Researchers have used the absorptive capacity construct to explain various organizational phenomena. In this article we review the literature to identify key dimensions of absorptive capacity and offer a reconceptualization of this construct. Building upon the dynamic capabilities view of the firm, we distinguish between a firm's potential and realized capacity. We then advance a model outlining the conditions when the firm's potential and realized capacities can differentially influence the creation and sustenance of its competitive advantage.

https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=5629&context=lkcsb_research

Absorptive Capacity: A Review, Reconceptualization, and Extension

Unstable market conditions caused by innovation and increasing intensity and diversity of competition have resulted in organizational capabilities rather than served markets becoming the primary basis upon which firms establish their long-term strategies. If the strategically most important resource of the firm is knowledge, and if knowledge resides in specialized form among individual organizational members, then the essence of organizational capability is the integration of individuals' specialized knowledge. This paper develops a knowledge-based theory of organizational capability and draws upon research into competitive dynamics, the resource-based view of the firm, organizational capabilities, and organizational learning. Central to the theory is analysis of the mechanisms through which knowledge is integrated within firms in order to create capability. The theory is used to explore firms' potential for establishing competitive advantage in dynamic market settings, including the role of firm networks...

https://www.jstor.org/stable/pdfplus/2635098.pdf

Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration

A role congruity theory of prejudice toward female leaders proposes that perceived incongruity between the female gender role and leadership roles leads to 2 forms of prejudice: (a) perceiving women less favorably than men as potential occupants of leadership roles and (b) evaluating behavior that fulfills the prescriptions of a leader role less favorably when it is enacted by a woman. One consequence is that attitudes are less positive toward female than male leaders and potential leaders. Other consequences are that it is more difficult for women to become leaders and to achieve success in leadership roles. Evidence from varied research paradigms substantiates that these consequences occur, especially in situations that heighten perceptions of incongruity between the female gender role and leadership roles.

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Role congruity theory of prejudice toward female leaders.

The Social Psychology of Organizations.

The paper is concerned with spatial clustering of economic activity and its relation to the spatiality of knowledge creation in interactive learning processes. It questions the view that tacit knowledge transfer is confined to local milieus whereas codified knowledge may roam the globe almost frictionlessly. The paper highlights the conditions under which both tacit and codified knowledge can be exchanged locally and globally. A distinction is made between, on the one hand, the learning processes taking place among actors embedded in a community by just being there dubbed buzz and, on the other, the knowledge attained by investing in building channels of communication called pipelines to selected providers located outside the local milieu. It is argued that the co-existence of high levels of buzz and many pipelines may provide firms located in outward-looking and lively clusters with a string of particular advantages not available to outsiders. Finally, some policy implications, stemming from this argumen...

/pdf/clusters-and-knowledge-local-buzz-global-pipelines-and-the-29bsuyvekg.pdf

Clusters and knowledge: local buzz, global pipelines and the process of knowledge creation

Both in theory as in practice insight is limited about how firms in dynamic environments could organize to manage concurrently both the strategic processes of competence building and competence leveraging. To contribute to this issue, a conceptual framework is developed which considers the ability to exchange knowledge across organization units as a prerequisite for firms to achieve both the goals of competence building and leveraging. The framework shows how several important managerial and organizational determinants, associated with cross-unit knowledge exchange, may stimulate competence-building processes and how they may stimulate competence-leveraging processes. The conceptual framework will be illustrated by two case studies in different contexts of Novartis, one of the leading European life-science companies. These two contexts of respectively ‘organization-enabled’ and ‘web-enabled’ knowledge exchange appear to be complementary. The conceptual framework and cases provide insight into (1) possibilities about how firms could organize to deal with the tension between competence building and leveraging processes, and (2) how managing the determinants of horizontal knowledge exchange can contribute to changing a firm’s actual mixture of competence building/leveraging processes into a more desired strategic mixture.

https://papers.ssrn.com/sol3/Delivery.cfm/7176.pdf?abstractid=871125

The Influence of Managerial and Organizational Determinants of Horizontal Knowledge Exchange on Competence Building and Competence Leveraging

Introduction As economies and firm competitive advantage are increasingly based on knowledge rather than materials, firms are moving away from traditional modes of organization in order to meet new demands for competitiveness, flexibility, speed, and novelty (Child and McGrath, 2001; Kellogg, Orlikowski, and Yates, 2006; Volberda, 1996). As part of this broader paradigm shift, an increasing number of firms have outsourced and offshored many of their in-house activities – located them to a wholly owned company or independent service provider in another country – both in order to save costs and, increasingly, to acquire new skills and capabilities not available in-house (e.g., Carmel, 1999; Lewin and Peeters, 2006). Its potential benefits notwithstanding, such disaggregation of the value chain adds an additional layer of management complexity because of the need to manage and coordinate a complex web of knowledge flows and interdependent tasks being performed by distributed teams, marked by differences in geography, skills, norms, language, culture, and interests. Prior work has provided valuable insights into managing knowledge processes – the access, transfer, dissemination, sharing, and integration of knowledge among dispersed organizational teams (e.g., Argote et al., 2003; Gupta and Govindarajan, 2000). Scholars have emphasized the need for creating both technical compatibility (Ford et al., 2003; Montoya-Weiss et al., 2001; Oshri et al., 2008) and cultural compatibility (D'Adderio, 2001; Fiol and Connor, 2005; Tajfel, 1981) across boundaries in disaggregated value chains and dispersed social architectures.

Managing globally disaggregated teams: The role of organizational politics

At the level of a cognitive schema, a business model is a mental map of a firm’s value-creating, value-delivering, and value-capturing activities and the linkages between them. An important question in the study of business models as cognitive schemas is whether and how schemas differ across industry actors and whether the differences are connected to the variation observed in actual business models in the industry. This chapter examines, in particular, the ways in which business model schemas of industry insiders differ from those of industry outsiders. Using data from interviews with chief executive officers (CEOs) of 30 legal-tech firms, we graphically construct and analyze the CEOs’ schemas of important causal interdependencies between their firms’ activities. The analysis shows systematic differences between insiders and outsider CEOs’ schemas. We theorize that these differences underlie insider and outsider CEOs’ distinct approaches to opportunity recognition, expertise perception, and value framing, and have consequences for actual business model evolution in the industry.

/pdf/examining-ceos-business-model-schemas-a-cognitive-mapping-of-23zwibwba1.pdf

Examining CEOs’ Business Model Schemas: A Cognitive Mapping of Differences Between Industry Insiders and Outsiders

Om op lange termijn te kunnen overleven, moeten organisaties een balans vinden tussen enerzijds het exploiteren van bestaande competenties en anderzijds het exploreren van nieuwe mogelijkheden. De netwerkorganisatie lijkt een geschikte organisatievorm om deze twee schijnbaar onverenigbare
krachten evenwichtig te kunnen managen. Tegelijkertijd blijkt
dat een netwerkorganisatie, bij het zoeken naar een duurzaam evenwicht tussen exploitatie en exploratie, geconfronteerd wordt met andere paradoxen die feitelijk net zoveel aandacht behoeven. Zo moet de governance van een netwerk enerzijds gericht zijn op het collectieve belang, maar anderzijds ook ruimte bieden aan de individuele ‘eigen’ belangen van de deelnemende partners. In dit artikel wordt ingegaan op de afwegingen
waarmee netwerkorganisaties geconfronteerd kunnen worden in hun streven naar duurzaamheid door een evenwichtige balans tussen exploitatie en exploratie.

Bouwen aan duurzame netwerkorganisaties: een aanzet tot het verenigen van exploitatie en exploratie

In this conceptual paper we investigate how corporate venturing influences an organization's competences. The impact of various types of corporate ventures on the portfolio of strategic options of a firm's competence modes (Sanchez, 2004a; Sanchez & Heene, 2002) will be assessed by distinguishing two fundamentally different dimensions of corporate venturing: technology and product (Block & MacMillan, 1993). We argue that the level of product and factor market dynamism mediates the effect of corporate venturing on a firm's competence modes. Corporate ventures that significantly increase the level of product or factor market dynamics will increase the flexibility in all five competence modes. These ventures have a direct effect on the lower-order competence modes and an indirect, lagged effect on higher-order competence modes through feedback loops. The developed framework and the propositions contribute to managing the ability of a firm to change its coordination, resource, and operating flexibility in order to sustain value creation.

/pdf/the-impact-of-corporate-venturing-on-a-firm-s-competence-2bsei7lcsp.pdf

Henk W. Volberda

Papers

The Influence of Managerial and Organizational Determinants of Horizontal Knowledge Exchange on Competence Building and Competence Leveraging

Managing globally disaggregated teams: The role of organizational politics

Examining CEOs’ Business Model Schemas: A Cognitive Mapping of Differences Between Industry Insiders and Outsiders

Bouwen aan duurzame netwerkorganisaties: een aanzet tot het verenigen van exploitatie en exploratie

The impact of corporate venturing on a firm's competence modes