Keep Innovating: Absorptive Capacity and the Performance of Brazilian Information Technology Companies

Cardozo, Claudio Testoni; Kronmeyer, Oscar Rudy; Vaccaro, Guilherme Luis Roehe

doi:10.1590/1982-7849rac2019180221

Claudio Testoni Cardozo

Universidade do Vale do Rio dos Sinos, Programa de Mestrado em Gestão e Negócios, Porto Alegre, RS, Brasil

https://orcid.org/0000-0002-5672-6084

Oscar Rudy Kronmeyer Filho

Universidade do Vale do Rio dos Sinos, Programa de Mestrado em Gestão e Negócios, Porto Alegre, RS, Brasil

https://orcid.org/0000-0002-8964-5483

Guilherme Luis Roehe Vaccaro

Universidade do Vale do Rio dos Sinos, Programa de Mestrado em Gestão e Negócios, Porto Alegre, RS, Brasil

https://orcid.org/0000-0001-9992-7380

Editor-in-chief: Prof. Wesley Mendes-Da-Silva.

Authors

Claudio Testoni Cardozo Av. Dr. Nilo Peçanha, 1640, 91330-002, Porto Alegre, RS, Brasil E-mail address: ccardozo29@gmail.com; ctcardozo@edu.unisinos.br

Oscar Rudy Kronmeyer Filho Av. Dr. Nilo Peçanha, 1640, 91330-002, Porto Alegre, RS, Brasil E-mail address: kronmeyer@unisinos.br

Guilherme Luis Roehe Vaccaro Av. Dr. Nilo Peçanha, 1640, 91330-002, Porto Alegre, RS, Brasil E-mail address: guilhermev@unisinos.br; claris.lucasmachado@gmail.com

Contributions

1st author: Conceived the presented idea. Participates in drafting the article and revising it critically. Developed the theory, verified the analytical methods, interpretation of the results, wrote the manuscript in consultation with 2nd and 3rd authors.

2nd author: Substantial contributions to conception and design. This author participates in drafting the article and revising it critically for important intellectual content. This author gives final approval of the version to be submitted and all posterior revised version.

3rd author: Participates in drafting the article and revising it critically. This author had substantial contributions to conception and design. Performed the computations and final approval of the version to be submitted and all posterior revised version.

Conflict of Interest

The authors have stated that there is no conflict of interest.

Author(s)	Focus of the study
García-Sánchez, García-Morales and Martín-Rojas (2018)García-Sánchez, E., García-Morales, V. J., Martín-Rojas, R. (2018). Influence of technological assets on organizational performance through absorptive capacity, organizational innovation and internal labour flexibility. Sustainability, 10(3), 770-794. http://doi.org/10.3390/su10030770 http://doi.org/10.3390/su10030770...	A sample of 160 European technology companies shows improvement in organizational performance through the positive influence on potential and realized ACAP.
Rangus, Drnovšek, Di Minin, and Spithoven (2017)Rangus, K., Drnovšek, M., Di Minin, A., & Spithoven, A. (2017). The role of open innovation and absorptive capacity in innovation performance: Empirical evidence from Slovenia. Journal of East European Management Studies, 22(1), 39-62. https://doi.org/10.5771/0949-6181-2017-1-39 https://doi.org/10.5771/0949-6181-2017-1...	The authors examine how ACAP and open innovation interact to impact on innovation performance, based on a large dataset of companies operating in Slovenia. The results show the positive effect of ACAP on innovation performance.
Rangus and Slavec (2017)Rangus, K., Slavec, A. (2017). The interplay of decentralization, employee involvement and absorptive capacity on firms’ innovation and business performance. Technological Forecasting and Social Change, 120, 195-203. https://doi.org/10.1016/j.techfore.2016.12.017 https://doi.org/10.1016/j.techfore.2016....	Using a sample of 421 manufacturing and services firms, the results suggest that ACAP impacts on a firm’s innovation, which in turn affects organizational performance.
Adams et al. (2016)Adams, D. R., Flatten, T. C., Brinkmann, H., Brettel, M. (2016). Consequences and antecedents of absorptive capacity in a cross-cultural context. International Journal of Innovation Management, 20(1), https://doi.org/10.1142/S1363919616500031 https://doi.org/10.1142/S136391961650003...	This study investigates the relationship between ACAP and organizational performance in Austria, Brazil, Germany, India, Singapore, and the United States, using a sample in several industries. It shows a positive relationship between ACAP and organizational performance.
Najafi-Tavani, Najafi-Tavani, Naudé, Oghazi, and Zeynaloo (2018)Najafi-Tavani, S., Najafi-Tavani, Z., Naudé, P., Oghazi, P., Zeynaloo, E. (2018). How collaborative innovation networks affect new product performance: Product innovation capability, process innovation capability, and absorptive capacity. Industrial Marketing Management, 73, 193-205. https://doi.org/10.1016/j.indmarman.2018.02.009 https://doi.org/10.1016/j.indmarman.2018...	Survey data from 258 Iranian companies in high and medium technology manufacturing industries show that the effects of collaborative innovation networks on either product or process innovation capability are significant only in the presence of ACAP.
Wu and Voss (2015)Wu, A., Voss, H. (2015). When does absorptive capacity matter for international performance of firms? Evidence from China. International Business Review, 24(2), 344-351. https://doi.org/10.1016/j.ibusrev.2014.08.006 https://doi.org/10.1016/j.ibusrev.2014.0...	The influence of ACAP on organizational performance is positive in Chinese companies, using a sample from the manufacturing sector and other diversified industries including textiles, telecommunications, and chemicals.

Variable	F1	F2	F3	F4	F5	F6
V1			0.642
V2			0.723
V3			0.813
V5				0.737
V6				0.620
V7				0.579
V8				0.627
V9					0.836
V10					0.752
V11					0.793
V12					0.776
V14						0.561
V15						0.846
V16						0.595
V17	0.591
V18	0.704
V19	0.654
V20	0.682
V21		0.871
V22		0.811
V23		0.828
V24		0.712

	CR	AVE	AC	AS	TR	EX	CP	IP
First-order factor constructs
AC	0.750	0.511	0.715
AS	0.844	0.576	0.671	0.759
TR	0.883	0.654	0.499	0.614	0.809
EX	0.920	0.800	0.473	0.686	0.584	0.894
CP	0.886	0.722	0.311	0.426	0.366	0.318	0.850
IP	0.887	0.663	0.476	0.684	0.525	0.585	0.726	0.814

Second-order factor constructs			Potential ACAP	Realized ACAP	OP

Potential ACAP	0.829	0.714	0.845
Realized ACAP	0.747	0.597	0.877	0.773
OP	0.899	0.826	0.633	0.659	0.909

Correlation	χ² constrained model	χ² unconstrained model	Difference	Sig.
Potential ACAP ↔ Realized ACAP	97.712	93.251	4.461	0.035

	Frequency	Percentage	Cumulative Percentage

Position
President	14	10.8	10.8
Director	42	32.3	43.1
Manager	38	29.2	72.3
Supervisor	15	11.5	83.8
Other	21	16.2	100.0
Until 9 employees	13	10.0	10.0
Between 10 and 49 employees	60	46.2	56.2
Between 50 and 99 employees	20	15.4	71.5
More than 100 employees	37	28.5	100.0

Potential ACAP is manifested by	Realized ACAP is manifested by
Interaction, trust, respect, friendship, reciprocity, a common language, and complementarity (Jiménez-Barrionuevo et al., 2011Jiménez-Barrionuevo, M. M., García-Morales, V. J., Molina, L. M. (2011). Validation of an instrument to measure absorptive capacity. Technovation, 31(5/6), 190-202. https://doi.org/10.1016/j.technovation.2010.12.002 https://doi.org/10.1016/j.technovation.2... ).	Communication, meetings, documents, projects, processes, deadlines, and flows (Jiménez-Barrionuevo et al., 2011Jiménez-Barrionuevo, M. M., García-Morales, V. J., Molina, L. M. (2011). Validation of an instrument to measure absorptive capacity. Technovation, 31(5/6), 190-202. https://doi.org/10.1016/j.technovation.2010.12.002 https://doi.org/10.1016/j.technovation.2... ).
What potential ACAP demands	What potential ACAP demands
Changes, flexibility, and creativity (Cepeda-Carrion et al., 2012Cepeda‐Carrion, G., Cegarra‐Navarro, J. G., Jimenez‐Jimenez, D. (2012). The effect of absorptive capacity on innovativeness: Context and information systems capability as catalysts. British Journal of Management, 23(1), 110-129. https://doi.org/10.1111/j.1467-8551.2010.00725.x https://doi.org/10.1111/j.1467-8551.2010... ; Rangus & Slavec, 2017Rangus, K., Slavec, A. (2017). The interplay of decentralization, employee involvement and absorptive capacity on firms’ innovation and business performance. Technological Forecasting and Social Change, 120, 195-203. https://doi.org/10.1016/j.techfore.2016.12.017 https://doi.org/10.1016/j.techfore.2016.... ).	Order, control, and stability (Jansen et al., 2005Jansen, J. J., Van Den Bosch, F. A., & Volberda, H. W. (2005). Managing potential and realized absorptive capacity: How do organizational antecedents matter? Academy of Management Journal, 48(6), 999-1015.; Vega-Jurado et al., 2008)Vega‐Jurado, J., Gutiérrez‐Gracia, A., Fernández‐de‐Lucio, I. (2008). Analyzing the determinants of firm’s absorptive capacity: Beyond R&D. R&D Management, 38(4), 392-405. https://doi.org/10.1111/j.1467-9310.2008.00525.x https://doi.org/10.1111/j.1467-9310.2008... .
How to increase potential ACAP	How to increase realized ACAP
R&D investment (Murovec & Prodan, 2009)Murovec, N., Prodan, I. (2009). Absorptive capacity, its determinants, and influence on innovation output: Cross-cultural validation of the structural model. Technovation, 29(12), 859-872. https://doi.org/10.1016/j.technovation.2009.05.010 https://doi.org/10.1016/j.technovation.2... .	R&D investment (Murovec & Prodan, 2009)Murovec, N., Prodan, I. (2009). Absorptive capacity, its determinants, and influence on innovation output: Cross-cultural validation of the structural model. Technovation, 29(12), 859-872. https://doi.org/10.1016/j.technovation.2009.05.010 https://doi.org/10.1016/j.technovation.2... .
Staff participation in decision-making (Jansen et al., 2005)Jansen, J. J., Van Den Bosch, F. A., & Volberda, H. W. (2005). Managing potential and realized absorptive capacity: How do organizational antecedents matter? Academy of Management Journal, 48(6), 999-1015.	Freedom to express opinions (Cepeda-Carrion et al., 2012)Cepeda‐Carrion, G., Cegarra‐Navarro, J. G., Jimenez‐Jimenez, D. (2012). The effect of absorptive capacity on innovativeness: Context and information systems capability as catalysts. British Journal of Management, 23(1), 110-129. https://doi.org/10.1111/j.1467-8551.2010.00725.x https://doi.org/10.1111/j.1467-8551.2010... .
A linkage between professionals and the scientific community (Vega-Jurado et al., 2008)Vega‐Jurado, J., Gutiérrez‐Gracia, A., Fernández‐de‐Lucio, I. (2008). Analyzing the determinants of firm’s absorptive capacity: Beyond R&D. R&D Management, 38(4), 392-405. https://doi.org/10.1111/j.1467-9310.2008.00525.x https://doi.org/10.1111/j.1467-9310.2008... .	A linkage between professionals and the scientific community (Vega-Jurado et al., 2008)Vega‐Jurado, J., Gutiérrez‐Gracia, A., Fernández‐de‐Lucio, I. (2008). Analyzing the determinants of firm’s absorptive capacity: Beyond R&D. R&D Management, 38(4), 392-405. https://doi.org/10.1111/j.1467-9310.2008.00525.x https://doi.org/10.1111/j.1467-9310.2008... .
Positive attitudes towards change (Murovec & Prodan, 2009)Murovec, N., Prodan, I. (2009). Absorptive capacity, its determinants, and influence on innovation output: Cross-cultural validation of the structural model. Technovation, 29(12), 859-872. https://doi.org/10.1016/j.technovation.2009.05.010 https://doi.org/10.1016/j.technovation.2... .	The value of learning and risks taken (Cepeda-Carrion et al., 2012)Cepeda‐Carrion, G., Cegarra‐Navarro, J. G., Jimenez‐Jimenez, D. (2012). The effect of absorptive capacity on innovativeness: Context and information systems capability as catalysts. British Journal of Management, 23(1), 110-129. https://doi.org/10.1111/j.1467-8551.2010.00725.x https://doi.org/10.1111/j.1467-8551.2010... .
Interaction between the organization, its customers, and its suppliers (Ndiege, Herselman, & Flowerday, 2012Ndiege, J. R., Herselman, M. E., Flowerday, S. V. (2012). Absorptive capacity: Relevancy for large and small enterprises. South African Journal of Information Management, 14(1), 1-9. https://doi.org/10.4102/sajim.v14i1.520 https://doi.org/10.4102/sajim.v14i1.520... ; Oliveira, 2016)Oliveira, D. M. L. de (2016). Mensuração da capacidade absortiva. Proposta e validação de fatores de mensuração para organizações intensivas em conhecimento de Minas Gerais (Dissertação mestrado). Pontifícia Universidade Católica de Minas Gerais, Belo Horizonte, MG, Brasil..	Internal and external connectivity (Rangus & Slavec, 2017)Rangus, K., Slavec, A. (2017). The interplay of decentralization, employee involvement and absorptive capacity on firms’ innovation and business performance. Technological Forecasting and Social Change, 120, 195-203. https://doi.org/10.1016/j.techfore.2016.12.017 https://doi.org/10.1016/j.techfore.2016.... .
Informal relations (Tu, Vonderembse, Ragu-Nathan, & Sharkey, 2006).	Formalizing internal processes (Vega-Jurado et al., 2008)Vega‐Jurado, J., Gutiérrez‐Gracia, A., Fernández‐de‐Lucio, I. (2008). Analyzing the determinants of firm’s absorptive capacity: Beyond R&D. R&D Management, 38(4), 392-405. https://doi.org/10.1111/j.1467-9310.2008.00525.x https://doi.org/10.1111/j.1467-9310.2008... .
Knowledge diversity (Grace, 2012)Grace, C. B. H. (2012). Conceptualising the theory of absorptive capacity with team diversity. Pertanika Journal of Social Sciences & Humanities, 20(3), 721-732..	Internal R&D (Vega-Jurado et al., 2008)Vega‐Jurado, J., Gutiérrez‐Gracia, A., Fernández‐de‐Lucio, I. (2008). Analyzing the determinants of firm’s absorptive capacity: Beyond R&D. R&D Management, 38(4), 392-405. https://doi.org/10.1111/j.1467-9310.2008.00525.x https://doi.org/10.1111/j.1467-9310.2008... .
Relevant previous knowledge (Tu et al., 2006)Tu, Q., Vonderembse, M. A., Ragu-Nathan, T. S., Sharkey, T. W. (2006). Absorptive capacity: Enhancing the assimilation of time-based manufacturing practices. Journal of Operations Management, 24(5), 692-710. https://doi.org/10.1016/j.jom.2005.05.004 https://doi.org/10.1016/j.jom.2005.05.00... .	Collaborative culture (Najafi-Tavani, Najafi-Tavani, Naudé, Oghazi, & Zeynaloo, 2018Najafi-Tavani, S., Najafi-Tavani, Z., Naudé, P., Oghazi, P., Zeynaloo, E. (2018). How collaborative innovation networks affect new product performance: Product innovation capability, process innovation capability, and absorptive capacity. Industrial Marketing Management, 73, 193-205. https://doi.org/10.1016/j.indmarman.2018.02.009 https://doi.org/10.1016/j.indmarman.2018... ).

[1] Editor-in-chief: Prof. Wesley Mendes-Da-Silva.

Authors

Claudio Testoni Cardozo Av. Dr. Nilo Peçanha, 1640, 91330-002, Porto Alegre, RS, Brasil E-mail address: ccardozo29@gmail.com; ctcardozo@edu.unisinos.br

Oscar Rudy Kronmeyer Filho Av. Dr. Nilo Peçanha, 1640, 91330-002, Porto Alegre, RS, Brasil E-mail address: kronmeyer@unisinos.br

Guilherme Luis Roehe Vaccaro Av. Dr. Nilo Peçanha, 1640, 91330-002, Porto Alegre, RS, Brasil E-mail address: guilhermev@unisinos.br; claris.lucasmachado@gmail.com

Brasil

Brasil

Keep Innovating: Absorptive Capacity and the Performance of Brazilian Information Technology Companies

Continue Inovando: Capacidade Absortiva e o Desempenho de Empresas Brasileiras de Tecnologia da Informação

Abstract