Proactive orientation and its influence for technology acquisition
| DOI | https://doi.org/10.1108/02635571011069059 |
| Pages | 953-970 |
| Published date | 24 August 2010 |
| Date | 24 August 2010 |
| Author | Carmen Haro‐Domínguez,Teresa Ortega‐Egea,Ignacio Tamayo‐Torres |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
Proactive orientation and its
influence for technology
acquisition
Carmen Haro-Domı
´nguez, Teresa Ortega-Egea and
Ignacio Tamayo-Torres
Department of Management, School of Economics and Business,
University of Granada, Granada, Spain
Abstract
Purpose – The purpose of this paper is to analyse the influence of the manager’s strategic orientation
concerning technology acquisition and its repercussions for the firm’s performance.
Design/methodology/approach – These relationships are studied using a sample of Spanish
engineering consulting firms, most of them small- and medium-sized enterprises.
Findings – The results obtained show that the proactive character adopted by managers will directly
influence the decision-making process concerning technology acquisitions. Managers with a proactive
strategic orientation adopt both internal technological development and the external acquisition of
technology, but a slight preference is observed for internal development, even though it achieves
considerably less satisfactory results than those achieved with external technology acquisition.
Research limitations/implications – The paper is exploratory in character, and its goal is to show
whether interrelations exist between the variables. The sample refers only to engineering
consultancies. Another limitation is the cross-sectional character of the analysis performed.
Practical implications – To obtain perfect adaptation of the firm to its environment, it is crucial
that the manager be committed on both the tactical and the operating strategic levels. The paper
shows the important role of the manager’s strategic orientation in his or her decisions on technology
acquisition. Success in this kind of decision is of vital importance to the firm. The high costs of internal
development prevent immediate profits, and external acquisition brings high risks.
Originality/value – The paper seeks to stimulate new lines of research regarding these two
variables (technology acquisition and manager’s strategic orientation) and their repercussions for the
firm.
Keywords Spain, Technologyled strategy, Strategic management,Managers
Paper type Research paper
1. Introduction
Technology is considered to be one of the main resources for competitive advantage
and represents a critical strategic asset for firms.
In this context, the goal of technological strategy would be to lead the firm to
identify, acquire, develop, and apply technology to achieve a competitive advantage
(Lanctot and Swan, 2000). Further, the speed of technology acquisition is crucial to
creating and sustaining a competitive advantage (Hung and Tang, 2008).
Our study will consider the manager’s strategic orientation as the main factor
determining technology acquisition, given that the manager will be the person to
establish a firm’s pattern of strategic behaviour.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0263-5577.htm
Proactive
orientation
953
Received 19 January 2010
Revised 9 February 2010,
13 April 2010
Accepted 13 April 2010
Industrial Management & Data
Systems
Vol. 110 No. 7, 2010
pp. 953-970
qEmerald Group Publishing Limited
0263-5577
DOI 10.1108/02635571011069059
Further, our model of analysis will consider the influence of external and internal
variables on the manager’s strategic orientation. We consider technological uncerta inty
as an external conditioner. In a study of the firm’s adaptation to its environment,
DeSarbo et al. (2005) use technological uncertainty as a variable influencing this process
through the manager’s strategic orientation and the firm’s technological capacities.
As internal conditioner, we consider absorption capacity. Firms’ competitive
advantages are directed to achieving improvements in quality, efficiency, innovation,
and relationships with customers. The absence of absorption capacity will represent an
obstacle in the construction of entrepreneurial competences, making it more difficult for
the firm to produce proactive behaviour (van Den Bosh et al., 1999).
Our theoretical review confirms the scarcity of studies that analyse the influence of
the manager’s strategic orientation on decisions concerning the firm’s technology
acquisition. This paper seeks to stimulate new lines of research regarding these two
variables and their repercussions for the firm. To this end, and taking into account
these considerations, our research goal is to analyse the influence of the manager’s
strategic orientation on decision making about technology acquisitions and the impact
of this orientation on results in service firms. To achieve this goal, we have organized
our research study in the following sections. First, we present the theoretical grounding
and literature review of the model’s main constructs. Second, based on the theoretical
review, we formulate the model for analysis and propose corresponding hypotheses for
empirical confirmation. The following section presents the data and methodology used
to verify the hypotheses empirically. Finally, the study’s main conclusions and
implications for management are discussed.
2. Theoretical framework
2.1 The manager’s strategic orientation
In the context of decision making, the relation between the firm and its environment
has two main dimensions. First, the firm has the basic function of adapting to its
environment; second, it must achieve a competitive advantage over other firms
competing in the market (Rumelt, 2009).
Strategies are formulated to adapt to, respond to and share the environment.
The manager’s strategic orientation will condition the firm’s competitive strategy to
achieve a sustainable competitive advantage (Noble et al., 2002). At the same time,
this orientation strategy will enable the firm’s proper adaptation to its environment
(Miles et al., 1978) through the implementation of strategic behaviours that help it obtain
results superior to those of the competition.
According to Venkatraman (1989), we can identify six dimensions of strategic
orientation: proactive, aggressive, analytic, defensive, risk averse, and future oriented.
Our study uses this classification as a theoretical framework and focuses on the
proactive dimension, given the dynamic and turbulent character in which the firms are
developing their activity.
Proactivity indicates the firm’s degree of inertia in exploiting emerging
opportunities, experimenting with changes and mobilizing actions to achieve
leadership in the market (Dess and Lumpkin, 2005). This innovative behaviour will
require strong research and development capacities that the firm will have to acquire
either internally or externally.
IMDS
110,7
954
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