An exploratory study of Principal Investigator roles in UK University Proof-of-Concept processes: an Absorptive capacity perspective

The increasing emphasis on academic entrepreneurship, technology transfer and research commercialisation within UK universities is predicated on basic research being developed by academics into commercial entities such as university spin-off companies or licensing arrangements. However, this process is fraught with challenges and risks, given the degree of uncertainty regarding future returns. In an attempt to minimise such risks, the Proof-of-Concept (PoC) process has been developed within University Science Park Incubators (USIs) to test the technological, business and market potential of embryonic technology. The key or the pivotal stakeholder within the PoC is the Principal Investigator (PI), who is usually the lead academic responsible for the embryonic technology. Within the current literature, there appears to be a lack of research pertaining to the role of the PI in the PoC process. Moreover, Absorptive Capacity (ACAP) has emerged within the literature as a theoretical framework or lens for exploring the development and application of new knowledge and technology, where the USI is the organisation considered in the current study. Therefore, the aim of this paper is to explore the role and influence of the PI in the PoC process within a USI setting using an ACAP perspective. The research involved a multiple case analysis of PoC applications within a UK university USI. The results demonstrate the role of the PI in developing practices and routines within the PoC process. These practices and processes were initially tacit and informal in nature but became more explicit and formal over time so that knowledge was retained within the USI after the PIs had completed the PoC process. © 2010 The Authors. R&D Management © 2010 Blackwell Publishing Ltd.

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.

Managing open incremental process innovation : absorptive capacity and distributed learning

In this conceptual article, we extend earlier work on Open Innovation and Absorptive Capacity. We suggest that the literature on Absorptive Capacity does not place sufficient emphasis on distributed knowledge and learning or on the application of innovative knowledge. To accomplish physical transformations, organisations need specific Innovative Capacities that extend beyond knowledge management. Accessive Capacity is the ability to collect, sort and analyse knowledge from both internal and external sources. Adaptive Capacity is needed to ensure that new pieces of equipment are suitable for the organisation's own purposes even though they may have been originally developed for other uses. Integrative Capacity makes it possible for a new or modified piece of equipment to be fitted into an existing production process with a minimum of inessential and expensive adjustment elsewhere in the process. These Innovative Capacities are controlled and coordinated by Innovative Management Capacity, a higher-order dynamic capability.

The distribution of absorptive capacity among construction supply chain participants

The absorptive capacity of organisations is one of the key drivers of innovation performance in any industry. This research seeks to refine our understanding of the relationship between absorptive capacity and innovation performance, with a focus on characterising the absorptive capacity of the different participant groups within the Australian road industry supply chain. One of the largest and most comprehensive surveys ever undertaken of innovation in road construction was completed in 2011 by the Queensland University of Technology (QUT), based on the Australian road industry. The survey of over 200 construction industry participants covered four sectors, comprising suppliers (manufacturers and distributors), consultants (engineering consultants), contractors (head and subcontractors) and clients (state government road agencies). The survey measured the absorptive capacity and innovation activity exhibited by organisations within each of these participant groups, using the perceived importance of addressing innovation obstacles as a proxy for innovation activity. One of the key findings of the survey is about the impact of participant competency on product innovation activity. The survey found that the absorptive capacity of industry participants had a significant and positive relationship with innovation activity. Regarding the distribution of absorptive capacity, the results indicate that suppliers are more likely to have high levels of absorptive capacity than the other participant groups, with 32% of suppliers showing high absorptive capacity, ahead of contractors (18%), consultants (11%), and clients (7%). These results support the findings of previous studies in the literature and suggest the importance of policies to enhance organisational learning, particularly in relation to openness to new product ideas.

The informed manager : exploring absorptive capacity in the non-profit sector

Being across new knowledge is critical to the survival of individual businesses. This study explored the way in which managers of small social services in Queensland identified important new knowledge and brought this into their organisations. New knowledge was found to be highly valued by managers with key resources allocated to knowledge seeking processes particularly in response to regulatory change. Knowledge absorption involved accessing multiple sources, and external professional networks were found to be critical to understanding and integrating new knowledge. The research highlighted the challenges in securing new knowledge and the importance of managers professional links.

Capable but not able : the effect of institutional context and search breadth on the absorptive capacity-corporate entrepreneurship relationship

This study investigates how the interaction of institutional market orientation and external search breadth influence the ability to use absorptive capacity to raise the level of corporate entrepreneurship. The findings of a sample of 331 supplier companies providing products and services to the mining industry of Australia and Iran indicate that the positive association between absorptive capacity and corporate entrepreneurship is stronger for companies with greater external knowledge search breadth. Moreover, operating in a less market-oriented institutional context such as, Iran diminishes the ability to utilise a firm’s absorptive capacity to raise their level of corporate entrepreneurship. Yet, firms operating in such contexts are able to overcome these disadvantages posed by their institutional context by engaging in broader external search of knowledge.

The moderating role of entrepreneurial management in the relationship between absorptive capacity and corporate entrepreneurship : an attention-based view

Building on the attention-based view, we argue that companies need a challenging mechanism to focus their absorptive capacity attention on corporate entrepreneurship versus mainstream activities or other purposes. We suggest entrepreneurial management as the attential driver for deploying absorptive capacity towards corporate entrepreneurship. From our analysis of a sample of 331 supplier companies providing products and services to the mining industry of Australia and Iran, we observe that absorptive capacity positively affects corporate entrepreneurship. The data also demonstrate that the effect of absorptive on corporate entrepreneurship increases when firms adopt the entrepreneurial culture and reward systems. However, the entrepreneurial growth and resource orientations negatively moderate the relationship between absorptive capacity and corporate entrepreneurship.

Cultural differences and capability transfer in cross-border acquisitions: the mediating roles of capability complementarity, absorptive capacity, and social integration

This paper presents an integrative model of the impact of cultural differences on capability transfer in cross-border acquisitions. We propose that cultural differences affect the post-acquisition capability transfer through their impact on social integration, potential absorptive capacity, and capability complementarity. Two dynamic variables – the use of social integration mechanisms, and the degree of operational integration of the acquired unit – are proposed to moderate the effects of cultural differences on social integration and potential absorptive capacity. The implications for acquisition research and practice are discussed.

An absorptive capacity interpretation of Six Sigma

Purpose – The Six Sigma approach to business improvement has emerged as a phenomenon in both the practitioner and academic literature with potential for achieving increased competitiveness and contributing. However, there is a lack of critical reviews covering both theory and practice. Therefore, the purpose of this paper is to critically review the literature of Six Sigma using a consistent theoretical perspective, namely absorptive capacity.

Design/methodology/approach – The literature from peer-reviewed journals has been critically reviewed using the absorptive capacity framework and dimensions of acquisition, assimilation, transformation, and exploitation.

Findings – There is evidence of emerging theoretical underpinning in relation to Six Sigma borrowing from an eclectic range of organisational theories. However, this theoretical development lags behind practice in the area. The development of Six Sigma in practice is expanding mainly through more rigorous studies and applications in service-based environments (profit and not for profit). The absorptive capacity framework is found to be a useful overarching framework within which to situate existing theoretical and practice studies.

Research limitations/implications – Agendas for further research from the critical review, in relation to both theory and practice, have been established in relation to each dimension of the absorptive capacity framework.

Practical implications – The paper shows that Six Sigma is both a strategic and operational issue and that focussing solely on define, measure, analyse, improve control-based projects can limit the strategic effectiveness of the approach within organisations.

Originality/value – Despite the increasing volume of Six Sigma literature and organisational applications, there is a paucity of critical reviews which cover both theory and practice and which suggest research agendas derived from such reviews.