Linking peripheral vision with relational capital through knowledge structures
| Pages | 714-733 |
| DOI | https://doi.org/10.1108/JIC-04-2016-0041 |
| Published date | 10 October 2016 |
| Date | 10 October 2016 |
| Author | Juan-Gabriel Cegarra-Navarro,Anthony K.P. Wensley,Alexeis Garcia-Perez,Antonio Sotos-Villarejo |
| Subject Matter | Information & knowledge management,Knowledge management,HR & organizational behaviour,Organizational structure/dynamics,Accounting & Finance,Accounting/accountancy,Behavioural accounting |
Linking peripheral vision with
relational capital through
knowledge structures
Juan-Gabriel Cegarra-Navarro
Technical University of Cartagena, Cartagena, Spain
Anthony K.P. Wensley
University of Toronto, Toronto, Canada
Alexeis Garcia-Perez
Centre for Business in Society, Coventry University, Coventry, UK, and
Antonio Sotos-Villarejo
Departamento Comercial Oficina, Bankia, Murcia, Spain
Abstract
Purpose –Peripheral vision (PV) or side vision refers to that which is visible to the eye while being
outside of its central area of focus. PV enables organisms to detect movement and potential threats in
their environment. The purpose of this paper is to contribute to the understanding of the
concept of PV in the business environment, as well as its relationship with knowledge structures
in the form of technology knowledge and absorptive capacity. The relative importance and
significance of technology knowledge and absorptive capacity as mediators between “relational
capital”(RC) and “PV”are also examined.
Design/methodology/approach –The paper reports an empirical investigation involving 125
employees from the banking sector. Data collected was statistically analysed using PLS-graph
software version 03.00. Results of the data analysis show relationships uncovered in the existing
literature.
Findings –The creation of RC by employees from the banking sector relies to a large extent on
managers’ability to perceive, analyse and understand activity that is often outside the focus of their
attention.
Practical implications –Managers who explicitly value their RC have a wider vision of their
environment. In turn, a wider understanding of the activity in the environment drives the
strengthening of the organisation and its RC.
Originality/value –PV can have a direct impact on the organisation’s appetite for the development of
its technology knowledge base, thus contributing to enhance the firm’s absorptive capacity as well as
the extent, quality and value of its RC.
Keywords Absorptive capacity, Relational capital, Peripheral vision, Technology knowledge
Paper type Research paper
1. Introduction
Relational capital (RC) represents the value derived from the relationship between a
business and its external stakeholders (Onge, 1996). The current business environment
is characterised by a shift from customer acquisition to a value creation process
whereby firms continuously evaluate and seek to enhance the value of their RC (Nieto
and Quevedo, 2005). In their efforts to do so, managers are expected to detect, interpret
and act on often ambiguous signals present in their environment and its periphery
(Day, 1994, 2000; Day and Schoemaker, 2006). Identifying peripheral activitie s and
events may lead to new value-adding opportunities and provide new perspectives
before these are perceived by the competition. The alternative perspectives available
Journal of Intellectual Capital
Vol. 17 No. 4, 2016
pp. 714-733
©Emerald Group Publishing Limited
1469-1930
DOI 10.1108/JIC-04-2016-0041
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1469-1930.htm
714
JIC
17,4
only in the periphery may add significant value to the firm’s RC. Furthermore, a well-
developed RC allows for a better interpretation of such peripheral, alternative
perspectives (Nahapiet and Ghoshal, 1998). As Day and Schoemaker (2006) also point
out, lack of awareness of peripheral signals can affect the competitive position of the
firm as competitors may benefit from those opportunities. When organisations ignore
the events unfolding on the periphery of their businesses they are likely to incur
significant costs and additional risks (Fairclough, 2005).
Peripheral vision (PV) or side vision refers to what is visible to the eye while being
outside of its central area of focus. An appropriate response to a changing environment
requires the ability for an organisation to dynamically update not only targets and
plans but also its knowledge structures: routines, processes, protocols and new
technology tools. The extant literature in the field of knowledge management and
intellectual capital supports the theory that organisations that possess relevant
knowledge are likely to have the ability to absorb new knowledge and use it to generate
new ideas and create new knowledge structures (Tsai, 2001; Cepeda et al., 2012; Martelo
and Cegarra, 2014). Haeckel (2004) argues that success of organisations in turbulent
business environments often relies on managers’ability to identify patterns in noisy
data to then turn their early understanding of those patterns into meaning before these
become obvious to the firm and its competitors. Thus, managers’PV is related to their
ability to prepare the grounds for the creation and assimilation of new knowledge and
knowledge structures (Day and Schoemaker, 2006). The present study focuses on the
impact that PV may have on two key knowledge structures in organisations. These are
absorptive capacity and technology knowledge.
The concept of absorptive capacity (ACAP hereafter) was initially defined as a
company’s ability to recognise the value of new information, assimilate valuable
information and apply it to the pursue of commercial ends (Cohen and Levinthal, 1990).
Later, Szulanski (1996) added the views that ACAP also encompasses the learning
ability and problem solving skills that enable organisations to assimilate valuable
knowledge and create new knowledge. A concept related to ACAP is that of technology
knowledge (T-knowledge hereafter). T-knowledge refers to the knowledge that enables
users of information technologies to find the answer to their information needs as and
when needed (Edvinsson, 2002; Cegarra et al., 2012). T-knowledge includes knowledge
of operating systems and application software, as well as knowledge of computer
hardware and the ability to install and remove peripheral devices, install and remove
software programs and create, archive, find and retrieve documents in different
formats (Sharma, 2000; Nohria and Gulati, 1996).
The PV of managers often enables the organisation to recognise the need for an
update in existing knowledge and knowledge structures while also stimulating the
implementation of the necessary changes (Haeckel, 2004; Day and Schoemaker, 2006).
Based on this premise, this study aims to examine the effects that the PV of managers
has on the development of both T-knowledge and ACAP in organisations. The relative
importance of T-knowledge and ACAP as mediators between “RC”and “PV”is also
examined. Our empirical investigation also explored the concept of RC in the banking
sector in order to highlight the significance of ACAP and T-knowledge as mediators
between the PV of managers and RC in organisations.
The banking business is very complex. It can no longer be described by using the
old order of predictability, derived from traditional knowledge structures and
technologies such as personal computers, e-mails and mobile phones (Carballo-Cruz,
2001). In banking institutions today staff need appropriate and up-to-date know ledge to
715
Linking PV
with RC
To continue reading
Request your trial