scholarly journals Effects of absorptive capacity, trust and information systems on product innovation

2018 ◽  
Vol 38 (2) ◽  
pp. 493-512 ◽  
Author(s):  
Min Zhang ◽  
Xiande Zhao ◽  
Marjorie Lyles
Keyword(s):  
Information Systems ◽  
New Product Development ◽  
Absorptive Capacity ◽  
Product Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Management Processes ◽  
Complex Relationships ◽  
The Relationship

Purpose The purpose of this paper is to empirically investigate the mechanisms through which absorptive capacity (AC), trust and information systems jointly influence product innovation. Design/methodology/approach This study proposes a research model to examine the mediating role of AC on the impacts of trust and information systems on product innovation and the moderating roles of trust and information systems on the relationship between AC and product innovation. The hypotheses are empirically tested using regression and bootstrapping methods and data collected from 276 manufacturing firms in China. Findings This study finds that trust and information systems positively affect product innovation and the effects are fully mediated by AC. AC also significantly enhances product innovation, and the effect is amplified by trust as well as information systems. In addition, the results show that trust and information systems improve AC both individually and interactively. Originality/value The findings extend existing knowledge on the antecedents of AC and the contingent conditions under which a manufacturer’s AC is more effective than that of its rivals. The results also clarify the mechanisms through which trust and information systems improve product innovation. This study provides insights into the complex relationships among a manufacturer’s sociotechnical systems, knowledge management processes and new product development, and reveals how to design organisational systems to fully capitalise the value of AC on product innovation.

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.

External knowledge sourcing and innovation in family firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manzoor Ul Akram ◽  
Koustab Ghosh ◽  
Rojers P. Joseph
Keyword(s):  
Social Capital ◽  
Absorptive Capacity ◽  
Product Innovation ◽  
Family Firms ◽  
Family Firm ◽  
Content Type ◽  
External Knowledge ◽  
Mediating Role ◽  
Realized Absorptive Capacity

Purpose This study aims to investigate the external knowledge search behaviors in terms of search breadth and search depth in family firms and the resultant product innovation in Indian context. The authors theorize the mediating role of absorptive capacity (potential and realized absorptive capacity) between knowledge sourcing from external sources and product innovation. Further, the authors examine the moderating role of crucial internal social capital of the family firm in enhancing the use of external knowledge for firm innovation activities. Design/methodology/approach The study uses a quantitative research design taking single informant for collection of data from 151 family small and medium enterprises in automotive sector in India. The authors use structural equation modeling to test hypothesized relationships. Findings The findings indicate that both search breadth and search depth of family firms are positively associated with product innovation in family firms. The authors also find evidence for partial mediating role of potential and realized absorptive capacity in the relationship between search breadth and innovation and search depth and innovation. The results show how family firms learning taking place while scanning external knowledge sources in terms of external absorptive capacity routines. Finally, the authors find that family firm internal social capital positively moderate the relationship between search breadth and depth, and product innovation. Practical implications Family firms need to innovate to remain relevant in the long-run and as such development of superior capabilities is of great significance to them. Family firm managers must be open to external knowledge as such knowledge help them improve the firm level of innovation through absorptive capacity. Further, family firms must realize and act upon the importance of their social capital for the integration and utilization of acquired knowledge. Originality/value This paper is amongst a few papers that take dynamic capability views of innovation in family firms wherein the authors theorize how external search breadth and depth lead to the development of potential and realized absorptive capacity in family firms. The importance of family firm internal social capital as a strong integrating and knowledge sharing mechanism that helps family firms transform external knowledge into innovation is also highlighted.

The mediating role of ambidextrous capability in learning orientation and new product performance

2017 ◽  
Vol 32 (5) ◽  
pp. 613-624 ◽  
Author(s):  
Jing-Wen Huang ◽  
Yong-Hui Li
Keyword(s):  
New Product Development ◽  
New Product ◽  
Product Performance ◽  
Learning Orientation ◽  
Content Type ◽  
Mediating Role ◽  
New Product Performance ◽  
Potential Mediator ◽  
The Relationship

Purpose Learning orientation is critical in new product development. However, research has disregarded how learning orientation operates via the potential mediator to influence new product performance. The purpose of this study is to examine the mediating role of ambidextrous capability in the relationship between learning orientation and new product performance. Design/methodology/approach The empirical study uses a questionnaire approach designed to collect data for testing research hypotheses. This study tests the hypotheses using structural equation model in a sample of 336 firms in Taiwan. Findings The findings indicate that learning orientation relates positively to ambidextrous capability and new product performance. Ambidextrous capability, in turn, relates positively to new product performance. The results also support the argument that ambidextrous capability plays a mediating role in learning orientation and new product performance. Originality/value The value of this study is to identify ambidextrous capability as the potential mediator in the relationship between learning orientation and new product performance. The results enrich the understanding of learning orientation in new product project teams and suggest important implications for new product development and future research.

Strategic renewal of SMEs: the impact of social capital, strategic agility and absorptive capacity

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samar Hayat Khan ◽  
Abdul Majid ◽  
Muhammad Yasir
Keyword(s):  
Social Capital ◽  
Strategic Management ◽  
Absorptive Capacity ◽  
Content Type ◽  
Strategic Renewal ◽  
Mediating Role ◽  
Strategic Agility ◽  
The Relationship ◽  
Moderating Role

PurposeThis research was carried out with the purpose to empirically test the model to explain the procedures concerned with the translation of social capital (SC) into strategic renewal (SR) of SMEs in developing economy like Pakistan. This procedure involves the mediating role of firms' strategic agility (SA) as well as the contingent effects of firms' absorptive capacity (AC).Design/methodology/approachThis study employed a cross-sectional design to evaluate the hypothesized model. To validate the moderated mediation model, data was collected from 519 CEOs, owners, finance managers and managing directors of 123 manufacturing units dealing in agricultural machinery (32 units), automobile accessories (16 units), pharmaceutical instrument (11 units), electrical equipment (25 units), IT related accessories (21 units) and garments (18 units).FindingsThe findings of the study confirm a positive association between SC on SR. Moreover, results also validate the mediating role of SA in the relationship between SC and SR. In addition, the moderating role of AC is also confirmed and presented this construct as a catalyst in the relationship between SC and SR.Practical implicationsThis research provides new endeavors for strategic management and strategic entrepreneurship literature by focusing on distinctive resources such as SC with its different facets. Therefore, it provides a new dimension and a roadmap that will be beneficial to the achievement of the objectives of SR.Originality/valueThe findings of this research have contributed to the streams of strategic management perspective by emphasizing upon the mediating mechanism how SC can be transformed into SR of SMEs through SA. Findings of the research also contribute to understand the moderating role of AC, and how its association with SC and SA augments the effects on SR of firms.

scholarly journals Intra-Organizational Social Capital and Product Innovation: The Mediating Role of Realized Absorptive Capacity

2021 ◽  
Vol 11 ◽  
Author(s):  
Beatriz Ortiz ◽  
Mario J. Donate ◽  
Fátima Guadamillas
Keyword(s):  
Social Capital ◽  
New Product Development ◽  
Absorptive Capacity ◽  
Product Innovation ◽  
Structural Equations ◽  
Organizational Social Capital ◽  
Mediating Role ◽  
Pharmaceutical Industries ◽  
Realized Absorptive Capacity

This paper examines the influence on product innovation of factors based on a company’s transformation and exploitation of knowledge gathered from its intra-organizational relationships. Specifically, this paper analyses the influence of intra-organizational social capital (SC) (i.e., comprised of structural, relational, and cognitive dimensions) on realized absorptive capacity (RACAP). Moreover, it analyses the mediating role of RACAP on the relationship between internal SC and product innovation. Based on a sample of companies from the Spanish biotechnological and pharmaceutical industries, two hypotheses were tested using a structural equations model and the partial least squares (PLS) technique. The results support both hypotheses, suggesting that the development of strong and tightly knit links based on a common understanding and trust among company members lead the firm to develop dynamic capabilities for transforming and exploiting knowledge acquired externally, which fosters innovation based on new product development. Research limitations, implications and future research are also discussed by the authors of the paper.

How modularity influences product innovation

2020 ◽  
Vol 58 (12) ◽  
pp. 2743-2761
Author(s):  
Yaowu Sun ◽  
Qi Zhong
Keyword(s):  
Product Innovation ◽  
Structural Equation ◽  
High Tech ◽  
Content Type ◽  
Mediating Role ◽  
Specific Investment ◽  
Specific Investments ◽  
Product Modularity ◽  
The Relationship

PurposeThe purpose of this paper is to offer novel and complementary insights into the relationship between product modularity and product innovation by investigating the mediating role of module suppliers' relationship-specific investments which include both property-based relationship-specific investment (PRSI) and knowledge-based relationship-specific investment (KRSI).Design/methodology/approachThis paper is an empirical study based on structural equation modelling, with a sample of 121 core firms of high-tech modular cooperation in China.FindingsThe findings indicated that product modularity had a significant positive effect on product innovation; product modularity was positively related to module suppliers' PRSI; module suppliers’ KRSI had a direct effect on product innovation while PRSI had an indirect effect on product innovation through KRSI; the relationship between product modularity and product innovation was serially multi-mediated by module suppliers’ PRSI and KRSI.Practical implicationsModular product design and modular cooperation governance guidance for core firms and cooperative investment strategies guidance for module suppliers were provided.Originality/valueThis study is the first attempt to analyse how product modularity affects product innovation in the context of inter-firm modular cooperation by revealing the mediating role of module suppliers' relationship-specific investments.

Market orientation and product innovation: the mediating role of technological capability

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hakan Aydin
Keyword(s):  
Market Orientation ◽  
Product Innovation ◽  
Customer Orientation ◽  
Manufacturing Firms ◽  
Technological Capability ◽  
Content Type ◽  
Mediating Role ◽  
Technological Intensity ◽  
The Relationship

PurposeThis study aims to examine the relationship between market orientation and product innovation and the mediating role of technological capability in this relationship. It also aims to examine the effect of market orientation on product innovation within the framework of technological intensity classification of the fields of business activity.Design/methodology/approachThe research data were obtained from 186 senior and mid-level managers of 627 manufacturing firms that are widely considered to be innovative, and that are ranked among Turkey's largest 1,000 manufacturing firms (ISO 1000). The data were analyzed using partial least squares structural equation modeling.FindingsCustomer orientation and interfunctional coordination, two distinct dimensions of market orientation, had positive effects on product innovation. Technological capability played a mediating role in the effect of customer orientation and interfunctional coordination on product innovation. In addition, interfunctional coordination positively affected product innovation in firms with low technological intensity, whereas customer orientation positively affected product innovation in firms with medium-high technological intensity.Practical implicationsFor the success of product innovations, firms should establish mechanisms to obtain information about customer needs and expectations and to disseminate and effectively use this information among organizational functions. They also need to improve their technological capabilities to effectively transform market knowledge into product innovation.Originality/valueThe relationship between market orientation and product innovation has been examined in previous studies; however, there is an insufficient number of studies on the mediating role of technological capability in this relationship. This study aimed to eliminate the gap in the literature regarding the mediating role of technological capability. In addition, innovation activities of firms vary depending on the technological intensity, but only a limited number of evaluations have been conducted on this subject. This study contributes valuable knowledge to the relevant literature by examining the impact of market orientation dimensions on product innovation according to technological intensity.

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 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.

From external information to marketing innovation: the mediating role of product and organizational innovation

2018 ◽  
Vol 33 (5) ◽  
pp. 693-705 ◽  
Author(s):  
F. Javier Ramirez ◽  
Gloria Parra-Requena ◽  
Maria J. Ruiz-Ortega ◽  
Pedro M. Garcia-Villaverde
Keyword(s):  
Product Innovation ◽  
Structural Equation ◽  
Organizational Innovation ◽  
External Information ◽  
Mediating Effects ◽  
Content Type ◽  
Marketing Innovation ◽  
Mediating Role ◽  
The Relationship

Purpose This paper aims to further understand how firms transform external information into marketing innovation. The specific aim is to analyse the mediating role of product innovation and organizational innovation in the relationship between external information and marketing innovation. Design/methodology/approach The study builds on the 2012 database Technological Innovation Panel (PITEC) with a sample of 994 manufacturing firms. The data are analysed using partial least squares structural equation modelling (PLS-SEM). Findings The results show how external information obtained about relationships with suppliers, customers and competitors leads to marketing innovation. The study demonstrates the mediating effects of product innovation and organizational innovation on the relationship between external information and marketing innovation. Practical implications Firms should utilize external information flows to innovate in both their products and organization as a prerequisite to marketing innovation. Originality/value This paper provides linkages between perspectives of networks, innovation and marketing to better understand the background of the least studied dimension of innovation – marketing innovation. The main contribution is to explain how firms use external information to achieve marketing innovation through product and organizational innovation.

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