Absorptive capacity and NPD: salient issues in bipolar entrepreneurial SMEs
| DOI | https://doi.org/10.1108/JABS-03-2020-0095 |
| Published date | 22 June 2021 |
| Date | 22 June 2021 |
| Pages | 769-783 |
| Author | Sujinda Popaitoon,Tanyanart Yanpiboon,Chutikarn Tapjarern |
Absorptive capacity and NPD: salient
issues in bipolar entrepreneurial SMEs
Sujinda Popaitoon, Tanyanart Yanpiboon and Chutikarn Tapjarern
Abstract
Purpose –The purpose of thisstudy is to explore knowledge absorptive capacity(ACAP) (both potential
and realized) and new product development(NPD) in bipolar entrepreneurial small- and medium-sized
enterprises(SMEs).
Design/methodology/approach –In response to recent calls for research on knowledge ACAP and
NPD in entrepreneurial SMEs, particularly in different contexts, this research aims to answer a specific
question: What are the characteristics of ACAP (both potential and realized) and the salient issues
concerning working complementarily between both types of ACAP to foster NPD in bipolar
entrepreneurial SMEs (in this case, three new low-tech and three established high-tech cases)? The
authors conduct case study research based on cross-case and within case analyses to answer the
question.
Findings –The findings showthat, in the established high-tech cases, realizedACAP plays an outsized
role in developing newproducts and prior-related knowledge acts as a preconditionfor capturing useful
knowledge from externalsources (potential ACAP). On the contrary,in the new low-tech cases, potential
ACAP is the key driver of NPD, so external knowledge from network ties becomes a crucial source of
acquiring new knowledge,along with entrepreneurs’ level of skill at applyinguseful knowledge (realized
ACAP) to achieveNPD.
Research limitations/implications –On the basis of thebipolar entrepreneurial SMEs (i.e. established
high-tech and new low-tech ventures),the characteristics of entrepreneurial SMEs (i.e. firm’s age, size
and level of technology) affect the different roles of realized and potential ACAP in driving NPD
successes.Realized ACAP plays a critical rolefor NPD in established high-tech SMEs,whereas potential
ACAP is the main driver of NPD in new low-tech SMEs. This research has some limitations that future
researchshould conduct quantitative researchin other industries’context as well as in other countries.
Practical implications –For new ventures, they should be aware thatto strengthen their network ties
with customersand suppliers can be an important tool for not only overcomingtheir limitations of existing
knowledge but also acquiring tacit knowledge from the external sources. For established high-tech
ventures,they should focus not only on the short-term NPD (the achievementof current NPD) but also the
long-term NPD (e.g. series of new products and new strategic alliances) that can help avoid a not-
invented-heresyndrome situation.
Social implications –The government should customize the policy to suit each targeted SME.
Policymakers should play a crucial role of a linking pin among key external sources (e.g. R&D national
and internationalinstitutions, SME banks and marketingagents) in different stages of the business cycle.
Originality/value –This research contributes to the literature of knowledge ACAP in SMEs to the
understanding of the distinction roles of potential and realized ACAP as a mechanism in the different
naturesof entrepreneurial SMEs.
Keywords Case study research, New product development, Knowledge absorptive capacity,
Entrepreneurial SMEs, Thai medical device, New agricultural ventures
Paper type Research paper
Introduction
Small- and medium-sized enterprises (SMEs), particularly entrepreneurial SMEs, are an
important engine-driving economic growth through innovation, such as new product
development (NPD) (Gray, 2006;Scuotto et al., 2017). Because entrepreneurial SMEs
Sujinda Popaitoon is based
at the Mahasarakham
Business School,
Mahasarakham University,
Maha Sarakham, Thailand.
Tanyanart Yanpiboon is
based at the Faculty of
Business Administration,
Rajamangala University of
Technology Isan, Nakhon
Ratchasima, Thailand.
Chutikarn Tapjarern is
Medical Device Specialist
and Freelance, Mukdahan,
Thailand.
Received 12 March 2020
Revised 30 August 2020
17 December 2020
Accepted 21 December 2020
This research was partially
supported by the research fund
of Mahasarakham Business
School, Mahasarakham
University.
DOI 10.1108/JABS-03-2020-0095 VOL. 15 NO. 5 2021, pp. 769-783, ©Emerald Publishing Limited, ISSN 1558-7894 jJOURNAL OF ASIA BUSINESS STUDIES jPAGE 769
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