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Dynamic absorptive and innovative capabilities as determinants of family business performance

Author

Listed:
  • Felipe Hernández-Perlines
  • Wenkai Xu
  • Luis Andrés Araya-Castillo
  • Antonio Ariza-Montes

Abstract

This research addresses the relationship between absorptive capacity, innovative capacity and performance in family businesses, using a second-generation structural equation method (PLS-SEM). This work presents the following contributions: 1) absorptive capacity determines 31.8% of the variance in the performance of family businesses; 2) the absorptive capacity positively influences the innovative capacity, being able to explain the first 55.2% of the variance of the second; 3) the effect of the absorptive capacity on the performance of family businesses is reinforced when we consider the mediating role of the innovative capacity, increasing up to 37.4% the explanatory power of the absorptive capacity in the variance of the performance of the family companies; 4) when the innovative capacity is included, the direct influence of the absorptive capacity in the performance of the family companies is annulled, being the mediating effect of the total innovative capacity.

Suggested Citation

  • Felipe Hernández-Perlines & Wenkai Xu & Luis Andrés Araya-Castillo & Antonio Ariza-Montes, 2022. "Dynamic absorptive and innovative capabilities as determinants of family business performance," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 13(3), pages 235-258.
    • Handle: RePEc:ids:ijbenv:v:13:y:2022:i:3:p:235-258
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