Roles of absorbent capacity, innovation capacity and responsible innovation in sustainable competition advantage: A study in the hospitality industry


Authors

  • Nguyen Thi Huyen Ngan Thuongmai University
  • Nguyen Viet Thai Thuongmai University
DOI: https://doi.org/10.57110/jebvn.v4i1.281

Keywords:

Responsible innovation , sustainable competition advantage, absorbent capacity, innovation capacity

Abstract

This paper studies the role of absorptive capacity, innovation capacity, and responsible innovation (RI) in increasing the sustainable competitive advantage (SCA) of enterprises. Quantitative research was conducted with hotels in Hanoi, including reliability analysis, exploratory factor analysis, measurement model analysis, and structural model analysis. Research results show that absorptive capacity has a positive effect on innovation capacity; absorptive capacity and innovation capacity have a positive effect on RI and SCA; RI has a positive effect on SCA and plays a mediating role in the relationships between absorptive capacity, innovation capacity, and the SCA. The results are supported by the resource-based view and dynamic capabilities theory, which provides empirical evidence demonstrating the important role of absorptive capacity, innovation capacity, and especially RI in creating the SCA. This result also provides useful information for managers to improve capacity and RI to increase the SCA.

References

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108

Barney, J. B. (1995). Looking inside for competitive advantage. Academy of Management Perspectives, 9(4), 49-61. https://doi.org/10.5465/ame.1995.9512032192

Camisón, C., & Villar-López, A. (2014). Organizational innovation as an enabler of technological innovation capabilities and firm performance. Journal of Business Research, 67(1), 2891-2902. https://doi.org/10.1016/j.jbusres.2012.06.004

Cao, X., Lv, D., & Xing, Z. (2020). Innovative resources, promotion focus, and responsible innovation: The moderating roles of adaptive governance. Sustainability, 12(7), 2860. https://doi.org/10.3390/su12072860

Chatterjee, S., Chaudhuri, R., & Vrontis, D. (2022). Knowledge sharing in international markets for product and process innovation: Moderating role of firm's absorptive capacity. International Marketing Review, 39(3), 706-733. https://doi.org/10.1108/IMR-11-2020-0261

Chen, S. T., & Chang, B. G. (2012). The effects of absorptive capacity and decision speed on organizational innovation: A study of organizational structure as an antecedent variable. Contemporary Management Research, 8(1). https://doi.org/10.7903/cmr.7996

Chen, Y.-S., Lin, M.-J. J., & Chang, C.-H. (2009). The positive effects of relationship learning and absorptive capacity on innovation performance and competitive advantage in industrial markets. Industrial Marketing Management, 38(2), 152-158. https://doi.org/10.1016/j.indmarman.2008.12.003

Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128-152. https://doi.org/10.2307/2393553

Crossan, M. M., & Apaydin, M. (2010). A multi‐dimensional framework of organizational innovation: A systematic review of the literature. Journal of Management Studies, 47(6), 1154-1191. https://doi.org/10.1111/j.1467-6486.2009.00880.x

Easterby‐Smith, M., Lyles, M. A., & Peteraf, M. A. (2009). Dynamic capabilities: Current debates and future directions. British Journal of Management, 20, S1-S8. https://doi.org/10.1111/j.1467-8551.2008.00609.x

Francis, D., & Bessant, J. (2005). Targeting innovation and implications for capability development. Technovation, 25(3), 171-183. https://doi.org/10.1016/j.technovation.2004.03.004

Grant, R. M. (1991). The resource-based theory of competitive advantage: Implications for strategy formulation. California Management Review, 33(3), 114-135. https://doi.org/10.2307/41166664

Hadj, T., Omri, A., & Al-Tit, A. (2020). Mediation role of responsible innovation between CSR strategy and competitive advantage: Empirical evidence for the case of Saudi Arabia enterprises. Management Science Letters, 10(4), 747-762. https://doi.org/10.5267/j.msl.2019.10.022

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2009). Multivariate data analysis (7th ed.). Pearson.

Halme, M., & Korpela, M. (2014). Responsible innovation toward sustainable development in small and medium‐sized enterprises: A resource perspective. Business Strategy and the Environment, 23(8), 547-566. http://doi.org/10.1002/bse.1801

Hana, U. (2013). Competitive advantage achievement through innovation and knowledge. Journal of Competitiveness, 5(1), 82-96. https://doi.org/10.7441/joc.2013.01.06

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108

Barney, J. B. (1995). Looking inside for competitive advantage. Academy of Management Perspectives, 9(4), 49-61. https://doi.org/10.5465/ame.1995.9512032192

Camisón, C., & Villar-López, A. (2014). Organizational innovation as an enabler of technological innovation capabilities and firm performance. Journal of Business Research, 67(1), 2891-2902. https://doi.org/10.1016/j.jbusres.2012.06.004

Cao, X., Lv, D., & Xing, Z. (2020). Innovative resources, promotion focus and responsible innovation: The moderating roles of adaptive governance. Sustainability, 12(7), 2860. https://doi.org/10.3390/su12072860

Chatterjee, S., Chaudhuri, R., & Vrontis, D. (2022). Knowledge sharing in international markets for product and process innovation: moderating role of firm's absorptive capacity. International Marketing Review, 39(3), 706-733. https://doi.org/10.1108/IMR-11-2020-0261

Chen, S. T., & Chang, B. G. (2012). The effects of absorptive capacity and decision speed on organizational innovation: a study of organizational structure as an antecedent variable. Contemporary Management Research, 8(1). https://doi.org/10.7903/cmr.7996

Chen, Y.-S., Lin, M.-J. J., & Chang, C.-H. (2009). The positive effects of relationship learning and absorptive capacity on innovation performance and competitive advantage in industrial markets. Industrial Marketing Management, 38(2), 152-158. https://doi.org/10.1016/j.indmarman.2008.12.003

Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly,

-152. https://doi.org/10.2307/2393553

Crossan, M. M., & Apaydin, M. (2010). A multi‐dimensional framework of organizational innovation: A systematic review of the literature. Journal of Management Studies, 47(6), 1154-1191. https://doi.org/10.1111/j.1467-6486.2009.00880.x

Easterby‐Smith, M., Lyles, M. A., & Peteraf, M. A. (2009). Dynamic capabilities: Current debates and future directions. British Journal of Management, 20, S1-S8. https://doi.org/10.1111/j.1467-8551.2008.00609.x

Francis, D., & Bessant, J. (2005). Targeting innovation and implications for capability development. Technovation, 25(3), 171-183. https://doi.org/10.1016/j.technovation.2004.03.004

Grant, R. M. (1991). The resource-based theory of competitive advantage: implications for strategy formulation. California Management Review, 33(3), 114-135. https://doi.org/10.2307/41166664

Hadj, T., Omri, A., & Al-Tit, A. (2020). Mediation role of responsible innovation between CSR strategy and competitive advantage: Empirical evidence for the case of Saudi Arabia enterprises. Management Science Letters, 10(4), 747-762. https://doi.org/10.5267/j.msl.2019.10.022

Hair, J. F., Black, W. C., Babin, B. J. & Anderson, R. E. (2009). Multivariate Data Analysis. 7th edition. Pearson.

Halme, M., & Korpela, M. (2014). Responsible innovation toward sustainable development in small and medium‐sized enterprises: A resource perspective. Business Strategy and the Environment, 23(8), 547-566. http://doi.org/10.1002/bse.1801

Hana, U. (2013). Competitive advantage achievement through innovation and knowledge. Journal of Competitiveness, 5(1), 82-96. https://doi.org/10.7441/joc.2013.01.06

Haned, N., Mothe, C., & Nguyen-Thi, T. U. (2014). Firm persistence in technological innovation: the relevance of organizational innovation. Economics of Innovation and New Technology, 23(5-6), 490-516. https://doi.org/10.1080/10438599.2014.895509

Helfat, C. E. (1997). Know‐how and asset complementarity and dynamic capability accumulation: the case of R&D. Strategic Management Journal, 18(5), 339-360. https://doi.org/10.1002/(SICI)1097-0266(199705)18:5%3C339::AID-SMJ883%3E3.0.CO;2-7

Hossain, M. S., Kannan, S. N., & Raman Nair, S. K. K. (2021). Factors influencing sustainable competitive advantage in the hospitality industry. Journal of Quality Assurance in Hospitality & Tourism, 22(6), 679-710. https://doi.org/10.1080/1528008X.2020.1837049

IHG Hotels & Resorts. (2021). Journey to Tomorrow. IHG Hotels & Resorts. ihgplc.com

Jap, S. D. (1999). Pie-expansion efforts: Collaboration processes in buyer–supplier relationships. Journal of Marketing Research, 36(4), 461-475. https://doi.org/10.1177/002224379903600405

Kuncoro, W., & Suriani, W. O. (2018). Achieving sustainable competitive advantage through product innovation and market driving. Asia Pacific Management Review, 23(3), 186-192. https://doi.org/10.1016/j.apmrv.2017.07.006

Lane, P. J., Koka, B. R., & Pathak, S. (2006). The reification of absorptive capacity: A critical review and rejuvenation of the construct. Academy of Management Review, 31(4), 833-863. https://doi.org/10.5465/amr.2006.22527456

Liao, S.-h., Fei, W.-C., & Chen, C.-C. (2007). Knowledge sharing, absorptive capacity, and innovation capability: An empirical study of Taiwan's knowledge-intensive industries. Journal of Information Science, 33(3), 340-359. https://doi.org/10.1177/0165551506070739

Madhavan, M., Sharafuddin, M. A., & Chaichana, T. (2022). Impact of Business Model Innovation on Sustainable Performance of Processed Marine Food Product SMEs in Thailand - A PLS-SEM Approach. Sustainability, 14(15), 9673. https://doi.org/10.3390/su14159673

Matthyssens, P., Pauwels, P., & Vandenbempt, K. (2005). Strategic flexibility, rigidity and barriers to the development of absorptive capacity in business markets: Themes and research perspectives. Industrial Marketing Management, 34(6), 547-554. https://doi.org/10.1016/j.indmarman.2005.03.004

Müller, J. M., Buliga, O., & Voigt, K.-I. (2021). The role of absorptive capacity and innovation strategy in the design of industry 4.0 business Models-A comparison between SMEs and large enterprises. European Management Journal, 39(3), 333-343. https://doi.org/10.1016/j.emj.2020.01.002

Najafi-Tavani, S., Najafi-Tavani, Z., Naudé, P., Oghazi, P., & Zeynaloo, E. (2018). How collaborative innovation networks affect new product performance: Product innovation capability, process innovation capability, and absorptive capacity. Industrial Marketing Management, 73, 193-205. https://doi.org/10.1016/j.indmarman.2018.02.009

Porter, M. E. (1985). Competitive Strategy: Creating and Sustaining Superior Performance. New York: Free Press.

Sancho-Zamora, R., Gutiérrez-Broncano, S., Hernández-Perlines, F., & Peña-García, I. (2021). A multidimensional study of absorptive capacity and innovation capacity and their impact on business performance. Frontiers in Psychology, 12, 751997. https://doi.org/10.3389/fpsyg.2021.751997

Schmidt, T., & Rammer, C. (2006). The determinants and effects of technological and non technological innovations–Evidence from the German CIS IV. Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim.

Serafin, V. F., Severo, E. A., Guimarães, J. C. F. d., Rotta, C., & Philereno, D. C. (2022). Innovation and human resources practices in companies of southern Brazil. Revista de Administração da UFSM, 15,

-61. https://doi.org/10.5902/1983465963785

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z

Thompson, V. A. (1965). Bureaucracy and innovation. Administrative Science Quarterly, 1-20. https://doi.org/10.2307/2391646

Vietnam National Authority of Tourism (2023). vietnamtourism.gov.vn.

Von Schomberg, R. (2012). Prospects for technology assessment in a framework of responsible research and innovation. Technikfolgen Abschätzen Lehren: Bildungspotenziale Transdisziplinärer Methoden, 39-61. https://doi.org/10.1007/978-3-531-93468-6_2

Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic Management Journal, 5(2), 171-180. https://doi.org/10.1002/smj.4250050207

Xie, X., Wu, Y., & Tejerob, C. B.-G. (2022). How responsible innovation builds business network resilience to achieve sustainable performance during global outbreaks: An extended resource-based view. IEEE Transactions on Engineering Management.

Zahra, S. A., & George, G. (2002). Absorptive capacity: A review, reconceptualization, and extension. Academy of Management Review, 27(2), 185-203. https://doi.org/10.5465/amr.2002.6587995

Downloads

Download data is not yet available.

Downloads

Published

25-02-2024

Abstract View

333

PDF Downloaded

144

How to Cite

Nguyen Thi Huyen Ngan, & Nguyen Viet Thai. (2024). Roles of absorbent capacity, innovation capacity and responsible innovation in sustainable competition advantage: A study in the hospitality industry. VNU JOURNAL OF ECONOMICS AND BUSINESS, 4(1), 32. https://doi.org/10.57110/jebvn.v4i1.281

Issue

Section

Original Article