Does the Size Matter for Dynamics Capabilities? A Study on Absorptive Capacity

Marlon Fernandes Rodrigues Alves; Jessâmine Thaise Sartorello Salvini; Ana Claudia Bansi; Elio Galli Neto; Simone Vasconcelos Ribeiro Galina

doi:10.4067/S0718-27242016000300010

Authors

Marlon Fernandes Rodrigues Alves School of Economics, Business Administration and Accounting at Ribeirao Preto, University of Sao Paulo
Jessâmine Thaise Sartorello Salvini School of Economics, Business Administration and Accounting at Ribeirao Preto, University of Sao Paulo
Ana Claudia Bansi School of Economics, Business Administration and Accounting at Ribeirao Preto, University of Sao Paulo
Elio Galli Neto School of Economics, Business Administration and Accounting at Ribeirao Preto, University of Sao Paulo
Simone Vasconcelos Ribeiro Galina School of Economics, Business Administration and Accounting at Ribeirao Preto, University of Sao Paulo

DOI:

https://doi.org/10.4067/S0718-27242016000300010

Abstract

The objective of this study is to understand how organizational size influences dynamic capabilities in Brazil. To arrive at this understanding, structural equation modeling analysis was performed using the Brazilian Innovation Survey (PINTEC) database to test for differences between SMEs and large companies in respect to the relationship between absorptive capacity (AC) dimensions and innovation performance. The results show that in large companies, Potential AC and Realized AC impact innovation performance, whereas in small and medium-sized enterprises (SMEs), only Realized AC has an influence. In addition, SMEs are, in fact, better at converting Realized AC into innovation performance than large companies, probably due to their flexibility and agility. These findings reveal that organizational sizes influence the impact of dynamic capabilities on performance.