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Purpose: Knowledge sharing enables a firm's absorptive capacity to reconfigure its dynamic capabilities to sense, track and recognise embryonic business opportunities. Entrepreneurial opportunity recognition triggers entrepreneurs to invest in and upgrade their knowledge practices to improve entrepreneurial performance. This study aims to examine the relationship between knowledge sharing and absorptive capacity on entrepreneurial orientation as well as the moderating effect of opportunity recognition and the mediating effect of absorptive capacity. Design/methodology/approach: A quantitative cross-sectional research design was applied to data from Algerian small and medium-sized enterprise managers in middle- to top-management positions. The final analysis using smart PLS included 246 respondents. Findings: Knowledge sharing positively influenced entrepreneurial orientation and absorptive capacity. In addition, the findings reveal that entrepreneurial orientation positively influences entrepreneurial performance, and opportunity recognition strengthens the relationship between entrepreneurial orientation and entrepreneurial performance. Entrepreneurial orientation and absorptive capacity have partial mediating effects. Practical implications: This study focuses on how firms create and share developed knowledge to enable absorptive capacity to fit a level of entrepreneurial orientation. This study validates the vital impact of opportunity recognition as a leading motivation for entrepreneurial orientation. The results highlight an important area of research and suggest that firms should focus on knowledge sharing to boost entrepreneurial outcomes. Originality/value: The notions of entrepreneurship, absorptive capacity and knowledge sharing are extended by building on dynamic capability theory. Knowledge sharing increases absorptive capacity, which drives superior entrepreneurial orientation outcomes. [ABSTRACT FROM AUTHOR]

Drawing on the resource-based view, we propose a model to understand the roles of human capital, market and entrepreneurial orientation, absorptive capacity and ways to improve performance with an effective innovation strategy for hospitality development. We combine the Fuzzy Delphi Method, Decision-Making Trial and Evaluation Laboratory and analytic network process to demonstrate the interactions and relations among critical criteria by using data from 20 Taiwanese restaurant entrepreneurs obtained in 2015–2017. The positive effects of human capital, market orientation, entrepreneurial orientation and absorptive capacity on innovation performance are confirmed. These findings advance resource-based scholarship and highlight the value of understanding the relationship between a restaurant's tangible and intangible resources for hospitality development. [ABSTRACT FROM AUTHOR]

The impacts of entrepreneurial orientation on performance present important research, however, theoretical gaps were identified. This essay intends to fill these gaps, proposing an integrated model in Micro and Small Enterprises (MSEs) that combines entrepreneurial orientation, absorption capacity, ambidexterity, innovative performance and performance. We advocate a framework that integrates all five buildings. We also suggest that the model be tested using structural equation modeling. By filling the theoretical gap, the visualization of the proposed theoretical model encourages MSEs to improve their entrepreneurial orientations, aiming to capture external knowledge to innovate their actions, aiming at a better performance. [ABSTRACT FROM AUTHOR]

The purpose of this study is to present a model that describes the general influence of technological capability, social capital, entrepreneurial orientation on firm performance through absorptive capacity in the food and beverage packaging industry in Indonesia which is tested with a structural equation model by processing data from 168 respondents. This study found that technological capability, social capital and absorptive capacity have a positive and significant effect on firm performance. Meanwhile entrepreneurial orientation has a positive but not significant effect on firm performance. Absorptive capacity partially mediates the relationship between technological capability and social capital on firm performance and absorptive capacity fully mediates the relationship between entrepreneurial orientation on firm performance. [ABSTRACT FROM AUTHOR]

The purpose of this study is to present a model that illustrates the general influence of technological capability, social capital, entrepreneurial orientation on firm performance through absorptive capacity in the food and beverage packaging industry in Indonesia. The model proposed in this study was tested with a structural equation model. This study processed data from 168 respondents of manager-level employees to the company owner level in the food and beverage packaging industry. This study found that technological capability, social capital and absorptive capacity have a positive and significant effect on firm performance. Meanwhile, entrepreneurial orientation has a positive but not significant effect on firm performance. This study found that technological capability, social capital and absorptive capacity have a positive and significant effect on firm performance. Meanwhile, entrepreneurial orientation has a positive but not significant effect on firm performance. Absorptive capacity mediates the relationship between technological capability and social capital to firm performance and absorptive capacity fully mediates the relationship between entrepreneurial orientation and firm performance. This research model only limits the factors that affect company performance to four main variables, namely technological capability, social capital, entrepreneurial orientation and absorptive capacity. Further research is suggested to use samples in other industries and add other variables such as uncertainty or uncertainty of environmental conditions as moderation variables. The practical implications of this research are that companies need to do three things if they want to get the benefits of entrepreneurial orientation and absorptive capacity to improve firm performance. Further research is suggested to use samples in other industries and add other variables such as uncertainty or uncertainty of environmental conditions as moderation variables. The practical implications of this research are that companies need to do three things if they want to get the benefits of entrepreneurial orientation and absorptive capacity to improve firm performance. The new knowledge gained is very helpful for companies to determine strategies, levels of innovation, proactiveness and high-risk decisions, especially when there is uncertainty in the industrial environment. This study presents the mediating function of absorptive capability tested simultaneously with the variables technological capability, social capital, entrepreneurial orientation is something new from this study compared to previous studies. The findings in this study also provide an additional contradictory list of previous studies on the relationship between entrepreneurial orientation and firm performance. [ABSTRACT FROM AUTHOR]

PURPOSE: Firms do not continue and prosper purely on their own individual endeavors, as each firm is influenced by the activities of others, and thus direct and indirect relationships shape the firm’s strategic management. These relationships form the tactics by which knowledge and other strategically important resources are accessed and created. Forming and maintaining ties among members of a network have been the subject of numerous research studies in the social, economic, and business literature. Our work is framed by the resource-based view of the firm perspective along with social capital theory and its shared constructs in network theory. Prior findings suggest that networking ties are strategic actions generated for firm growth and continuance. The ties may be short-term or develop into long-term relationships. The intent of this research is to fill some of the gaps in interorganizational networking strategy by analyzing five antecedents that have been suggested in the literature as individually associated with entrepreneurs’ engagement in network ties. In this way, our work provides another research avenue for examining networking’s contribution to strategic management. We hypothesized positive connections to entrepreneurs’ engagement in network ties from antecedents involving the firm’s knowledge absorptive capacity, business goals, entrepreneurial orientation, social interactions, and support from their environment. METHODOLOGY: In our quantitative approach, we tested our proposed macrolevel direct and moderating connections through an online survey of 125 U.S. apparel manufacturing firms. The apparel manufacturing sector in the U.S., as in many countries, has struggled with multiple disrupting factors contributing to the sector’s decline in firm continuance. FINDINGS: The results from OLS regression analyses support our hypothesized connections in that each of the five antecedents significantly contributed to entrepreneurs’ engagement in network ties; however, when all five were collectively examined only absorptive capacity, social interaction, and business goals were significant (R2 = 0.58). Further examination of moderation effects found the entrepreneurs’ perceptions of a supportive environment to modify both entrepreneurial orientation and business goals. RESEARCH AND PRACTICAL IMPLICATIONS: The effects of a supportive environment on business goals’ relationship with network ties were greater when perceptions of a supportive environment decreased, while the effects of a supportive environment on entrepreneurship orientation’s relationship with network ties were greater when perceptions of a supportive environment increased suggesting further study of U.S. entrepreneurs’ perceptions of their environments. Entrepreneurs’ interested in building domestic and international supply chain ties may find network ties provide one solution for adapting the firm’s resources for global competitiveness. Future studies may direct attention to other industry sectors or countries for replication with larger sample sizes as we recognize the limitations to generalizability and scale refinement due to our limited sample size. ORIGINALITY AND VALUE: The examination of five constructs to shed light on how an organization’s decisions may relate to engaging in networks and provides theoretical as well as practical implications that contribute to the larger organizational system framework.

The entrepreneurial orientation (EO) literature verifies its positive relationship with firm performance; nonetheless, its degree relies on certain factors. This study uses the knowledge-based view to develop and test a model of how start-ups can enhance their entrepreneurial orientation (EO) in incubator environments. Based on the concept of dynamic capabilities and strategic fit, this study proposes that absorptive capacity (ACAP) plays a role in catalyzing EO to yield performance outcomes. Only when start-ups combine existing resources with the absorptive capacity to make use of their strategic decisions, can they achieve a higher EO. The research model is empirically validated using survey data from 304 start-ups of various technology incubators in India. Our research evidence prove that ACAP improves the relationship between EO and performance in incubator environments. Further, we discuss implications for theory and practice. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance. Design/methodology/approach: The data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM). Findings: Despite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance. Practical implications: The main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP. Originality/value: The main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done. [ABSTRACT FROM AUTHOR]

Literature has revealed, recently, the importance of entrepreneurial orientation (EO) for supply chain resilience (SCR); however, doubts remain as to how EO could improve SCR exist due to the vagueness surrounding it. We examine absorptive capacity (AC) and innovation as two mechanisms that mediate the EO-SCR relationship. An empirical analysis was made of the proposed model, based upon survey data for 171 manufacturing SMEs in the Sana'a region, Yemen, using a structural equation model (SEM) with the SmartPLS. The results obtained have shown that EO positively affects SCR for SMEs and, most significantly, this relationship is indirect as it is fully mediated by AC and innovation. The findings have revealed that EO improves SCR when those firms make efforts in developing AC and innovation. EO is significant, but it may not be sufficient to improve SCR if the firm is unable to absorb external knowledge and innovate.

Tujuan penelitian ini adalah untuk menganalisis pengaruh market orientation, entrepreneurial orientation terhadap kinerja perusahaan melaui absorptive capacity. Penelitian ini dilakukan pada pada Hotel Non Bintang di Kepulauan Riau. Metode analisis data yang digunakan dalam penelitian ini adalah Partial Least Square Structural Equation Market (PLS-SEM) dengan bantuan program SmartPLS Versi 3. Sampel penelitian ini adalah manajer/direktur hotel non bintang di Kepulauan Riau. Hasil penelitian ini adalah mengungkapkan bahwa market orientation berpengaruh positif terhadap kinerja perusahaan dan absorptive capacity berpengaruh positif terhadap kinerja perusahaan. Hasil lainnya adalah market orientation berpengaruh positif berpengaruh positif terhadap inovasi, entrepreneurial orientation berpengaruh positif terhadap inovasi, market orientation berpengaruh positif terhadap absorptive capabsorptive capacity, entrepreneurial orientation berpengaruh positif terhadap absorptive capacity. Pada penelitian ini juga ditemukan bahwa market orientation, entrepreneurial orientation berpengaruh positif terhadap kinerja perusahaan dengan mediasi absorptive capacity

Copyright of Journal of Entrepreneurship, Management & Innovation is the property of Wyzsza Szkola Biznesu-National Louis University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Supply chain resilience (SCR) is often seen as a dynamic capability that enables firms to effectively cope with disruptions and unforeseen events in the business environment. However, empirical research focusing on influencing factors on SCR is still limited. Based on the resource-based view (RBV) and the dynamic capabilities theory (DCT), we examine if absorptive capacity (AC) does in fact moderate the relationship between entrepreneurial orientation (EO) and SCR. Drawing upon a sample of 171 Yemeni manufacturing SMEs, we tested the relationships in the proposed model. The findings of the data analysis using SmartPLS show that EO positively affects SCR, further, AC positively moderates the relationship between EO and SCR. With this outcome, it is expected that SME managers in Yemen demonstrate significant interest in developing the AC of their firms. This has implications that with the development of AC, it is expected that SMEs will be able to utilize the full potential of EO to improve SCR.

Purpose: The study explored the mediating role of potential and realized absorptive capacities in the relationship between entrepreneurial orientation and radical innovation performance among manufacturing small and medium-sized enterprises (SMEs). Design/methodology/approach: Empirical analysis was based on 357 manufacturing SMEs in Ghana. Various validity and reliability checks were conducted before the presentation of the actual analysis, which was conducted using ordinary least squares approach, run using SPSS (v. 20). Findings: Findings revealed that potential and realized absorptive capacities significantly mediated the relationship between entrepreneurial orientation and radical innovation performance among manufacturing SMEs. Further, it was identified that ambidexterity in absorptive capacity also had a greater effect on radical innovation performance among manufacturing SMEs. Research limitations/implications: Since the data used were cross-sectional, the relationships measured represent only a snapshot of time. Longitudinal studies could therefore be adopted in the future to complement the cross-sectional conducted. Practical implications: While managers of manufacturing SMEs seek to achieve higher radical innovation performance through entrepreneurial orientation, it should also be noted that both potential and realized absorptive capacities have a significant role to play in this relationship. Managers must therefore also seek to invest time to build both potential and realized absorptive capacities, as they define greater innovation success. Originality/value: Some past studies have considered absorptive capacity as composite variable, therefore added both potential and realized absorptive capacities to form a single variable. Others also presented potential and realized absorptive capacities individually. This current study extends the body of knowledge by presenting an ambidexterity position between potential and realized absorptive capacities. [ABSTRACT FROM AUTHOR]

Top management teams (TMTs) that work (not so) well together enhance (restrict) the ability of the firm to leverage capabilities, which affects outcomes such as innovation. Although internal team dynamics at this level have notable effects on the firm, much remains to be understood about how these effects occur. Therefore, we investigate TMT conflict (cognitive and affective) to understand how the firm-level knowledge capability of absorptive capacity (ACAP) is altered as a result of such types of conflict. Further, given that strategic orientations offer guiding principles for organisational behaviours, we suggest that the main effects of conflict are augmented by strategic orientations. Specifically, both entrepreneurial orientation and market orientation are posited to affect the relationship between conflict and ACAP, which expands understanding of the conditions in which TMT conflict affects ACAP. In all, a conceptual framework is developed to offer insight into how TMT conflict affects firm-level ACAP, highlighting differences that are dependent on whether team members collaborate via cognitive conflict or clash given affective conflict. [ABSTRACT FROM AUTHOR]

Strategic orientations (SOs) and absorptive capacity can significantly enhance innovation capacity in manufacturing Small and Medium Enterprises (SMEs). This study explores the relationship of SOs i.e., Market Orientations (MOs), Entrepreneurial Orientations (EOs) and Customer Orientations (COs) to absorptive capacity on the one hand, and to innovation on the other hand. The study also delves into the issue of how absorptive capacity mediates the effects of SOs on innovation in manufacturing SMEs from emerging countries' perspective. This study uses a cross-sectional design and quantitative data collected through a structured interview of top managers from 360 manufacturing SMEs. The findings show that MO, EO and CO have positive and significant effects on innovation and that absorptive capacity partially mediates SOs' effects on innovation. [ABSTRACT FROM AUTHOR]

Research has established the relevance of entrepreneurial orientation (EO) to firm performance but skepticism remains because of the ambiguity surrounding how EO might improve firm performance. We examine the key concepts of absorptive capacity and improvisation as two alternative learning modes serving as intermediate steps between EO and firm performance. Locating our study within manufacturing SMEs in Malaysia, we find that absorptive capacity enhances the EO-performance relationship, both as a moderator and a mediator. In contrast to expectations, however, improvisation showed no such effects but conferred its own separate benefits instead. We further discuss the different effects of these learning modes on high performance and low performance groups. [ABSTRACT FROM AUTHOR]

The present study purposes to examine the moderating role of absorptive capacity (ACAP) on the relationship between entrepreneurial orientation (EO) and technological innovation capabilities (TIC) among small and medium enterprises (SMEs) in the construction industry. Due to the critical role of SMEs in construction industry, the purpose of this article is to examine to what extent the externally generated knowledge manifested in ACAP can strengthen the relationship between EO and TIC. To validate the proposed model, self-administered questionnaire were conducted to gather data from SMEs owners, 249 questionnaires returned and used for statistical analysis out of 278 distributed. The outcomes of present research reflect that both of ACAP and EO have significant effects on TIC. Furthermore, the results indicate the moderating role of ACAP on the nexus between EO and TIC.

The main purpose of this study is to analyze the influence that entrepreneurial orientation and absorptive capacity have on export performance of small and medium-sized footwear companies. Therefore, this research adopted a quantitative methodological approach, conducting a descriptive, exploratory and transversal empirical study, having applied a questionnaire to a sample of Portuguese companies exporting footwear. From this study it was possible to conclude that entrepreneurial orientation and absorptive capacity enhance export performance of Portuguese footwear companies in foreign markets. It also underline the contribution of this study to the theory of strategic management, since it is known that it encompasses deliberate and emerging initiatives, including the use of resources and capabilities to improve business performance. This study presents entrepreneurial orientation and absorptive capacity as strategic determinants which contribute positively to the export performance

Using a survey of 324 small and medium-sized enterprises (SMEs) of the Yangtze River Delta in China, this study discusses the relationship between entrepreneurial orientation, absorptive capacity, environmental dynamism, and corporate technological innovation performance. The results based on a moderated moderation model show that the relationship between entrepreneurial orientation and innovation performance is significantly positive. The absorptive capacity can positively moderate this relationship. When the external environment is in high dynamism, the moderating effect of absorptive capacity will be stronger than when the environment is in low dynamism. [ABSTRACT FROM AUTHOR]

This article investigates the influence of entrepreneurial orientation and absorptive capacity on family firm performance. Partial least squares structural equation modeling (PLS-SEM) was used to analyze empirical data for 218 Spanish family firms. Absorptive capacity positively mediated the relationship between entrepreneurial orientation and family firm performance. This total mediation effect suppressed the direct effect of entrepreneurial orientation on family firm performance. A major implication of this finding is that for family firms to improve their performance through entrepreneurial orientation, absorptive capacity must act as a mediator. [ABSTRACT FROM AUTHOR]

Our theory of competitive advantage, namely the theory of entrepreneurial rent, posits that the firm's entrepreneurial orientation, their alertness, agility, absorptivity, and proactive adaptability, is a source of competitive advantage. The firm's entrepreneurial orientation sustained by the entrepreneurial incentives continually updates and enriches the management logics that enhance the execution of the business model mechanism wherein lies the firm's competitive advantage. The business model mechanism constituting the management logics, core resources, value opportunities, and value activities sustains the firm value creation and appropriation. Superior execution of the business model mechanism sustained by the firm's entrepreneurial orientation provides a sustainable competitive advantage. The entrepreneurial incentives are at the heart of our theory of competitive advantage. The superior execution of the business model mechanism is sustained by the entrepreneurial incentives, in that the business model execution is enhanced by the management logics that are continually updated with the firm's entrepreneurial orientation, and the firm's entrepreneurial orientation is sustained by the entrepreneurial incentives. [ABSTRACT FROM AUTHOR]

Copyright of Tourism & Management Studies is the property of Escola Superior de Gestao, Hotelaria e Turismo, Universidade do Algarve and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

According to the perspective of entrepreneurial orientation-as-experimentation, entrepreneurial orientation ( EO) increases variability in innovation outcomes. Although increased variability in the innovation portfolio could increase performance, it could also lead to a decline in performance. We propose that absorptive capacity plays a role in both increasing and managing variations in innovation outcomes. Potential absorptive capacity enhances the effects of EO on variability in innovation outcomes, whereas realized absorptive capacity helps transform and exploit variability in innovation outcomes to enhance firm performance. Copyright © 2014 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Small Business & Entrepreneurship is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Absorptive capacity ( ACAP) refers to a firm's ability to acquire, assimilate, transform, and exploit new knowledge. Research has yet to acknowledge the possibility of limits to the financial returns of this important strategic construct. This study suggests an inverted-U shaped relationship between ACAP and financial performance. Based on data from 285 technology-based small and medium enterprises, we observe gains within three prospective, secondary measures of growth to diminish beyond lower levels of ACAP, even turning negative and becoming harmful beyond intermediate levels. We find that entrepreneurial orientation ( EO) moderates the ACAP-performance relationship, enhancing financial gains at lower levels of ACAP and mitigating the decline in financial performance at higher levels of ACAP. Further, with higher EO, higher ACAP can be achieved before financial returns diminish.Copyright © 2012 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This research examines the linkage between entrepreneurial orientation and sustainable innovation. Research shows that the effects of entrepreneurial orientation on the exploitation and exploration of sustainable innovation are significantly positive, whereby absorptive capacity acts in a significant mediating role. The interaction between entrepreneurial orientation and absorptive capacity helps organizations overcome organizational inertia and strengthen the sustainability of innovation. By introducing the absorptive capacity theory and the view of organizational inertia, we have conducted empirical research on 392 Chinese environmentally friendly companies that have passed China's national high-tech enterprise certification. We verified the relevant hypotheses in our framework in a structural model analysis using Mplus. To further look at the interaction terms of potential and realized absorptive capacity, we used PROCESS in SPSS to evaluate the conditional effects of absorptive capacity on coefficient paths between entrepreneurial orientation and the two types of innovation. The results show that entrepreneurial orientation improves the absorptive capacity of organizations, thereby promoting their sustainable innovation. Furthermore, based on the theory of sustainable innovation, we proved the positive impact of realized and potential absorptive capacity on the exploitation and exploration of sustainable innovation. Organizations could balance exploitation and exploration to implement sustainable innovation by adjusting their potential and realized absorptive capacities. Our results can help environmentally friendly organizations adjust the combination of entrepreneurial orientation and absorptive capacity to overcome organizational inertia, manage exploitation and exploration, and implement sustainable innovation. [ABSTRACT FROM AUTHOR]