Confirmatory Factor Analysis of Absorptive Capacity and Competitiveness of Small and Medium-Sized Enterprise of Thailand’s Gems and Jewelry Industry
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Published
Nov 7, 2019
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Abstract
The objective of this research was to synthesize and analyze the confirmatory factors of absorptive capacity and competitiveness of small and medium-sized enterprises (SMEs) of Thailand's gems and jewelry industry according to the hypothesis model and empirical data. The sample of this research was 270 SME executives or entrepreneurs. Multi-Stage-Sampling was used to select the sample. Data were analyzed with Confirmatory Factor Analysis. The results of this study indicated that 1) there were 10 causal factors of absorptive capacity in three aspects, were ordered based on highest to lowest factor loading as follows: environmental turbulence, external source, and social integration mechanism. The factor loading values of three factors were 0.65, 0.54 and 0.43, respectively. The model was consistent with empirical data. 2) There were 8 causal factors of competitiveness in three aspects, were ordered based on highest to lowest factor loading as follows: potential capacity, realize capacity, and competitiveness. The factor loading values of three factors were 0.86, 0.71, and 0.40, respectively. The model was consistent with empirical data (X2 - test = 16.20, df = 13, p-value = 0.24, CFI = 1.00, GFI = 0.99, AGFI = 0.96, RMSEA = 0.030, SRMR = 0.021) Which is a model that is suitable for use in the context of SME’s that use primary technology in Thailand.
Keywords: Confirmatory Factor Analysis, Absorptive Capacity, Competitiveness, Small and Medium-Sized Enterprise, Thailand’s Gems and Jewelry Industry
References
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Armstrong, C. E., & Lengnick-Hall, C. A. (2013). The Pandora's Box of Social Integration Mechanisms: Can They Make It More Difficult to Realize Absorptive Capacity? Journal of Strategy and Management, 6(1), 4-26. https://doi.org/10.1108/17554251311296530
Barreto, I. (2010). Dynamic Capabilities: A Review of Past Research and an Agenda for the Future. Journal of Management, 36(1), 256-280. DOI: 10.1177/0149206309350776
Cohen, W. M., & Levinthal, D. A. (1989). Innovation and Learning: The Two Faces of R & D. The Economic Journal, 99(397), 569-596. DOI: 10.2307/2233763
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative Science Quarterly, 35(1), 128-152. DOI: 10.2307/2393553
de Jong, J. P. J., & Freel, M. (2010). Absorptive Capacity and the Reach of Collaboration in High Technology Small Firms. Research Policy, 39(1), 47-54. https://doi.org/10.1016/j.respol.2009.10.003
Di Stefano, G., Peteraf, M. A., & Verona, G. (2014). The Organizational Drivetrain: A Road to Integration of Dynamic Capabilities Research. Academy of Management Perspectives, 28(4), 307-327. DOI: 10.5465/amp.2013.0100
Easterby-Smith, M., & Prieto, I. M. (2008). Dynamic Capabilities and Knowledge Management: An Integrative Role for Learning? British Journal of Management, 19(3), 235-249. https://doi.org/10.1111/j.1467-8551.2007.00543.x
Engelen, A., Kube, H., Schmidt, S., & Flatten, T. C. (2014). Entrepreneurial Orientation in Turbulent Environments: The Moderating Role of Absorptive Capacity. Research Policy, 43(8), 1353-1369. https://doi.org/10.1016/j.respol.2014.03.002
Flatten, T. C., Engelen, A., Zahra, S. A., & Brettel, M. (2011). A Measure of Absorptive Capacity: Scale Development and Validation. European Management Journal, 29(2), 98-116. https://doi.org/10.1016/j.emj.2010.11.002
Grant, R. M. (1996). Toward a Knowledge‐Based Theory of the Firm. Strategic Management Journal, 17(S2), 109-122. Retrieved from https://pdfs.semanticscholar.org/e8f7/94a511c356a254cc4998f2dc6e4e2c88fcbb.pdf
Guo, B., & Wang, Y. (2014). Environmental Turbulence, Absorptive Capacity and External Knowledge Search among Chinese SMEs. Chinese Management Studies, 8(2), 258-272. https://doi.org/10.1108/CMS-03-2014-0051
Huarng, K.-H. (2010). Essential Research in Technology Management. Journal of Business Research, 63(5), 451-453. https://doi.org/10.1016/j.jbusres.2009.03.017
Jansen, J. J. P., Van Den Bosch, F. A. J., & Volberda, H. W. (2005). Managing Potential and Realized Absorptive Capacity: How Do Organizational Antecedents Matter? Academy of Management Journal, 48(6), 999-1015.
Jaworski, B. J., & Kohli, A. K. (1993). Market Orientation: Antecedents and Consequences. Journal of Marketing, 57(3), 53-70.
Kamal, E. M., & Flanagan, R. (2012). Understanding Absorptive Capacity in Malaysian Small and Medium Sized (SME) Construction Companies. Journal of Engineering, Design and Technology, 10(2), 180-198. https://doi.org/10.1108/17260531211241176
Kostopoulos, K., Papalexandris, A., Papachroni, M., & Ioannou, G. (2011). Absorptive Capacity, Innovation, and Financial Performance. Journal of Business Research, 64(12), 1335-1343. https://doi.org/10.1016/j.jbusres.2010.12.005
Lane, P. J., Koka, B. R., & Pathak, S. (2006). The Reification of Absorptive Capacity: A Critical Review and Rejuvenation of the Construct. The Academy of Management Review, 31(4), 833-863. http://dx.doi.org/10.2307/20159255
Lane, P. J., & Lubatkin, M. H. (1998). Relative Absorptive Capacity and Inter-Organizational Learning. Strategic Management Journal, 19(5), 461-477. DOI: 10.1002/(SICI)1097-0266(199805)19:5<461::AID-SMJ953>3.0.CO;2-L
Lichtenthaler, U. (2009). Absorptive Capacity, Environmental Turbulence, and the Complementarity of Organizational Learning Processes. Academy of Management Journal, 52(4), 822-846. https://doi.org/10.5465/amj.2009.43670902
Moilanen, M., Østbye, S., & Woll, K. (2014). Non-R&D SMEs: External Knowledge, Absorptive Capacity and Product Innovation. Small Business Economics, 43(2), 447-462. DOI: 10.1007/s11187-014-9545-9
Mowery, D. C., Oxley, J. E., & Silverman, B. S. (1996). Strategic Alliances and Interfirm Knowledge Transfer. Strategic Management Journal, 17(S2), 77-91. https://doi.org/10.1002/smj.4250171108
Nagati, H., & Rebolledo, C. (2012). The Role of Relative Absorptive Capacity in Improving Suppliers' Operational Performance. International Journal of Operations & Production Management, 32(5), 611-630. https://doi.org/10.1108/01443571211226515
Patterson, W., & Ambrosini, V. (2015). Configuring Absorptive Capacity as a Key Process for Research Intensive Firms. Technovation, 36-37, 77-89. https://doi.org/10.1016/j.technovation.2014.10.003
Rammer, C., Czarnitzki, D., & Spielkamp, A. (2009). Innovation Success of Non-R&D-Performers: Substituting Technology by Management in SMEs. Small Business Economics, 33(1), 35-58.
Roberts, N. (2015). Absorptive Capacity, Organizational Antecedents, and Environmental Dynamism. Journal of Business Research, 68(11), 2426-2433. https://doi.org/10.1016/j.jbusres.2015.02.019
Santamaría, L., Nieto, M. J., & Barge-Gil, A. (2009). Beyond formal R&D: Taking Advantage of Other Sources of Innovation in Low-and Medium-Technology Industries. Research Policy, 38(3), 507-517. https://doi.org/10.1016/j.respol.2008.10.004
Sciascia, S., D’Oria, L., Bruni, M., & Larrañeta, B. (2014). Entrepreneurial Orientation in Low-and Medium-Tech Industries: The Need for Absorptive Capacity to Increase Performance. European Management Journal, 32(5), 761-769. https://doi.org/10.1016/j.emj.2013.12.007
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509-533. Retrieved from https://www.business.illinois.edu/josephm/BA545_Fall%202015/Teece,%20Pisano%20and%20Shuen%20(1997).pdf
Todorova, G., & Durisin, B. (2007). Absorptive Capacity: Valuing a Reconceptualization. The Academy of Management Review, 32(3), 774-786. DOI: 10.5465/AMR.2007.25275513
Van Den Bosch, F. A. J., Van Wijk, R., & Volberda, H. W. (2003). Absorptive Capacity: Antecedents, Models and Outcomes. In ERIM Report Series Research in Management ERS-2003-035-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. Retrieved from https://pdfs.semanticscholar.org/0ef5/c11e12fe4b53b9b7fa29ba3c0975e24b57de.pdf?_ga=2.262455182.32138626.1554110019-123357795.1549528839
van Doorn, S., Heyden, M. L. M., & Volberda, H. W. (2017). Enhancing Entrepreneurial Orientation in Dynamic Environments: The Interplay between Top Management Team Advice-Seeking and Absorptive Capacity. Long Range Planning, 50(2), 134-144. https://doi.org/10.1016/j.lrp.2016.06.003
Volberda, H. W., Foss, N. J., & Lyles, M. A. (2010). Perspective-Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field. Organization Science, 21(4), 803-954. https://doi.org/10.1287/orsc.1090.0503
Zahra, S. A., & George, G. (2002). Absorptive Capacity: A Review, Reconceptualization, and Extension. The Academy of Management Review, 27(2), 185-203. Retrieved from https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=5629&context=lkcsb_research
Zhai, Y-M., Sun, W-Q., Tsai, S-B., Wang, Z., Zhao, Y., & Chen, Q. (2018). An Empirical Study on Entrepreneurial Orientation, Absorptive Capacity, and SMEs’ Innovation Performance: A Sustainable Perspective. Sustainability, 10(2), 314. DOI: 10.3390/su10020314
Armstrong, C. E., & Lengnick-Hall, C. A. (2013). The Pandora's Box of Social Integration Mechanisms: Can They Make It More Difficult to Realize Absorptive Capacity? Journal of Strategy and Management, 6(1), 4-26. https://doi.org/10.1108/17554251311296530
Barreto, I. (2010). Dynamic Capabilities: A Review of Past Research and an Agenda for the Future. Journal of Management, 36(1), 256-280. DOI: 10.1177/0149206309350776
Cohen, W. M., & Levinthal, D. A. (1989). Innovation and Learning: The Two Faces of R & D. The Economic Journal, 99(397), 569-596. DOI: 10.2307/2233763
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative Science Quarterly, 35(1), 128-152. DOI: 10.2307/2393553
de Jong, J. P. J., & Freel, M. (2010). Absorptive Capacity and the Reach of Collaboration in High Technology Small Firms. Research Policy, 39(1), 47-54. https://doi.org/10.1016/j.respol.2009.10.003
Di Stefano, G., Peteraf, M. A., & Verona, G. (2014). The Organizational Drivetrain: A Road to Integration of Dynamic Capabilities Research. Academy of Management Perspectives, 28(4), 307-327. DOI: 10.5465/amp.2013.0100
Easterby-Smith, M., & Prieto, I. M. (2008). Dynamic Capabilities and Knowledge Management: An Integrative Role for Learning? British Journal of Management, 19(3), 235-249. https://doi.org/10.1111/j.1467-8551.2007.00543.x
Engelen, A., Kube, H., Schmidt, S., & Flatten, T. C. (2014). Entrepreneurial Orientation in Turbulent Environments: The Moderating Role of Absorptive Capacity. Research Policy, 43(8), 1353-1369. https://doi.org/10.1016/j.respol.2014.03.002
Flatten, T. C., Engelen, A., Zahra, S. A., & Brettel, M. (2011). A Measure of Absorptive Capacity: Scale Development and Validation. European Management Journal, 29(2), 98-116. https://doi.org/10.1016/j.emj.2010.11.002
Grant, R. M. (1996). Toward a Knowledge‐Based Theory of the Firm. Strategic Management Journal, 17(S2), 109-122. Retrieved from https://pdfs.semanticscholar.org/e8f7/94a511c356a254cc4998f2dc6e4e2c88fcbb.pdf
Guo, B., & Wang, Y. (2014). Environmental Turbulence, Absorptive Capacity and External Knowledge Search among Chinese SMEs. Chinese Management Studies, 8(2), 258-272. https://doi.org/10.1108/CMS-03-2014-0051
Huarng, K.-H. (2010). Essential Research in Technology Management. Journal of Business Research, 63(5), 451-453. https://doi.org/10.1016/j.jbusres.2009.03.017
Jansen, J. J. P., Van Den Bosch, F. A. J., & Volberda, H. W. (2005). Managing Potential and Realized Absorptive Capacity: How Do Organizational Antecedents Matter? Academy of Management Journal, 48(6), 999-1015.
Jaworski, B. J., & Kohli, A. K. (1993). Market Orientation: Antecedents and Consequences. Journal of Marketing, 57(3), 53-70.
Kamal, E. M., & Flanagan, R. (2012). Understanding Absorptive Capacity in Malaysian Small and Medium Sized (SME) Construction Companies. Journal of Engineering, Design and Technology, 10(2), 180-198. https://doi.org/10.1108/17260531211241176
Kostopoulos, K., Papalexandris, A., Papachroni, M., & Ioannou, G. (2011). Absorptive Capacity, Innovation, and Financial Performance. Journal of Business Research, 64(12), 1335-1343. https://doi.org/10.1016/j.jbusres.2010.12.005
Lane, P. J., Koka, B. R., & Pathak, S. (2006). The Reification of Absorptive Capacity: A Critical Review and Rejuvenation of the Construct. The Academy of Management Review, 31(4), 833-863. http://dx.doi.org/10.2307/20159255
Lane, P. J., & Lubatkin, M. H. (1998). Relative Absorptive Capacity and Inter-Organizational Learning. Strategic Management Journal, 19(5), 461-477. DOI: 10.1002/(SICI)1097-0266(199805)19:5<461::AID-SMJ953>3.0.CO;2-L
Lichtenthaler, U. (2009). Absorptive Capacity, Environmental Turbulence, and the Complementarity of Organizational Learning Processes. Academy of Management Journal, 52(4), 822-846. https://doi.org/10.5465/amj.2009.43670902
Moilanen, M., Østbye, S., & Woll, K. (2014). Non-R&D SMEs: External Knowledge, Absorptive Capacity and Product Innovation. Small Business Economics, 43(2), 447-462. DOI: 10.1007/s11187-014-9545-9
Mowery, D. C., Oxley, J. E., & Silverman, B. S. (1996). Strategic Alliances and Interfirm Knowledge Transfer. Strategic Management Journal, 17(S2), 77-91. https://doi.org/10.1002/smj.4250171108
Nagati, H., & Rebolledo, C. (2012). The Role of Relative Absorptive Capacity in Improving Suppliers' Operational Performance. International Journal of Operations & Production Management, 32(5), 611-630. https://doi.org/10.1108/01443571211226515
Patterson, W., & Ambrosini, V. (2015). Configuring Absorptive Capacity as a Key Process for Research Intensive Firms. Technovation, 36-37, 77-89. https://doi.org/10.1016/j.technovation.2014.10.003
Rammer, C., Czarnitzki, D., & Spielkamp, A. (2009). Innovation Success of Non-R&D-Performers: Substituting Technology by Management in SMEs. Small Business Economics, 33(1), 35-58.
Roberts, N. (2015). Absorptive Capacity, Organizational Antecedents, and Environmental Dynamism. Journal of Business Research, 68(11), 2426-2433. https://doi.org/10.1016/j.jbusres.2015.02.019
Santamaría, L., Nieto, M. J., & Barge-Gil, A. (2009). Beyond formal R&D: Taking Advantage of Other Sources of Innovation in Low-and Medium-Technology Industries. Research Policy, 38(3), 507-517. https://doi.org/10.1016/j.respol.2008.10.004
Sciascia, S., D’Oria, L., Bruni, M., & Larrañeta, B. (2014). Entrepreneurial Orientation in Low-and Medium-Tech Industries: The Need for Absorptive Capacity to Increase Performance. European Management Journal, 32(5), 761-769. https://doi.org/10.1016/j.emj.2013.12.007
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509-533. Retrieved from https://www.business.illinois.edu/josephm/BA545_Fall%202015/Teece,%20Pisano%20and%20Shuen%20(1997).pdf
Todorova, G., & Durisin, B. (2007). Absorptive Capacity: Valuing a Reconceptualization. The Academy of Management Review, 32(3), 774-786. DOI: 10.5465/AMR.2007.25275513
Van Den Bosch, F. A. J., Van Wijk, R., & Volberda, H. W. (2003). Absorptive Capacity: Antecedents, Models and Outcomes. In ERIM Report Series Research in Management ERS-2003-035-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. Retrieved from https://pdfs.semanticscholar.org/0ef5/c11e12fe4b53b9b7fa29ba3c0975e24b57de.pdf?_ga=2.262455182.32138626.1554110019-123357795.1549528839
van Doorn, S., Heyden, M. L. M., & Volberda, H. W. (2017). Enhancing Entrepreneurial Orientation in Dynamic Environments: The Interplay between Top Management Team Advice-Seeking and Absorptive Capacity. Long Range Planning, 50(2), 134-144. https://doi.org/10.1016/j.lrp.2016.06.003
Volberda, H. W., Foss, N. J., & Lyles, M. A. (2010). Perspective-Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field. Organization Science, 21(4), 803-954. https://doi.org/10.1287/orsc.1090.0503
Zahra, S. A., & George, G. (2002). Absorptive Capacity: A Review, Reconceptualization, and Extension. The Academy of Management Review, 27(2), 185-203. Retrieved from https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=5629&context=lkcsb_research
Zhai, Y-M., Sun, W-Q., Tsai, S-B., Wang, Z., Zhao, Y., & Chen, Q. (2018). An Empirical Study on Entrepreneurial Orientation, Absorptive Capacity, and SMEs’ Innovation Performance: A Sustainable Perspective. Sustainability, 10(2), 314. DOI: 10.3390/su10020314
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How to Cite
JUNDAHUADONG, Phimkarnda; CHEMSRIPONG, Sujinda.
Confirmatory Factor Analysis of Absorptive Capacity and Competitiveness of Small and Medium-Sized Enterprise of Thailand’s Gems and Jewelry Industry.
Journal of Community Development Research (Humanities and Social Sciences), [S.l.], v. 12, n. 4, p. 68-79, nov. 2019.
ISSN 2985-0231.
Available at: <https://www.journal.nu.ac.th/JCDR/article/view/Vol-12-No-4-2019-68-79>. Date accessed: 29 apr. 2024.
doi: https://doi.org/10.14456/jcdr-hs.2019.35.