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Demystifying Absorptive Capacity: Focus On Firm Size And Employee Empowerment

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  • RADOSLAW NOWAK

    (School of Management, New York Institute of Technology, 1855 Broadway, New York, NY 10023-7692, USA)

Abstract

This project investigates the impact of contextual factors on the relationship between potential and realised absorptive capacity. The paper proposes that a firm’s size negatively affects this relationship, thus hindering the firm’s ability to create and exploit new knowledge. Nonetheless, as the paper posits, large firms can alleviate this negative effect of size by increasing a level of employee empowerment. The empirical analysis, based on the data collected from over 370 employees at 71 hospitals located in the United States, confirms main assumptions of the proposed model. The study considers key implications for strategy research as well as for managerial practices.

Suggested Citation

  • Radoslaw Nowak, 2017. "Demystifying Absorptive Capacity: Focus On Firm Size And Employee Empowerment," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(06), pages 1-19, August.
    • Handle: RePEc:wsi:ijimxx:v:21:y:2017:i:06:n:s1363919617500505
    DOI: 10.1142/S1363919617500505
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    References listed on IDEAS

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    1. Solava Ibrahim & Sabina Alkire, 2007. "Agency and Empowerment: A Proposal for Internationally Comparable Indicators," Oxford Development Studies, Taylor & Francis Journals, vol. 35(4), pages 379-403.
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    4. Arie Y. Lewin & Silvia Massini & Carine Peeters, 2011. "Microfoundations of Internal and External Absorptive Capacity Routines," Organization Science, INFORMS, vol. 22(1), pages 81-98, February.
    5. Henk W. Volberda & Nicolai J. Foss & Marjorie A. Lyles, 2010. "PERSPECTIVE---Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field," Organization Science, INFORMS, vol. 21(4), pages 931-951, August.
    6. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
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    Cited by:

    1. Xie, Qunyong, 2023. "Firm size and Chinese firms' internationalization speed in advanced and developing countries: The moderating effects of marketization and inward FDI," Journal of Business Research, Elsevier, vol. 159(C).
    2. Radoslaw Nowak, 2019. "The Effects Of Cognitive Diversity And Cohesiveness On Absorptive Capacity," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-23, April.
    3. Torres de Oliveira, Rui & Nguyen, Tam & Liesch, Peter & Verreynne, Martie-Louise & Indulska, Marta, 2021. "Exporting to escape and learn: Vietnamese manufacturers in global value chains," Journal of World Business, Elsevier, vol. 56(4).
    4. Astadi Pangarso & Astadi Pangarso & Endang Siti Astuti & Kusdi Raharjo & Tri Wulida Afrianty, 2020. "The impact of absorptive capacity and innovation ambidexterity on sustainable competitive advantage: the case of Indonesian higher education," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 2436-2455, March.

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