Effect of Shared Competences in Industrial Districts on Knowledge Creation and Absorptive Capacity
Authors: César Camisón-Zornoza, Beatriz Forés-Julián, Alba Puig-Denia
Abstract:
The literature has argued that firms based in industrial districts enjoy advantages for creating internal knowledge and absorbing external knowledge as a consequence of to the knowledge flows and spillovers that exist in the district. However, empirical evidence to show how belonging to an industrial district affects the business processes of creation and absorption of knowledge is scarce and, moreover, empirical research has not taken into account the influence of variations in the flows of knowledge circulating in each cluster. This study aims to extend empirical evidence on the effect that the stock of shared competencies in industrial districts has on the business processes of creation and absorption of knowledge, through data from an initial study on 952 firms and 35 industrial districts in Spain.
Keywords: Absorptive capacity, industrial district, knowledge creation, organisational learning
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1071766
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1637References:
[1] C. K. Prahalad and G. Hamel, "The core competence of the corporation," Harvard Business Review, vol. 68, no. 3, pp. 79-91, 1990.
[2] D. J. Teece and G. Pisano, "The dynamic capabilities of firms: an introduction," Industrial and Corporate Change, vol. 3, no. 3, pp. 537-556, 1994.
[3] B. Koka, B. and J. Prescott, "Strategic alliances as social capital: a multidimensional view," Strategic Management Journal, vol. 23, pp. 795-816, 2002.
[4] S. A. Zahra and G. George, "Absorptive capacity: a review, reconceptualization, and extension," Academy of Management Review, vol. 27, no. 2, pp. 185-203, 2002.
[5] B.. Uzzi and R. Lancaster, "Relational embeddedness and learning: the case of bank loan managers and their clients," Management Science, vol. 49, no. 4, pp. 383-399, 2003.
[6] D. Teece, G. Pisano and A. Shuen, "Dynamic capabilities and strategic management," Strategic Management Journal, vol. 18, pp. 509-533,1997.
[7] R. Veugelers, "Internal R&D expenditures and external technology sourcing," Research Policy, vol. 26, pp. 303-315, 1997.
[8] K. Atuahene-Gima, "Inward technology licensing as an alternative to internal R&D in new product development: a conceptual framework," Journal of Product Innovation Management, vol. 9, no. 2, pp. 156-167,1992.
[9] F. Vermeulen and H. Barkema, "Learning through acquisitions," Academy of Management Journal, vol. 44, pp. 457-476, 2001.
[10] R. Kumar and K. Nti, "Differential learning and interaction in alliance dynamics: a process and outcome discrepancy model," Organization Science, vol. 9, no. 3, pp. 356-367, 1998.
[11] H. G. Barkema and F. Vermeulen, "International expansion through start-up or acquisition: A learning perspective," Academy of Management Journal, vol. 41, pp. 7-26, 1998.
[12] I. Cockburn and R. Henderson, "Absorptive capacity, coauthoring behavior, and the organization of research in drug discovery," The Journal of Industrial Economics, vol. 46, no. 2, pp. 157-182, 1998.
[13] F. Meyer-Krahmer, and U. Schmoch, "Science-based technologies: university-industry interactions in four fields," Research Policy, vol. 27, no. 8, pp. 835-851, 1998.
[14] R. Rothwell and M. Dodgson, "External linkages and innovation in small and medium-sized enterprises," R+D Management, vol. 21, pp. 125-137, 1991.
[15] W. M. Cohen and D. A. Levinthal, D.A., "Absorptive capacity: a new perspective on learning and innovation," Administrative Science Quarterly, vol. 35, pp. 128-152, 1990.
[16] L. Kim, "Crisis construction and organizational learning: capability building in catching-up at Hyundai Motor," Organization Science, vol. 9, no. 4, pp. 506-521, 1998.
[17] S. Breschi, and F. Lissoni, "Knowledge spillovers and local innovation systems: a critical survey, industrial and corporate change," Oxford University Press, vol. 10, no. 4, pp. 975-1005, 2001.
[18] P. Krugman, "Increasing returns and economic geography," The Journal of Political Economy, vol. 99, pp. 483-499, 1991.
[19] C. Camis├│n, "Shared, competitive, and comparative advantages: a competence-based view of industrial-district competitiveness," Environment and Planning A, vol. 36, pp. 2227-2256, 2004.
[20] A. Saxenian, “The origins and dynamics of production networks in Sillicon Valley,” Research Policy, vol. 20, pp. 423-437, 1991.
[21] M. Piore and C. Sabel, The second industrial divide: possibilities for prosperity. New York: Basic Books, 1984.
[22] S. Brusco, “The Emilian model: productive descentralization and social integration,” Cambridge Journal of Economics, vol. 6, pp. 167-184, 1982.
[23] G. Becattini, “Dal settore industriale al distretto indus-triale,” Rivista di Economia e Politica Industriale, vol. 1, pp. 1-8, 1979.
[24] A. Marshall, Industry and trade. A study of industrial technique and business organization, and of their influences on the condition of various classes and nations. London: Macmillan, 1919.
[25] D. M. DeCarolis and D. L. Deeds, “The impact of stocks and flows of organizational knowledge on firm performance: an empirical investigation of the biotechnology industry,” Strategic Management Journal, vol. 20, pp. 953-968, 1999.
[26] M. H. Lazerson and G. Lorenzoni, “The firms that feed industrial districts: a return to the Italian source,” Industrial and Corporate Change, vol. 8, pp. 238-266, 1999.
[27] A. Malmberg and P. Maskell, “The elusive concept of localization economies: towards a knowledge-based theory of spatial clustering,” Environment and Planning A, vol. 34, no. 3, pp. 429–449, 2002.
[28] C. Lawson, “Towards a competence theory of the region,” Cambridge Journal of Economics, vol. 23, pp. 151-166,1999.
[29] N. J. Foss, “Introduction: the emerging competence perspective,” in Towards a Competence Theory of the Firm, N. J. Foss and C. Knudsen, Eds. London: Routledge, 1996, pp. 1-12.
[30] P. J. Lane and M. Lubatkin, “Relative absorptive capacity and interorganizational learning,” Strategic Management Journal, vol. 19, pp. 461-477, 1998.
[31] J. H. Dyer and H. Singh, “The relational view: cooperative strategy and sources of interorganizational competitive advantage,” Academy of Management Review, vol. 23, no. 4, pp. 660-679, 1998.
[32] F. A. J. Van den Bosch, H. W. Volberda and M. de Boer, M. “Coevolution of firm absorptive capacity and knowledge environment: organizational forms and combinative capabilities,” Organization Science, vol. 10, pp. 551-568, 1999.
[33] P. Lane, B. Koka and S. Pathak, “The reification of absorptive capacity: a critical review and rejuvenation of the construct,” Academy of Management Review, vol. 31, no. 4, pp. 833-863, 2006.
[34] G. Szulanski, “Exploring internal stickiness: impediments to the transfer of best practice within the firm,” Strategic Management Journal, vol. 17, pp. 27-43, 1996.
[35] C. Boari and A. Lipparini, “Networks within industrial districts: organizing knowledge creation and transfer by means moderate hierarchies,” Journal of Management and Governance, vol. 3, no. 4, pp. 339–360, 1999.
[36] G. Dei Ottati, “Co-operation and competition in the industrial district as an organizational model,” European Planning Studies, vol. 2, pp. 463- 485, 1994.
[37] R. D’Aveni and A. Illinich, “Complex patterns of vertical integration in the forest products industry,” Academy of Management Journal, vol. 35, pp. 596-625, 1992.
[38] D. Keeble and F. Wilkinson, “Collective learning and knowledge development in the evolution of regional cluster of high technology SMEs in Europe,” Regional Studies, vol. 33, pp. 295–303, 1999.
[39] M. J. Enright, “Regional clusters and firm strategy,” in The Dynamic Firm, A.D. Chandler, P. Hagström, and O. Sölvell Eds. New York: Oxford University Press, 1998, pp. 318-342.
[40] M. E. Porter and P. Sölvell, “The role of geography in the process of innovation and the sustainable advantage of firms,”. in, The Dynamic Firm, A.D. Chandler, P. Hagström, and O. Sölvell Eds. New York: Oxford University Press, 1998, pp. 440-457.
[41] P. Sölvell and I. Zander “International diffusion of knowledge: isolating mechanisms and the role of the MNE,” in, The Dynamic Firm, A.D. Chandler, P. Hagström, and O. Sölvell Eds. New York: Oxford University Press, 1998, 402–416.
[42] N. Henry and S. Pinch, “Neo-Marshallian nodes, institutional thickness and Britain’s ‘Motor Sport Valley’: thick or thin?,” Environment and Planning A, vol. 33, no. 7, pp. 1169-1183, 2001.
[43] D. Audretsch and M. Feldman, “R&D spillovers and the geography of innovation and production,” The American Economic Review, vol. 86, no. 3, pp. 630-640, 1996.
[44] M. Bellandi, “The industrial district in Marshall,” in Small firms and industrial districts in Italy, E. Goodman and J. Bamford Eds. New York: Routledge, 1989, pp. 136-152.
[45] P. Maskell and A. Malmberg, “Localised learning and industrial competitiveness,” Cambridge Journal of Economics, vol. 23, pp. 167– 185, 1999.
[46] W. Tsai and S. Ghoshal, “Social capital and value creation: the role of intrafirm networks,” Academy of Management Journal, vol. 41, no. 4, pp. 464-476, 1998.
[47] D. W. Brown and A. M. Konrad, “Granovetter was right. The importance of weak ties to a contemporary job search,” Group & Organization Management, vol. 26, pp. 434-462, 2001.
[48] H. Yli-renko, E. Autio and H. J. Sapienza, “Social capital, knowledge acquisition, and knowledge exploitation in young technology-based firms,” Strategic Management Journal, vol. 22, pp. 587-613, 2001.
[49] C. Triglia, “Social capital and local development,” European Journal of Social Theory, vol. 4, no.4, pp. 427-442, 2001.
[50] B. Kogut and U. Zander “What firms do? coordination, identity, and learning,” Organization Science, vol. 7, no. 5, pp. 502-518, 1996.
[51] P. Maskell, “Knowledge creation and diffusion in geographic clusters,” International Journal of Innovation Management, vol. 5, no. 2, pp. 213- 225, 2001.
[52] S. Brusco, “The idea of the industrial district: its genesis,” in Industrial Districts and Inter-firm Cooperation in Italy, F. Pyke, G. Becattini, and W. Sengenberger Eds. Geneva: International Institute for Labour Studies, 1990, pp. 10-19.
[53] B. McEvily and A. Zaheer, “Bridging ties: a source of firm heterogeneity in competitive capabilities,” Strategic Management Journal, vol. 20, no. 12, pp. 1133-1158, 1999.
[54] N. J. Foss and C. A. Koch, “Opportunism, organizational economics, and the network approach,” Scandinavian Journal of Management, vol. 12, pp. 189-205, 1996.
[55] J. Nahapiet and S. Ghoshal, “Social capital, intellectual capital and organizational advantage,” Academy of Management Review, vol. 23, pp. 242-266, 1998.
[56] D. Z. Levin, R. Cross and L. C. Abrams, “Trust and knowledge sharing: a critical combination,” in Creating value with knowledge, L. Prusak, and E. L. Lesser Eds. Oxford: Oxford University Press, 2003, pp. 36-43.
[57] M.A. Rutherford, A. Buchholtz and J. A. Brown, “Examining the relationships between monitoring and incentives in corporate governance,” Journal of Management Studies, vol. 44, pp. 414-430, 2007.
[58] A. Zaheer, B. McEvily and V. Perrone, “Does trust matter? exploring the effects of interorganizational and interpersonal trust on performance,” Organization Science, vol. 9, no. 2, pp. 141-159, 1998.
[59] P. N. Figueiredo, “Does technological learning pay off? Inter-firm differences in technological capability-accumulation paths and operation performance improvement,” Research Policy, vol. 31, no. 1, pp. 73-94, 2002.
[60] S. F. Matusik and M. B. Heeley, “Absorptive capacity in the software industry: identifying dimensions that affect knowledge and knowledge creation activities,” Journal of Management, vol. 31, pp. 549-572, 2005.
[61] D. De Clercq, D. and D. Dimov, D. “Internal knowledge development and external knowledge access in venture capital investment performance,” Journal of Management Studies, vol. 45, no. 3, pp. 585– 612, 2007.
[62] J. S. Gans and S. Stern, “Incumbency and R&D Incentives: licensing the gale of creativity destruction,” Journal of Economics and Management Strategy, vol. 9, no. 4, pp. 485-511, 2000.
[63] D. Chatterji, “Accessing external sources of technology,” Research technology management, vol. 39, no. 2, pp. 48-56, 1996.
[64] M. Zollo and S. G. Winter, “Deliberate learning and the evolution of dynamic capabilities,” Organization Science, vol. 13, no. 3, pp. 339-351, 2002.
[65] A. Arora and A. Gambardella, “Evaluating technological information and utilizing it: scientific knowledge, technological capability, and external linkages in biotechnology,” Journal of Economic Behavior and Organization, vol. 24, pp. 91-114, 1994.
[66] J. M. Pennings and F. Harrianto, F., “Technological networking and innovation implementation,” Organization Science, vol. 3, no. 3, pp. 356-382, 1992.
[67] M. Spence, “Cost reduction, competition, and industry performance,” Econometrica, vol. 52, no. 1, pp. 101-121, 1984.
[68] J. I. Bernstein and M. I. Nadiri, "Research and development and intra-industry spillovers: an empirical application of dynamic duality," The Review of Economic Studies, vol. 56 no. 2, pp. 249-267, 1989.
[69] R. Henderson and I. Cockburn, "Scale, scope and spillover: the determinants of research productivity in drug discovery," RAND Journal of Economics, vol. 27, no. 11, pp. 32-59, 1996.
[70] M. Nieto and P. Quevedo, "Absorptive capacity, technological opportunity, knowledge spillovers, and innovative effort," Technovation, vol. 25, no. 10, pp. 1141-1157, 2005.
[71] N. Harabi, "Appropriability of technical innovations an empirical analysis," Research Policy, vol. 24, no. 6, pp. 981-992, 1995.
[72] R. Veugelers and B. Cassiman, "Make and buy in innovation strategies: evidence from Belgian manufacturing firms," Research Policy, vol. 28, pp. 63-80, 1999.
[73] R. C. Levin and P. C. Reiss, "Cost-reducing and demand-creating R&D with spillovers," The RAND Journal of Economics, vol. 19, no. 4, pp. 538-556, 1988.
[74] C. Chen, "The determinants of knowledge transfer through strategic alliances," Academy of Management Proceedings, H1 -H6, 2004.
[75] W. M. Cohen and R. C. Levin, "Empirical studies of innovation and market structure," in Handbook of Industrial Organization, Volume III, R. Schmalensee and R. Willig Eds New York: Elsevier Science Publishers, 1989 pp. 1060-1107.
[76] R. W. Vossen and B. Nooteboom, "Firm size and participation in R&D," in Determinants of innovation: the message from new indicators, A.H. Kleinknecht Ed. London: MacMillan, 1996, pp. 155-167.
[77] H. E. Aldrich and E. Auster, E., "Even dwarfs started small: liabilities of size and age and their strategic implications," in Research in Organizational Behaviour, vol 8, B.M. Staw and L.L. Cummings Eds. Greenwich, CT: JAI Press, 1986, pp. 16-98.
[78] J. Liao, H. Welsch and M. Stoica„ "Organizational absorptive capacity and responsiveness: an empirical investigation of growth-oriented SMEs," Entrepreneurship:: Theory & Practice, vol. 28, no. 1, pp. 63-86, 2003.
[79] E. Autio, H. J. Sapienza and J. G. Almeida, "Effects of age at entry, knowledge intensity, and imitability on international growth," Academy of Management Journal, vol. 43, no. 5, pp. 909-924, 2000.
[80] N. J. Foss and T. Pedersen, "Transferring knowledge in MNCs. The role of sources of subsidiary knowledge and organizational context," Journal of International Management, vol. 8, no. 1, pp. 49-67, 2002.
[81] M. L. Tushman and E. Romanelli, "Organizational evolution: a metamorphosis model of convergence and reorientation," in Research in organizational behaviour, L.L. Cummings and B.M. Staw Eds. Greenwich, CT: JAI Press, 1985. pp.171-222.
[82] H. Rao and R. Drazin, "Overcoming resource constraints on product innovation by recruiting talent from rivals: a study of the mutual fund industry, 1984-94," Academy of Management Journal, vol. 45, pp. 491¬507, 2002.
[83] A. Zaheer and G. Bell, "Benefiting from network position: firm capabilities, structural holes, and performance," Strategic Management Journal, vol. 26, no. 9, pp. 809-825, 2005.
[84] J. B. Sorensen and T. E. Stuart, "Age, obsolescence, and organizational innovation," Administrative Science Quarterly, vol. 45, no. 1, pp. 81¬112, 2000.
[85] J. C. Anderson and D. W. Gerbing, "Some methods for respecifying measurement models to obtain unidimensional constructs measures," Journal of Marketing Research, vol. 19, pp. 453-460, 1982.
[86] J. F. Hair, R. E. Andersson, R. L. Tatham and W. C. Black, W.C., Multivariate data analysis, Homewood, New JYersey: Prentice Hall, 1998.
[87] R. P. Bagozzi, "Evaluating structural equations models with unobservable variables and measurement error: a comment," Journal of Marketing Research, vol. 18, pp. 375-381, 1981.
[88] P. M. Bentler amd D. G. Bonett, "Significance tests and good-ness-of-fit in the analysis of covariance structures," Psycho-logical Bulletin, vol. 88, no. 3, pp. 588-606, 1980.
[89] K. G. Joreskog, "A general approach to confirmatory maxi- mum likelihood factor analysis," Psychometrica, vol. 34, pp. 183-202, 1969.
[90] P. M. Bentler, Structural equations program manual, Encino, CA: Multivariate Software, 1995.
[91] A. Satorra, and P. M. Bentler, "Corrections to test statistics and standard error in covariance structure analysis," in Latent variables analysis: applications for developmental research, A. Von Eye, & C.C. Clogg Eds. Thousand Oaks, CA: Sage, 1994, pp. 399-419.
[92] C. Dhanaraj and P. W. Beamish, "A resource-based approach to the study of export performance," Journal of Small Business Management, vol. 41, no. 3, pp. 242-261, 2003.
[93] B. B. Nielsen, "An empirical investigation of the drivers of international strategic alliance formation," European Management Journal, vol. 21, pp. 301-322, 2003.
[94] G. J. Hooley, G. E. Greenley, J. W. Cadogan and J. Fahy, "The performance impact of marketing resources," Journal of Business Research, vol. 58, no. 1, pp. 18-27, 2005.
[95] C. Camison, "On how to measure managerial and organizational capabilities," Management Research, vol. 3, no. 1, pp. 27-48, 2005.
[96] V. Garcia-Morales, A. Ruiz-Moreno and F. J. Llorens-Montes, "Effects of Technology absorptive capacity and technology proactivity on organizactional learning, innovation and performance: an empirical examination," Technology Analysis & Strategic Management, vol. 19, no. 4, pp. 527-558, 2007.
[97] G. Churchill, "A paradigm for developing better measures of marketing constructs," Journal of Marketing Research, vol. 16, no. 1, pp. 64-73, 1979.
[98] C. Ichniowsky, K. Shaw and G. Prennushi, "The effect of human resource management practices on productivity," American Economic Review, vol. 87, no. 3 , pp. 291-313, 1997.
[99] K. L. McGraw, D. McMurrer, and L. Bassi, "The learning capacity index: a measurement system for linking capacity to learn and financial performance". Paper presented at the XXII McMaster World Congress, Fourth World Congress on the Management of Intellectual Capital, Hamilton, Ontario, Canada, 2001.
[100] G. F. Templeton, B. R. Lewis and C. A. Snyder, "Development of a measure for the organizational learning construct," Journal of Management Information Systems, vol. 19, no. 2, pp. 175-218, 2002.
[101] D. A. Garvin, "Building a learning organization", Harvard Business Review, July-August, pp. 78-91, 1993.
[102] K. E. Weick and F. Westley, "Organizational learning: affirming an oxymoron,". in Handbook of organizational studies, S.R. Clegg, C.Y. Hardy and W.R. Nord Eds. London: Sage, 1996, pp. 440-458.
[103] S. I. Tannenbaum, "Enhancing continuous learning: diagnostic findings from multiple companies," Human Resource Management, vol. 36, no. 4, pp. 437-452, 1997.
[104] M. Pedler, J. Burgoyne and T. Boydell, The learning company: a strategy for sustainable development, Maidenhead: McGraw-Hill, 1997.
[105] S. C. Goh and G. Richards, "Benchmarking the learning capacity of organizations," European Management Journal, vol. 15, no. 5, pp. 575¬583, 1997.
[106] G. T. M. Hult and 0. C. Ferrell, "Global organizational learning capacity in purchasing: Construct and measurement," Journal of Business Research, vol. 40, no. 2, pp. 97-111, 1997.
[107] A. K. Yeung, D. 0. Ulrich, S. W. Nason and M. A. Von Glinow, Organizational learning capability. Generating and generalizing ideas with impact. New York: Oxford University Press, 1999.
[108] P. Jerez-Gomez, J. Cespedes-Lorente and R. Valle Cabrera, "Organizational learning capability: a proposal of measurement," Journal of Business Research, vol. 58, no. 6, pp. 715-725, 2005.
[109] K. Daniels and A. Bailey, "Strategy development processes and participation in decision making: predictors of role stressors and job satisfaction," Journal of Applied Management Studies, vol. 8, no. 1, pp. 27-42, 1999.
[110] L. A. Witt, M. C. Andrews and K. M. Kacmar, "The role of participation in decision making in the organizational politics job satisfaction relationship," Human Relations, vol. 53, no. 3, pp. 341-358, 2000.
[111] S. Lahteenrnaki, J. Toivonen and M. Mattila, "Critical aspects of organizational learning research and proposals for its measurements," British Journal of Management, vol. 12, no. 2, pp. 113-130, 1999.
[112] C. Kontoghiorghes, S. M. Awbrey and P. L. Feurig, "Examining the relationship between learning organization characteristics and change adaptation, innovation, and organizational performance," Human Resource Development Quarterly, vol. 16, no. 2, pp. 185-211, 2005.
[113] C. Oswick, P. Anthony, T. Keenoy and I. L. Mangham, "A dialogic analysis of organizational learning," Journal of Management Studies, vol. 37, no. 6, pp. 887-901, 2000.