Individuals' absorptive capacity in enterprise system assimilation

The capability of an individual to absorb knowledge about enterprise resource planning (ERP) is a critical element in the development of an organisation’s absorptive capacity (ACAP) during assimilation phase of ERP. Prior research have tended to overlook the roles that individuals play in identify external and internal knowledge, assimilate and exploit ERP knowledge. By defining ACAP at the individual level, we seek to enrich our understanding of how individual learn ERP knowledge and how such efforts facilitate the ERP assimilation within organisations. We develop a theoretical model to investigate the assimilation of enterprise systems in the post-implementation stage. Specifically, this model explains how communication climate and top management participation moderates the impact of Individuals’ ACAP on the assimilation of ERP systems.

Critical analysis of the use of absorptive capacity theory in IS research

This paper critically analyzes the use of Absorptive Capacity (ACAP) theory in information systems (IS) research. Drawing on a comprehensive review of the evolution of ACAP theory and models for the construct, we empirically investigate a number of ACAP-related papers published in reputable IS journals. The analysis involves four main areas: 1) summary analysis of ACAP in IS papers; 2) domains of ACAP usage; 3) analysis of hypotheses to show how ACAP is being used to explain various organizational phenomena in IS research; and 4) analysis of measures to gain insights into the operationalization of ACAP in IS research. This research advocates that organization-level ACAP should be applied as the dependent variable in studying the impact of IS. Furthermore, ACAP should be conceptualized as a “capability,” rather than an “asset.” This paper contributes to IS and ACAP studies by investigating and clearly specifying the utility of ACAP in IS research.

A literature analysis of the use of absorptive capacity construct in IS research

Since the seminal inception of Absorptive Capacity (ACAP) by Cohen and Levinthal (1990), it has been adopted widely in information systems (IS) research. This paper analyzes the use of ACAP in IS research through a literature analysis of ACAP-related papers published in 52 reputable IS journals from 1990 to 2015. Drawing on a review of the evolution of ACAP, the analyses conducted include: (1) descriptive analysis of ACAP in IS papers; (2) domains of ACAP usage; (3) analysis of hypotheses and propositions to show how ACAP is being used to explain various organizational phenomena in IS research; and (4) analysis of the measures to provide insights into the operationalization of ACAP in IS research. Our findings suggest that while the majority of the research correctly conceptualizes ACAP as a capability, various misalignments between ACAP conceptualization, operationalization and measurement, and the level of analysis in the literature continue to do a disservice to the accumulated research in ACAP. The findings and recommendations should help IS researchers to conceptualize and operationalize ACAP appropriately.

Pervasive limitations : innovating with ambient intelligence (AmI) technologies and restricted absorptive capacity in Australian SME manufacturers

The last 25 years have seen rapid increases in the number and sophistication of technological and process innovations in large manufacturers, producing dramatic improvements in productivity and efficiency. However, smaller manufacturers’ adoption of such innovations has been uneven. Ambient Intelligence (AmI) technologies are being positioned as the next performance and productivity enhancing purchase for manufacturers. This paper defines and gives examples of AmI technologies in current use, summarises AmI technologies of potential interest to small and medium enterprise (SME) manufacturers, and identifies potential impacts of restricted absorptive capacity in SMEs on the adoption of AmI technologies. Comparing two SME manufacturers, one from Germany and one from Australia illustrates a potential application of generic AmI technology based business solutions to a range of SME manufacturers.

Clarifying the link between social capital and MSME innovation performance : the role of absorptive capacity

A conceptual framework is proposed in this article showing how the social capital of a community shapes the innovation performance of micro, small and medium enterprises (MSMEs) through the exercise of absorptive capacity as the mediating phenomenon between the two. Its significance stems from the unprecedented effort of explaining how community social capital matters in the innovation performance of MSMEs, a departure from previous studies which typically examined market-related or hierarchical social capital in the form of formal networks and directly linking them to firm innovation without due regard to knowledge management within the firm as an antecedent of organizational innovation. The aim is to stimulate further thinking and empirical research on the subject of social capital of a community in an MSME and/or entrepreneurial context.

Linking BI competency and assimilation through absorptive capacity: a conceptual framework

Business intelligence (BI) can help support decision-making processes and so contribute to improved BI assimilation and organisational performance. However, a BI undertaking may be effective and profitable for some organisations but not others. How can these differing outcomes be explained for those firms that have adopted BI systems? Drawing on the literature pertaining to absorptive capacity theory, IT competency, and BI assimilation we develop a conceptual framework to investigate the relationships between BI competency, absorptive capacity, and BI assimilation. This research provides insights for BI stakeholders in understanding the mediating role of organisational absorptive capacity within a complex BI environment, enabling many organisations that have implemented BI to leverage the benefits from their costly investments. The conceptual framework provides a sound basis for further research to shed light on the effects of BI competency and organisational absorptive capacity on BI assimilation. Contributions to research and practice are discussed.

Australia's strengths and weaknesses in technology transfer and R&D exploitation : GEM survey "experts" views compared with public policy and other published data

There has been increasing public debate in Australia in recent years about research culture in universities and other publicly funded research agencies such as CSIRO and its impact on Australia's performance in generating economic, social and environmental benefits to the Australian community from the large amount of public funding for R&D. This is the supply side issue. On the demand side there is equally concern about the technology absorptive capacity of Australian. business as illustrated by the low proportion of gross business research expenditure (GERD) spent by business (BERD). Against this background, this paper has explored the views of abut 100 "experts" interviewed in the Australian Global Entrepreneurship Monitor (GEM) studies in the years 2000, 2001, 2002 and 2003 on the issues, strengths and weaknesses of Australia's technology transfer performance as it applies to new technology small firms. The paper has also explored evidence for any longitudinal change over this period.

The effect of vitamin : a deficiency on glucose uptake in the rat

This thesis describes an investigation of the effects of vitamin A deficiency on gut function, The central hypothesis to be tested was that acute vitamin A deficiency affects glucose uptake from the small intestine- The hypothesis was tested using a system involving perfusion of isolated segments of the small intestine in the anaesthetized rat. The system was used to study effects on glucose uptake under steady-state conditions. In the initial part of the study, experiments were diverted towards setting up the system for measuring steady-state uptake, and determining the relative contributions of active uptake and diffusion. Phenol red was found to be a reliable non-absorbable marker for determining net water movement. Phlorizin, generally at 1 mmol/L, was used as a competitive (reversible) inhibitor of active uptake. It is difficult however to confirm complete inhibition of active uptake by phlorizin because of the limited solubility of the inhibitor. The kinetics of glucose uptake f ram intra-luminal maltose were found to be, in general, not significantly different from those applying to the uptake of glucose from an equivalent glucose solution. Maltase activity in the perfused gut segment was found to be sufficient to hydrolyse most of the maltose (80 per cent or more) in the solution being perfused, a much greater proportion than was absorbed. Glucose absorptive capacity, measured on an intestinal dry weight basis, was greatest in the duodenum and progressively less in the jejunum and ileum. The rate of water uptake f ran the gut was increased by the presence of glucose in the lumen, and was linked to glucose uptake as shown by the inhibition of water uptake by phlorizin. Uptake of glucose by solvent drag was demonstrated by showing an increased rate of glucose uptake when the rate of water uptake was increased by perfusing a solution of reduced osmotic pressure. In the experiment a low intra-luminal glucose concentration was used to preclude net uptake by diffusion and active uptake was blocked with phlorizin. This process was further investigated using streptozotocin-diabetic rats in which the diabetes establishes a hyperosomotic blood with hyperglycaemia. Uptake by solvent drag was more obvious in diabetic animals. A back-diffusion (exsorption) of glucose from the tissues to the lumen was also shown; the rate being proportional to plasma glucose concentration. Vitamin A deficiency was established in weanling rats after 6-7 weeks feeding on a diet based on wheat starch, coconut oil, and casein washed with hot ethanol, together with vitamins and minerals. The vitamin A deficiency led to classic eye signs and was reversed by the addition to the diet of retinoic acid (5 g/g diet). Vitamin A deficiency decreased intestinal mucus production (dry weight) but had no detectable effect on the histology of the villous epithelium as shown under the light microscope. Using perfusion experiments it was shown that vitamin A deficiency had no significant effect on the rate of active uptake of glucose, but that deficiency increased the rate of passive uptake.

Measuring the performance of a regional cluster in innovation facilitation

Regional industry clusters have been promoted for several years as effective mechanisms to assist firms become more innovative and more competitive. But do they really achieve this goal, and more importantly, just how should an assessment of cluster performance in supporting and facilitating innovation within its members, be undertaken? In this paper we report on a study of a regional IT cluster in Western Sydney, Australia, develop some criteria for assessing the innovation facilitation performance of industry clusters, and discuss the cluster in relation to these criteria. We suggest that engagement with a cluster may enhance the innovation capacity of a firm, and the type of required innovation support varies significantly with the maturity and absorptive capacity of individual firms.

Social capital for knowledge management : the case of small and medium-sized enterprises in the Asia-Pacific Region

This article proposes a conceptual framework that explains that the social capital of a community shapes the innovation performance of small and medium-sized enterprises (SMEs) through knowledge management within the firm. The study's significance stems from the unprecedented effort in explaining how community social capital matters in the innovation performance of SMEs, a departure from previous studies that have typically examined market-related or hierarchical social capital in the form of formal networks and directly linked them to a firm's innovation performance without due regard for knowledge management within the firm as an antecedent of organisational innovation performance. The aim is to stimulate further thinking and empirical research on the subject of social capital of a community in the SME and/or entrepreneurial context.

Enabling innovation in information technology outsourcing : an empirical study

Information technology outsourcing has become a pervasive and important phenomenon in business organizations and there is substantial evidence about its benefits and pitfalls. Initially, firms used outsourcing as a way to lower costs, gain access to expertise and focus on core activities. Recently, there is a shift in focus and more firms are outsourcing to attain innovative products and services. However, current research is still unclear about how innovation can be achieved through outsourcing. Drawing predominantly from the dynamic capability theory, the objective of this paper is to explore how absorptive capacity unfolds as a process within and between firms when client firms outsource their information technology services with expectations of innovation generation. In this paper, we propose a research model that links absorptive capacity to innovation generation. We draw on three case studies to focus on how absorptive capacity, as a process, impacts innovation generation. Results show that assimilation and transformation stages are critical in generating radical innovation while acquisition and exploitation play a key role in incremental innovation. The implications of these findings for both researchers and practitioners are discussed.