IDEAS home Printed from https://ideas.repec.org/a/ehu/cuader/49122.html
   My bibliography  Save this article

The mediating role of personnel training between innovation and performance: Evidence from the German pharmaceutical industry

Author

Listed:
  • Castillo Apraiz, Julen
  • Matey de Antonio, Jesús

Abstract

[EN] Purpose – The need for companies to become more innovative has never been greater, because innovation helps them deal with a turbulent environment by providing them a sustainable competitive advantage. In this sense, it has been generally accepted that a successful innovative environment requires a welltrained work force. Nevertheless, the literature showing how personnel training drives the innovationperformance relationship in industries where innovation is a key factor is scarce, especially in high-tech industries such as the pharmaceutical industry. Thus, we build upon existing studies to contribute to the innovation and training-related literature by considering the latter as a mediating variable between innovation and business performance. Hence, we aim to assess the impact of innovation on performance, and bring new insights into the innovation-performance link by including training as a variable that drives the aforementioned relationship. Design/methodology – We apply the partial least squares structural equation modeling technique to a sample of German pharmaceutical firms. The data were collected in mid-2014 by means of a computerassisted telephone interviewing (CATI) procedure. As a result, 200 valid responses were obtained from CEOs. Findings – First, this study demonstrates that both innovation and personnel training have a significant, positive impact on performance. Second, the results suggest that training personnel does indeed positively mediate the innovation-performance link. Hence, our study helps explain how innovation effectively translates into greater levels of performance. Originality / value – We answer calls to clarify about the innovation-personnel training relationship to generate greater levels of performance in turbulent environments. Furthermore, we assess this fact in the pharmaceutical industry, where paradoxically there is a lack of studies within the aforementioned framework.

Suggested Citation

  • Castillo Apraiz, Julen & Matey de Antonio, Jesús, 2020. "The mediating role of personnel training between innovation and performance: Evidence from the German pharmaceutical industry," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
  • Handle: RePEc:ehu:cuader:49122
    as

    Download full text from publisher

    File URL: https://addi.ehu.es/handle/10810/49122
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. José Manuel Saiz-Álvarez & João Leitão & Jesús Manuel Palma-Ruiz (ed.), 2020. "Entrepreneurship and Family Business Vitality," Studies on Entrepreneurship, Structural Change and Industrial Dynamics, Springer, number 978-3-030-15526-1, July.
    2. Iain M. Cockburn & Rebecca M. Henderson, 1998. "Absorptive Capacity, Coauthoring Behavior, and the Organization of Research in Drug Discovery," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 157-182, June.
    3. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    4. Di Pietro, Filippo & Palacín Sánchez, María José & Roldán, José L., 2017. "Regional development and capital structure of SMEs," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    5. Mike Crone & Stephen Roper, 2001. "Local Learning from Multinational Plants: Knowledge Transfers in the Supply Chain," Regional Studies, Taylor & Francis Journals, vol. 35(6), pages 535-548.
    6. Booth, Alison L, 1991. "Job-Related Formal Training: Who Receives It and What Is It Worth?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(3), pages 281-294, August.
    7. Nooteboom, Bart & Van Haverbeke, Wim & Duysters, Geert & Gilsing, Victor & van den Oord, Ad, 2007. "Optimal cognitive distance and absorptive capacity," Research Policy, Elsevier, vol. 36(7), pages 1016-1034, September.
    8. Pablo D'Este & Francesco Rentocchini & Jaider Vega-Jurado, 2014. "The Role of Human Capital in Lowering the Barriers to Engaging in Innovation: Evidence from the Spanish Innovation Survey," Industry and Innovation, Taylor & Francis Journals, vol. 21(1), pages 1-19, January.
    9. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    10. Homburg, Christian & Krohmer, Harley & Workman, John Jr., 2004. "A strategy implementation perspective of market orientation," Journal of Business Research, Elsevier, vol. 57(12), pages 1331-1340, December.
    11. Thornhill, Stewart, 2006. "Knowledge, innovation and firm performance in high- and low-technology regimes," Journal of Business Venturing, Elsevier, vol. 21(5), pages 687-703, September.
    12. Dana Minbaeva & Torben Pedersen & Ingmar Björkman & Carl F Fey & Hyeon Jeong Park, 2014. "MNC knowledge transfer, subsidiary absorptive capacity and HRM," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(1), pages 38-51, January.
    13. Ortiz-Villajos, José M. & Sotoca, Sonia, 2018. "Innovation and business survival: A long-term approach," Research Policy, Elsevier, vol. 47(8), pages 1418-1436.
    14. Dilip Subramanian & Bénédicte Zimmermann, 2013. "Training and capabilities in French firms," International Journal of Manpower, Emerald Group Publishing Limited, vol. 34(4), pages 326-344, July.
    15. Horbach Jens, 2010. "The Impact of Innovation Activities on Employment in the Environmental Sector – Empirical Results for Germany at the Firm Level," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(4), pages 403-419, August.
    16. Wu, Pei-Ling & Yeh, Shih-Shuo & Huan, Tzung-Cheng (.T.C.). & Woodside, Arch G., 2014. "Applying complexity theory to deepen service dominant logic: Configural analysis of customer experience-and-outcome assessments of professional services for personal transformations," Journal of Business Research, Elsevier, vol. 67(8), pages 1647-1670.
    17. Ali, Murad & Seny Kan, Konan Anderson & Sarstedt, Marko, 2016. "Direct and configurational paths of absorptive capacity and organizational innovation to successful organizational performance," Journal of Business Research, Elsevier, vol. 69(11), pages 5317-5323.
    18. Ng, Ying Chu, 2005. "Training determinants and productivity impact of training in China: a case of Shanghai," Economics of Education Review, Elsevier, vol. 24(3), pages 275-295, June.
    19. D. Jane Bower & Erica Whittaker, 1993. "Global R&D networks," Industry and Innovation, Taylor & Francis Journals, vol. 1(1), pages 50-64.
    20. Hyun-Sun Ryu & Jae-Nam Lee, 2016. "Innovation patterns and their effects on firm performance," The Service Industries Journal, Taylor & Francis Journals, vol. 36(3-4), pages 81-101, February.
    21. 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.
    22. Unai Arzubiaga & Amaia Maseda & Txomin Iturralde, 2019. "Exploratory and exploitative innovation in family businesses: the moderating role of the family firm image and family involvement in top management," Review of Managerial Science, Springer, vol. 13(1), pages 1-31, February.
    23. Yongmin Chen, 2006. "Marketing Innovation," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(1), pages 101-123, March.
    24. Huang, Kuo-En & Wu, Jih-Hwa & Lu, Shiau-Yun & Lin, Yi-Chia, 2016. "Innovation and technology creation effects on organizational performance," Journal of Business Research, Elsevier, vol. 69(6), pages 2187-2192.
    25. van Smoorenburg, M. S. M. & van der Velden, R. K. W., 2000. "The training of school-leavers: Complementarity or substitution?," Economics of Education Review, Elsevier, vol. 19(2), pages 207-217, April.
    26. Franco Malerba & Luigi Orsenigo, 2015. "The evolution of the pharmaceutical industry," Business History, Taylor & Francis Journals, vol. 57(5), pages 664-687, July.
    27. Leal-Rodríguez, Antonio Luis & Eldridge, Stephen & Roldán, José Luis & Leal-Millán, Antonio Genaro & Ortega-Gutiérrez, Jaime, 2015. "Organizational unlearning, innovation outcomes, and performance: The moderating effect of firm size," Journal of Business Research, Elsevier, vol. 68(4), pages 803-809.
    28. Fariborz Damanpour & Richard M. Walker & Claudia N. Avellaneda, 2009. "Combinative Effects of Innovation Types and Organizational Performance: A Longitudinal Study of Service Organizations," Journal of Management Studies, Wiley Blackwell, vol. 46(4), pages 650-675, June.
    29. repec:eme:ijmpps:v:34:y:2013:i:1:p:326-344 is not listed on IDEAS
    30. Fabrizio, Kira R., 2009. "Absorptive capacity and the search for innovation," Research Policy, Elsevier, vol. 38(2), pages 255-267, March.
    31. Chen, Chung-Jen & Huang, Jing-Wen, 2009. "Strategic human resource practices and innovation performance -- The mediating role of knowledge management capacity," Journal of Business Research, Elsevier, vol. 62(1), pages 104-114, January.
    32. Dziallas, Marisa & Blind, Knut, 2019. "Innovation indicators throughout the innovation process: An extensive literature analysis," Technovation, Elsevier, vol. 80, pages 3-29.
    33. Dana B Minbaeva & Torben Pedersen & Ingmar Björkman & Carl F Fey, 2014. "A retrospective on: MNC knowledge transfer, subsidiary absorptive capacity, and HRM," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(1), pages 52-62, January.
    34. Lau, Chung-Ming & Ngo, Hang-Yue, 2004. "The HR system, organizational culture, and product innovation," International Business Review, Elsevier, vol. 13(6), pages 685-703, December.
    35. Julia Clemencia Naranjo-Valencia & Cristian Guillermo Naranjo-Herrera & Héctor Mauricio Serna-Gómez & Gregorio Calderón-Hernández, 2018. "The Relationship Between Training And Innovation In Companies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(02), pages 1-33, February.
    36. Guisado González, Manuel & Vila Alonso, Mercedes & Guisado Tato, Manuel, 2016. "Innovación, capacidad productiva, formación en el puesto de trabajo y productividad," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    37. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    38. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    39. Peter J. Lane & Michael Lubatkin, 1998. "Relative absorptive capacity and interorganizational learning," Post-Print hal-02311860, HAL.
    40. Blunch, Niels-Hugo & Castro, Paula, 2005. "Multinational enterprises and training revisited: do international standards matter?," Social Protection Discussion Papers and Notes 32546, The World Bank.
    41. Kibum Kwon, 2019. "The long-term effect of training and development investment on financial performance in Korean companies," International Journal of Manpower, Emerald Group Publishing Limited, vol. 40(6), pages 1092-1109, January.
    42. Liqin Ren & Guangya Xie & Koos Krabbendam, 2009. "Sustainable competitive advantage and marketing innovation within firms: A pragmatic approach for Chinese firms," Management Research Review, Emerald Group Publishing, vol. 33(1), pages 79-89, December.
    43. McGuirk, Helen & Lenihan, Helena & Hart, Mark, 2015. "Measuring the impact of innovative human capital on small firms’ propensity to innovate," Research Policy, Elsevier, vol. 44(4), pages 965-976.
    44. Platero Jaime, Manuel & Benito Hernández, Sonia & Rodríguez Duarte, Antonio, 2017. "The moderator effect of training in the adoption of ICT in microenterprises," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    45. Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.
    46. James Love & Mica Ariana Mansury, 2007. "External Linkages, R&D and Innovation Performance in US Business Services," Industry and Innovation, Taylor & Francis Journals, vol. 14(5), pages 477-496.
    47. Gunday, Gurhan & Ulusoy, Gunduz & Kilic, Kemal & Alpkan, Lutfihak, 2011. "Effects of innovation types on firm performance," International Journal of Production Economics, Elsevier, vol. 133(2), pages 662-676, October.
    48. Peter J. Lane & Jane E. Salk & Marjorie A. Lyles, 2001. "Absorptive capacity, learning, and performance in international joint ventures," Strategic Management Journal, Wiley Blackwell, vol. 22(12), pages 1139-1161, December.
    Full references (including those not matched with items on IDEAS)

    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. Castillo-Apraiz, Julen & Matey de Antonio, Jesús, 2018. "Does quality pay in the pharmaceutical industry? The mediating role of training of personnel between quality management and performance," Revista de Dirección y Administración de Empresas, Universidad del País Vasco - Escuela Universitaria de Estudios Empresariales de San Sebastián.
    2. H. Emre Yildiz & Adis Murtic & Udo Zander & Anders Richtnér, 2019. "What Fosters Individual-Level Absorptive Capacity in MNCs? An Extended Motivation–Ability–Opportunity Framework," Management International Review, Springer, vol. 59(1), pages 93-129, February.
    3. 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.
    4. Avimanyu Datta, 2016. "Antecedents To Radical Innovations: A Longitudinal Look At Firms In The Information Technology Industry By Aggregation Of Patents," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(07), pages 1-31, October.
    5. López-Sáez, Pedro & Cruz-González, Jorge & Navas-López, Jose Emilio & Perona-Alfageme, María del Mar, 2021. "Organizational integration mechanisms and knowledge transfer effectiveness in MNCs: The moderating role of cross-national distance," Journal of International Management, Elsevier, vol. 27(4).
    6. Camisón, César & Forés, Beatriz, 2011. "Knowledge creation and absorptive capacity: The effect of intra-district shared competences," Scandinavian Journal of Management, Elsevier, vol. 27(1), pages 66-86, March.
    7. Effelsberg, Martin, 2011. "Wissenstransfer in Innovationskooperationen: Ergebnisse einer Literaturstudie zur "Absorptive Capacity"," Arbeitspapiere 107, University of Münster, Institute for Cooperatives.
    8. Domingo García Pérez-De-Lema & Peter Bent Hansen & Antonia Madrid-Gujjarro & Jane Lucia Silva-Santos, 2019. "INFLUENCE OF THE BUSINESS ENVIRONMENT IN THE DYNAMICS OF INNOVATION AND IN THE PERFORMANCE OF SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-25, June.
    9. Rafael Sancho-Zamora & Isidro Peña-García & Santiago Gutiérrez-Broncano & Felipe Hernández-Perlines, 2021. "Moderating Effect of Proactivity on Firm Absorptive Capacity and Performance: Empirical Evidence from Spanish Firms," Mathematics, MDPI, vol. 9(17), pages 1-15, August.
    10. Hanne Peeters & Julie Callaert & Bart Looy, 2020. "Do firms profit from involving academics when developing technology?," The Journal of Technology Transfer, Springer, vol. 45(2), pages 494-521, April.
    11. Jong, Simcha & Slavova, Kremena, 2014. "When publications lead to products: The open science conundrum in new product development," Research Policy, Elsevier, vol. 43(4), pages 645-654.
    12. Zheng, Lu & Ulrich, Klaus & Sendra-García, Javier, 2021. "Qualitative comparative analysis: Configurational paths to innovation performance," Journal of Business Research, Elsevier, vol. 128(C), pages 83-93.
    13. Arie Y. Lewin & Silvia Massini & Carine Peeters, 2011. "Microfoundations of Internal and External Absorptive Capacity Routines," Organization Science, INFORMS, vol. 22(1), pages 81-98, February.
    14. Tomasz Ingram & Katarzyna Bratnicka-Myśliwiec & Teresa Kraśnicka & Izabella Steinerowska-Streb, 2022. "Entrepreneurial Orientation as a Determinant of Sustainable Performance in Polish Family and Non-Family Organizations," Sustainability, MDPI, vol. 14(24), pages 1-25, December.
    15. Ali, Murad & Shujahat, Muhammad & Ali, Zulfiqar & Kianto, Aino & Wang, Minhong & Bontis, Nick, 2022. "The neglected role of knowledge assets interplay in the pursuit of organisational ambidexterity," Technovation, Elsevier, vol. 114(C).
    16. Anna Vuorio & Lasse Torkkeli & Liisa-Maija Sainio, 2020. "Service innovation and internationalization in SMEs: antecedents and profitability outcomes," Journal of International Entrepreneurship, Springer, vol. 18(1), pages 92-123, March.
    17. 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.
    18. 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).
    19. Sheng, Margaret L. & Hartmann, Nathaniel N., 2019. "Impact of subsidiaries' cross-border knowledge tacitness shared and social capital on MNCs' explorative and exploitative innovation capability," Journal of International Management, Elsevier, vol. 25(4).
    20. M.ª Magdalena Jiménez-Barrionuevo & Luis M. Molina & Víctor J. García-Morales, 2019. "Combined Influence of Absorptive Capacity and Corporate Entrepreneurship on Performance," Sustainability, MDPI, vol. 11(11), pages 1-26, May.

    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:ehu:cuader:49122. 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: Alcira Macías Redondo (email available below). General contact details of provider: https://edirc.repec.org/data/ieahues.html .

    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.