Individual differences and potential absorptive capacity in joint project teams in the Nigerian upstream oil industry

Date08 February 2016
Published date08 February 2016
Pages45-63
DOIhttps://doi.org/10.1108/VJIKMS-08-2014-0050
AuthorAdedapo Oluwaseyi Ojo,Murali Raman,Chin Wei Chong
Subject MatterInformation & knowledge management,Knowledge management,Knowledge management systems
Individual differences and
potential absorptive capacity in
joint project teams in the
Nigerian upstream oil industry
Adedapo Oluwaseyi Ojo, Murali Raman and Chin Wei Chong
Faculty of Management, Multimedia University, Cyberjaya, Malaysia
Abstract
Purpose The purpose of this study is to elucidate the factors that underlie the differences in
individual absorptive capacity (ACAP) within the context of joint project teams, following the
individual-level perspective on potential ACAP.
Design/methodology/approach The model was empirically validated through structural
equation modeling conducted on a cross-sectional survey of 248 local team members of joint projects in
the Nigerian upstream oil industry.
Findings – Prior experience and learning goal orientation are positively associated with the ability to
assimilate knowledge, whereas performance approach goal orientation and need for cognition are
positively associated with the ability to recognize the value of knowledge. Surprisingly, no signicant
relationship exists between prior experience and ability to recognize the value of knowledge. In
addition, the positive relationship between ability to recognize the value of knowledge and ability to
assimilate knowledge is supported.
Originality/value – This study contributes to the empirical justication of the role of individuals in
acquiring and assimilating external knowledge, and extends classroom-based constructs (i.e. need for
cognition and goal orientation) to the project domain.
Keywords Interorganisational knowledge transfer, Absorptive capacity, Individual difference,
Joint project team, Micro antecedents, Partner’s knowledge
Paper type Research paper
1. Introduction
Knowledge has become the most valuable source of competitiveness. Perhaps not
surprisingly, most resource-rich nations have initiated local content policies. These
policies aim to acquire technological capabilities through project collaborations with
rms from developed economies. The success of the Japanese economy attests that
technological ascendancy could be attained by limiting the participation of competent
foreign rms in the local economy to joint ventures (Nakamura and Nakamura, 2004;
Odagiri and Akira, 1996). Accordingly, substantial studies have considered the
signicance and challenges of strategic alliance in cross-border knowledge transfer and
its implications in enhancing competitiveness (Perez-Nordtvedt et al., 2008;Simonin,
2004). The major antecedents of knowledge transfer across and within the boundaries of
a rm have been broadly classied into three categories, namely, characteristics of the
knowledge, alliance partners and the interactions and relationships among partners
(Argote et al., 2003;Simonin, 2004;Szulanski, 1996). However, in contrast to cross-border
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2059-5891.htm
Absorptive
capacity in
joint project
teams
45
Received 9 August 2014
Revised 3 January 2015
6 March 2015
20 April 2015
Accepted 5 July 2015
VINEJournal of Information and
KnowledgeManagement Systems
Vol.46 No. 1, 2016
pp.45-63
©Emerald Group Publishing Limited
2059-5891
DOI 10.1108/VJIKMS-08-2014-0050
knowledge transfer through a multinational company network in which the parent rm
actively invests in replicating knowledge across the subsidiaries (Schleimer and
Pedersen, 2014), the successful transfer of knowledge to international joint ventures
(IJVs) could be intentionally curtailed. This strategy could be an attempt to secure
continuous access to the local market and retain core capability, thereby limiting
opportunistic behavior (Sampson, 2004). Given the low level of technological capability
and lack of industry linkages, the former is more likely to be the case in an emerging
economy.
Expectedly, absorptive capacity (ACAP) has been acknowledged as the principal
constraint to knowledge acquisition through IJVs, particularly in an emerging economy
(Lane and Lubtakin, 1998; Lane et al., 2001;Zhao and Anand, 2009). Cohen and Levinthal
(1990) conceptualized ACAP as the internal capability ensuing from a rm’s
engagement in R&D as well as other production or operational activities. They indicated
that an organization accumulates knowledge through these activities, which enhances
its capability to acquire and exploit related external knowledge. This outcome
underscores the path dependence relationship between prior and future learning.
Building on this nding, research on IJV learning has explicated ACAP in terms of
partner similarity and adaptability, as well as relational and interaction antecedents
(Lane and Lubtakin, 1998; Lane et al., 2001;Perez-Nordtvedt et al., 2008). However,
researchers have acknowledged the underlying process of ACAP by considering IJVs as
the learning context. Nevertheless, the heterogeneous effect of individuals remains
unsubstantiated.
In particular, despite the evident role of individuals in a rm’s ACAP, extant studies
have generally conceptualized it as a macro-level and unidimensional construct (Lane
et al., 2006;Volberda et al., 2010;Ojo et al., 2014). One of the few exceptions is the
re-conceptualized model of Zahra and George (2002), which delineates ACAP into
potential and realized components, ascribing the former to individuals, who as
gatekeepers acquire and assimilate knowledge from external sources. In addition, the
investigation of Nemanich et al. (2010) on R&D project teams in the USA delineated
ACAP into individual and collective levels; however, the underlying data originated
from the key informant.
Asserting the need for individual-level conceptualization, Abell et al. (2008)
questioned studies that attributed the organizational phenomenon to rm-level
constructs, such as routines and capabilities, while implicitly assuming that individual
members are homogeneous. Instead, individual differences are signicant determinants
of organizational choice, interaction, learning and adaptation (Jones, 2006;Felin and
Hesterly, 2007;Pandza and Thorpe, 2009). Following this premise, Cohen and Levinthal
(1990) put forward an original proposition that primarily drew upon cognitive and
behavioral theories in explaining the rm-level phenomenon. Although recent studies
have examined individual antecedents in terms of cognitive ability and prior experience
(Zahra and George, 2002;Lane et al., 2006;Zhao and Anand, 2009) as well as
motivational factors (Minbaeva et al., 2003;Silva and Davis, 2011), expositions on the
empirical implications of these antecedents remain scarce (Ojo and Raman, 2015).
Specically, the effects of individual differences have been downplayed and inferred
from a single respondent or proxy construct.
In response to the preceding ndings, this study empirically claries the
micro-antecedents of potential ACAP, which are associated with the ability of an
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