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Learning Orientation, Innovativeness And Financial Performance In Traditional Manufacturing Firms: A Higher-Order Structural Equation Model

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  • ERLEND NYBAKK

    (Norwegian Forest and Landscape Institute, Norway)

Abstract

This study examines the relationships among learning orientation, firm innovativeness and financial performance in the context of the Norwegian wood industry. A questionnaire-based survey was sent to the CEOs of firms in the wood industry in Norway (241 usable replies, response rate of 49 percent). Learning orientation and firm innovativeness were conceptualised and analysed as latent second-order constructs by using structural equation modelling. The findings show that learning orientation has a positive effect on firm innovativeness in the traditional manufacturing industry. In addition, learning orientation was found to positively affect financial performance via the full mediating effect of firm innovativeness. Furthermore, firm innovativeness was also found to have an independent positive effect on financial performance. No direct effect of learning orientation on financial performance was found. According to the data, firm age also does not appear to affect the relationship between learning orientation and firm innovativeness.

Suggested Citation

  • Erlend Nybakk, 2012. "Learning Orientation, Innovativeness And Financial Performance In Traditional Manufacturing Firms: A Higher-Order Structural Equation Model," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(05), pages 1-28.
    • Handle: RePEc:wsi:ijimxx:v:16:y:2012:i:05:n:s1363919612003873
    DOI: 10.1142/S1363919612003873
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    1. Kuo-Jui Wu & Ching-Jong Liao & Ming-Lang Tseng & Pei-Jay Chou, 2015. "Understanding Innovation for Sustainable Business Management Capabilities and Competencies under Uncertainty," Sustainability, MDPI, vol. 7(10), pages 1-35, October.
    2. Ratnawati & Budi Eko Soetjipto & F. Danardana Murwani & Hari Wahyono, 2018. "The Role of SMEs’ Innovation and Learning Orientation in Mediating the Effect of CSR Programme on SMEs’ Performance and Competitive Advantage," Global Business Review, International Management Institute, vol. 19(3_suppl), pages 21-38, June.
    3. Weiss, Gerhard & Hansen, Eric & Ludvig, Alice & Nybakk, Erlend & Toppinen, Anne, 2021. "Innovation governance in the forest sector: Reviewing concepts, trends and gaps," Forest Policy and Economics, Elsevier, vol. 130(C).
    4. Richard PEK & Marcel RIEDL & Vilém JARSKÝ, 2017. "Innovative approaches in forest management - the application of a business model to designing a small-scale forestry strategy," Journal of Forest Science, Czech Academy of Agricultural Sciences, vol. 63(9), pages 393-400.
    5. Eric Hansen & Erlend Nybakk, 2018. "Response to the global financial crisis: a follow-up study," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-12, December.
    6. Mary Beth Rousseau & Blake D. Mathias & Laura T. Madden & T. Russell Crook, 2016. "Innovation, Firm Performance, And Appropriation: A Meta-Analysis," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-29, April.
    7. Štěrbová, Martina & Stojanovski, Vladimir & Weiss, Gerhard & Šálka, Jaroslav, 2019. "Innovating in a traditional sector: Innovation in forest harvesting in Slovakia and Macedonia," Forest Policy and Economics, Elsevier, vol. 106(C), pages 1-1.
    8. Štěrbová, Martina & Kovalčík, Miroslav, 2020. "Typology of contractors for forestry services: Insights from Slovakia," Forest Policy and Economics, Elsevier, vol. 115(C).
    9. Evelyn Motsepe & Olawale Fatoki, 2017. "The Relationship between Learning Orientation and the Performance of Small and Medium Enterprises in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 9(3), pages 232-240.
    10. Štěrbová, Martina & Výbošťok, Jozef & Šálka, Jaroslav, 2021. "A classification of eco-innovators: Insights from the Slovak forestry service sector," Forest Policy and Economics, Elsevier, vol. 123(C).
    11. Erlend Nybakk & Jan Inge Jenssen, 2012. "Innovation Strategy, Working Climate, And Financial Performance In Traditional Manufacturing Firms: An Empirical Analysis," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(02), pages 1-26.
    12. Helena Slogar & Heri Bezic, 2020. "The Relationship Between Innovative Orientations And Business Performance In Companies," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 29(1), pages 57-76, june.
    13. Kibeshi Kiyabo & Nsubili Isaga, 2019. "Strategic entrepreneurship, competitive advantage, and SMEs’ performance in the welding industry in Tanzania," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-23, December.
    14. Elisabeth Albertini & Fabienne Berger-Remy, 2019. "Intellectual Capital and Financial Performance: A Meta-Analysis and Research Agenda," Post-Print hal-02139763, HAL.
    15. Bordunos, A. & Kosheleva, S., 2016. "High Involvement Work System from organizational and individual perspective," Working Papers 6445, Graduate School of Management, St. Petersburg State University.
    16. Jarský, Vilém, 2015. "Analysis of the sectoral innovation system for forestry of the Czech Republic. Does it even exist?," Forest Policy and Economics, Elsevier, vol. 59(C), pages 56-65.
    17. Li, Siyu & Zhao, Xiande & Huo, Baofeng, 2018. "Supply chain coordination and innovativeness: A social contagion and learning perspective," International Journal of Production Economics, Elsevier, vol. 205(C), pages 47-61.

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