In line with the issue, absorptive capacity has been emphasized in the various areas such as technology management, strategic management, international business and organizational economics. However, the component, outcomes, antecedents and definition of absorptive capacity are diverse and somewhat ambiguous. In this paper, we aim to empirically explore the antecedents of absorptive capacity, namely formalization, decentralization and coordination capacity, those that possibly affect potential absorptive capacity and realized absorptive capacity.
And Zahra and George (2002) proposed that absorptive capacity includes two subsets of potential and realized absorptive capacity. Despite the needs for potential absorptive capacity, this has received less attention than realized absorptive capacity. Recent research conducts empirical studies that treat combinational capabilities as determinants of both potential and realized absorptive capacity (Jansen et al., 2005).
In line with the issue, absorptive capacity, considered as the important capability for effective knowledge management by influencing the creation, acquisition and transfer of knowledge (Nonaka et al., 2000, Gupta and Govindarajan, 2000), has been strongly emphasized in the various fields such as technology management, strategic management, international business and organizational economics (Jansen et al., 2005). However, the component, outcomes, prerequisites and definition of absorptive capacity are diverse and ambiguous, it poses a certain level of challenges in studying absorptive capacity (Zahra and George, 2002). In terms of dimensions, Van den Bosch et al. 1999) suggested that organizational forms and combinative capabilities should be considered as a determinant of absorptive capacity.
They highlight four different capabilities that make up absorptive capacity, including acquisition, assimilation, transformation, and exploitation. Furthermore, those capacities are categorized into potential absorptive capacity with acquisition, assimilation and realized absorptive capacity containing transformation and exploitation. Those two potential and realized capacity simultaneously or sequentially carry tasks that are necessary but insufficient for better, improved organizational performance. Absorptive capacity is not naturally given, but is likely to be developed and maintained as a result of firms' activities (Jansen et al., 2005).
Another stream of research on organizational antecedents of absorptive capacity can be found in the work of Jasen and Van den Bosch (2005), who investigated the effects of combinational capabilities on absorptive capacity. They cite the research of Verona (1999), which suggests management structure, system and social relations as capabilities for absorbing new knowledge and follows the three types of combinational capabilities distinguished by Van den Bosch (1999): system capabilities, coordination capabilities and socialization capabilities (Volberda, 1999). This study reveals that coordination skills increase potential absorptive capacity, while socialization skills increase realized absorptive capacity. These three are considered key dimensions of organizational structure in knowledge management fields, but have not been empirically tested as determinants of potential and realized absorptive capacity.
In a number of researches in knowledge management, they have investigated exploration and exploitation issues with different stages similar to absorptive capacity - such as seeking to acquire new knowledge, transferring its knowledge to the firm, and combining new knowledge with existing knowledge. (Almeida et al., 2003). Similar to this problem, the tension between potential absorptive capacity and realized absorptive capacity can arise.
HYPOTHESES
Previous research reveals that these two absorptive capacities influence in different ways the construction of competitive advantage and insist on the needs of utilizing the potential of organizations and realized absorptive capacity for efficiency. efficiency of organizations and adopts the concept of structural and temporal dimensions, which was suggested in ambidexterity research. This study captured the TLC concept of phase-focused absorptive capacity practice that is the same context of the time dimension of ambidexterity with the assumption that potential absorptive capacity can be benefited in the early stage of TLC and realized absorptive capacity can be more vivid in the later stage of TLC. The formalized organizational structure gives more positive effect in the construction of realized absorptive capacities than potential absorptive capacities.
This can therefore be an obstacle to creating realized absorptive capacity by reducing the effectiveness of implementation. Decentralized organizational structure gives more positive effect on building potential absorptive capacity than realized absorptive capacity. Coordinated organizational structure gives more positive effect on building potential absorptive capacity than realized absorptive capacity.
Independent knowledge utilization unit in the organization gives more positive effect on the building of potential absorptive capacity than realized absorptive capacity. Regarding the nature of the technology life cycle, this paper anticipates that different absorptive capacity will be needed depending on the technology life cycle. As He and Wong (2004) mentioned, potential absorptive capacity related to acquisition and assimilation would be needed in the early stage of TLC.
On the other hand, realized absorptive capacity, which reflects transformation and utilization, would be more vitalized in the later stage of TLC. The higher stage in the technology life cycle has a more positive effect on the realized absorption capacity than potential absorption capacity.
DATA AND METHODS
7-items on decentralization were adopted from Dewar, Whetten, and Boje's (1980) study including “If I wanted to make my own decisions, I would be quickly discouraged” and “I had to ask my boss before doing almost anything ". We performed exploratory factor analysis through SPSS. All measured coefficients show reliable values and all factors have eigenvalues greater than one. Confirmatory factor analysis (CFA) was conducted to check the validity of the proposed factor model compared to the plausible model through several fit indices using LISREL.
And the value of up to 0.08 of the Root-Mean Square Error of Approximation Index (RMSEA) is considered as acceptable (Browne et al., 1993). The results indicate that these items provide adequate model fit. ( /df=2.4 Comparative Fit Index (CFI)=0.97, Fit Index (GFI)=0.8, Adjusted Fit Index (AGFI)=0.78, Root-Mean-Square Approximation Attempt[ RMSEA]=0.084) Some measures do not reach the required thresholds, but these results may be acceptable considering the small sample size. We used Haman's one-factor test and the modern MTMM technique to test for common method variance (Podsakoff and Organ, 1986) (Podsakoff et al., 2003). Common method variance can be a problem when a single factor accounts for most of the covariance between variables according to Harman's test.
This result verifies that common method variance did not occur in this study, as one factor did not explain the majority of the variance. The second method to control common method variance by Mordern MTMM technique uses correlation coefficient of latent variables. We calculated the correlation and all correlation coefficient value again confirmed that there was no common method bias.
The item was measured with the question 'At which of the following stages would you place the current stage of the project being carried out. Control variables are analyzed the relationship between the organizational structure and potential and realized absorption capacity through multiple regression analysis.
RESULTS
Control variables are analyzed in the relationship between organizational structure and potential and realized absorptive capacity through multiple regression analysis. ln_size and ln_teamsize also have significant correlations with other variables. The regression models increase when organizational structure variables are introduced compared to model 1. Table 7 shows that organizational structure and structurally oriented absorptive capacity practices have a positive and significant effect on potential and realized absorptive capacity. Decentralization parameter for potential absorption capacity and realized absorption capacity shows a positive but insignificant value.
The coordinating parameter for the potential absorptive capacity (β=.931, p<0.001) has a higher value than the parameter for the realization of the absorptive capacity (β=.791, p<0.001). The change of the decentralization parameter, which was initially insignificant in the main regression analysis, shows significant results with the interpretation that decentralization has a greater effect on building potential absorptive capacity than realized absorptive capacity. In addition, we found the interaction effect of decentralization and structurally focused absorptive capacity practices.
H1 Formalized organizational structure has a more positive effect on building realized absorption capacity than potential absorption capacity. H2 Decentralized organizational structure has a more positive effect on building potential absorption capacity than realized absorption capacity. H3 Coordinated organizational structure has a more positive effect on building potential absorption capacity than realized absorption capacity.
H4 Independent knowledge exploitation unit in the organization has a more positive effect on building potential absorptive capacity than the realized absorptive capacity. H5 The higher stage of the technology life cycle has a more positive effect on the realized absorptive capacity than the potential absorptive capacity.
DISCUSSION
Despite the results that the decentralization factor has a positive and significant effect on two absorptive capacities, the interaction with structurally focused absorptive capacity practices appears to be a negative and significant result. Our contribution with this paper is that we empirically explore and show how the organizational structure affects the potential and realized absorptive capacity that successive connections can have. In this article, we investigated the effects of organizational structure as antecedents on the development of two types of absorptive capacities. We find that formalized organizational structure is a more effective way to design organization when it needs to promote realized absorptive capacity.
We further found that decentralization and coordination have a greater effect on building potential absorptive capacity than realized absorptive capacity. From the point of view of strategic management, the results prove that building a different organizational structure and development path brings competitive abilities in terms of knowledge management. In particular, two different absorptive capacity practices are expected to make significant contributions through longitudinal research. Future research should be designed with these limitations in mind.
Investigating the interaction between potential and realized absorptive capacity over time may also be one of the issues for future research. Our unit periodically organizes special meetings with customers or third parties to obtain new knowledge. Our unit has a clear division of roles and responsibilities. We constantly consider how to make better use of knowledge.
If there is a problem with a flight, do people work with you in groups to solve the problem or try to avoid being blamed. An examination of the reliability and validity of the Aiken and Hage scales of centralization, formalization, and task routine.
