Leicester Castle Business School

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Browsing Leicester Castle Business School by Subject "absorptive capacity"

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    Explaining the entrepreneurial orientation–performance relationship in emerging economies: The intermediate roles of absorptive capacity and improvisation
    (Springer, 2017-10-07) Hughes, Paul; Hodgkinson, Ian R.; Hughes, Mathew; Arshad, Darwina
    Research has established the relevance of entrepreneurial orientation (EO) to firm performance but skepticism remains because of the ambiguity surrounding how EO might improve firm performance. We examine the key concepts of absorptive capacity and improvisation as two alternative learning modes serving as intermediate steps between EO and firm performance. Locating our study within manufacturing SMEs in Malaysia, we find that absorptive capacity enhances the EO–performance relationship, both as a moderator and a mediator. In contrast to expectations, however, improvisation showed no such effects but conferred its own separate benefits instead. We further discuss the different effects of these learning modes on high performance and low performance groups.
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    ItemOpen Access
    Social Capital and Learning Advantages: A Problem of Absorptive Capacity
    (Wiley, 2014-08-20) Hughes, Mathew; Morgan, Robert E.; Ireland, R. Duane; Hughes, Paul
    Theoretically, social capital allows entrepreneurial firms to capitalize on learning advantages of newness and gain access to knowledge as the foundation for improved performance. But this understates its complexity. We consider whether learning through social capital relationships has a direct effect on performance and whether absorptive capacity mediates and moderates this relationship. We find that network-based learning has no direct relationship with performance, but this is mediated in each instance by absorptive capacity and is moderated twice. Our findings challenge the learning advantages of newness thesis and reveal how absorptive capacity can enable business performance from a firm's network relationships.