Purpose – While nowadays an extensive literature promoting knowledge management (KM) exists,
there is a worrying shortage of empirical studies demonstrating an actual connection between KM
activities and organizational outcomes. To bridge this gap, this paper aims to examine the link between
KM practices, firm competitiveness and economic performance.
Design/methodology/approach – This paper proposes a framework of KM practices consisting of
human resource management (HRM) and information communication technology (ICT). These both are
hypothesized to impact competitiveness and economic performance of the firm. Hypotheses are then
tested with structural equation modeling by using a survey dataset of 234 companies.
Findings – The results show that HRM and ICT practices for managing knowledge are quite strongly
correlated and have a statistically significant influence on both financial performance and
competitiveness of the firm. The findings also indicate that ICT practices improve financial
performance only when they are coupled with HRM practices.
Research limitations/implications – The data are limited to companies from Finland, Russia and
China.
Practical implications – The paper contributes to managerial practice by pointing out the importance
of utilizing a combination of both social and technical means for KM and illustrating that they do matter
for the company bottom line.
Originality/value – This paper contributes to the literature on knowledge-based organizing by
empirically analyzing the performance impact of various areas of KM. It thereby tests the proposition put
forth in many previous theoretical and case-based studies that KM promotes high organizational
performance. It also addresses the interaction of social and technical KM practices in producing
organizational outcomes.

Does knowledge management reallymatter? Linking knowledge managementpractices, competitiveness and economicperformance

Much of the prior research on interorganizational learning has focused on the role of absorptive capacity, a firm's ability to value, assimilate, and utilize new external knowledge. However, this definition of the construct suggests that a firm has an equal capacity to learn from all other organizations. We reconceptualize the firm-level construct absorptive capacity as a learning dyad-level construct, relative absorptive capacity. One firm's ability to learn from another firm is argued to depend on the similarity of both firms' (1) knowledge bases, (2) organizational structures and compensation policies, and (3) dominant logics. We then test the model using a sample of pharmaceutical–biotechnology R&D alliances. As predicted, the similarity of the partners' basic knowledge, lower management formalization, research centralization, compensation practices, and research communities were positively related to interorganizational learning. The relative absorptive capacity measures are also shown to have greater explanatory power than the established measure of absorptive capacity, R&D spending. © 1998 John Wiley & Sons, Ltd.

Relative absorptive capacity and interorganizational learning

El artículo tiene como objetivo evaluar el nivel de desarrollo de la capacidad de absorción realizada (RACAP) en las Pyme colombianas. Se parte de una muestra de 363 Pyme colombianas (Dane,2012), se usa una revisión de literatura con apoyo del análisis de contenido y un modelo de regresión lineal, que permiten mostrar la existencia de una correlación lineal positiva entre la adquisición y asimilación del conocimiento externo en las organizaciones objeto de estudio,. Palabras clave: Capacidades de absorción, capacidades de absorción potencial, medición de las capacidades de absorción ABSTRACT:

Measurement of potential absorption capacity in Colombia's innovative companies [Medición de la capacidad de absorción potencial en las empresas innovadoras de Colombia]

Linking circular economy and digitalisation technologies: A systematic literature review of past achievements and future promises

The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance.,Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items.,The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence.,This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.

Intellectual capital and business performance: the role of dimensions of absorptive capacity

Despite the recognized importance of knowledge management for small family firms, relatively little empirical research has been done so far to understand the mechanisms through which absorptive capacity (AC) assists their performance. The purpose of this study is to understand the relationship between absorptive capacity and performance in small family firms.,In this study, the authors theoretically argue and empirically validate that AC enables the creation of entrepreneurial, market and technology orientations in small family firms, which, in turn, lead to superior firm performance. They also tested the study’s hypotheses using mediation and multiple linear regression analyses on data collected from 272 small Indian family firms.,The study’s findings suggest indirect relationship between AC and performance. The strategic orientations provide a mechanism through which investments in small family firms’ AC results in firm performance.,This study offers crucial insights to practitioners and small firm managers regarding the use of knowledge-based capabilities in creating appropriate strategic postures, which, in turn, assist firm performance.,This study is among few research attempts in understanding the knowledge aspects of small family firms. The present research contributes to the existing literature by unravelling the relationship between knowledge management and small family firm performance. Also, by bringing in data from an under-studied context of an emerging economy, this study strengthens the theoretical applicability of knowledge management in different contexts.

Absorptive capacity and small family firm performance: exploring the mediation processes

Trust and reputation in family businesses: A systematic literature review of past achievements and future promises

Guided by the theory of dynamic capabilities and the knowledge-based view of an organization, the purpose of this paper is to examine the crucial role played by entrepreneurial orientation and absorptive capacity in the relationship between strategic flexibility and firm performance, with a specific focus on small firms.,The study uses survey data collected from owners of 272 small businesses in India and follows the linear regression method to establish the link between strategic flexibility and firm performance. It hypothesizes that the strategic flexibility of a small firm impacts entrepreneurial orientation, and subsequently its performance, while absorptive capacity further enhances this relationship.,The conclusions drawn from the study provide empirical evidence on the mediating role of entrepreneurial orientation in the relationship between strategic flexibility and firm performance. The findings also point out that the potential absorptive capacity of a firm strengthens the relationship between its strategic flexibility and entrepreneurial orientation.,The empirical findings of the study are limited to small firms from the automotive service industry.,The study contributes to the existing knowledge on managerial practice by pointing out the importance of strategic flexibility as a dynamic capability and illustrating its impact in the case of a small firm’s performance.,As yet, there is a dearth of empirical evidence derived from large samples of small firms. The study supplements available literature on dynamic capabilities and knowledge management.

Implications of strategic flexibility in small firms: the moderating role of absorptive capacity

Despite the established significance of absorptive capacity, there is a worrying lack of research that empirically examines its antecedents. With a call for investigation guided by the knowledge-based theory, the purpose of this paper is to bridge any probable gap by exploring the effect that an organization’s knowledge stock and its knowledge integrating mechanisms have on the development of its absorptive capacity.,On the basis of a survey administered to a sample comprising owners of small Indian automotive firms, this paper empirically examines the direct effect of an organization’s knowledge stock (including knowledge breadth and depth) and the moderating role of its structure-related mechanisms (e.g., formalization) on its potential and realized absorptive capacities. The study uses survey data from 226 small business owners and multiple linear regression analysis to examine the significance of its hypotheses.,The results show that knowledge stock has a statistically notable influence on a small firm’s absorptive capacity. The enabling role of formalization in the relationship between knowledge stock and absorptive capacity is also evident.,Given the handicap of small firms vis-a-vis large firms to deploy internal R&D capabilities, business owners must ensure not to confuse absorptive capacity with the pre-existence of R&D capabilities.,The unbundling of knowledge stock into breadth and depth of knowledge enables business owners and researchers to understand how any particular knowledge stock can relate to an organization’s absorptive capacity.

Knowledge stock and absorptive capacity of small firms: the moderating role of formalization

This conceptual article uses dynamic capability theory in small family firms with an aim to provide insights into the market orientation–innovation relationship. The research article synthesizes ex...

Sanjay Chaudhary

Papers

Absorptive capacity and small family firm performance: exploring the mediation processes

Trust and reputation in family businesses: A systematic literature review of past achievements and future promises

Implications of strategic flexibility in small firms: the moderating role of absorptive capacity

Knowledge stock and absorptive capacity of small firms: the moderating role of formalization

Exploring Relationships Between Family Firms’ Market Orientation and Innovation: Proposition of a Conceptual Framework: