Linking peripheral vision with relational capital through knowledge structures

Abstract

Purpose Peripheral vision (PV) or side vision refers to that which is visible to the eye while being outside of its central area of focus. PV enables organisms to detect movement and potential threats in their environment. The purpose of this paper is to contribute to the understanding of the concept of PV in the business environment, as well as its relationship with knowledge structures in the form of technology knowledge and absorptive capacity. The relative importance and significance of technology knowledge and absorptive capacity as mediators between “relational capital” (RC) and “PV” are also examined. Design/methodology/approach The paper reports an empirical investigation involving 125 employees from the banking sector. Data collected was statistically analysed using PLS-graph software version 03.00. Results of the data analysis show relationships uncovered in the existing literature. Findings The creation of RC by employees from the banking sector relies to a large extent on managers’ ability to perceive, analyse and understand activity that is often outside the focus of their attention. Practical implications Managers who explicitly value their RC have a wider vision of their environment. In turn, a wider understanding of the activity in the environment drives the strengthening of the organisation and its RC. Originality/value PV can have a direct impact on the organisation’s appetite for the development of its technology knowledge base, thus contributing to enhance the firm’s absorptive capacity as well as the extent, quality and value of its RC.