Aliasghar, O, Rose, EL orcid.org/0000-0002-3481-7305 and Chetty, S (2018) Building absorptive capacity through firm openness in the context of a less-open country. Industrial Marketing Management, 83. pp. 81-93. ISSN 0019-8501
Abstract
We explore the roles that potential and realized absorptive capacity play in enhancing firm performance, and examine external knowledge search strategies as antecedents of absorptive capacity. In this way, we endeavor to open the black box that sits between external knowledge search and performance, and suggest that the establishment of deep and broad relationships with external sources has differing impacts on potential and realized absorptive capacity for the firm. We argue that distinguishing clearly between potential and realized absorptive capacity may provide new insights into understanding why some companies are more successful than others at benefiting from external knowledge. A sample of 171 suppliers operating in the Iranian automotive industry is used to test the proposed theoretical model, through a two-stage least squares approach. Surprisingly, our results indicate that only the firm's capability to acquire and assimilate new ideas from the external environment (potential absorptive capacity) is related to performance for these firms operating in Iran, which been isolated from global markets due to international sanctions. Our findings emphasize the notion that potential and realized absorptive capacity represent distinct capabilities, with different antecedents and different impacts on firm performance.
Metadata
Item Type: | Article |
---|---|
Authors/Creators: |
|
Copyright, Publisher and Additional Information: | © 2018 Elsevier Inc. All rights reserved. This is an author produced version of a paper published in Industrial Marketing Management. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Absorptive capacity; Potential; Realized; Depth; Breadth; Performance |
Dates: |
|
Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > International Business Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 27 Nov 2018 14:27 |
Last Modified: | 24 Nov 2020 17:06 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.indmarman.2018.11.007 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:139149 |
Download
Filename: Building absorptive capacity through Firm openness-IMM 7765.pdf
Licence: CC-BY-NC-ND 4.0