts with other factors in influencing companies’ innovation decisions and the evolution of an industry. In the first paper, I review and synthesize existing studies on firm capability by focusing on the absorptive capacity (AC) literature. I identify key conceptualizations of AC, key outcomes of AC, and use meta-analytic techniques to distill AC’s effects. In the second paper, I examine how technological capability works together with managerial experience in shaping companies’ innovation choices in the small satellite industry. Small satellites, commonly defined as satellites that are less than 500 kilograms, are important innovations that substantially reduced the costs of building, launching, and operating satellites. In recent years, the small satellite industry has seen tremendous growth in terms of satellite production and deployment. I categorize innovation choices in this industry as product innovation (such as introduction of new launch systems, improved satellite components, and novel ground equipment) or application innovation (such as finding novel applications of existing satellite products by analyzing data transmitted from satellite systems and providing implications). Results show that while having related technology is positively related to product innovation, having a CEO with more diverse experience is positively related to application innovation. In the third paper, I examine how the small satellite industry emerged and evolved. Results show that beyond technological capabilities of focal small satellite manufacturers, technological advancements from complementors (launch vehicle providers) and customers (satellite operators) have jointly influenced the evolution of this industry.