Proceedings of the 12th European Conference on Knowledge ...

Evangelia Siachou, S<strong>of</strong>ia Daskou and Peter Yannopoulos
3. The conceptualization and research proposition
MMs are viewed as mental stencils <strong>of</strong> organized knowledge about information fields that facilitate
managers to acquire, interpret, retain, and process information and develop activities in <strong>the</strong>
environment <strong>of</strong> those fields (Walsh, 1995). The translation <strong>of</strong> environmental information, <strong>the</strong>
development <strong>of</strong> shared meanings and MMs are outcomes <strong>of</strong> organizational interpretation <strong>of</strong> <strong>the</strong>
environment in which an organization operates (Daft and Weick, 1984). Organizations decide what
has effectively worked out (or not) in <strong>the</strong> past in order to develop memories <strong>of</strong> those past experiences
(Murrey and Carter, 2005) as well as to form insights based on earlier MMs and by <strong>the</strong>ir previous
learning (Weick, 1979). Drawing on <strong>the</strong> current literature <strong>of</strong> absorptive capacity but aiming to expand
this one step fur<strong>the</strong>r, we assume that (MMs) mediate <strong>the</strong> absorptive capacity <strong>of</strong> entrepreneurs who
use <strong>the</strong> later to filter <strong>the</strong> value <strong>of</strong> new knowledge that is externally derived. Thus, <strong>the</strong> defined level <strong>of</strong>
our analysis is found to be <strong>the</strong> individual level <strong>of</strong> analysis.
The proposed conceptualization, along <strong>the</strong> lines <strong>of</strong> prior research on absorptive capacity estimates
that an essential prerequisite for <strong>the</strong> effective implementation <strong>of</strong> <strong>the</strong> incoming knowledge into <strong>the</strong>
existing organisational practices and routine activities is <strong>the</strong> absorptive capacity performed by those
involved in <strong>the</strong> knowledge acquisition process (Cohen and Levinthal, 1990; Daghfous, 2004; Grunfeld,
2003; Lane and Lubatkin, 1998; Rocha, 1999; Stock et al., 2001). In consistency, also, with prior
empirical work <strong>the</strong> concept <strong>of</strong> aabsorptive capacity has initially been conceptualised through a threedimensional
approach including: (i) <strong>the</strong> ability to recognise <strong>the</strong> value <strong>of</strong> <strong>the</strong> new knowledge sourced
outside an organizations’ boundaries, (ii) <strong>the</strong> ability to assimilate <strong>the</strong> incoming knowledge into <strong>the</strong>
existing tasks and activities undertaken by <strong>the</strong> organisation and (iii) <strong>the</strong> ability to apply it into
commercial ends (Cohen and Levithal, 1989). In a way forward <strong>of</strong> <strong>the</strong> dominant conceptualization <strong>of</strong>
<strong>the</strong> rationale behind <strong>the</strong> absorptive capacity we estimate that <strong>the</strong> input <strong>of</strong> new mediators – i.e. mental
models- may have a lead over <strong>the</strong> three aforementioned definitive dimensions <strong>of</strong> absorptive capacity.
The above rationale is depicted on <strong>the</strong> following framework (Figure 1) which conceptualises <strong>the</strong>
mediating functionality <strong>of</strong> MMs in <strong>the</strong> three dimensions <strong>of</strong> absorptive capacity performed by
entrepreneurs.
Figure 1: Relationship <strong>of</strong> mental models with <strong>the</strong> absorptive capacity <strong>of</strong> entrepreneurs
Drawing upon <strong>the</strong> proposed conceptualization we estimate that MMs are used by entrepreneurs to
filter incoming knowledge in order to achieve cognitive economy and to facilitate <strong>the</strong>ir own decision
making. This is reflected in <strong>the</strong> following research proposition:
Research Proposition: MMs have a lead over <strong>the</strong> three main dimensions <strong>of</strong> absorptive capacity <strong>of</strong>
entrepreneurs in <strong>the</strong> decision making procedure.
Based on <strong>the</strong> existing MMs taxonomy discussed above we attempt to explore <strong>the</strong> potential variable
mediating effect <strong>of</strong> MMs on <strong>the</strong> capacity <strong>of</strong> entrepreneurs to absorb knowledge that is externally
derived.
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