Absorptive capacity and innovation in low-tech companies in emerging economies

Javier Fernando Del Carpio, Francesc Miralles

Abstract


Innovation capacity is on the focus of policy makers in emerging economies. Although some studies show the antecedents of innovation capacity for developed economies and high technological industries, scant research outcomes exist for different settings. This study tries to shed some light on the drivers of innovation capacity for low technological companies in emerging economies. Using the absorptive capacity as a driver of technological and non-technological innovation capacity, this study proposes a SEM model to contribute to the literature of innovation capacity including technological and non-technological innovation, and the relationship between them, in low-techonology industries in an emerging economy. A sample of 706 manufacturing companies from Peru is used. The academic contribution of this study states that absorptive capacity favors technological and non-technological innovation capacity and that non-technological innovation affects technological one. Accordingly, managerial contribution suggests improving absorptive capacity levels to internal R&D activities but also to organizational and marketing innovation activities.

Keywords


Absorptive capacity, Technological innovation, Non-technological innovation, Low technological intensity, Peru

Full Text:

PDF

References


Ali, M., & Park, K. (2017). The mediating role of an innovative culture in the relationship between absorptive capacity and technical and non-technical innovation. Journal of Business Research, 1669-1675. doi: 10.1016/j.jbusres.2015.10.036

Aguilera, R. V., Ciravegna, L., Cuervo-Cazurra, A., & Gonzalez-Perez, M. A. (2017). Multilatinas and the internationalization of Latin American firms. Journal of World Business. doi: 10.1016/j.jwb.2017.05.006

Andriopoulos, C., & Lewis, M. W. (2009). Exploitation-exploration tensions and organizational ambidexterity: Managing paradoxes of innovation. Organization Science, 696-717. doi: 10.1287/orsc.1080.0406

Battisti, G., & Stoneman, P. (2010). How innovative are UK firms? Evidence from the fourth UK community innovation survey on synergies between technological and organizational innovations. British Journal of Management, 187-206. doi: 10.1111/j.1467-8551.2009.00629.x

Brenes, E. R., Camacho, A. R., Ciravegna, L., & Pichardo, C. A. (2016). Strategy and innovation in emerging economies after the end of the commodity boom—Insights from Latin America. Journal of Business Research, 69(10), 4363-4367. doi: 10.1016/j.jbusres.2016.03.059

Calero-Medina, C., & Noyons, E. C. (2008). Combining mapping and citation network analysis for a better understanding of the scientific development: The case of the absorptive capacity field. Journal of Informetrics, 272-279. doi: 10.1016/j.joi.2008.09.005

Caloghirou, Y., Kastelli, I., & Tsakanikas, A. (2004). Internal capability and external knowledge sources: complements or substitutes for innovative performance? Technovation, 29–39. doi: 10.1016/s0166-4972(02)00051-2

Camisón, C., & Villar-López, A. (2014). Organizational innovation as an enabler of technological innovation capabilities and firm performance. Journal of Business Research, 2891-2902. doi: 10.1016/j.jbusres.2012.06.004

Chen, S. T., & Chang, B. G. (2012). The effects of absorptive capacity and decision speed on organizational innovation: a study of organizational structure as an antecedent variable. Contemporary Management Research, 27. doi: 10.7903/cmr.7996

Chin, W., Marcolin, B., & Newsted, P. (2003). A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-mail Emotion/Adoption Study. Information Systems Research, 189-217. doi: 10.1287/isre.14.2.189.16018

Coccia, M. (2017). Sources of technological innovation: Radical and incremental innovation problem-driven to support competitive advantage of firms. Technology Analysis & Strategic Management, 29(9), 1048-1061. doi: 10.1080/09537325.2016.1268682

Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative science quarterly, 128-152. doi: 10.2307/2393553

Cornell University, INSEAD, and WIPO (2017): The Global Innovation Index 2017: Innovation Feeding the World, Ithaca, Fontainebleau, and Geneva. ISSN 2263-3693. ISBN 979-10-95870-04-3

Cuestionario INEI. (2015). Perú: Encuesta Nacional de Innovación en la Industria Manufacturera, 2015. Obtenido del Instituto Nacional de Estadística e Informática.http://iinei.inei.gob.pe/iinei/srienaho/descarga/DocumentosZIP/2015-105/02_Cuestionario.zip

Escribano, A., Fosfuri, A., & Tribó, J. A. (2009). Managing external knowledge flows: The moderating role of absorptive capacity. Research policy, 96-105. doi: 10.1016/j.respol.2008.10.022

Hair Jr, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business research. European Business Review, 106-121. doi: 10.1108/ebr-10-2013-0128

Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of marketing research, 382-388. doi: 10.2307/3150980

Geldes, C., Felzensztein, C., & Palacios-Fenech, J. (2017). Technological and non-technological innovations, performance and propensity to innovate across industries: The case of an emerging economy. Industrial Marketing Management, 55-66. doi: 10.1016/j.indmarman.2016.10.010

George, G., McGahan, A. M., & Prabhu, J. (2012). Innovation for inclusive growth: Towards a theoretical framework and a research agenda. Journal of management studies, 49(4), 661-683. doi: 10.1111/j.1467-6486.2012.01048.x

Gronum, S. V. (2012). The role of networks in small and medium‐sized enterprise innovation and firm performance. Journal of Small Business Management, 257-282. doi: 10.1111/j.1540-627x.2012.00353.x

Hair Jr, J., Hult, T., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM). Los Ángeles: Sage Publications. ISBN: 9781452217444

Hausman, A., & Johnston, W. J. (2014). The role of innovation in driving the economy: Lessons from the global financial crisis. Journal of Business Research, 67(1), 2720-2726. doi: 10.1016/j.jbusres.2013.03.021

Hervas-Oliver, J. L., Albors-Garrigos, J., de-Miguel, B., & Hidalgo, A. (2012). The role of a firm's absorptive capacity and the technology transfer process in clusters: How effective are technology centres in low-tech clusters?. Entrepreneurship & Regional Development, 24(7-8), 523-559. doi: 10.1080/08985626.2012.710256

Jiménez-Barrionuevo, M. M., García-Morales, V. J., & Molina, L. M. (2011). Validation of an instrument to measure absorptive capacity. Technovation, 31(5):190-202. doi: 10.1016/j.technovation.2010.12.002

Jiménez-Jiménez, D., & Sanz-Valle, R. (2011). Innovation, organizational learning, and performance. Journal of business research, 64(4), 408-417. doi: 10.1016/j.jbusres.2010.09.010

Kostopoulos, K., Papalexandris, A., Papachroni, M., & Ioannou, G. (2011). Absorptive capacity, innovation, and financial performance. Journal of Business Research, 64(12), 1335-1343. doi: 10.1016/j.jbusres.2010.12.005

Liao, S. H., & Wu, C. C. (2010). System perspective of knowledge management, organizational learning, and organizational innovation. Expert systems with Applications, 37(2), 1096-1103. doi: 10.1016/j.eswa.2009.06.109

Love, J. H., & Roper, S. (2015). SME innovation, exporting and growth: A review of existing evidence. International Small Business Journal, 33(1), 28-48. doi: 10.1177/0266242614550190

Min, W. Z., Ling, K. C., & Piew, T. H. (2015). The Effects of Technological Innovation, Organizational Innovation and Absorptive Capacity on Product Innovation: A Structural Equation Modeling Approach. . Asian Social Science, 199. doi: 10.5539/ass.v12n1p199

Mothe, C., & Uyen Nguyen Thi, T. (2010). The link between non-technological innovations and technological innovation. European Journal of Innovation Management, 313-332. doi: 10.1108/14601061011060148

OECD (2011), OECD Science, Technology and Industry Scoreboard 2011, OECD Publishing, Paris. doi: 10.1787/sti_scoreboard-2011-14-en

Prajogo, D. I., & Ahmed, P. K. (2006). Relationships between innovation stimulus, innovation capacity, and innovation performance. R&D Management, 36(5), 499-515. doi: 10.1111/j.1467-9310.2006.00450.x

Rammer, C., Czarnitzki, D., & Spielkamp, A. (2009). Innovation successof non- -R&D-performers: substituting technology by management in SMEs. Small Business Economics, 35-58. doi: 10.1007/s11187-009-9185-7

Rangus, K., & Slavec, A. (2017). The interplay of decentralization, employee involvement and absorptive capacity on firms' innovation and business performance. Technological Forecasting and Social Change. doi: 10.1016/j.techfore.2016.12.017

Santos, D. F. L., Basso, L. F. C., Kimura, H., & Kayo, E. K. (2014). Innovation efforts and performances of Brazilian firms. Journal of Business Research, 67(4), 527-535. doi: 10.1016/j.jbusres.2013.11.009

Schmidt, T., & Rammer, C. (2006). The determinants and effects of technological and non technological innovations–Evidence from the German CIS IV. Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim.

Schmidt, T., & Rammer, C. (2007). Non-technological and technological innovation: strange bedfellows?. Centre for European Economic Research Discussion, 1-50. doi: 10.2139/ssrn.1010301

Schoenmakers, W., & Duysters, G. (2006). Learning in strategic technology alliances. Technology Analysis & Strategic Management, 245–264. doi: 10.1080/09537320600624162

Sun, P.-T., & Anderson, M. (2010). An examination of the relationship between absorptive capacity and organizational learning, and a proposed integration. International Journal of Management Review, 130-150. doi: 10.1111/j.1468-2370.2008.00256.x

Trott, P., & Simms, C. (2017). An examination of product innovation in low-and medium-technology industries: Cases from the UK packaged food sector. Research Policy, 46(3), 605-623. doi: 10.1016/j.respol.2017.01.007

Tsai, K. H. (2009). Collaborative networks and product innovation performance: Toward a contingency perspective. Research policy, 38(5), 765-778. doi: 10.1016/j.respol.2008.12.012

Tzokas, N., Kim, Y. A., Akbar, H., & Al-Dajani, H. (2015). Absorptive capacity and performance: The role of customer relationship and technological capabilities in high-tech SMEs. Industrial Marketing Management, 47, 134-142. doi: 10.1016/j.indmarman.2015.02.033

Volberda, H. W., Van Den Bosch, F. A., & Heij, C. V. (2013). Management innovation: Management as fertile ground for innovation. European Management Review, 10(1), 1-15. doi: 10.1111/emre.12007

Von Tunzelmann, N., & Acha, V. (2005). Innovation in “low-tech” industries. In The Oxford handbook of innovation. doi: 10.1093/oxfordhb/9780199286805.003.0015

Wang, C. L., & Rafiq, M. (2014). Ambidextrous organizational culture, contextual ambidexterity and new product innovation: a comparative study of UK and Chinese high‐tech firms. British Journal of Management, 25(1), 58-76. doi: 10.1111/j.1467-8551.2012.00832.x

Zahra, S. A., & George, G. (2002). Absorptive capacity: A review, reconceptualization, and extension. Academy of management review, 27(2), 185-203. doi: 10.5465/amr.2002.6587995






Copyright (c) 2018 Journal of Technology Management & Innovation

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

2018 © Universidad Alberto Hurtado - Facultad de Economía y Negocios. 
Erasmo Escala 1835 - Santiago, Chile.
Economic Analysis Review | Observatorio Económico | Gestión y Tendencias 

Journal Supported by