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Eurasian Business Review

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30-08-2020 | Regular Article

Cognitive social capital and absorptive capacity as antecedents of entrepreneurial orientation: a configurational approach

Authors: Job Rodrigo-Alarcón, Gloria Parra-Requena, María José Ruiz-Ortega

Published in: Eurasian Business Review | Issue 4/2020

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Abstract

In this study we contribute to solve a gap in the literature regarding the proposal of new determining factors of entrepreneurial orientation. Specifically, we present a configurational model to explain how entrepreneurial orientation (EO) is developed in a dynamic environment. Based on a sample of companies in the agri-food sector in Spain, this work examines how cognitive social capital and absorptive capacity (ACAP) jointly affect EO in a context of technological dynamism. The configurational approach highlights the existence of configurations or multidimensional sets of elements that are efficient when established in conjunction, as opposed to others that are detrimental to the performance of the company. In this sense, we propose that the combination of cognitive social capital with ACAP heterogeneously affects the influence of technological dynamism on EO through its potential and realized dimensions, which decrease and improve EO, respectively. Therefore, we emphasize the significance of the configurational approach in delving deeper into the connection between internal and external antecedents of EO and the importance of differentiating between potential and realized dimensions of ACAP considering their implications for EO.

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Our work considers EO as an aggregate construct with these three components, in line with most of the works that analyze this concept (Wales et al. 2013).

The configurational approach allows us to understand how companies configure their resources and capabilities under different environmental conditions and how this influences their behavior and performance (Spriggs et al. 2013).

Social capital is a multidimensional construct which, following Nahapiet and Ghoshal (1998), is formed by the structural, relational and cognitive dimensions.

The two key components of this dimension are shared culture and shared objectives. The shared culture is represented by the norms of behavior and culture that are institutionalized in the network, while the shared objectives refer to the objectives and the understanding shared among the members of the network.

Our initial database comprised a total of 3992 companies.

To this end, we used an ANOVA analysis to verify the non-existence of significant differences between the population and the sample obtained, in terms of age and size.

To do this, we analyzed the existence of differences between companies that responded early and those that answered late. We formed two groups of companies in the sample: those that had answered before the second sending by email (173 companies) and those that did so later (119 companies). This analysis of the "non-response bias" is based on companies that respond late being considered closer to companies that do not respond to the survey than to companies that respond early.

First, we carried out the Harman test (Podsakoff et al. 2003). Second, we performed an evaluation of a random sub-sample of the total sample. Thus, we sent the questionnaire once more to the companies that responded initially, with the aim of its being completed by another manager. We performed an ANOVA comparison of means test to check for the existence of significant differences in the constructs used in our work. We found no significant differences between the two groups of responses.

With values from 1 (Strongly disagree) to 7 (Strongly agree).

With the value of 1 being characterized by the statement on the left and 7 by the statement on the right. The points between both extremes take the intermediate values between the statements. Cognitive social capital, ACAP and EO are analyzed as higher-order constructs (second-order), by combining different latent variables. In this sense, we used reflective measurement models in which measurements (first order constructs) represent the effects or manifestations of an underlying construct (second order construct).

This technique allows researchers to add unobservable variables measured indirectly through indicators. PLS-SEM is a methodology based on variance that estimates compounds represented by latent variables in path models (Richter et al. 2016).

It compares the correlations between indicators that belong to constructs of different elements and the correlations between indicators of the same construct.

Previously, following the recommendations of Hair et al. (2013), we evaluated the collinearity between the variables used in our study. To do this, we extracted the values of the latent variables and analyzed the inflation factor of the variance (Variance Inflation Factor) using SPSS v.22. All values were below the limit proposed in the literature, with the maximum value obtained being 3.125. Therefore, our model presents no multicollinearity and the results obtained can be examined.

The four possible categories are: (1) High Cognitive SC/High ACAP, (2) High Cognitive SC/Low ACAP, (3) Low Cognitive SC/High ACAP and (4) Low CS Cognitive/Low ACAP.

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Title: Cognitive social capital and absorptive capacity as antecedents of entrepreneurial orientation: a configurational approach
Authors: Job Rodrigo-Alarcón
Gloria Parra-Requena
María José Ruiz-Ortega
Publication date: 30-08-2020
Publisher: Springer International Publishing
Published in: Eurasian Business Review / Issue 4/2020
Print ISSN: 1309-4297
Electronic ISSN: 2147-4281
DOI: https://doi.org/10.1007/s40821-020-00169-3

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Springer Professional "Wirtschaft"

Springer Professional "Wirtschaft+Technik"

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