scholarly journals Does Entrepreneurial Orientation Lead to Successful Sustainable Innovation? The Evidence from Chinese Environmentally Friendly Companies

2021 ◽  
Vol 13 (18) ◽  
pp. 10294
Author(s):  
Hongyi Mao ◽  
Zongjun Wang ◽  
Lin Yi

This research examines the linkage between entrepreneurial orientation and sustainable innovation. Research shows that the effects of entrepreneurial orientation on the exploitation and exploration of sustainable innovation are significantly positive, whereby absorptive capacity acts in a significant mediating role. The interaction between entrepreneurial orientation and absorptive capacity helps organizations overcome organizational inertia and strengthen the sustainability of innovation. By introducing the absorptive capacity theory and the view of organizational inertia, we have conducted empirical research on 392 Chinese environmentally friendly companies that have passed China’s national high-tech enterprise certification. We verified the relevant hypotheses in our framework in a structural model analysis using Mplus. To further look at the interaction terms of potential and realized absorptive capacity, we used PROCESS in SPSS to evaluate the conditional effects of absorptive capacity on coefficient paths between entrepreneurial orientation and the two types of innovation. The results show that entrepreneurial orientation improves the absorptive capacity of organizations, thereby promoting their sustainable innovation. Furthermore, based on the theory of sustainable innovation, we proved the positive impact of realized and potential absorptive capacity on the exploitation and exploration of sustainable innovation. Organizations could balance exploitation and exploration to implement sustainable innovation by adjusting their potential and realized absorptive capacities. Our results can help environmentally friendly organizations adjust the combination of entrepreneurial orientation and absorptive capacity to overcome organizational inertia, manage exploitation and exploration, and implement sustainable innovation.

Author(s):  
Ismail Raisal ◽  
Arun Kumar Tarofder ◽  
Aboobucker Ilmudeen

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.


2021 ◽  
Vol 3 (2) ◽  
pp. 202-236
Author(s):  
Syed Shahan Ali Zaidi ◽  
Syed Shahid Zaheer Zaidi

This research aims to investigate the impact of entrepreneurial orientation dimensions on a firm’s innovation intensity along with the moderation of environmental turbulence. The dimensions of entrepreneurial orientation include autonomy, pro-activeness, risk attitude, innovation readiness and competitive aggressiveness, hence the study includes five direct hypotheses and five moderated hypotheses. The data was gathered through an online questionnaire. The sample size of the study was 386 small and medium enterprises (SME) operating in Pakistan. The questionnaire was filled out by executive managers or executive directors of organizations as company representatives. Smart PLS was used to analyze the data. The measurement model was run to ensure validity and reliability. Moreover, the outer loadings, model fit and important statistics were assured. The structural model estimated the proposed relationships of the study. The findings of the study suggested a positive impact of all the dimensions of entrepreneurial orientation on innovation while the moderation effect of environmental turbulence was found to be significant for all the relationships except innovation readiness. The study finally concluded that EO had a significant impact on innovation intensity. Based on the findings, it is recommended that SMEs should enhance entrepreneurial orientation in their respective organizations in order to intensify innovation. The practical objective of this research was to gain knowledge on entrepreneurial orientation and innovation intensity that is crucial for organizations in the contemporary business world. The study has certain implications for the development of organizations’ strategic orientation. SMEs in Pakistan have great potential and in terms of intensifying innovation in enterprises, it is important to focus on entrepreneurial orientation. Thus, SMEs have to be innovative, proactive, and ready to take risks which may ultimately help them improve their performance.


2015 ◽  
Vol 9 (1) ◽  
pp. 97-113 ◽  
Author(s):  
Zhi-hong Song

Purpose – The purpose of this paper is to examine the relationships among organizational learning, absorptive capacity, imitation and innovation in the Chinese context. Design/methodology/approach – Based on the organizational learning theory and innovation theory, the paper presents a framework linking organizational learning, absorptive capacity, imitation and innovation. Using a key informant technique, a survey questionnaire was designed and sent to the middle or top management managers of 115 firms located in Peking, People’s Republic (PR) of China. Structural equation modeling (SEM) with the maximum likelihood (ML) estimation procedures was applied to test the hypotheses developed in the research. Findings – The empirical results show that both organizational learning and absorptive capacity have positive impacts on innovation; imitation has a positive impact on absorptive capacity; absorptive capacity mediates the relationship between imitation and innovation. Practical implications – This study has implications for firms aiming to enhance innovation by organizational learning, absorptive capacity and imitation. Originality/value – Despite the number of studies concerning organizational learning, absorptive capacity, imitation and innovation, research that encompasses the interrelationships between the four concepts simultaneously remains scarce. The paper provides a framework linking organizational learning, imitation, absorptive capacity and innovation, and it advances the argument that absorptive capacity is an important factor in predicting the Chinese firms’ transition from imitation to innovation.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chandrasekararao Seepana ◽  
Fahian Anisul Huq ◽  
Antony Paulraj

PurposeWhile the significance of organizational resources and capabilities is widely discussed, little is known about their interrelationships as well as benefits for firms that are involved in coopetitive relationships. Against this backdrop, the purpose of this paper is to investigate the performance effects of entrepreneurial orientation, strategic intent and potential absorptive capacity as well as their complementarity effects on operational and innovation performance for firms involved in horizontal coopetitive relationships.Design/methodology/approachDrawing upon the resource-based-view, dynamic capabilities and the relational view theories, this study forwards numerous hypotheses between the constructs of interest. The proposed hypotheses are tested utilizing survey data collected from 313 horizontal coopetitive relationships.FindingsThe results clearly suggest that entrepreneurial orientation, strategic intent and potential absorptive capacity could positively impact innovation and operational performance outcomes independently. In addition, the authors also find strategic intent and potential absorptive capacity to have differential moderating effects on the relationships between entrepreneurial orientation and the performance outcomes.Originality/valueThe findings suggest that although strategic intent and potential absorptive capacity could lead to performance benefits independently, when it comes to coopetitive relationships, the use of both these capabilities may not substantially increase the positive impact of entrepreneurial orientation on performance outcomes. Specifically, given that these capabilities could intensify competitiveness as well as hostility between partners, they seem to affect the firm's performance differently.


2022 ◽  
Vol 18 (1) ◽  
pp. 0-0

Building on the elaboration likelihood model (ELM) and absorptive capacity, this study develops a four-dimensional model of idea adoption in Virtual Crowdsourcing Communities (VCCs) and examines the influence of different persuasion cues on idea adoption. The research model was tested using hierarchical logistic regression based on a dataset from the Tableau community. The results show that both community recognition of users and community recognition of ideas are positively related to idea adoption. Proactive user engagement has a significant positive impact on idea adoption, while reactive user engagement has no significant impact. Idea content quality, represented by idea length and supporting arguments, has an inverted U-shaped relationship with idea adoption. Community absorptive capacity positively moderates the curvilinear relationship between idea content quality and idea adoption. These results contribute to a better elucidation of the persuasion mechanisms underlying idea adoption in VCCs, and thus provide important implications for open innovation research and practice.


2016 ◽  
Vol 16 (2) ◽  
pp. 95-115 ◽  
Author(s):  
H. Khodaei ◽  
V.E. Scholten ◽  
E.F.M. Wubben ◽  
S.W.F. Omta

We investigate the influence of entrepreneurial orientation and team efficacy, in addition to the impact of domain-specific industry and research experience of spin-off management teams, on absorptive capacity, both potential and realised. A multiple regression analysis in 95 Dutch high-tech academic spin-offs indicates that entrepreneurial orientation and domain-specific research experience are positively related to potential absorptive capacity while entrepreneurial orientation, team efficacy and domain-specific industry experience are positively related to realised absorptive capacity. Analyses of the explained variance show that entrepreneurial orientation and team efficacy provide a higher contribution to absorptive capacity than domain-specific experience, which contributes to recent debates on antecedents of absorptive capacity for academic spin-offs.


2020 ◽  
pp. 71-80
Author(s):  
Olesya Tomchuk

The article highlights the problems and prospects of human development, which is the basis for the long-term strategies of social and economic growth of different countries and regions at the present stage. Submitting strategies of this type provides an opportunity to focus on individual empowerment and to build a favorable environment for effective management decisions in the field of forming, maintaining, and restoring human potential. The analysis of the Vinnytsia region human potential dynamics in the regional system of social and economic development factors was carried out. Application of generalized assessment of the regional human development index components allowed the identification of the main trends that characterize the formation of human potential of the territory, including the reproduction of the population, social environment, comfort and quality of life, well-being, decent work, and education. The article emphasizes that despite some positive changes in the social and economic situation of the region and in assessing the parameters of its human development level relative to other regions of Ukraine, Vinnytsia region is now losing its human potential due to negative demographic situation and migration to other regions and countries. The main reason for such dynamics is proven to be related to the outdated structure of the region's economy, the predominance of the agricultural sector, the lack of progressive transformations in the development of high-tech fields of the economy. An important factor is the low level of urbanization of the region, which leads to the spread of less attractive working conditions and less comfortable living conditions. The key factors that cause the growth of urbanization in the region have been identified, including the significant positive impact of the transport and social infrastructure expansion, the lack of which in rural areas leads to a decrease in the level and comfort of life. Without progressive structural changes in the economy and the resettlement system, the loss of human potential will continue.


2021 ◽  
Vol 13 (14) ◽  
pp. 7765
Author(s):  
Shuizheng Song ◽  
Md Altab Hossin ◽  
Xiaohua Yin ◽  
Md Sajjad Hosain

The demand for sustainable development and the advantages of industries are expediting over time with the triggering of green innovation performance (GIP). Improving a firm’s GIP, especially in manufacturing industries, can accelerate green development and mitigate the global-concerned environmental issues. Thus, to investigate GIP from its antecedent factors, we delineate the relationship between network potential, absorptive capacity, environmental turbulence, and GIP based on social network theory, organizational learning theory, and contingency theory. We tested our hypotheses based on 233 sets of questionnaire surveys from high-tech manufacturing firms in China through deploying the hierarchical regression and bootstrap method. Our empirical findings reveal that the network potential dimensions, including network position centrality (NPC), network structure richness (NSR), and network relationship closeness (NRC), significantly positively impacted the GIP. The absorptive capacity (AC) partially mediated the relationship between the network potential dimensions and GIP. Environmental turbulence (ET) as an essential mechanism not only positively moderated the relationship between AC and GIP but also enhanced the AC mediation effect. These findings indicate that manufacturing firms should continue to improve network potential and AC and respond rapidly to changes in the external environment to enhance GIP, consequently contributing to the sustainable development of the economy.


2014 ◽  
Vol 17 (2) ◽  
pp. 209-228 ◽  
Author(s):  
Ming Piao

Purpose – The purpose of this paper is to investigate the longevity implications of exploitation and exploration. It examines the main effect of exploitation, the main effect of exploration, and the interaction effect of exploitation and exploration on organizational longevity. Design/methodology/approach – This study employs Cox Proportional Hazard Model in analyzing 20-year data from the hard disk drive industry. Findings – Exploitation, independent of exploration, has a positive impact on organizational longevity. Exploration, independent of exploitation, has a curvilinear impact on organizational longevity. Jointly, exploitation weakens the curvilinear relationship between exploration and organizational longevity. Research limitations/implications – This study challenges the dualistic view that exploitation is for “current viability” and exploration is for “future viability.” It suggests that firms need to actively engage in (instead of compromise) both exploitation and exploration in order to prolong their lifespan despite the counter force triggered by the negative dynamics between exploitation and exploration. Practical implications – In order to prolong organizational longevity, firms need to fully engage in (but not compromise) their existing product-market domains, actively explore (but not over-explore) their new product-market domain, and to embrace (but not avoid) the tension between exploitation and exploration. Originality/value – This study is one of the few that systematically and empirically examined the longevity implications of exploitation and exploration. It adds specificity and precision to the understanding of how exploitation and exploration, independently and jointly, affect organizational longevity.


2014 ◽  
Vol 42 (8) ◽  
pp. 1315-1323 ◽  
Author(s):  
Xu Zhang ◽  
Bei Hu ◽  
Min Qiu

We explored the mediating effect of job satisfaction in the relationship between employees' performance appraisal and their voice behavior. A questionnaire was administered to 864 employees at enterprises representing high-tech industrial clusters from 5 cities in China. Developmental performance appraisal was found to have a more positive influence on employees' voice behavior than evaluative performance appraisal did. Compared with prohibitive voice behavior, both developmental and evaluative types of performance appraisal had a more positive impact on promotive voice behavior, and job satisfaction was found to play a mediating role in the relationship between these variables.


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