Management innovation and firm innovation performance: a moderated moderation effects of absorptive capacity and environmental dynamism

Author(s):  
Francis Boadu ◽  
Yu Xie ◽  
Yifei Du ◽  
Elizabeth Dwomo-Fokuo
2009 ◽  
Vol 6 (1) ◽  
pp. 63 ◽  
Author(s):  
Zarina Denan ◽  
Noraini Ismail ◽  
Noormala Amir Ishak

This study examines the absorptive capacity construct at the organization level: its influence on the innovation performance. The primary question this study sought to answer was: How does absorptive capacity affect innovation performance? More specifically, the study examines the relationships of absorptive capacity dimensions and innovation performance. Also, the role of environmental dynamism, as a moderator on absorptive capacity-innovation performance relationship was also investigated. Absorptive capacity is defined as a firm’s capability to complete the entire process from acquiring, disseminating and exploiting knowledge for commercial ends. This study focuses on three dimensions only; knowledge acquisition, knowledge dissemination and knowledge exploitation. The innovation performance concentrates on incremental innovation which includes product, service, method of production, market, sources of supply and ways of organizing. The study used a survey research method and regression analysis technique to examine the hypothesized relationships among constructs using data collected from 180 manufacturing SMEs in Malaysia. It was found that absorptive capacity is positively and significantly related to firms’ innovation performance. Nevertheless, none of the dimensions of absorptive capacity was found significant. The environmental dynamism significantly moderates the relationship between absorptive capacity and innovation performance. The results indicated that both researchers and managers need to pay more attention on SMEs capability in acquiring, disseminating and exploiting knowledge and these capabilities must be integrated in order to achieve superior innovation performance. Also Malaysian SMEs are seen to be more absorptive in more stable environment which eventually enhances the innovation performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Zhang ◽  
Lei Zhu ◽  
Chongchong Lyu

PurposeA firm's geographic boundaries represent an important demarcation line when searching for new knowledge. Prior research on geographic search has generated conflicting results concerning its influence on firm innovation outcomes. The purpose of this study is to fill the gap by examining how and under which conditions geographic search affects firm radical innovation performance.Design/methodology/approachThis study hypothesizes a positive association between a firm's geographic search and radical innovation performance, which is mediated by potential absorptive capacity (PAC). It further proposes that the influence of geographic search on PAC will be moderated by a firm's collaborative network. Drawing on a random sample of 286 Chinese manufacturing firms, the theoretical model is tested.FindingsThe study's results show a positive relationship between geographic search and radical innovation performance, which is partially mediated by PAC. Moreover, attributes of collaborative networks (i.e. diverse location of and strong relational ties with partners) are observed to enhance the positive effect of geographic search on PAC.Originality/valueThis paper advances the understanding of how and when firms can better capture the benefits of geographic search in the development of radical innovation.


2020 ◽  
Vol 12 (23) ◽  
pp. 9999
Author(s):  
Eun-Hwa Seo ◽  
Choo-Yeon Kim ◽  
Kwangsoo Kim

The purpose of our study is to examine the mechanisms that link environmental dynamism to firms’ innovation performance. Although there have been extensive studies on the effect of environmental dynamism on innovation performance, they have focused primarily on its direct effect and have resulted in rather inconsistent research findings. Thus, to explain the relationship between environmental dynamism and innovation performance more clearly, we intend to investigate the mechanisms through which environmental dynamism influences innovation performance in this study. Specifically, we aim to examine the mediation effects of strategic prospecting, absorptive capacity, and combined strategic prospecting–absorptive capacity on the relationship between environmental dynamism and innovation performance. Based on data collected from 266 small and medium-sized firms in Korea, our study has found that, assuming a causal interdependence between the mediators, both strategic prospecting and combined strategic prospecting–absorptive capacity mediate the relationship between environmental dynamism and innovation performance. It has also been found, however, that absorptive capacity alone does not mediate the relationship between environmental dynamism and innovation performance, while absorptive capacity mediates the relationship when it is linked to strategic prospecting. The results of our study further reveal that no direct effect of environmental dynamism on innovation performance exists, implying that the significant effect of environmental dynamism on innovation performance demonstrated in previous studies may be spurious in nature. Based on the findings, we present conclusions, theoretical and practical implications, and limitations with future research directions.


2018 ◽  
Vol 56 (1) ◽  
pp. 87-104 ◽  
Author(s):  
Dujuan Huang ◽  
Song Chen ◽  
Gupeng Zhang ◽  
Jiangfeng Ye

Purpose The purpose of this paper is to examine how the organizational forgetting affect innovation performance under the consideration of the environmental turbulence as a moderating factor of the analysis framework. Design/methodology/approach This study constructs and verifies a moderated mediating model of organizational forgetting to innovation performance, using the exploratory factor analysis and the hierarchical regression analysis based on a survey sample of 320 Chinese companies. Findings The organizational forgetting is a critical determinant for improving innovation performance of an enterprise. A more detailed analysis reveals that first organizational forgetting cannot promote organization’s innovation performance without absorptive capacity. Second, the mediating effect of absorptive capacity is more positive when environmental turbulence is higher. Practical implications This study provides empirical evidence about the importance of organizational forgetting in the firm innovation. Originality/value This paper adds to the existing literature by providing a clear explanation of the impacts of organizational forgetting on innovation performance through a comprehensive empirical study. Contrasting with previous research, this research clarifies the boundary conditions under which organizational forgetting enhances innovation performance. In particular, the authors find that organizational forgetting is not equally positive but instead increases with the level of environmental turbulence.


2013 ◽  
Vol 17 (03) ◽  
pp. 1340011 ◽  
Author(s):  
NUTTANEEYA (ANN) TORUGSA ◽  
ANTHONY ARUNDEL

This study examines, through the theoretical lens of absorptive capacity, how the interaction between investments in R&D and training moderates the influence of collaboration with public research organisations (PROs) on firm innovation performance. Using data for 1,086 innovating firms across all industry sectors in the Australian state of Tasmania in 2010, we find that there is no direct association between collaboration with PROs and firm innovation performance, and the R&D-training interaction plays a significant role in positively moderating such an association. This study contributes to the innovation management literature by demonstrating the importance of the combination of R&D and training in creating absorptive capacity. More importantly, the combination of R&D and training positively influences the successful exploitation of private–public collaboration and promotes innovation performance.


2017 ◽  
Vol 8 (4) ◽  
pp. 475-494 ◽  
Author(s):  
Xueyuan Liu ◽  
Muzhen Shen ◽  
Wenjing Ding ◽  
Xiande Zhao

Purpose In innovation networks, firm innovation performance is affected by external tie strength and internal knowledge absorptive capacity. This study aims to empirically examine the path relationship between tie strength, absorptive capacity and firm innovation performance in Chinese manufacturing industries, thus enhance our understanding on the mechanism between innovation network and innovation performance. Design/methodology/approach The authors have conducted a survey among Chinese manufacturers in four industries (textile and garment, household appliance, IT and electronics and motor vehicle assemblers) that are located in North, East, Central and South China, respectively, with a valid response from 278 manufacturers. Structural equation model is used to analyze the results. Findings This study demonstrates that in Chinese Manufacturing industry, tie strength is positively related to innovation performance. The authors also find that absorptive capacity has a positive impact on innovation performance and it mediates the relationship between tie strength and innovation performance. Then, the authors analyze the effect of ownership, industry and sub-region, and the results show that in private firms and traditional manufacturers, and the firms located in North and Eastern China, tie strength has no direct effect on innovation outcomes, but it can influence innovation indirectly through absorptive capacity. Originality/value This study further supports that in Chinese guanxi culture, strong ties with other innovation partners can improve the firm’s absorptive capacity and thus improve innovation performance. The results also suggest that a firm’s absorptive capacity has a significant mediating effect on the relationship between tie strength and innovation performance.


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