IDEAS home Printed from https://ideas.repec.org/a/spr/decisn/v50y2023i1d10.1007_s40622-023-00336-1.html
   My bibliography  Save this article

Managerial decisions and new product development in the circular economy model enterprise: absorptive capacity and a mediating role of strategic orientation

Author

Listed:
  • Monika Stelmaszczyk

    (Jan Kochanovski University)

  • Agata Pierscieniak

    (Warsaw University of Technology)

  • Denisa Abrudan

    (West University of Timisoara)

Abstract

The study explains the flow of knowledge in the circular economy model enterprises. We analyze the impact of managerial decisions on the absorptive capacity, which is new product development, considering the role of critical elements of strategic orientation (innovation and costs) in the textile industry. Based on the verification of hypotheses by employing the SEM method, innovation orientation is a mediator between adaptability-oriented decisions and transformation, and between adaptability-oriented decisions and exploitation. Ambidexterity-oriented decisions affect absorptive capacity. These findings semanticize and extend previous research, indicating that strategic activities focused on eco-innovations are transformed into the process of creating a new product.

Suggested Citation

  • Monika Stelmaszczyk & Agata Pierscieniak & Denisa Abrudan, 2023. "Managerial decisions and new product development in the circular economy model enterprise: absorptive capacity and a mediating role of strategic orientation," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 50(1), pages 35-49, March.
    • Handle: RePEc:spr:decisn:v:50:y:2023:i:1:d:10.1007_s40622-023-00336-1
    DOI: 10.1007/s40622-023-00336-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40622-023-00336-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40622-023-00336-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jing Zhang & Yanling Duan, 2010. "Empirical study on the impact of market orientation and innovation orientation on new product performance of Chinese manufacturers," Nankai Business Review International, Emerald Group Publishing Limited, vol. 1(2), pages 214-231, June.
    2. Ipek Kazancoglu & Yigit Kazancoglu & Emel Yarimoglu & Aysun Kahraman, 2020. "A conceptual framework for barriers of circular supply chains for sustainability in the textile industry," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(5), pages 1477-1492, September.
    3. Tulin Dzhengiz & Eva Niesten, 2020. "Competences for Environmental Sustainability: A Systematic Review on the Impact of Absorptive Capacity and Capabilities," Journal of Business Ethics, Springer, vol. 162(4), pages 881-906, April.
    4. Brian K. Boyd & Alain Salamin, 2001. "Strategic reward systems: a contingency model of pay system design," Strategic Management Journal, Wiley Blackwell, vol. 22(8), pages 777-792, August.
    5. Pernilla Gluch & Mathias Gustafsson & Liane Thuvander, 2009. "An absorptive capacity model for green innovation and performance in the construction industry," Construction Management and Economics, Taylor & Francis Journals, vol. 27(5), pages 451-464.
    6. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    7. L. J. Bourgeois & David R. Brodwin, 1984. "Strategic implementation: Five approaches to an elusive phenomenon," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 241-264, July.
    8. Jing Zhang & Yanling Duan, 2010. "Empirical study on the impact of market orientation and innovation orientation on new product performance of Chinese manufacturers," Nankai Business Review International, Emerald Group Publishing Limited, vol. 1(2), pages 214-231, June.
    9. Schweisfurth, Tim G. & Raasch, Christina, 2018. "Absorptive capacity for need knowledge: Antecedents and effects for employee innovativeness," Research Policy, Elsevier, vol. 47(4), pages 687-699.
    10. Marcel C. Hollander & Conny A. Bakker & Erik Jan Hultink, 2017. "Product Design in a Circular Economy: Development of a Typology of Key Concepts and Terms," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 517-525, June.
    11. Nathalia Suchek & Cristina I. Fernandes & Sascha Kraus & Matthias Filser & Helena Sjögrén, 2021. "Innovation and the circular economy: A systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3686-3702, December.
    12. 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.
    13. Izabela Krawczyk-Sokolowska & Agata Pierscieniak & Wieslawa Caputa, 2021. "The innovation potential of the enterprise in the context of the economy and the business model," Review of Managerial Science, Springer, vol. 15(1), pages 103-124, January.
    14. Nanette Fondas & Margarethe Wiersema, 1997. "Changing of the Guard: the Influence of CEO Socialization on Strategic Change," Journal of Management Studies, Wiley Blackwell, vol. 34(4), pages 561-584, July.
    15. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    16. Deutscher, Franziska & Zapkau, Florian B. & Schwens, Christian & Baum, Matthias & Kabst, Ruediger, 2016. "Strategic orientations and performance: A configurational perspective," Journal of Business Research, Elsevier, vol. 69(2), pages 849-861.
    17. Bhuian, Shahid N. & Menguc, Bulent & Bell, Simon J., 2005. "Just entrepreneurial enough: the moderating effect of entrepreneurship on the relationship between market orientation and performance," Journal of Business Research, Elsevier, vol. 58(1), pages 9-17, January.
    18. Jansen, J.J.P. & van den Bosch, F.A.J. & Volberda, H.W., 2005. "Managing Potential and Realized Absorptive Capacity: How do Organizational Antecedents matter?," ERIM Report Series Research in Management ERS-2005-025-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    19. Flatten, Tessa C. & Engelen, Andreas & Zahra, Shaker A. & Brettel, Malte, 2011. "A measure of absorptive capacity: Scale development and validation," European Management Journal, Elsevier, vol. 29(2), pages 98-116, April.
    20. Vanessa Prieto‐Sandoval & Carmen Jaca & Javier Santos & Rupert J. Baumgartner & Marta Ormazabal, 2019. "Key strategies, resources, and capabilities for implementing circular economy in industrial small and medium enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1473-1484, November.
    21. Gregory G. Dess, 1987. "Consensus on strategy formulation and organizational performance: Competitors in a fragmented industry," Strategic Management Journal, Wiley Blackwell, vol. 8(3), pages 259-277, May.
    22. Jan Konietzko & Nancy Bocken & Erik Jan Hultink, 2020. "A Tool to Analyze, Ideate and Develop Circular Innovation Ecosystems," Sustainability, MDPI, vol. 12(1), pages 1-39, January.
    23. Ladu, Luana & Imbert, Enrica & Quitzow, Rainer & Morone, Piergiuseppe, 2020. "The role of the policy mix in the transition toward a circular forest bioeconomy," Forest Policy and Economics, Elsevier, vol. 110(C).
    24. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    25. Africa Ariño & Peter Smith Ring, 2010. "The role of fairness in alliance formation," Strategic Management Journal, Wiley Blackwell, vol. 31(10), pages 1054-1087, October.
    26. Gebauer, Heiko & Worch, Hagen & Truffer, Bernhard, 2012. "Absorptive capacity, learning processes and combinative capabilities as determinants of strategic innovation," European Management Journal, Elsevier, vol. 30(1), pages 57-73.
    27. Simpson, Penny M. & Siguaw, Judy A. & Enz, Cathy A., 2006. "Innovation orientation outcomes: The good and the bad," Journal of Business Research, Elsevier, vol. 59(10-11), pages 1133-1141, October.
    28. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    29. Marcos Ferasso & Tatiana Beliaeva & Sascha Kraus & Thomas Clauss & Domingo Ribeiro‐Soriano, 2020. "Circular economy business models: The state of research and avenues ahead," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3006-3024, December.
    30. Emilia Ingemarsdotter & Ella Jamsin & Gerd Kortuem & Ruud Balkenende, 2019. "Circular Strategies Enabled by the Internet of Things—A Framework and Analysis of Current Practice," Sustainability, MDPI, vol. 11(20), pages 1-37, October.
    31. Schweisfurth, Tim G. & Raasch, Christina, 2018. "Absorptive Capacity for Need Knowledge: Antecedents and Effects for Employee Innovativeness," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 47(4), pages 687-699.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nick Clifton & Khine S. Kyaw & Zheng Liu & Gary Walpole, 2024. "An Empirical Study on Public Sector versus Third Sector Circular Economy-Oriented Innovations," Sustainability, MDPI, vol. 16(4), pages 1-26, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bouguerra, Abderaouf & Mellahi, Kamel & Glaister, Keith & Sadeghi, Arash & Temouri, Yama & Tatoglu, Ekrem, 2022. "Absorptive capacity and organizational performance in an emerging market context: Evidence from the banking industry in Turkey," Journal of Business Research, Elsevier, vol. 139(C), pages 1575-1587.
    2. Engelen, Andreas & Kube, Harald & Schmidt, Susanne & Flatten, Tessa Christina, 2014. "Entrepreneurial orientation in turbulent environments: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 43(8), pages 1353-1369.
    3. Jeffrey G. Covin & Kimberly M. Green & Dennis P. Slevin, 2006. "Strategic Process Effects on the Entrepreneurial Orientation–Sales Growth Rate Relationship," Entrepreneurship Theory and Practice, , vol. 30(1), pages 57-81, January.
    4. Mennens, Kars & van Gils, Anita & Odekerken - Schröder, Gaby & Letterie, Wilko, 2016. "Exploring Antecedents of Service Innovation Excellence in Manufacturing SMEs," Research Memorandum 025, Maastricht University, Graduate School of Business and Economics (GSBE).
    5. Lin Song & Li Jing, 0. "Strategic orientation and performance of new ventures: empirical studies based on entrepreneurial activities in China," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-24.
    6. Lin Song & Li Jing, 2017. "Strategic orientation and performance of new ventures: empirical studies based on entrepreneurial activities in China," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 989-1012, December.
    7. Tatiana Beliaeva & Galina Shirokova & William Wales & Elena Gafforova, 2020. "Benefiting from economic crisis? Strategic orientation effects, trade-offs, and configurations with resource availability on SME performance," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 165-194, March.
    8. Ellen Enkel & Annika Groemminger & Sebastian Heil, 2018. "Managing technological distance in internal and external collaborations: absorptive capacity routines and social integration for innovation," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1257-1290, October.
    9. Krzysztof Borodako & Jadwiga Berbeka & Michał Rudnicki, 2021. "Innovation Orientation in Business Services," Books, Edward Elgar Publishing, number 19897.
    10. Shirokova, G. & Beliaeva, T. & Gafforova, E., 2016. "Strategic orientations during economic crisis: Stay focused or adopt a broader strategic direction?," Working Papers 6444, Graduate School of Management, St. Petersburg State University.
    11. Vincent K. Chong & Lokman Mia & John Sands & Zhichao Alex Wang, 2023. "The effect of nonfinancial performance measures, absorptive capacity, and organizational learning on innovation performance," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 34(2), pages 201-233, June.
    12. Li, Zhengyu, 2016. "Essays on knowledge sourcing and technological capability : A knowledge structure perspective," Other publications TiSEM b8ff31fc-c57b-4bc3-b5a4-0, Tilburg University, School of Economics and Management.
    13. Mariano, Stefania & Al-Arrayed, Suad, 2018. "Combinations of absorptive capacity metaroutines: The role of organizational disruptions and time constraints," European Management Journal, Elsevier, vol. 36(2), pages 171-182.
    14. Silvia Martelo-Landroguez & Gema Albort-Morant & Antonio L. Leal-Rodríguez & Belén Ribeiro-Soriano, 2018. "The Effect of Absorptive Capacity on Green Customer Capital under an Organizational Unlearning Context," Sustainability, MDPI, vol. 10(1), pages 1-20, January.
    15. Hernández-Linares, Remedios & Kellermanns, Franz W. & López-Fernández, María Concepción, 2018. "A note on the relationships between learning, market, and entrepreneurial orientations in family and nonfamily firms," Journal of Family Business Strategy, Elsevier, vol. 9(3), pages 192-204.
    16. Luca Marrucci & Fabio Iannone & Tiberio Daddi & Fabio Iraldo, 2022. "Antecedents of absorptive capacity in the development of circular economy business models of small and medium enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 532-544, January.
    17. Limaj, Everist & Bernroider, Edward W.N., 2019. "The roles of absorptive capacity and cultural balance for exploratory and exploitative innovation in SMEs," Journal of Business Research, Elsevier, vol. 94(C), pages 137-153.
    18. Chang, Yi-Ying & Hughes, Mathew, 2012. "Drivers of innovation ambidexterity in small- to medium-sized firms," European Management Journal, Elsevier, vol. 30(1), pages 1-17.
    19. Weidner, Nadia & Som, Oliver & Horvat, Djerdj, 2023. "An integrated conceptual framework for analysing heterogeneous configurations of absorptive capacity in manufacturing firms with the DUI innovation mode," Technovation, Elsevier, vol. 121(C).
    20. Michele N. Medina & Indu Ramachandran & Joshua J. Daspit, 2019. "Collaboration Or Clash? Mapping The Effects Of Top Management Team Conflict On Firm Absorptive Capacity," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(03), pages 1-29, April.

    More about this item

    Keywords

    Managerial decisions; Ambidexterity; Absorptive capacity; Product development; Circular economy; Structural equation modeling;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:decisn:v:50:y:2023:i:1:d:10.1007_s40622-023-00336-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.