Does the Size Matter for Dynamics Capabilities? A Study on Absorptive Capacity

• Main Authors: Marlon Fernandes Rodrigues Alves, Jessâmine Thaise Sartorello Salvini, Ana Claudia Bansi, Elio Galli Neto, Simone Vasconcelos Ribeiro Galina
• Format: Article
• Language: English
• Published: Universidad Alberto Hurtado 2016-10-01
• Series: Journal of Technology Management & Innovation
• Subjects: dynamic capabilities; absorptive capacity; innovation performance; SME; ICT
• Online Access: https://www.jotmi.org/index.php/GT/article/view/2256

The objective of this study is to understand how organizational size influences dynamic capabilities in Brazil. To arrive at this understanding, structural equation modeling analysis was performed using the Brazilian Innovation Survey (PINTEC) database to test for differences between SMEs and large companies in respect to the relationship between absorptive capacity (AC) dimensions and innovation performance. The results show that in large companies, Potential AC and Realized AC impact innovation performance, whereas in small and medium-sized enterprises (SMEs), only Realized AC has an influence. In addition, SMEs are, in fact, better at converting Realized AC into innovation performance than large companies, probably due to their flexibility and agility. These findings reveal that organizational sizes influence the impact of dynamic capabilities on performance.