IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v229y2020ics0925527320301390.html
   My bibliography  Save this article

The multiple mediation effect of absorptive capacity on the organizational slack and innovation performance of high-tech manufacturing firms: Evidence from Chinese firms

Author

Listed:
  • Duan, Yunlong
  • Wang, Wannan
  • Zhou, Wei

Abstract

Previous studies have been conducted on how organizational slack impact on the firms' innovation performance. However, there are few researches on how slack availability impact on the firms' innovation performance. In addition, absorptive capacity is also an important factor affecting innovation performance, but there is no literature focusing on the important role of absorptive capacity on organizational slack and firms' innovation performance. Therefore, it is necessary to combine organizational slack, absorptive capacity and innovation performance to analyze. In addition, high-tech manufacturing firms are the pillars of the country's economic development, and its development affects the country's international competitiveness. Therefore, it is very important to analyze the promotion mechanism of innovation performance for promoting national competitive advantage. Based on this, we classify organizational slack from the perspective of slack availability, and analyze the effects of different dimensions of organizational slack and absorptive capacity on innovation performance in high-tech manufacturing firms. Additionally, we compare and analyze the multiple mediation effects of two absorptive capacities on organizational slack and innovation performance. Using the data from Chinese high-tech manufacturing firms from 2016 to 2018, we construct a panel data model to conduct empirical analysis and obtain the following research findings: with the increase of available slack and potential slack, the innovation performance of high-tech manufacturing firms exhibits an initial increasing trend and then a decreasing trend. In contrast, with the increase of recoverable slack, the innovation performance of high-tech manufacturing firms exhibits an initial decreasing trend and then an increasing trend. In addition, we use the bias-corrected bootstrap method to test the multiple mediation effects of the two absorptive capacities, and find that available slack can influence the innovation performance of high-tech manufacturing firms through realized absorptive capacity. In addition, potential slack can influence the innovation performance of high-tech manufacturing firms through potential absorptive capacity and realized absorptive capacity.

Suggested Citation

  • Duan, Yunlong & Wang, Wannan & Zhou, Wei, 2020. "The multiple mediation effect of absorptive capacity on the organizational slack and innovation performance of high-tech manufacturing firms: Evidence from Chinese firms," International Journal of Production Economics, Elsevier, vol. 229(C).
    • Handle: RePEc:eee:proeco:v:229:y:2020:i:c:s0925527320301390
    DOI: 10.1016/j.ijpe.2020.107754
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527320301390
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2020.107754?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. D׳Souza, Derrick E. & Kulkarni, Shailesh S., 2015. "A framework and model for absorptive capacity in a dynamic multi-firm environment," International Journal of Production Economics, Elsevier, vol. 167(C), pages 50-62.
    2. Eleonora Bartoloni, 2013. "Capital structure and innovation: causality and determinants," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(1), pages 111-151, February.
    3. Xiao, Chengyong & Wang, Qian & van Donk, Dirk Pieter & van der Vaart, Taco, 2018. "When are stakeholder pressures effective? An extension of slack resources theory," International Journal of Production Economics, Elsevier, vol. 199(C), pages 138-149.
    4. Ravasi, Davide & Turati, Carlo, 2005. "Exploring entrepreneurial learning: a comparative study of technology development projects," Journal of Business Venturing, Elsevier, vol. 20(1), pages 137-164, January.
    5. Henk W. Volberda & Nicolai J. Foss & Marjorie A. Lyles, 2010. "PERSPECTIVE---Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field," Organization Science, INFORMS, vol. 21(4), pages 931-951, August.
    6. Xie, Xuemei & Zou, Hailiang & Qi, Guoyou, 2018. "Knowledge absorptive capacity and innovation performance in high-tech companies: A multi-mediating analysis," Journal of Business Research, Elsevier, vol. 88(C), pages 289-297.
    7. Yunshi Liu & Yi-Jung Chen & Linda C. Wang, 2017. "Family business, innovation and organizational slack in Taiwan," Asia Pacific Journal of Management, Springer, vol. 34(1), pages 193-213, March.
    8. Spyros Arvanitis & Boris Lokshin & Pierre Mohnen & Martin Woerter, 2015. "Impact of External Knowledge Acquisition Strategies on Innovation: A Comparative Study Based on Dutch and Swiss Panel Data," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 46(4), pages 359-382, June.
    9. Claudio Cozza & Franco Malerba & Maria Luisa Mancusi & Giulio Perani & Andrea Vezzulli, 2012. "Innovation, profitability and growth in medium and high-tech manufacturing industries: evidence from Italy," Applied Economics, Taylor & Francis Journals, vol. 44(15), pages 1963-1976, May.
    10. Jansen, J.J.P. & van den Bosch, F.A.J. & Volberda, H.W., 2005. "Managing Potential and Realized Absorptive Capacity: How do Organizational Antecedents matter?," ERIM Report Series Research in Management ERS-2005-025-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    11. Wesley M. Cohen & Daniel A. Levinthal, 1994. "Fortune Favors the Prepared Firm," Management Science, INFORMS, vol. 40(2), pages 227-251, February.
    12. Jatinder S. Sidhu & Henk W. Volberda & Harry R. Commandeur, 2004. "Exploring Exploration Orientation and its Determinants: Some Empirical Evidence," Journal of Management Studies, Wiley Blackwell, vol. 41(6), pages 913-932, September.
    13. Lori Rosenkopf & Atul Nerkar, 2001. "Beyond local search: boundary‐spanning, exploration, and impact in the optical disk industry," Strategic Management Journal, Wiley Blackwell, vol. 22(4), pages 287-306, April.
    14. Li, Ling, 2013. "The path to Made-in-China: How this was done and future prospects," International Journal of Production Economics, Elsevier, vol. 146(1), pages 4-13.
    15. Fosfuri, Andrea & Tribø, Josep A., 2008. "Exploring the antecedents of potential absorptive capacity and its impact on innovation performance," Omega, Elsevier, vol. 36(2), pages 173-187, April.
    16. Ole‐Kristian Hope & Wayne B. Thomas, 2008. "Managerial Empire Building and Firm Disclosure," Journal of Accounting Research, Wiley Blackwell, vol. 46(3), pages 591-626, June.
    17. Gautam Ahuja & Riitta Katila, 2001. "Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 197-220, March.
    18. Huang, Jing-Wen & Li, Yong-Hui, 2012. "Slack resources in team learning and project performance," Journal of Business Research, Elsevier, vol. 65(3), pages 381-388.
    19. Hojin Lee & Sangyoon Cha & Heejun Park, 2016. "The effect of technology-exploration on product innovation: an analysis based on Korean manufacturing SMEs," International Journal of Quality Innovation, Springer, vol. 2(1), pages 1-15, December.
    20. Okoshi, Cleina Yayoe & Pinheiro de Lima, Edson & Gouvea Da Costa, Sergio Eduardo, 2019. "Performance cause and effect studies: Analyzing high performance manufacturing companies," International Journal of Production Economics, Elsevier, vol. 210(C), pages 27-41.
    21. Aldieri, Luigi & Sena, Vania & Vinci, Concetto Paolo, 2018. "Domestic R&D spillovers and absorptive capacity: Some evidence for US, Europe and Japan," International Journal of Production Economics, Elsevier, vol. 198(C), pages 38-49.
    22. Maryam Alavi & Amrit Tiwana, 2002. "Knowledge integration in virtual teams: The potential role of KMS," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 53(12), pages 1029-1037, October.
    23. Yu, Liping & Duan, Yunlong & Fan, Tianting, 2020. "Innovation performance of new products in China's high-technology industry," International Journal of Production Economics, Elsevier, vol. 219(C), pages 204-215.
    24. Matthew S. Kraatz & Edward J. Zajac, 2001. "How Organizational Resources Affect Strategic Change and Performance in Turbulent Environments: Theory and Evidence," Organization Science, INFORMS, vol. 12(5), pages 632-657, October.
    25. Emilie-Pauline Gallie & Pascale Roux, 2010. "Forms and Determinants of R&D Collaborations: Evidence Based on French Data," Industry and Innovation, Taylor & Francis Journals, vol. 17(6), pages 551-576.
    26. Elena Cefis & Matteo Ciccarelli, 2005. "Profit differentials and innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(1-2), pages 43-61.
    27. Stuart, Toby & Sorenson, Olav, 2003. "The geography of opportunity: spatial heterogeneity in founding rates and the performance of biotechnology firms," Research Policy, Elsevier, vol. 32(2), pages 229-253, February.
    28. Wei-Ru Chen, 2008. "Determinants of Firms' Backward- and Forward-Looking R&D Search Behavior," Organization Science, INFORMS, vol. 19(4), pages 609-622, August.
    29. Lin-Hua Lu & Poh-Kam Wong, 2019. "Performance feedback, financial slack and the innovation behavior of firms," Asia Pacific Journal of Management, Springer, vol. 36(4), pages 1079-1109, December.
    30. repec:dau:papers:123456789/6963 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dong, Caiting & Liu, Xielin & Tang, Fangcheng & Qiu, Shumin, 2023. "How upstream innovativeness of ecosystems affects firms' innovation: The contingent role of absorptive capacity and upstream dependence," Technovation, Elsevier, vol. 124(C).
    2. Chin, Tachia & Wang, Wannan & Yang, Meng & Duan, Yunlong & Chen, Yantai, 2021. "The moderating effect of managerial discretion on blockchain technology and the firms’ innovation quality: Evidence from Chinese manufacturing firms," International Journal of Production Economics, Elsevier, vol. 240(C).
    3. Duan, Yunlong & Liu, Shuling & Cheng, Hao & Chin, Tachia & Luo, Xuan, 2021. "The moderating effect of absorptive capacity on transnational knowledge spillover and the innovation quality of high-tech industries in host countries: Evidence from the Chinese manufacturing industry," International Journal of Production Economics, Elsevier, vol. 233(C).
    4. Li, Miaomiao & Cao, Guikun & Cui, Li & Liu, Xiaoquan & Dai, Jing, 2023. "Examining how government subsidies influence firms’ circular supply chain management: The role of eco-innovation and top management team," International Journal of Production Economics, Elsevier, vol. 261(C).
    5. Essuman, Dominic & Bruce, Patience Aku & Ataburo, Henry & Asiedu-Appiah, Felicity & Boso, Nathaniel, 2022. "Linking resource slack to operational resilience: Integration of resource-based and attention-based perspectives," International Journal of Production Economics, Elsevier, vol. 254(C).
    6. Patel, Pankaj C. & Ojha, Divesh & Naskar, Shankar, 2022. "The effect of firm efficiency on firm performance: Evidence from the Domestic Production Activities Deduction Act," International Journal of Production Economics, Elsevier, vol. 253(C).
    7. Khan, Muhammad Salar, 2022. "Absorptive capacities and economic growth in low- and middle-income economies," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 156-188.
    8. Meixia Wang & Huiping Wang, 2022. "RETRACTED ARTICLE: Knowledge search and innovation performance: The mediating role of absorptive capacity," Operations Management Research, Springer, vol. 15(3), pages 1060-1070, December.
    9. Yurui Li & Xiaofei Qin & Abigail Sullivan & Guangqing Chi & Zhi Lu & Wei Pan & Yansui Liu, 2023. "Collective action improves elite-driven governance in rural development within China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    10. Yunlong Duan & Hanxiao Liu & Zhiqing Deng & Peng Tao, 2021. "The Impact of Cross-Border R&D Sourcing on the Innovation Quality of MNCs, from the Perspective of Business Model Innovation," Sustainability, MDPI, vol. 13(8), pages 1-22, April.
    11. Susanto, Stefanny Magdalena, 2020. "Influence of contingency theory, moderating variable, and mediating effect on firm performance," OSF Preprints kv48g, Center for Open Science.
    12. Muhammad Salar Khan, 2021. "Absorptive capacities and economic growth in low and middle income economies," Papers 2109.11550, arXiv.org.
    13. Zhong, Meirui & Huang, Gangli & He, Ruifang, 2022. "The technological innovation efficiency of China's lithium-ion battery listed enterprises: Evidence from a three-stage DEA model and micro-data," Energy, Elsevier, vol. 246(C).
    14. Duan, Yunlong & Deng, Zhiqing & Liu, Hanxiao & Yang, Meng & Liu, Meiwu & Wang, Xiang, 2022. "Exploring the mediating effect of managerial ability on knowledge diversity and innovation performance in reverse cross-border M&As: Evidence from Chinese manufacturing corporations," International Journal of Production Economics, Elsevier, vol. 247(C).
    15. Xiaoxiang Li & Shuhan Zhang, 2021. "Does Slack Buffer? Market Performance after Environmental Shock," Sustainability, MDPI, vol. 13(17), pages 1-16, August.
    16. Jianjun Wang & Ning Cao & Yulu Wang & Yu Wang, 2022. "The Impact of Knowledge Power on Enterprise Breakthrough Innovation: From the Perspective of Boundary-Spanning Dual Search," Sustainability, MDPI, vol. 14(17), pages 1-19, September.
    17. Jing Liu & Shichun Du & Zetian Fu, 2021. "The Impact of Rural Population Aging on Farmers’ Cleaner Production Behavior: Evidence from Five Provinces of the North China Plain," Sustainability, MDPI, vol. 13(21), pages 1-16, November.
    18. Xie, Zaiyang & Wang, Jie & Miao, Ling, 2021. "Big data and emerging market firms’ innovation in an open economy: The diversification strategy perspective," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    19. Sharma, Amalesh & Pathak, Surya & Borah, Sourav Bikash & Adhikary, Anirban, 2022. "Collaboration strategies in buyer-supplier relational (BSR) networks and sustainable firm performance: A trade-off story," International Journal of Production Economics, Elsevier, vol. 253(C).
    20. Xie, Xuemei & Liu, Xiaojie & Chen, Jialing, 2023. "A meta-analysis of the relationship between collaborative innovation and innovation performance: The role of formal and informal institutions," Technovation, Elsevier, vol. 124(C).
    21. Qian, Cheng & Yu, Kangkang & Chen, Ning (Chris) & Shen, Wangxianzi & Hou, Shaobo & Lei, Yanhan, 2023. "When to adopt a new process management standard? An organizational learning perspective," International Journal of Production Economics, Elsevier, vol. 263(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peeters, T.J.G., 2013. "External knowledge search and use in new product development," Other publications TiSEM 300ebb34-b090-4210-b95e-f, Tilburg University, School of Economics and Management.
    2. Burcharth, Ana Luiza Lara de Araújo & Lettl, Christopher & Ulhøi, John Parm, 2015. "Extending organizational antecedents of absorptive capacity: Organizational characteristics that encourage experimentation," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 269-284.
    3. Tepic, M. & Trienekens, Jacques H. & Hoste, R. & Omta, S.W.F. (Onno), 2012. "The Influence of Networking and Absorptive Capacity on the Innovativeness of Farmers in the Dutch Pork Sector," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(3), pages 1-34, September.
    4. Kim, Bongsun & Kim, Eonsoo & Foss, Nicolai J., 2016. "Balancing absorptive capacity and inbound open innovation for sustained innovative performance: An attention-based view," European Management Journal, Elsevier, vol. 34(1), pages 80-90.
    5. Ritter-Hayashi, Daniela & Knoben, Joris & Vermeulen, Patrick A.M., 2021. "Temporary employment: Curse or blessing for a firm's absorptive capacity?," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    6. Khan, Zaheer & Lew, Yong Kyu & Marinova, Svetla, 2019. "Exploitative and exploratory innovations in emerging economies: The role of realized absorptive capacity and learning intent," International Business Review, Elsevier, vol. 28(3), pages 499-512.
    7. Chin, Tachia & Wang, Wannan & Yang, Meng & Duan, Yunlong & Chen, Yantai, 2021. "The moderating effect of managerial discretion on blockchain technology and the firms’ innovation quality: Evidence from Chinese manufacturing firms," International Journal of Production Economics, Elsevier, vol. 240(C).
    8. Mennens, Kars & van Gils, Anita & Odekerken - Schröder, Gaby & Letterie, Wilko, 2016. "Exploring Antecedents of Service Innovation Excellence in Manufacturing SMEs," Research Memorandum 025, Maastricht University, Graduate School of Business and Economics (GSBE).
    9. Ana Lucia Brenner Barreto Miranda & Cristine Hermann Nodari & Eliana Andrea Severo & Raquel Engelman, 2022. "Tendencies of the Absorptive Capacity and Its Correlation with Innovation and the Incubated Companies’ Performance," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(1), pages 121-142, January.
    10. Gilbert, Brett Anitra & McDougall, Patricia P. & Audretsch, David B., 2008. "Clusters, knowledge spillovers and new venture performance: An empirical examination," Journal of Business Venturing, Elsevier, vol. 23(4), pages 405-422, July.
    11. Hammady Ahmed DINE RABEH, 2013. "Firm Resources’ Entanglement Determines ITS Absorptive Capacity: A Review Towards A New Reconceptualization," Working Papers 270, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.
    12. Lewandowska Małgorzata Stefania, 2015. "Capturing Absorptive Capacity: Concepts, Determinants, Measurement Modes and Role in Open Innovation," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 45(1), pages 32-56, March.
    13. Li, Zhengyu, 2016. "Essays on knowledge sourcing and technological capability : A knowledge structure perspective," Other publications TiSEM b8ff31fc-c57b-4bc3-b5a4-0, Tilburg University, School of Economics and Management.
    14. Martinkenaite, Ieva & Breunig, Karl Joachim, 2016. "The emergence of absorptive capacity through micro–macro level interactions," Journal of Business Research, Elsevier, vol. 69(2), pages 700-708.
    15. Xie, Xuemei & Wang, Lijun & Zeng, Saixing, 2018. "Inter-organizational knowledge acquisition and firms' radical innovation: A moderated mediation analysis," Journal of Business Research, Elsevier, vol. 90(C), pages 295-306.
    16. Heuschneider, Sara & Herstatt, Cornelius, 2016. "External search for exploration of future discontinuities and trends: Implications from the literature using co-citation and content analysis," Working Papers 92, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    17. Henri A. Schildt & Markku V.J. Maula & Thomas Keil, 2005. "Explorative and Exploitative Learning from External Corporate Ventures," Entrepreneurship Theory and Practice, , vol. 29(4), pages 493-515, July.
    18. Emre Yildiz, H. & Murtic, Adis & Klofsten, Magnus & Zander, Udo & Richtnér, Anders, 2021. "Individual and contextual determinants of innovation performance: A micro-foundations perspective," Technovation, Elsevier, vol. 99(C).
    19. Ahammad, Mohammad Faisal & Tarba, Shlomo Yedidia & Liu, Yipeng & Glaister, Keith W., 2016. "Knowledge transfer and cross-border acquisition performance: The impact of cultural distance and employee retention," International Business Review, Elsevier, vol. 25(1), pages 66-75.
    20. Nay Chi Khin Khin Oo & Sirisuhk Rakthin, 2022. "Integrative Review of Absorptive Capacity’s Role in Fostering Organizational Resilience and Research Agenda," Sustainability, MDPI, vol. 14(19), pages 1-27, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:229:y:2020:i:c:s0925527320301390. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.