Introduction

Theoretical background and hypotheses

Method

Results

Discussion

Conclusion

References

Abstract

The ability of an organization to cope with radical technological change is regarded to be heavily dependent on its ability to absorb and apply knowledge from its environment. This study investigates the role of organizational structure in driving absorptive capacity and uncovers the role of the emergent phenomenon of organizational energy as the enabler of this relationship. A field study was conducted among firms that are challenged by the disruptive nature of Cloud computing. Our results show that organizational design affects the degree of mobilization of an organization’s affective, cognitive and behavioral resources, which in turn influence the effectiveness of learning processes related to the absorption and exchange of knowledge within the organization. Furthermore, they reveal the positive relationship between the enactment of absorptive capacity and the successful adoption of Cloud technology for incumbent firms. The findings contribute to our understanding of the micro-foundations of absorptive capacity and how positive organizational phenomena facilitate effective adoption and implementation of emerging technologies.

Introduction

Rapid technological change constitutes a powerful competitive force that bears significant strategic implications for organizations (Adner, 2002; Day et al., 2004; Hamilton, 1985). Schumpeter (1934) famously described such technological change as a force of “creative destruction” which can erode or reinforce the competitive advantage of all firms involved in the affected industries. Firms and organizations operating in such environments, however, are not completely at the mercy of said forces. Predicting and managing the implications of such change has been found to be related to the ability of organizations to absorb and utilize knowledge from their environment, i.e. their absorptive capacity (Grant, 1996; Lane et al., 2006; Zander and Kogut, 1995). Recent empirical research has shed light on the antecedents of absorptive capacity by constructively synthesizing theories of learning, managerial cognition, the knowledge-based view of the firm and dynamic capabilities (for a review see Volberda et al., 2010). Consequently, extant studies have revealed a breadth of contributing factors, traced at different levels of analysis, such as managerial, inter-organizational, intra-organizational or environmental. At the intra-organizational level, organizational design has been identified as a key factor that has a major influence on absorptive capacity (Van den Bosch et al., 1999).