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.

Improving performance through leaders' forgiveness: the mediating role of radical innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emilio Domínguez-Escrig ◽  
Francisco Fermín Mallén Broch ◽  
Ricardo Chiva Gómez ◽  
Rafael Lapiedra Alcamí
Keyword(s):  
Organizational Performance ◽  
Explanatory Variable ◽  
Radical Innovation ◽  
Structural Equations ◽  
Content Type ◽  
Mediating Role ◽  
Firm Turnover ◽  
The Relationship ◽  
Practical Implications

PurposeThe objective of this study is to analyze the relationship between leaders' forgiveness and organizational performance using radical innovation as an explanatory variable.Design/methodology/approachThe study was conducted in a sample frame of 11,594 Spanish companies. A total of 600 valid questionnaires were obtained. The structural equations were used to validate the proposed hypotheses.FindingsResults confirmed the hypotheses proposed in the model: the authors provided, through structural equations, empirical evidence of the relationship between leaders' forgiveness and organizational performance, mediated by radical innovation. Leaders' forgiveness promotes radical innovation and, in turn, performance.Research limitations/implicationsThe sample of companies is heterogeneous in terms of firm turnover, size and age. The study is focused on radical innovation.Practical implicationsThe present study may help to develop more humane policies to manage human resources, by taking into account employees' feelings and needs.Originality/valueThe business field is closer to competitive values and has traditionally underestimated the importance of leaders' forgiveness. This is one of the few studies that empirically analyze the consequences of leaders' forgiveness within organizations.

Personality and boredom at work: the mediating role of job crafting

2019 ◽  
Vol 24 (4) ◽  
pp. 315-330
Author(s):  
Bogdan Oprea ◽  
Dragos Iliescu ◽  
Vlad Burtăverde ◽  
Miruna Dumitrache
Keyword(s):  
Job Crafting ◽  
Negative Consequences ◽  
Cross Sectional ◽  
Content Type ◽  
Work Related ◽  
Mediating Role ◽  
Cross Sectional Design ◽  
The Individual ◽  
The Relationship

Purpose Boredom at work is associated with negative consequences, therefore it is important to investigate whether employees engage in job crafting behaviors that reduce boredom and what are the individual differences associated with these behaviors. The paper aims to discuss these issues. Design/methodology/approach A questionnaire study was designed to examine the mediating role of job crafting in the relationship between conscientiousness and emotional stability and boredom among 252 employees (Study 1) and in the relationship between Machiavellianism and psychopathy and boredom among 216 employees (Study 2). Findings The results showed that conscientiousness is negatively related to work-related boredom. This relationship is mediated by job crafting. Neuroticism and psychopathy are positively associated with boredom at work, but these relationships are not mediated by job crafting behaviors. Research limitations/implications The study was based on self-reported measures, which might raise questions of common-method bias, and the research samples contained mostly women and young employees, which raises questions about generalizability of our findings. At the same time, the cross-sectional design does not allow causal inferences. Practical implications Organizations can select employees based on their personality for jobs that predispose to boredom and give them enough autonomy to be able to craft them. Moreover, they can identify employees who need support to manage their boredom and include them in job crafting interventions. Originality/value Traditionally, boredom at work has been considered as resulting from characteristics of tasks and jobs. The findings indicate that some employees can make self-initiated changes to their work in order to reduce their boredom and possibly its negative consequences.

How does coopetition affect radical innovation? The roles of internal knowledge structure and external knowledge integration

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huanhuan Chen ◽  
Yanhong Yao ◽  
Ao Zan ◽  
Elias G. Carayannis
Keyword(s):  
Knowledge Integration ◽  
Knowledge Structure ◽  
Radical Innovation ◽  
Content Type ◽  
External Knowledge ◽  
Mediating Role ◽  
Architectural Knowledge ◽  
The Relationship ◽  
Positive Effect

Purpose Building on the resource- and knowledge-based views, this paper aims to explore how coopetition affects radical innovation and the roles of knowledge structure and external knowledge integration in the relationship between coopetition and radical innovation. Design/methodology/approach This study proposes a research model to examine the mediating role of external knowledge integration on the coopetition-radical innovation link, where the mediation is moderated by the firm’s knowledge structure (including component knowledge and architectural knowledge). The authors use regression and bootstrapping to test the proposed model with survey data from 241 Chinese technology firms. Findings This study finds that coopetition positively affects radical innovation and the effect is fully mediated by external knowledge integration. Additionally, component knowledge negatively moderates the coopetition-external knowledge integration link and architectural knowledge positively moderates this relationship. Further, the mediating effect of external knowledge integration is also moderated by component knowledge and architectural knowledge. Practical implications Firms should engage in coopetition to promote radical innovation. Further, it is necessary for firms to appropriately manage coopetition according to their internal knowledge structure. Originality/value This study explains why scholars have different ideas about the relationship between coopetition and radical innovation by exploring the mediating role of external knowledge integration and the moderating effect of knowledge structure. Firms possess increased possibilities for knowledge leakage and partner opportunism with high levels of component knowledge, which will reduce the positive effect coopetition on external knowledge integration; thus, they are less likely to realize radical innovation. Instead, firms possess increased opportunities for resource sharing with high levels of architectural knowledge, thus improving the positive effect coopetition on external knowledge integration and they are more likely to achieve radical 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.

Enhancing radical innovation performance through intellectual capital components

2017 ◽  
Vol 18 (4) ◽  
pp. 789-806 ◽  
Author(s):  
Lara Agostini ◽  
Anna Nosella
Keyword(s):  
Intellectual Capital ◽  
Radical Innovation ◽  
Innovation Performance ◽  
Content Type ◽  
Key Factor ◽  
Ic Testing ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose In today’s knowledge economy the ability to innovate and develop new products is a key factor to sustain firm performance. Within this context, analysing the role of different components of intellectual capital (IC) becomes of foremost importance, as well as an under-investigated issue for small- and medium-sized enterprises (SMEs). The purpose of this paper is to investigate the impact of human, organisational and relational capital (RC) on radical innovation performance (RIP), as well as to examine whether organisational capital (OC) and RC mediate the relationship between human capital (HC) and RIP and whether OC moderates the relationship between RC and RIP. Design/methodology/approach The methodology consisted of a factor analysis and different regression models to test for mediation and moderation. The analyses are carried out on a sample of 150 micro firms and SMEs involved in the production of machinery or instruments and located in Italy. Findings Results show that HC is directly associated to RIP, as well as OC and RC that totally mediate the relationship between HC and RIP. Moreover, OC positively moderates the relationship between RC and RIP. Originality/value This study is particularly interesting because it adopts an overarching perspective on IC testing the interplay between the different components of IC. In addition, it focusses on the SME context which is under-investigated as far as IC and performance measurement is concerned.

How does IT capability affect open innovation performance? The mediating effect of absorptive capacity

2019 ◽  
Vol 24 (1) ◽  
pp. 43-65 ◽  
Author(s):  
Suming Wu ◽  
Xiuhao Ding ◽  
Ruihong Liu ◽  
Hui Gao
Keyword(s):  
Absorptive Capacity ◽  
Open Innovation ◽  
Innovation Performance ◽  
Mediating Effect ◽  
Firm Level ◽  
Content Type ◽  
Mediating Role ◽  
It Capability ◽  
The Relationship ◽  
Realized Absorptive Capacity

Purpose Open innovation and information systems have been key topics in the theoretical domain, but little empirical research thoroughly examines how information technology (IT) capability affects open innovation performance. Thus, the purpose of this paper is to explore the relationship between IT capability and open innovation performance and to expose the inner mechanism at the firm level. Design/methodology/approach This paper collected firm-level data in China; 232 usable questionnaires from different firms were collected. Then, the study used a structural equation model by AMOS for hypothesis testing. Findings The results indicate that both internal IT capability and external IT capability have positive impacts on open innovation performance; potential absorptive capacity and realized absorptive capacity mediate the relationship between external IT capability and open innovation performance. Additionally, realized absorptive capacity plays a mediating role in the relationship between internal IT capability and open innovation performance. Practical implications These findings indicate that practitioners should pay attention to the important relationship between absorptive capacity and IT capability and open innovation performance in Chinese businesses. Originality/value Existing research has emphasized the influence of IT on open innovation, but empirical studies have not thoroughly focused on the inner mechanisms of the effect of IT capability on open innovation performance. Drawing on firm capability theory, this paper classifies IT capability as internal and external IT capability and absorptive capacity as potential and realized absorptive capacity. Then, this paper confirms the mediating role of absorptive capacity between IT capability and open innovation performance.

Exploring the mediating role of social capital in the relationship between financial intermediation and financial inclusion in rural Uganda

2018 ◽  
Vol 45 (5) ◽  
pp. 829-847 ◽  
Author(s):  
George Okello Candiya Bongomin ◽  
John C. Munene ◽  
Joseph Mpeera Ntayi ◽  
Charles Akol Malinga
Keyword(s):  
Social Capital ◽  
Research Design ◽  
Financial Intermediation ◽  
Financial Inclusion ◽  
Cross Sectional ◽  
Content Type ◽  
Mediating Role ◽  
The Poor ◽  
The Relationship

Purpose The purpose of this paper is to establish the mediating role of social capital in the relationship between financial intermediation and financial inclusion in rural Uganda. Design/methodology/approach The current study used cross-sectional research design and a semi-structured questionnaire was used to collect data for this study. The study applied structural equation modeling through bootstrap approach in AMOS to establish the mediating role of social capital in the relationship between financial intermediation and financial inclusion. Findings The results indicated that social capital significantly mediates the relationship between financial intermediation and financial inclusion in rural Uganda. Therefore, it can be deduced that social capital among the poor play an important role in promoting financial intermediation for improved financial inclusion in rural Uganda. Research limitations/implications Although the sample was large, it may not be generalized to other segments of the population. Data were collected from only poor households located in rural Uganda. Besides, the study was cross-sectional, thus, limiting efforts in investigating certain characteristics of the sample over time. Perhaps future studies could adopt the use of longitudinal research design. Practical implications Financial institutions such as banks should rely on social capital as a substitute for physical collateral in order to promote financial inclusion, especially among the poor in rural Uganda. Originality/value This study provides empirical evidence on phenomenon not studied in rural areas in Sub-Saharan Africa where the poor use social capital embedded in customs and norms for doing business. The results highlight the importance of social capital in mediating the relationship between financial intermediation and financial inclusion of the poor in rural Uganda.

The role of internationalization in entrepreneurial orientation-performance link: empirical study of SMEs in a developing nation perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zaynab Dadzie ◽  
Ahmed Agyapong ◽  
Abdulai Suglo
Keyword(s):  
Firm Performance ◽  
Empirical Study ◽  
Entrepreneurial Orientation ◽  
Developing Nation ◽  
Content Type ◽  
Mediating Role ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine the mediating role of internationalization in the relationship between the dimensions of entrepreneurial orientation (EO) and performance, empirical study of small and medium scale enterprises (SMEs) in a developing nation. Design/methodology/approach The study uses a sample of 158 exporting SMEs based in the sub-Saharan developing economy, Ghana. The use of hierarchical regression (ordinary least square analysis) was used by the researcher to assess the suggested model of the study. Findings Largely supporting the conjectural predictions, the study indicates that EO positively and significantly influences performance; internationalization fully mediates the relationship between innovativeness and performance of export firms; internationalization fully mediates the relationship between risk-taking and performance of export firms; and finally, internationalization partially mediates the relationship between competitive aggressiveness and performance of export firms. Managers are, therefore, encouraged to strategically develop both their EO and internationalization, as the study has confirmed that EO has both a direct and indirect relationship with performance. Originality/value This study integrated a resource-based view of the firm and international entrepreneurship theory as a theoretical foundation. Theoretically, internationalization’s mediating role reveals the relevance of this construct in the linkage between entrepreneurial orientation and firm performance. Furthermore, the study extends the entrepreneurial orientation concept to the international business literature by estimating and testing models of the mediating link between entrepreneurial orientation and performance. Moreover, the study seeks to broaden the knowledge of entrepreneurial orientation and its relationship with performance in small and medium businesses. The study further extends the limited studies on performance, driven by entrepreneurial orientation and internationalization in a developing nation (Ghanaian) context. This paper besides seeks to highlight the impact of entrepreneurial orientation on performance when channeled through internationalization. The study also reveals the dimensions of entrepreneurial orientation to be important antecedents of internationalization, in attempts at unearthing the critical predictors of firm performance, especially those of international characteristics.

Sign in / Sign up

Export Citation Format

Share Document