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Innovation reliability and variability strategies: the importance of absorptive capacity to systemic outcomes

Innovation reliability and variability strategies: the importance of absorptive capacity to... The role of absorptive capacity (AC) has been widely recognised in the innovation literature. This study examines the predictive role of AC for business performance, and evaluates the mediation of market orientation (responsive-proactive) and innovation competences orientation (exploitation-exploration) in that relationship. The findings show that innovation competence orientations are more important to business performance than market orientations and that innovation competences are better enhanced by AC than by market orientations. AC is not only confirmed as an antecedent of ambidextrous market and innovation competence orientation, but it also helps directly and indirectly to explain business performance. Responsive market orientation (REMKTOR) and innovation competence orientation mediate the positive relationship between AC and business performance. The intensity and significance of the indirect effects reveal the specific knowledge-transformative roles of market and innovation competences orientations. Firms seem to mitigate uncertainty by adjusting their preferences toward less risky innovation strategies. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Knowledge-Based Development Inderscience Publishers

Innovation reliability and variability strategies: the importance of absorptive capacity to systemic outcomes

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Publisher
Inderscience Publishers
Copyright
Copyright © Inderscience Enterprises Ltd
ISSN
2040-4468
eISSN
2040-4476
DOI
10.1504/IJKBD.2020.115028
Publisher site
See Article on Publisher Site

Abstract

The role of absorptive capacity (AC) has been widely recognised in the innovation literature. This study examines the predictive role of AC for business performance, and evaluates the mediation of market orientation (responsive-proactive) and innovation competences orientation (exploitation-exploration) in that relationship. The findings show that innovation competence orientations are more important to business performance than market orientations and that innovation competences are better enhanced by AC than by market orientations. AC is not only confirmed as an antecedent of ambidextrous market and innovation competence orientation, but it also helps directly and indirectly to explain business performance. Responsive market orientation (REMKTOR) and innovation competence orientation mediate the positive relationship between AC and business performance. The intensity and significance of the indirect effects reveal the specific knowledge-transformative roles of market and innovation competences orientations. Firms seem to mitigate uncertainty by adjusting their preferences toward less risky innovation strategies.

Journal

International Journal of Knowledge-Based DevelopmentInderscience Publishers

Published: Jan 1, 2020

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