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Because small firms are dependent on external knowledge to overcome various constraints, absorptive capacity (ACAP) is an important capability from a knowledge management perspective. Furthermore, extant research has noted the seemingly contradictory yet potentially complementary interaction of Chief Executive Officer (CEO) traits – humility and narcissism on knowledge management. This study aims to explore the impact of CEO humility and narcissism on ACAP and short-term firm performance.

This paper uses a quantitative approach using multisource data from small Indian firms comprising survey responses from 225 CEOs and 216 general managers of small automotive firms. The data were analyzed using partial least squares – structural equation modeling.

This paper sheds new light on the process through which small firms build ACAP and the role of CEO leadership traits in this regard. This study finds that in a highly turbulent environment, CEO’s humility and narcissism affect the development of a small firm’s ACAP. This study also discusses important implications for managerial practice and policy making.

To the best of the authors’ knowledge, this is the first study to empirically examine the impact of the paradoxical leadership traits of narcissism and humility on the short-term performance of small firms, from a knowledge-based perspective through the lens of absorptive capacity.

In this study, the authors examine the influence of market orientation on small firms' performance. The authors theorize that the association between market orientation and small firm performance provides an incomplete picture in a competitive environment. The application of configuration approach which involves simultaneous consideration of market orientation, strategic flexibility and competition intensity is crucial to examine driver of firm performance.

The sample of the research study consists of 272 small firms from an emerging economy, India. Ordinary least squares regression has been used to investigate the hypothesized relationships.

The authors noted that the three-way interaction between market orientation, strategic flexibility and competition intensity elucidates variance in small firm performance over and above a contingency model and a direct relationship.

The findings contribute to the existing literature by exhibiting the effect of market orientation on firm performance. The configuration model suggests that small firms can outperform competitors in a lower competitive environment if they have high market orientation and high strategic flexibility investment. To leverage market opportunities and achieve better firm performance, small firms’ owners should analyze the usefulness of current capabilities in a changing competitive environment concurrently and align market orientation to those conditions.

The strategic management and marketing literature suggests that relationship between market orientation and performance is ambiguous. The findings offer insights to managers regarding the appropriate use of strategic flexibility in leveraging the benefits of market orientation in a highly competitive environment. Furthermore, by collecting data from the context of an emerging economy, India, the authors attempt to strengthen the applicability of market orientation in different contexts.

Despite the established significance of absorptive capacity, there is a worrying lack of research that empirically examines its antecedents. With a call for investigation guided by the knowledge-based theory, the purpose of this paper is to bridge any probable gap by exploring the effect that an organization’s knowledge stock and its knowledge integrating mechanisms have on the development of its absorptive capacity.

On the basis of a survey administered to a sample comprising owners of small Indian automotive firms, this paper empirically examines the direct effect of an organization’s knowledge stock (including knowledge breadth and depth) and the moderating role of its structure-related mechanisms (e.g., formalization) on its potential and realized absorptive capacities. The study uses survey data from 226 small business owners and multiple linear regression analysis to examine the significance of its hypotheses.

The results show that knowledge stock has a statistically notable influence on a small firm’s absorptive capacity. The enabling role of formalization in the relationship between knowledge stock and absorptive capacity is also evident.

Given the handicap of small firms vis-à-vis large firms to deploy internal R&D capabilities, business owners must ensure not to confuse absorptive capacity with the pre-existence of R&D capabilities.

The unbundling of knowledge stock into breadth and depth of knowledge enables business owners and researchers to understand how any particular knowledge stock can relate to an organization’s absorptive capacity.

This paper makes an attempt to demonstrate the importance of breaking absorptive capacity (AC) into two sequential components, to effectively measure and utilize the construct.

Data on potential AC, realized AC and firm performance were collected utilizing survey questionnaire administered to 284 Indian SMEs operating in the automotive service segment.

To test the proposed hypotheses, the authors broke AC into its two sequential components – potential AC and realized AC, and tested their linkages with firm performance. The authors not only found the sequential components to be more reliable, but also found better explanation of firm performance.

The findings in this paper have crucial implications for researchers working in the domain of AC and knowledge management. By demonstrating the operationalization of AC as two sequential components, the authors make a case for more effective utilization of the construct in future studies.

This study is among the few research attempts that have tried to create a sequential operationalization of AC. The findings clearly reveal that potential AC is an enabler of the realized AC, which in turn enhances firm performance.

Despite the recognized importance of knowledge management for small family firms, relatively little empirical research has been done so far to understand the mechanisms through which absorptive capacity (AC) assists their performance. The purpose of this study is to understand the relationship between absorptive capacity and performance in small family firms.

In this study, the authors theoretically argue and empirically validate that AC enables the creation of entrepreneurial, market and technology orientations in small family firms, which, in turn, lead to superior firm performance. They also tested the study’s hypotheses using mediation and multiple linear regression analyses on data collected from 272 small Indian family firms.

The study’s findings suggest indirect relationship between AC and performance. The strategic orientations provide a mechanism through which investments in small family firms’ AC results in firm performance.

This study offers crucial insights to practitioners and small firm managers regarding the use of knowledge-based capabilities in creating appropriate strategic postures, which, in turn, assist firm performance.

This study is among few research attempts in understanding the knowledge aspects of small family firms. The present research contributes to the existing literature by unravelling the relationship between knowledge management and small family firm performance. Also, by bringing in data from an under-studied context of an emerging economy, this study strengthens the theoretical applicability of knowledge management in different contexts.

Guided by the theory of dynamic capabilities and the knowledge-based view of an organization, the purpose of this paper is to examine the crucial role played by entrepreneurial orientation and absorptive capacity in the relationship between strategic flexibility and firm performance, with a specific focus on small firms.

The study uses survey data collected from owners of 272 small businesses in India and follows the linear regression method to establish the link between strategic flexibility and firm performance. It hypothesizes that the strategic flexibility of a small firm impacts entrepreneurial orientation, and subsequently its performance, while absorptive capacity further enhances this relationship.

The conclusions drawn from the study provide empirical evidence on the mediating role of entrepreneurial orientation in the relationship between strategic flexibility and firm performance. The findings also point out that the potential absorptive capacity of a firm strengthens the relationship between its strategic flexibility and entrepreneurial orientation.

The empirical findings of the study are limited to small firms from the automotive service industry.

The study contributes to the existing knowledge on managerial practice by pointing out the importance of strategic flexibility as a dynamic capability and illustrating its impact in the case of a small firm’s performance.

As yet, there is a dearth of empirical evidence derived from large samples of small firms. The study supplements available literature on dynamic capabilities and knowledge management.

An instructor engaged students in managing and reporting sustainability initiatives at an organisation. After completion of the case study discussion, the students will be able to critique the sustainability initiatives that can be undertaken at an organisation; understand sustainability reporting; analyse how result-based management aids in sustainability report preparation; recommend critical considerations for conducting a sustainability impact assessment by an educational institute.

The case contributed to the growing knowledge base about reporting sustainability initiatives at an organisation and managing them to aid in decision-making. The case called for better integration between sustainability activities and reporting under organisations’ Sustainable Development Goals (SDGs) or environmental, social and governance (ESG) reporting.

Ajay served as the head of the management department and a leading member of the sustainability initiatives at University Alpha, Delhi NCR, India. He was assigned the task of publishing the university’s annual report. The management had requested him to consider preparing a standalone sustainability report for the university.

He began the task by examining the benefits of standalone sustainability reporting. He proceeded to analyse the specifics of SDG reporting, SDG Accord reporting and ESG reporting using the Global Reporting Initiative guidelines. During discussions with a consultant, the necessary steps for creating an SDG-only report and an integrated SDG and ESG sustainability report were clarified.

Guidance from an expert led to an intention to use a result matrix in preparing the sustainability report and ongoing impact assessment of SDG initiatives for reporting. The dilemma involved deciding between continuing with the sustainability initiative listing in the annual reports or opting for a standalone sustainability report. Critical considerations concerning the sustainability impact assessment of SDG-related activities at an educational organisation were also explored.

This case is intended for discussion in the graduate-level program in strategy, general management, sustainability management, environmental management and environmental economics. The case may also be used for participants in executive program.

Teaching notes are available for educators only.

CSS 4: Environmental Management.

Web services play vital role in the development of emerging technologies such as Cloud computing and Internet of Things. Although, there is a close relationship among the discovery, selection and composition tasks of Web services, research community has treated these challenges at individual level rather to focus on them collectively for developing efficient solution, which is the purpose of this work. This paper aims to propose an approach to integrate the service discovery, selection and composition of Semantic Web services on runtime basis.

The proposed approach defined as a quality of service (QoS)-aware approach is based on QoS model to perform discovery, selection and composition tasks at runtime to enhance the user satisfaction and quality guarantee by incorporating non-functional parameters such as response time and throughput with the Web services and user request. In this paper, the proposed approach is based on ontology for semantic description of Web services, which provides interoperability and automation in the Web services tasks.

This work proposed an integrated framework of Web service discovery, selection and composition which supports end user to search, select and compose the Web services at runtime using semantic description and non-functional requirements. The proposed approach is evaluated by various data sets from the Web Service Challenge 2009 (WSC-2009) to show the efficiency of this work. A use case scenario of Healthcare Information System is implemented using proposed work to demonstrate the usability and requirement the proposed approach.

The main contribution of this paper is to develop an integrated approach of Semantic Web services discovery, selection and composition by using the non-functional requirements.

Boundary-spanning managers need to recognize, learn and implement external knowledge while balancing the conflicts emerging from new and existing knowledge. The authors' study explores how a paradox mindset (PM) and a learning focus [learning goal orientation (LGO)] promote two managerial capabilities: absorptive capacity (ACAP) and ambidexterity. The authors' study explores the inter-relationship between the mindsets and the capabilities required for innovative work behavior.

The authors use survey data from 113 technology/product managers employed in boundary-spanning roles in a large Indian automotive equipment manufacturing firm. Partial least squares structural equation modeling (PLS-SEM) analysis and bootstrapping (using PROCESS MACRO) are used to test for direct and mediation effects respectively.

Both PM and LGO are found to affect individual ambidexterity (IA) via the mediation of individual absorptive capacity (IACAP). While IACAP partially mediates the relationship between PM and IA, there is full mediation in the case of LGO.

The authors focus on a sample of managers from a single, large Indian automotive firm. Although single case studies can help provide novel conceptual insights and to test theoretical relationships, future research needs to confirm the authors' findings in different types of firms.

This study shows how a learning orientation and the ability to be energized from conflicts help boundary-spanning managers produce innovative outcomes.

The authors reveal fresh insights on how both ACAP and ambidexterity share the focus on learning and paradox management. The authors explicate how LGO and PM uniquely impact the critical capabilities of IACAP and IA for boundary-spanning managers.

The importance of knowledge-based assets and the capability to leverage them has been the subject of scholarly interest in entrepreneurial orientation literature. The authors attempt to understand the dominant themes in the prior literature and propose directions for future research.

The authors performed a systematic review of 79 studies to answer the research questions: (1) What are the predominant themes in the literature on the role of intellectual capital and entrepreneurial orientation? (2) What are the potential fields of future research?

The findings suggest that current research engages the topics of intellectual capital, the capability to leverage knowledge assets and entrepreneurial orientation. The thematic analysis reveals the role of knowledge management, organizational learning, intellectual capital and absorptive capacity in entrepreneurial firms. The authors propose a theoretical model to explain how intellectual capital and its management influence firm-level entrepreneurial behavior.

Understanding the association between intellectual capital and the capability to leverage knowledge assets is crucial in a dynamic business environment. Effective deployment of knowledge is vital while searching for new entrepreneurial opportunities.