The realized absorptive capacity: The process of transformation and exploitation of knowledge. A study in two scenarios, Colombia and Brazil

Journal of Industrial Engineering and Management JIEM, 2018 – 11(4): 617-631 – Online ISSN: 2013-0953 – Print ISSN: 2013-8423 https://doi.org/10.3926/jiem.2634 Study of the Realized Absorptive Capacity in the Organizations of Colombia and Brazil Elkin Olaguer Pérez Sánchez1 , Iván-Darío Toro-Jaramillo2 1 2 Universidad de Medellin (Colombia) Universidad Pontificia Bolivariana (Colombia) , Received: April 2018 Accepted: May 2018 Abstract: Purpose: The transformation and exploitation of knowledge are part of the absorptive capacity carried out. The article presents, from a linear regression model, the analysis of these two dimensions in 155 organizations in Brazil and 61 in Colombia. Design/methodology/approach: The methodology uses analysis of variance method and a linear regression model. the results and conclusions show a positive linear correlation between transformation and exploitation of external knowledge inside the studied organizations. Findings: The analysis of variance method and a linear regression model applied to a sample of 61 Colombian SMEs (DANE, 2012) and 155 SMEs of Brazilian ones (IBGE, 2011), results showed the positive linear correlation between the variables “transformation” and “exploitation” of knowledge, which shows interdependence between these two dimensions that make up the realized absorptive capacity. Practical implications: Research helps to show that if a high level of development of the capacity of knowledge transformation leads to a high level of organizational knowledge exploitation is verified. Originality/value: The empirical demonstration of the relationship between the dimensions that are part of the absorption capacity carried out, has been very little proven in the world. The research presents the first measurement that in organizations of Brazil and Colombia is carried out on the absorption capacity carried out. Keywords: absorptive capacity, realized absorptive capacity, transformation, exploitation To cite this article: Perez, E., & Toro-Jaramillo, I.D. (2018). Study of the Realized Absorptive Capacity in the Organizations of Colombia and Brazil. Journal of Industrial Engineering and Management, 11(4), 617-631. https://doi.org/10.3926/jiem.2634 -617- Journal of Industrial Engineering and Management – https://doi.org/10.3926/jiem.2634 1. Introduction Organizational learning (Kogut, Zander, 1992; Davenport & Prusak, 2000; Friedman, Lipshitz & Popper, 2005), and, in particular, the development of absorptive capacity, one of the key factors of this learning (Cohen & Levhintal, 1990), is currently a prominent issue in the organizational context (Flatten, Engelen, Zahra & Brettel, 2011). The transfer of knowledge is a critical aspect for the survival of organizations in the long term (Zahra & George, 2002; Murovec & Prodan, 2009), and within it is internal learning as a determining factor (Szulanski, 1996; Pérez-Nordtverdt, Kedia, Datta & Rasheed, 2008; Jansen, 2005; Lucas & Ogilvie, 2006; Wijk, Jansen & Lyles, 2008). In the analysis of organizational learning, attention should be given to the development of absorptive capacity (ACAP) as one of the processes that favors the achievement of a sustainable competitive advantage for the organizations (Grant, 1996; Jansen, Van den Bosch & Volberda, 2005; Lichtenthaler & Lichtenthaler, 2009; McEvily & Chakravarthy, 2002). It allows greater profitability and organizational survival (Czarnitzki & Kraft, 2004, Geroski, Machin & Van Reenen, 1993; Hall, 2000; McAdam, Antony, Kumar & Hazlett, 2014) and plays a determining role for organizational innovation (Czarnitzki & Kraft, 2004; Chalmers & Balan-Vnuk, 2012; Geroski et al., 1993; Hall, 2000; Lane, Koka & Pathak (2006); Lengnick-Hall & Inocencio-Gray, 2013; Tzabbar & Kehoe, 2014; Zahra & George, 2002). Camisón, Forés and Puig (2009) presented absorptive capacity as one of the constructs that has been most discussed in literature in recent years, referring to it as a skill that favors identification, assimilation and application of valuable external knowledge (Cohen & Levinthal, 1990; Lane, Salk & Lyles, 2001; Lane & Lubatkin, 1998; Mowery, Oxley & Silverman, 1996; Todorova & Durisin, 2007), or as a four-dimensional capacity (Jansen et al., 2005; Jiménez-Barrionuevo, García-Morales & Molina, 2011; Kim, 1998; Lane et al., 2006; Lichtenthaler & Lichtenthaler, 2009; Szulanski, 1996; Zahller, 2012; Zahra & George, 2002). These authors considered it as a dynamic capacity, made up of two components and four dimensions, so that the enterprise acquires, assimilates, transforms and exploits external knowledge, and it is finally analyzed as a factor of organizational learning (Hernández-Perlines & Yáñez-Araque, 2015). In addition to certain theoretical contributions, an empirical study on realized absorptive capacity (RACAP) is also presented in the article, since, according to Knoppen, Sáenz and Johnston (2011), there are few studies whose purpose is empirical measurement of each of the PACAP’s dimensions. The study, carried out in two phases, presents the level of development of transformation and exploitation, the dimensions of the realized absorptive capacity. The article includes a review of literature about the realized absorptive capacity and the corresponding hypotheses. Next, the article presents the data, variables and methodology used for the development of the linear regression model applied in the research, one of the first to be carried out in Colombia and Brazil, which allows measuring the realized absorptive capacity in SMEs. Finally, the discussion of the empirical results, its subsequent analysis and some conclusions are presented. 2. Theoretical Background 2.1. Realized Absorptive Capacity Zahra and George (2002) present potential and realized absorptive capacities as two components of organizational absorptive capacity. The aforementioned authors express that the two components play different roles, although complementary in the achievement of diverse results of the Enterprise and, in addition, the way in which each enterprise develops them is particular and specific. Zahra and George (2002) propose two dimensions for the realized absorptive capacity: knowledge transformation capacity (related to the enterprise’s abilities of linking its own knowledge to innovations produced in the Market; integrating internal technology with the one produced abroad; making adjustments inside Enterprise; and adapting strategies based on environment’s knowledge) and exploitation capacity (understood as the enterprise’s ability of using new products or services; acquiring knowledge; using environment’s knowledge for making -618- Journal of Industrial Engineering and Management – https://doi.org/10.3926/jiem.2634 technology adjustments; modifying existing products using innovations and ideas developed elsewhere; and exploiting results of developed innovations through new products and services). Table 1 shows, because of review of litera (...truncated)