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Organizational Absorptive Capacity and Responsiveness: An Empirical Investigation of Growth–Oriented SMEs

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  • Jianwen Liao
  • Harold Welsch
  • Michael Stoica

Abstract

This study examines the relationship between firm absorptive capacity and organizational responsiveness in the context of growth–oriented small and medium–sized enterprises (SMEs). By testing the different dimensions of absorptive capacity, external knowledge acquisition and intrafirm knowledge dissemination were found to be positively related to organizational responsiveness. In addition, the relationships between absorptive capacity and organizational responsiveness were moderated by environmental dynamism and the SMEs’ strategic orientation. Results demonstrate that the responsiveness of growth–oriented SMEs is expected to increase if (1) they have well–developed capabilities in external knowledge acquisition and intrafirm knowledge dissemination; (2) they have a well–developed external knowledge acquisition capability and adopt a more proactive strategy, such as being a prospector; (3) they face a turbulent environment and have a well developed internal knowledge dissemination capability. Implications and future research directions are provided.

Suggested Citation

  • Jianwen Liao & Harold Welsch & Michael Stoica, 2003. "Organizational Absorptive Capacity and Responsiveness: An Empirical Investigation of Growth–Oriented SMEs," Entrepreneurship Theory and Practice, , vol. 28(1), pages 63-86, January.
    • Handle: RePEc:sae:entthe:v:28:y:2003:i:1:p:63-86
    DOI: 10.1111/1540-8520.00032
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