scholarly journals Relationship Between Market Orientation and SMEs Innovation Performance: Role of Absorptive Capacity and Openness

2021 ◽  
Vol 2 (1) ◽  
pp. 31-43
Keyword(s):  
Organizational Performance ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Direct Relationship ◽  
Reliability And Validity ◽  
Innovation Performance ◽  
Marketing Orientation ◽  
The Relationship

The study was founded on three main objectives. The study looked at the direct relationship between market orientation and the innovation performance of SMEs. It also assessed how absorptive capacity mediated the direct relationship between market orientation and the innovation performance of SMEs. Lastly, the study assessed the moderating role of openness on the effect of market orientation and absorptive capacity of SMEs. Results were founded on 418 Ghanaian SMEs. The reliability and validity analyses were conducted before the actual path estimations Structural Equation Modelling in Amos (v.23). This study concluded that marketing orientation had a significant positive relationship with the innovation performance of SMEs, and the relationship between market orientation and SMEs’ innovation performance was partially mediated by the effect of the absorptive capacity of SMEs. The relationship between market orientation and innovation performance of SMEs could thus be direct or mediated through absorptive capacity. Finally, the study concluded that the effect of market orientation on absorptive capacity was moderated by openness. Market-oriented SMEs with an innovation openness strategy can achieve higher absorptive capacity. It was recommended that SMEs seeking to achieve innovation performance must invest in understanding the market in which they operate. This includes understanding the customers and competitors. The various units in the organization must also integrate to enhance the smooth sharing of innovation knowledge. Organizational performance measures such as innovation are very critical for the survival of firms in this age of COVID-19 pandemic when even giant firms are running into losses and folding up.

The role of marketing capabilities, absorptive capacity, and innovation performance

2018 ◽  
Vol 36 (4) ◽  
pp. 410-424 ◽  
Author(s):  
Juliana Conceição Noschang da Costa ◽  
Shirlei Miranda Camargo ◽  
Ana Maria Machado Toaldo ◽  
Simone Regina Didonet
Keyword(s):  
Organizational Performance ◽  
New Product Development ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Marketing Capabilities ◽  
Content Type ◽  
Innovative Capability

Purpose The purpose of this paper is to analyze effects of absorptive capacity (ACAP) on organizational performance. The model looks at the mediating influence of marketing capabilities (innovative capability and new product development capability (NPDC)) and innovation performance (IP). Design/methodology/approach This study takes a quantitative approach by using survey data from 333 Brazilian manufacturer managers involved with strategic marketing processes. Structural equation modeling was used to test the theoretical hypotheses. Findings Results indicate that ACAP does not have a direct impact on organizational performance. The relation is fully mediated by marketing capabilities (innovative capability and NPDC) and IP. Research limitations/implications According to the research findings, managers should put efforts in the ACAP as well as marketing capabilities that will result in better organizational performance. This research is limited to the context of manufacturer firms in Brazil. However, it is suggested that an application of this research can be conducted in different industries and different countries. Originality/value This study contributes to theory and management practice. First, no study has explored all these constructs together. Through the relationship between ACAP and performance, the authors found that marketing capabilities and IP can fully mediate the former proposed relation. The authors’ contribution is the understanding of the role of ACAP influence on performance. Managers should be encouraged to invest in companies’ ACAP as well as marketing capabilities to differentiate themselves from competitors and improve performance.

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.

A Multiple Measure of Organizational Performances and its Effect on Distinctive Marketing Competencies: An Empirical Study of India and the Maldives

2018 ◽  
Vol 3 (3) ◽  
pp. 129-142
Author(s):  
Divya Keerthika ◽  
Subburaj Alagarsamy
Keyword(s):  
Organizational Performance ◽  
Structural Equation ◽  
Jel Classification ◽  
Validity And Reliability ◽  
Marketing Resources ◽  
Automobile Sales ◽  
Resources And Capabilities ◽  
The Impact ◽  
The Relationship

Objective - The role of knowledge management and competencies related to marketing skills are essential for Indian and Maldivian businesses, due to the emerging economy and globalization. This study therefore aims to identify the impact of marketing competencies on organizational performance in automobile sales centers, by reviewing the relationship between marketing competencies and firm performance, to support interest and investments in such a concept. Methodology/Technique - 424 respondents (327 Indian samples and 97 Maldivian samples) were randomly selected for the research, with a 71% response rate. The first section of the questionnaire consists of questions related to marketing competencies (32 items) and the second section contains items related to organizational performance (10 items), and the last part includes questions about the respondents' demographical differences. After the data collection, construct validity and reliability statistic tests were conducted to check the validity and reliability of the instrument using IBM SPSS AMOS 23. Findings - The structural equation modelling results for the Indian and the Maldivian samples reveal that marketing competencies have a significant and positive affect on organizational performance. Novelty - This study may be useful for policymakers and top-level managers in the automobile sector; this study provides empirical insights into how the performance of the firm is affected by marketing competencies. Type of Paper: Empirical. Keywords: Marketing Competency; Marketing Resources and Capabilities; Automobile Sales Centers; India; Maldives. JEL Classification: M30. M31. M37. M39

scholarly journals Learning Orientation, Market Orientation and Organizational Performance: The Mediating Effect of Absorptive Capacity

2017 ◽  
Vol 7 (1) ◽  
pp. 114 ◽  
Author(s):  
Radwan Kharabsheh ◽  
Waed Ensour ◽  
Pavel Bogolybov
Keyword(s):  
Organizational Performance ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Latent Variable ◽  
Basic Skills ◽  
Mediating Effect ◽  
Learning Orientation ◽  
Senior Managers ◽  
Manufacturing Organizations ◽  
The Relationship

Purpose: this paper aims to examine the mediating effect of absorptive capacity on the the relation between two construct: learning orientation (LO) and market orientation (MO) and organizational performance (OP).Design/methodology/approach: data were gathered through field survey of 190 senior managers in manufacturing organizations in Jordan. The analysis was conducted using two-stage least squares estimators for latent variable models.Findings: Results indicate that learning orientation, market orientation and absorptive capacity all have a positive and significant effect on organizational performance. Moreover, results suggest that absorptive capacity partially mediates the relationship between learning orientation and organizational performance. This study concludes that while knowledge acquisition and values of external knowledge are important, related prior knowledge, basic skills and research and development (R&D) (absorptive capacity) are important as well. Practical implications: For managers in manufacturing organizations, the study proposes that organizations should focus on attaining high levels of Learning orientation and market orientation while also giving attention to building internal knowledge and basic skills including R&D. Originality/value: This paper is the first to examine the mediating effect of absorptive capacity on the relationship between learning orientation, market orientation and organizational performance. 

scholarly journals ABSORPTIVE CAPACITY: AN ANALYSIS IN THE CONTEXT OF BRAZILIAN FAMILY FIRMS

2017 ◽  
Vol 18 (1) ◽  
pp. 174-204 ◽  
Author(s):  
GLORIA CHARÃO FERREIRA ◽  
JOÃO JOSÉ MATOS FERREIRA
Keyword(s):  
Absorptive Capacity ◽  
Structural Equation ◽  
Family Firms ◽  
Relevant Information ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Generational Diversity ◽  
The Family ◽  
Methodological Aspects ◽  
The Relationship

ABSTRACT Purpose: The purpose of this study is to analyze the capacity of family firms to absorb relevant information from their surrounding environments, and incorporate it in their innovative activities. The study also seeks to improve our understanding if, and in what ways, the generational diversity in firm's management is an important resource. Originality/gap/relevance/implications: In spite of the relevance of this matter, few scholars have explored the relationship between absorptive capacity (Acap) and family firms. On the other hand, the economic importance of these firms is reported, for example, in Leone (2005) and Machado, Grzybovski, Teixeira and Silva (2013), authors reporting that approximately 90% of Brazilian firms are controlled by families, being the fastest-growing business segment. Key methodological aspects: The sample consists of 241 family firms. The SmartPLS software is used for structural equation modeling. Summary of key results: The results show that Acap is an important predictor for the innovation performance of family firms. Contrary to expectation, the involvement of several generations in the management of the family firms is not a significant moderator between ACAP and innovation performance. Key considerations/conclusions: This study fills an important gap in the research on family firms, once, by taking into consideration the generational diversity in the management of these firms, its results deepen our understanding of the essential features of a family business, and analyze the innovation in an intergenerational perspective.

scholarly journals Are altruistic leaders worthy? The role of organizational learning capability

2015 ◽  
Vol 36 (3) ◽  
pp. 271-295 ◽  
Author(s):  
Fermín Mallén ◽  
Ricardo Chiva ◽  
Joaquín Alegre ◽  
Jacob Guinot
Keyword(s):  
Organizational Learning ◽  
Organizational Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Future Research ◽  
Leader Behaviors ◽  
Learning Capability ◽  
Content Type ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the relationship between altruistic leader behaviors, organizational learning capability and organizational performance. Design/methodology/approach – The sampling frame consists of several databases or listings of business that consider people as a key element of the organization and are considered by their employees to be good firms to work for or organizational environments where human resources management has high priority (n=251). The authors use structural equation modeling to test if the relationship between altruistic leader behaviors and organizational performance is mediated by organizational learning capability. Findings – Results suggest that organizational learning capability fully mediates between altruistic leader behaviors and organizational performance. Thus, organizational learning capability plays a key role in explaining how altruistic leader behaviors affect organizational performance, essentially because it facilitates the creation of a creative, participatory and dialogue-based environment that promotes organizational learning. Research limitations/implications – The database used in the study is very heterogeneous. Future research might delimit the database by organization size or sector. Qualitative studies may also improve our understanding of the relationships studied and enable other concepts to be included. Practical implications – This study provides evidence of the positive relationship between altruistic leaders and performance. However, recruiting and fomenting altruistic leaders is not sufficient on its own to improve performance, and should be accompanied by implementing other facilitating factors of organizational learning such as dialogue or experimentation. Originality/value – In recent years some studies have linked leadership with organizational learning. However, this is one of the first studies to concentrate on altruistic leader behaviors as such, a concept that has received scant mention in the literature despite its importance in a number of leadership styles, and its relevance today as an alternative to the egotistic leader. The authors offer empirical evidence of the role of altruistic leader behavior as an antecedent of organizational learning capability and subjective measures of performance.

scholarly journals Strategic Orientation, Environmental Management Systems, and Eco-Innovation: Investigating the Moderating Effects of Absorptive Capacity

2021 ◽  
Vol 13 (21) ◽  
pp. 12147
Author(s):  
Chin-Hung Tseng ◽  
Kuo-Hsiung Chang ◽  
Ho-Wen Chen
Keyword(s):  
Environmental Management ◽  
Absorptive Capacity ◽  
Reliability And Validity ◽  
Environmental Management System ◽  
Strategic Orientation ◽  
Moderating Effects ◽  
Theoretical Understanding ◽  
Mediating Role ◽  
The Relationship

Environmental management studies have proposed that firms can achieve substantial cost advantages over competitors and enhance their competitive positions by implementing an environmental management system (EMS). This study further investigates strategic orientation (customer, competitor, and innovation orientation) and focuses on the effect of strategic orientation on EMSs and eco-innovation; it also examines the mediating role of EMSs in the relationship between strategic orientation and eco-innovation. Furthermore, this study investigates the moderating role of absorptive capacity in the relationship between strategic orientation and EMSs. Reliability and validity analyses of a sample of 142 respondents indicated that the study design was effective, consistent, and reliable. The findings indicate that (1) strategic orientation (competitor and innovation orientation) positively influences EMSs, (2) EMSs positively influence eco-innovation, (3) absorptive capacity-enhancing strategic orientation positively influences EMSs, and (4) EMS intermediary strategic orientation positively influences eco-innovation. This study contributes to the theoretical understanding of why some firms exhibit greater proactivity in EMSs than others do.

scholarly journals Effects of absorptive capacity and innovation spillover on manufacturing flexibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
José Pinheiro ◽  
Luis Filipe Lages ◽  
Graça Miranda Silva ◽  
Alvaro Lopes Dias ◽  
Miguel T. Preto
Keyword(s):  
Market Orientation ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Equation Modeling ◽  
Manufacturing Flexibility ◽  
Content Type ◽  
Production Cycles ◽  
Exploratory Innovation ◽  
Positive Effect

PurposeShifting demand and ever-shorter production cycles pressure manufacturing flexibility. Although the literature has established the positive effect of the firm's absorptive capacity on manufacturing flexibility, the separate role of the innovation competencies of exploitation and exploration in such a relationship is still under-investigated. In this study, the authors examine how these competencies affect manufacturing flexibility.Design/methodology/approachThe authors use survey data from 370 manufacturing firms and analyze them using covariance-based structural equation modeling (CB–SEM).FindingsThe results indicate that absorptive capacity has a strong, positive and direct effect on exploitative and exploratory innovation competencies, proactive and responsive market orientations, and manufacturing flexibility. The authors’ findings also demonstrate that the exploitative innovation competencies mediate the relation between responsive market orientation and manufacturing flexibility. Essentially, these exploitative innovation competencies produce a direct positive effect on manufacturing flexibility while simultaneously being a vehicle for absorptive capacity's indirect effects on it. An exploration innovation strategy does not significantly affect manufacturing flexibility.Originality/valueThis study contributes by combining key strategic features of firms with manufacturing flexibility, while providing new empirical evidence of the mediation of the exploitative innovation competencies in the relation between responsive market orientation and manufacturing flexibility.

Role of Organizational Learning and Innovation in between High-performance HR Practices and Business Performance: A Study of Telecommunication Sector

2017 ◽  
Vol 21 (3) ◽  
pp. 259-273 ◽  
Author(s):  
Jeevan Jyoti ◽  
Hardeep Chahal ◽  
Asha Rani
Keyword(s):  
Organizational Learning ◽  
Structural Equation ◽  
Business Performance ◽  
High Performance ◽  
Reliability And Validity ◽  
North India ◽  
Telecommunication Sector ◽  
Jammu And Kashmir ◽  
The Relationship

The purpose of this study is to explore the role of the organizational learning (OL) and innovation as mediators between high-performance human resource practices (HPHRPs) and business performance (BP) in telecommunication sector. Census method has been used for data collection from employees working in telecommunication organizations in Jammu and Kashmir (North India). Reliability and validity have been proven with the help of confirmatory factor analysis. Structural equation modelling has been used for hypotheses testing. The results indicate that OL mediates the relationship between HPHRPs and innovation, whereas innovation does not mediate but moderates the relationship between OL and BP. So the final model evaluated the mediated-moderation effect of OL and innovation in between HPHRPs and BP. The theoretical and managerial implications have also been discussed.

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