Can Enterprises Get“New Energy”Through Getting Rid of “Old Energy”: An Empirical Exploration Based on Organizational Forgetting Theory

Abstract

Abstract: During the process of replacing old growth drivers with new ones, there are often temporary shortages in the enterprises, the existing researches only have relatively limited explanations on this phenomenon. Based on the organizational forgetting theory, this paper tries to answer the question whether enterprises can get“new energy”by abandoning old energy”. Taking 192 manufacturing enterprises in China's Economic Belt around Bohai Sea as samples, this paper analyzes the influence mechanism of organizational forgetting on innovation performance from the perspectives of absorptive capacity, entrepreneurial orientation and environmental dynamics. The findings show that the impact of organizational forgetting on innovation performance is uncertain, and that under the influence of absorptive capacity, entrepreneurial orientation and environmental dynamism, organizational forgetting shows positive effects on innovation performance.

Key words: replace old growth drivers with new ones, organizational forgetting, absorptive capacity, entrepreneurial orientation, environmental dynamics

WANG Jian, HUANG Qunhui. Can Enterprises Get“New Energy”Through Getting Rid of “Old Energy”: An Empirical Exploration Based on Organizational Forgetting Theory[J]. JOURNAL OF CONTEMPORARY FINANCE AND ECONOMICS, 2019, 0(2): 105-116.

References

[1] Akgun A.E., Byrne J. C., Lynn G. S., Keskin H. Organizational Unlearning as Changes in Beliefs and Routines in Organizations[J]. Journal of Organizational Change Management, 2007, 20(6): 794-812.
[2] Akgun A.E., Lynn G. S., Byrne J. C. Antecedents and Consequences of Unlearning in New Product Development Teams[J]. Journal of Product Innovation Management, 2006, 23(1): 73-88.
[3] Brown S.L., Eisenhardt K. M. The Art of Continuous Change: Linking Complexity Theory and Time-Paced Evolution in Relentlessly Shifting Organizations[J]. Administrative Science Quarterly, 1997, 42(1): 1-34.
[4] Cegarra- Navarro J.G., Dewhurst F. W. Linking Shared Organisational Context and Relational Capital through Unlearning[J]. Learning Organization, 2006, 13(1): 49-62.
[5] Covin J.G., Slevin D. P. A. Conceptual Model of Entrepreneurship as Firm Behavior[J]. Social Science Electronic Publishing, 1991, 16(1): 7-24.
[6] Chen G., Wang X.Organizational Learning and Organizational Performance: Regulating Role of Environmental Dynamics[J]. R&D Management, 2012, (1): 52-59.
[7] Cohen W.M., Levinthal D. A. Adsorptive Capacity: A New Perspective on Learning[J]. Administrative Science Quarterly, 1990, 35(1): 128-152.
[8] Dai W., Mu J., Zhang L., Ren L.Research on Enterprise Communication Management Based on Dynamic Capability Theory[J]. Contemporary Finance & Economics, 2017, (2): 68-75.
[9] Easterby-Smith M., Lyles M.A. In Praise of Organizational Forgetting[J]. Journal of Management Inquiry, 2011,20(3): 311-316.
[10] Guo Q., Li N. and Jian L.Impact of Unlearning on Strategic Change: Regulating Role Based on Environmental Dynamics and Dual Culture[J]. Soft Science, 2017, 31(8): 31-34.
[11] Holan P.M. D., Phillips N. Managing Organizational Forgetting[J]. Sloan Management Review, 2004, 45(2): 44-52.
[12] Huang D., Chen S., Zhang G., Ye J., Singh S.K. Organizational Forgetting, Absorptive Capacity, and Innovation Performance: A Moderated Mediation Analysis[J]. Management Decision, 2018, 56(1): 87-104.
[13] Leal-Rodríguez A.L., Eldridge S., Roldán J. L., Lean-Millan A. G., Ortega-Gutierrez J. Organizational Unlearning, Innovation Outcomes, and Performance: The Moderating Effect of Firm Size[J]. Journal of Business Research, 2015, 68(4): 803-809.
[14] Levinthal D.A., March J. G. The Myopia of Learning[J]. Strategic Management Journal, 1993, 14(S2): 95-112.
[15] Li X., Yao Y., Wang L.Research on the Relationship between Entrepreneurial Orientation and Innovation Performance of New Enterprises: Mediating Role of Positive Market Orientation[J]. China Industrial Economics, 2010, (6): 116-125.
[16] Liao J., Welsch H., Stoica M.Organizational Absorptive Capacity and Responsiveness: An Empirical Investigation of Growth-Oriented SMEs[J]. Entrepreneurship Theory & Practice, 2003, 28(1): 63-85.
[17] Love P.E. D., Smith J., Teo P. Putting into Practice Error Management Theory: Unlearning and Learning to Manage Action Errors in Construction[J]. Applied Ergonomics, 2018, 69(2): 104-111.
[18] Lu Y., Zhao Y., Cui Y. and Wang X.Organizational Forgetting and Innovation Performance: Mediating Role of Strategic Flexibility[J]. Science Research Management, 2014, 35(3): 58-65.
[19] Ma L., Zhao B.Strategic Flexibility and Enterprise Performance: Role of Entrepreneurial Orientation and Market Competition Intensity[J]. Contemporary Finance & Economics, 2018, (10): 80-89.
[20] Mehrizi R.M. H., Lashkarbolouki M. Unlearning Troubled Business Models: From Realization to Marginalization[J]. Long Range Planning, 2016, (49): 298-323.
[21] Qian X., Yang Y., Xu W. Enterprise Network Location,Absorptive Capacity and Innovation Performance: An Interactive Effect Model[J]. Management World, 2010, (5): 118-129.
[22] Ruíz M.D. A., Gutiérrez J. O., Martínez-Caro E., Cegarra-Navarro J. G. Linking an Unlearning Context with Firm Performance through Human Capital[J]. European Research on Management and Business Economics, 2017, (23): 16-22.
[23] Snihur Y.Y. Responding to Business Model Innovation: Organizational Unlearning and Firm Failure[J]. The Learning Organization, 2018, 25(3): 190-198.
[24] Starbuck W.H. Organizational Learning and Unlearning[J]. The Learning Organization, 2017, 24(1): 30-38.
[25] Tsang E.W. K., Zahra S. A. Organizational Unlearning[J]. Human Relations, 2008, 61(10): 1435-1462.
[26] Wang J., Huang Q.Organizational Forgetting and Knowledge Rigidity: Moderating Effect of Entrepreneurial Orientation and Environmental Dynamics[J]. Research on Economics and Management, 2018, 39(12): 120-129.
[27] Wen Z., Ye B.Analysis of Mediating Effect: Method and Model Development[J]. Advances in Psychological Science, 2014, (5): 731-745.
[28] Xing L., Li Z. Organizational Forgetting, Organizational Flexibility and Original Innovation: Regulating Role of Organizational Learning and Slack Resources[J]. Forecasting, 2017, (4): 9-14.
[29] Yang K.P., Chou C., Chiu Y. J. How Unlearning Affects Radical Innovation: The Dynamics of Social Capital and Slack Resources[J]. Technological Forecasting & Social Change, 2014, 87(9): 152-163.
[30] Zhang X., Zhao Y., Zheng Z., Wu Y.Organizational Forgetting and Enterprise Strategic Transition under the New Normal: Mediating Role of Organizational Learning[J]. Soft Science, 2017, (12): 47-50.