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Absorptive capacity and its impact on innovation and performance: findings from SEM and fsQCA

Author

Listed:
  • Sonia Cruz-Ros

    (University of Valencia)

  • Diana L. Guerrero-Sánchez

    (Universidad de Cali)

  • Maria-Jose Miquel-Romero

    (University of Valencia)

Abstract

Innovation can provide sustainable competitive advantages to service companies that consider the absorption of external knowledge a key strategic issue. Using the four dimensions of absorptive capacity, this study examined the impact of absorptive capacity on innovation in service delivery processes and explored how this innovation influences business performance. Structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA) were applied to a sample of 134 companies drawn from the Colombian tourism sector. The results of the SEM indicate that innovation in service delivery processes is positively influenced by two of the four dimensions of absorptive capacity: knowledge transformation and knowledge exploitation. Also, innovation in service delivery processes encourages outstanding performance and mediates the relationship between absorptive capacity and business performance. These findings are supported by the results of the fsQCA. Furthermore, although the SEM results indicate that knowledge exploitation has the greatest direct influence on innovation, the fsQCA results suggest that knowledge assimilation and transformation are necessary conditions for companies to outperform competitors.

Suggested Citation

  • Sonia Cruz-Ros & Diana L. Guerrero-Sánchez & Maria-Jose Miquel-Romero, 2021. "Absorptive capacity and its impact on innovation and performance: findings from SEM and fsQCA," Review of Managerial Science, Springer, vol. 15(2), pages 235-249, February.
    • Handle: RePEc:spr:rvmgts:v:15:y:2021:i:2:d:10.1007_s11846-018-0319-7
    DOI: 10.1007/s11846-018-0319-7
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    2. Nicole F. Richter & Sven Hauff & Christian M. Ringle & Siegfried P. Gudergan, 2022. "The Use of Partial Least Squares Structural Equation Modeling and Complementary Methods in International Management Research," Management International Review, Springer, vol. 62(4), pages 449-470, August.
    3. Kyung Yun Hwang & Eul Hyun Sung & Temitayo Shenkoya, 2022. "The Mediating and Combined Effects of Trust and Satisfaction in the Relationship between Collaboration and the Performance of Innovation in Industry—Public Research Institute Partnerships," Sustainability, MDPI, vol. 14(4), pages 1-18, February.
    4. Ahmed Abdullah Danook & Muthanna Saad Yassin & Omar Falah Hasan al.obaidy & Ferman jarad Almejdhab, 2024. "The Absorptive Capacity of Knowledge as an Approach for Building Strategic Reliability in the Sponge Organizations/Small Organizations in Kirkuk Governorate as a Model," Corporate Reputation Review, Palgrave Macmillan, vol. 27(1), pages 33-51, February.
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    More about this item

    Keywords

    Absorptive capacity; Innovation; fsQCA; SEM; Business performance;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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