The mediating role of absorptive capacity on the relationship between entrepreneurial orientation and technological innovation capabilities

2018 ◽  
Vol 24 (4) ◽  
pp. 818-841 ◽  
Author(s):  
AbdulQadir Rahomee Ahmed Aljanabi
Keyword(s):  
Technological Innovation ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Equation Model ◽  
Content Type ◽  
Mediating Role ◽  
Unstable Environment ◽  
The Relationship

Purpose The purpose of this paper is to empirically examine the relationships between entrepreneurial orientation (EO), absorptive capacity (ACAP), and technological innovation capabilities (TIC) among industrial SMEs operating in an unstable environment. The research also aims to determine whether ACAP has a mediating role in the relation between EO and TIC. Design/methodology/approach A structural equation model was designed to examine the relationships. On the basis of a research framework, a self-administered questionnaire was used to gather data from SMEs owners in the Kurdistan region of Iraq. There were 432 out of 676 questionnaires returned and subsequently used for statistical analysis. Findings The outcomes of the present research indicate both EO and ACAP have significant effects on TIC. Furthermore, the outcomes suggest that ACAP has a mediation role in the nexus between EO and TIC and that indicates the ability of EO to strengthen TIC via ACAP. Originality/value The research contributes to the literature through three aspects. First, it provides some empirical evidence on the relationships between EO, ACAP and TIC of SMEs. Second, the research sheds light on the insights that firms can use externally generated knowledge as a mechanism to enhance their proactivity and willingness toward innovation. Third, for the innovation literature, it is valuable contribution to placing ACAP within the frame of EO. Thus, they can be advantageous to more development in innovation literature.

The nexus between entrepreneurial orientation and performance: enabling roles of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Raisal ◽  
Arun Kumar Tarofder ◽  
Aboobucker Ilmudeen
Keyword(s):  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Medium Enterprises

PurposeDeveloping countries’ economic growth very much depend on the successful performance of entrepreneurial-oriented firms. Entrepreneurial orientation (EO) is a valuable conjecturer of firm success. This study mainly focuses on analyzing the effect of EO on the firm performance (FP) with the mediating role of absorptive capacity (ACAP).Design/methodology/approachTo test the hypothetical model, we collected 226 valid responses from senior managers of small and medium enterprises (SMEs). The structural equation modeling technique is performed and research hypotheses are validated.FindingsThe findings show that the strong causal relations exit between EO, ACAP and FP. In brief, EO was found to be a predictor of ACAP, and ACAP has a strong positive impact on FP. Moreover, ACAP substantiated to be a mediator between EO and FP.Research limitations/implicationsA notable ramification of this finding is that for SMEs to enhance their performance via EO, the presence of ACAP as a mediator is essential.Practical implicationsThe findings of this study can be used as a basis to consider EO to increase firms' level of ACAP and to enhance FP. As a whole, the findings offer pragmatic insights for SMEs and pertinent stakeholders.Originality/valueSo far, little is known about the interrelationship between EO, ACAP and FP. Importantly, the mediating role of ACAP between EO and FP has remained unexplored. This study fills this gap in the existing literature.

Effect of entrepreneurial orientation on radical innovation performance among manufacturing SMEs: the mediating role of absorptive capacity

2020 ◽  
Vol 13 (4) ◽  
pp. 551-570
Author(s):  
Sampson Ato Sarsah ◽  
Hongyun Tian ◽  
Courage Simon Kofi Dogbe ◽  
Bylon Abeeku Bamfo ◽  
Wisdom Wise Kwabla Pomegbe
Keyword(s):  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Radical Innovation ◽  
Innovation Performance ◽  
Cross Sectional ◽  
Content Type ◽  
Mediating Role ◽  
Absorptive Capacities ◽  
The Relationship

PurposeThe study explored the mediating role of potential and realized absorptive capacities in the relationship between entrepreneurial orientation and radical innovation performance among manufacturing small and medium-sized enterprises (SMEs).Design/methodology/approachEmpirical analysis was based on 357 manufacturing SMEs in Ghana. Various validity and reliability checks were conducted before the presentation of the actual analysis, which was conducted using ordinary least squares approach, run using SPSS (v. 20).FindingsFindings revealed that potential and realized absorptive capacities significantly mediated the relationship between entrepreneurial orientation and radical innovation performance among manufacturing SMEs. Further, it was identified that ambidexterity in absorptive capacity also had a greater effect on radical innovation performance among manufacturing SMEs.Research limitations/implicationsSince the data used were cross-sectional, the relationships measured represent only a snapshot of time. Longitudinal studies could therefore be adopted in the future to complement the cross-sectional conducted.Practical implicationsWhile managers of manufacturing SMEs seek to achieve higher radical innovation performance through entrepreneurial orientation, it should also be noted that both potential and realized absorptive capacities have a significant role to play in this relationship. Managers must therefore also seek to invest time to build both potential and realized absorptive capacities, as they define greater innovation success.Originality/valueSome past studies have considered absorptive capacity as composite variable, therefore added both potential and realized absorptive capacities to form a single variable. Others also presented potential and realized absorptive capacities individually. This current study extends the body of knowledge by presenting an ambidexterity position between potential and realized absorptive capacities.

The effect of perceived organisational politics on organisational silence through organisational cynicism: Moderator role of perceived support

2018 ◽  
pp. 1-20 ◽  
Author(s):  
Hadi A. AL-Abrrow
Keyword(s):  
Structural Equation ◽  
Survey Design ◽  
Equation Model ◽  
Public Hospitals ◽  
Perceived Support ◽  
Mediating Role ◽  
Moderator Role ◽  
The Relationship ◽  
Organisational Politics

AbstractThis study examines the effect of perceived organisational politics on organisational silence through the mediating role of organisational cynicism. In addition, it tests the effect of perceived support on this relationship. A quantitative (questionnaire survey) design was used to gather data from 346 employees in three public hospitals in Iraq. The structural equation model was used for data analysis. The results demonstrate that all the major hypotheses were accepted, and important role of perceived support in reversing the positive relationship between perceived organisational politics and organisational cynicism was also highlighted. Furthermore, the mediating role was clear in terms of organisational cynicism and the relationship between perceived organisational politics and organisational silence.

scholarly journals The Mediating Role of Absorptive Capacity in the Relationship between Research Community Participation and Open Innovation

2021 ◽  
Vol 124 ◽  
pp. 08010
Author(s):  
Rabiah Eladwiah Abdul Rahim ◽  
Nor’ashikin Ali ◽  
Juraifa Jais
Keyword(s):  
Community Participation ◽  
Absorptive Capacity ◽  
Open Innovation ◽  
Structural Equation ◽  
Research Community ◽  
Management Support ◽  
Top Management Support ◽  
Mediating Role ◽  
The Relationship

This study aims to investigate the factors influencing research community participation and open innovation through the mediating role of absorptive capacity from the lens of Resource Based View and Dynamic Capability perspectives. Based on a survey of 115 senior engineering faculties from three research universities in Malaysia, this study applies the Structural Equation Modelling (SEM) to investigate the research model. The findings demonstrate that top management support has a major impact on research community participation. The findings also suggest that absorptive capacity mediates the association between research community participation and open innovation capability. This study provides a theoretical basis on the resources and capability that are pertinent for open innovation. From a practical perspective, the relationships among research community participation, absorptive capacity, and open innovation suggest how universities can promote research community participation and assess their absorptive capacity to achieve open innovation.

Dynamic capabilities: antecedents and implications for firms' performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ricardo Jorge Correia ◽  
Mário Sérgio Teixeira ◽  
José G. Dias
Keyword(s):  
Structural Equation ◽  
Dynamic Capabilities ◽  
Structural Equation Models ◽  
Causal Link ◽  
Competitive Advantages ◽  
Content Type ◽  
Mediating Role ◽  
Strategic Orientations ◽  
The Relationship

PurposeThis paper aims to explore a new causal link between learning, market and entrepreneurial orientations and firms' performance by introducing dynamic capabilities and competitive advantages as mediator variables.Design/methodology/approachThe mediating role of dynamic capabilities and competitive advantages is tested using a sample of 1,190 Portuguese firms, and structural equation models.FindingsIt is shown that dynamic capabilities mediate the relationship between the three orientations–learning, market and entrepreneurial–and competitive advantages of differentiation and cost leadership, and both competitive advantages lead to firm's performance. It is also shown that learning orientation is an antecedent of market orientation and entrepreneurial orientation.Practical implicationsThis research shows that firm's performance depends on the capacity of firms to learn, innovate, be proactive, take risks and collect the best market data. Indeed, by optimizing the internal management and knowledge dissemination, firms will develop a set of capabilities and competitive advantages that lead to an appropriate response to market challenges.Originality/valueThis study tests the relationship between strategic orientations and firm's performance by taking the mediating effects of dynamic capabilities and competitive advantages into account. This research was conducted in Portugal.

Intellectual capital and business performance: the role of dimensions of absorptive capacity

2019 ◽  
Vol 21 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Syed Saad Ahmed ◽  
Jia Guozhu ◽  
Shujaat Mubarik ◽  
Mumtaz Khan ◽  
Essa Khan
Keyword(s):  
Absorptive Capacity ◽  
Intellectual Capital ◽  
Business Performance ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship ◽  
Realized Absorptive Capacity

Purpose The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance. Design/methodology/approach Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items. Findings The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence. Originality/value This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.

Organizational flexibility and project portfolio performance: the roles of innovation, absorptive capacity and environmental dynamism

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Aamir Saeed ◽  
Yuanyuan Jiao ◽  
Muhammad Mohsin Zahid ◽  
Humaira Tabassum ◽  
Shazia Nauman
Keyword(s):  
Structural Equation ◽  
Equation Modeling ◽  
Portfolio Performance ◽  
Project Portfolio ◽  
Environmental Dynamism ◽  
Organizational Flexibility ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeThe aim of the current study is to empirically assess the effects of organizational flexibility on project portfolio (PP) performance, with the mediating role of innovation and moderating effects of environmental dynamism (ED) and absorptive capability (AC).Design/methodology/approachData were collected from 173 manufacturing firms and analyzed using structural equation modeling (SEM) with the help of a partial least squares (PLS) approach.FindingsResults show that innovation partially mediates the relationship between organizational flexibility and PP performance. Furthermore, the moderating effect of ED between organizational flexibility and innovation was analyzed. Additionally, AC also observed as a moderator between innovation and PP performance.Originality/valueBased on the resource-based view, this study contributes to the literature by addressing the roles of innovation, ED and AC in the relationship between organizational flexibility and PP performance. Implications for managers also discussed in the end; for example, to be more competitive, they should incorporate flexibility into the firm to encourage innovation. It also emphasizes to select new innovative opportunities that correspondingly have effects on the PP performance.

Intrapreneurship to engage employees: role of psychological capital

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jatin Pandey ◽  
Manish Gupta ◽  
Yusuf Hassan
Keyword(s):  
Work Engagement ◽  
Structural Equation ◽  
Online Survey ◽  
Psychological Capital ◽  
Business Environment ◽  
Content Type ◽  
Mediating Role ◽  
Survey Responses ◽  
The Relationship

PurposeIntrapreneurship is gaining traction in organizations to buckle up for the dynamic business environment. Scholars have argued that intrapreneurship increases positivity at work and helps employees attach themselves better with their job. However, empirical evidence suggests that these relationships do not exist. The objective of this paper is to examine the mediating role of psychological capital (PsyCap) in the relationship between intrapreneurship and work engagement.Design/methodology/approachData were collected through an online survey. Responses from 309 employees working in different industries in India were analysed. Structural equation modelling (SEM) was used to analyse the hypothesized relationships.FindingsThe results show that there exist positive relationships among intrapreneurship, psychological capital (PsyCap) and work engagement. Further, it was observed that the PsyCap partially mediates the relationship between intrapreneurship and work engagement.Practical implicationsManagers may not only encourage intrapreneurial behaviour in their organizations but also ensure that the employees are psychologically capable (high on PsyCap). It would enable the employees to engage themselves wholeheartedly into their work.Originality/valueTo the best of the authors' knowledge, this study is one of its kinds to relate intrapreneurship with PsyCap and work engagement.

Unpacking the black box

2020 ◽  
Vol 21 (6) ◽  
pp. 809-834 ◽  
Author(s):  
Kaveh Asiaei ◽  
Omid Barani ◽  
Nick Bontis ◽  
Maryam Arabahmadi
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Content Type ◽  
Knowledge Resources ◽  
Mediating Role ◽  
Strategic Resources ◽  
Structural Capital ◽  
Resource Orchestration ◽  
The Relationship

PurposeDrawing largely upon resource orchestration theory, this study aims to contribute to the intellectual capital (IC) literature by testing a model where intrapreneurship mobilizes resources to trigger firm performance. More specifically, this study investigates how intrapreneurship mediates the relationship between IC and financial performance.Design/methodology/approachData was collected using a structured questionnaire administered to a target sample of publicly-listed Iranian companies across a variety of sectors. Archival data supplemented the survey findings to capture financial performance. A structural equation modelling (SEM) approach, using LISREL, was used to assess the measurement and structural models.FindingsThe results supported the hypothesized associations among IC, intrapreneurship, and financial performance. Furthermore, the findings provided some evidence that IC is indirectly related to financial performance through the mediating role of intrapreneurship.Research limitations/implicationsThe focus on Iranian publicly listed companies limits the generalizability of results.Practical implicationsManagers need to align the company's strategic resources with other competencies such as intrapreneurial initiatives. The synthesis of knowledge resources and intrapreneurship can help organization to better organize, synchronize and support – i.e. “orchestrate” – their human and structural capital, improving the firm's social and innovation capital and eventually enhancing overall performance.Originality/valueTo our knowledge, this is the first study ever to explore the mediating role of intrapreneurship in the relationship between IC and financial performance from the resource orchestration lens.

The relationship between learning culture, inquiry and dialogue, knowledge sharing structure and affective commitment to change

2017 ◽  
Vol 30 (4) ◽  
pp. 610-631 ◽  
Author(s):  
Parul Malik ◽  
Pooja Garg
Keyword(s):  
Knowledge Sharing ◽  
Structural Equation ◽  
Affective Commitment ◽  
Learning Culture ◽  
Mediating Effect ◽  
Commitment To Change ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose The purpose of this paper is to empirically investigate the relationship between learning culture, inquiry and dialogue, knowledge sharing structure and affective commitment to change. Also, the paper examines the mediating effect of employee resilience on the relationship between learning culture, inquiry and dialogue, knowledge sharing structure and affective commitment to change. Design/methodology/approach The sample comprised of responses from 510 employees’ working in information technology companies based in India. Confirmatory factor analysis was employed to analyse the proposed measurement model and structural equation modelling was used to test the study hypotheses. Additionally, the study utilized mediation analyses proposed by Preacher and Hayes (2004) to investigate the mediating role of employee resilience. Findings The results show significant relationship between the study variables. Employee resilience was found to partially mediate the relationship between learning culture, inquiry and dialogue, knowledge sharing structure and affective commitment to change. Practical implications Examining the relationship between learning culture, inquiry and dialogue, knowledge sharing structure and employee resilience can have significant implications for organizations. The proposed study framework can be utilized by the researchers and human resource practitioners to frame organizational practices and interventions to develop a pool of resilient and change committed workforce. Originality/value First, the general understanding of the relationship between learning culture, inquiry and dialogue, knowledge sharing structure and affective commitment to change is scant in literature. Second, the study extends the previous research by investigating the mediating role of employee resilience between learning culture, inquiry and dialogue, knowledge sharing structure and affective commitment to change.

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