Abstract:
The capacities for acquiring, integrating and exploiting new knowledge and
capabilities exert significant influence on long run organizational
performance and growth. In this study we develop and test a theoretical
framework that links individual and collective human capital with these
capabilities. Prior research suggests that the development and organization
of human capital at an individual and collective level are influential upon
knowledge flows. We hypothesize that HRM and organizational cultural
characteristics that emphasize strong individualist values influence
entrepreneurial knowledge acquisition, while those that emphasize
collectivist values influence cooperative knowledge integration. HRM
practices are hypothesized to directly influence knowledge processes, and
also to mediate the influence of organizational culture on knowledge
processes. We hypothesize that knowledge acquisition and integration
processes are positively related to the exploitation of new knowledge
through creation of new products and services. We test these hypotheses
on data obtained from multiple respondents in a sample of 81 small and
medium sized manufacturing firms. The study results provide support for
these hypotheses and indicate that a form of behavioral ambidexterity is
needed in order for human capital to promote knowledge-based
entrepreneurial capabilities. Implications for theory and future research are
discussed.
