Strategy Competition

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By Dorothée Zerwas

Firms are more and more participating with outdoor companions to entry exterior wisdom that may permit them to effectively innovate and stay aggressive available to buy. to use exterior wisdom, they have to have a particular skill to take in wisdom. one of many major influencing elements for absorptive capability is a knowledge-friendly organizational tradition, as the wisdom soaking up habit of people should be larger coordinated via implicit values and norms than via structural coordination tools. whilst concentrating on an organization’s total habit, you will need to examine intimately how a knowledge-friendly organizational tradition impacts absorptive potential. as a result, the writer research the connection among organizational tradition and absorptive potential and indicates how a knowledge-friendly organizational tradition can be designed to aid the absorption of exterior wisdom in SMEs.

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Extra info for Organizational Culture and Absorptive Capacity: The Meaning for SMEs

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By having already developed some absorptive capacity in a particular area, a firm may more readily accumulate what additional knowledge it needs in the subsequent periods in order to exploit any critical external knowledge that may become available” (Cohen & Levinthal 1990, p. ). 2 The Conceptual Principles 33 In summary, a firm’s prior knowledge enables it to add value to incoming factors of production, namely external knowledge, in a unique manner that allows the firm to gain competitive advantage (cf.

Therefore, it is important that some prior knowledge be very closely related to the new knowledge to facilitate the absorption of external knowledge. This can be explained as follows: “Accumulating absorptive capacity in one period will permit its more efficient accumulation in the next. By having already developed some absorptive capacity in a particular area, a firm may more readily accumulate what additional knowledge it needs in the subsequent periods in order to exploit any critical external knowledge that may become available” (Cohen & Levinthal 1990, p.

The first problem area includes unresolved questions with respect to the parameters of a model of SMEs’ external knowledge absorption. It is unclear which dimensions of the prevailing organizational culture influence the several capabilities of SMEs’ absorptive capacity; moreover, it is also uncertain which indicators can be used to measure the 2. dimensions of a knowledge-friendly organizational culture. The second problem area that is addressed by this thesis involves unresolved questions with respect to the relationship between the dimensions of organizational culture and the capabilities of absorptive capacity.

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