Contemporary Management Practice Applying the Dynamic Absorptive Capacity Measurement Model (PM 4 AC) for Improved Business Sustainability

Rubén Dario Acosta-Velásquez, Jeffrey León-Pulido, Alexander García-Pérez, William Stive Fajardo-Moreno () and Leonardo Espinosa-Leal
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Rubén Dario Acosta-Velásquez: Engineering Faculty, EAN University, Bogotá 110221, Colombia
Jeffrey León-Pulido: Chemical Engineering Program, EAN University, Bogotá 110221, Colombia
Alexander García-Pérez: Engineering Faculty, EAN University, Bogotá 110221, Colombia
William Stive Fajardo-Moreno: Research & Transfer, EAN University, Bogotá 110221, Colombia
Leonardo Espinosa-Leal: Department of Business Management and Analytics, Arcada University of Applied Sciences, Jan-Magnus Jansson Aukio 1, 00560 Helsinki, Finland

Sustainability, 2022, vol. 14, issue 17, 1-12

Abstract: The Colombian industrial sector faces various problems, such as contributing to the development of business and innovation capacities to overcome the difficulties associated with poverty, low competitiveness and low complexity. A key challenge is to develop mechanisms that allow companies to adapt to a globalized competitive environment. In this regard, projects and their management represent an opportunity for greater flexibility. This work presents a model developed to quantify dynamic absorption, understood as the ability to identify the value of new external knowledge, absorb it as internal knowledge and apply it to serve business purposes. The measured indicator is adapted to a dynamic organization environment and provides a project with the ability to interact with and monitor variables. For modeling, variables observed across 148 small and medium-sized enterprises (SMEs), belonging to Colombian organizations, were collected using questionnaires and structural equation modeling (SEM) to determine analysis dimensions, and subsets of dynamic absorptive capacity as latent variables from this information. The dynamic absorptive capacity measurement model (PM 4 AC) describes a normalized fit index (NFI), comparative fit index (CFI) and RMSEA of 0.935, 0.986 and 0.042, correspondingly. The contribution of this model is designed to improve and make available a new framework of business sustainability leadership, using the PM 4 AC tool. Finally, the objective of this study is to provide a model developed to quantify the dynamic absorption capacity for SMES. Furthermore, as most of the research involves technology firms, we seek to better understand the business sustainability in SMEs.

Keywords: absorptive capacity; business process management; business intelligence; business process modeling; sustainable process management (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:17:p:11036-:d:906446

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