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Impact of Entrepreneurial Orientation on Innovation Capability: The Mediating Role of Absorptive Capability and Organizational Learning Capabilities

Author

Listed:
  • Lahcene Makhloufi

    (University Of Muhammadiyah Sumatera Utara)

  • Abderrazak Ahmed Laghouag

    (King Khalid University [Abha])

  • Alhussain Ali Sahli

    (King Khalid University [Abha])

  • Fateh Belaid

    (UCL FGES - Université Catholique de Lille - Faculté de gestion, économie et sciences - ICL - Institut Catholique de Lille - UCL - Université catholique de Lille)

Abstract

Learning and knowledge creation are acknowledged as crucial drivers associated with entrepreneurial orientation (EO) and innovation capability (IC). Absorptive capacity (AC) harmonizes internal innovation-building activities with external opportunities, while organizational learning capabilities (OLC) foster entrepreneurial cognitive skills and innovation capabilities. This study aims to (1) predict the impact of absorptive capacity and organizational learning on IC and (2) to estimate the mediation effect of OLC and AC on the relationship between entrepreneurial orientation and innovation capabilities. Drawing upon the dynamic capability theory, the study had applied a cross-sectional survey targeting Algerian firms to test the hypotheses. The study findings indicate that EO is positively associated with innovation capability. Besides, even though both OLC and AC partially increase EO's interaction impact on innovation capability as a mediation role, suggesting that the more a firm is entrepreneurially oriented, the more learning and knowledge creation processes are involved in the interaction relationship. This study's core focus is to overcome the substantial role of learning and knowledge creation processes as an intangible proactive resource that fosters the EO mindset to get involved in innovation activities. It has been discovered that AC and OLC as a connectedness mechanism links external knowledge and internal learning processes to accompany EO readiness during innovation development.

Suggested Citation

  • Lahcene Makhloufi & Abderrazak Ahmed Laghouag & Alhussain Ali Sahli & Fateh Belaid, 2021. "Impact of Entrepreneurial Orientation on Innovation Capability: The Mediating Role of Absorptive Capability and Organizational Learning Capabilities," Post-Print hal-03678014, HAL.
    • Handle: RePEc:hal:journl:hal-03678014
    DOI: 10.3390/su13105399
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    Cited by:

    1. Safwat Adel El-Sharkawy & Muhammad Salah Nafea & Emad El-Din H. Hassan, 2023. "HRM and organizational learning in knowledge economy: investigating the impact of happiness at work (HAW) on organizational learning capability (OLC)," Future Business Journal, Springer, vol. 9(1), pages 1-16, December.
    2. Berkegui Oubedatou Sinatoko Djibo & Emmanuel Mensah Horsey & Shuliang Zhao, 2024. "Good Innovation Capacity, Good Eco-Innovation Performance? From Firms Innovation, Learning Capacity, and Institutional Environment," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 1179-1209, March.
    3. Xihua Yu & Ning Cao & Hao Ren, 2023. "The Impact of Entrepreneurial Orientation on the Sustainable Innovation Capabilities of New Ventures: From the Perspective of Ambidextrous Learning," Sustainability, MDPI, vol. 15(11), pages 1-19, June.
    4. Ingrid R. Epezagne Assamala & Wenyuan Li & Sheikh Farhan Ashraf & Nausheen Syed & He Di & Mehrab Nazir, 2022. "Mediation-Moderation Model: An Empirical Examination of Sustainable Women Entrepreneurial Performance towards Agricultural SMEs in Ivory Coast," Sustainability, MDPI, vol. 14(10), pages 1-21, May.
    5. Lahcene Makhloufi & László Vasa & Joanna Rosak-Szyrocka & Farouk Djermani, 2023. "Understanding the Impact of Big Data Analytics and Knowledge Management on Green Innovation Practices and Organizational Performance: The Moderating Effect of Government Support," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    6. Aleem Ahmad Qader & Jingwei Zhang & Sheikh Farhan Ashraf & Nausheen Syed & Khaoula Omhand & Mehrab Nazir, 2022. "Capabilities and Opportunities: Linking Knowledge Management Practices of Textile-Based SMEs on Sustainable Entrepreneurship and Organizational Performance in China," Sustainability, MDPI, vol. 14(4), pages 1-26, February.
    7. Diana Aqmala & Roymon Panjaitan & Febrianur Ibnu Fitroh Sukono Putra, 2025. "Leveraging Pro-Growth Interaction Capability to Improve Firm Performance: The Impact of Dynamic Markets," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 98-115.
    8. Sidney Mangenda Tshiaba & Nianxin Wang & Sheikh Farhan Ashraf & Mehrab Nazir & Nausheen Syed, 2021. "Measuring the Sustainable Entrepreneurial Performance of Textile-Based Small–Medium Enterprises: A Mediation–Moderation Model," Sustainability, MDPI, vol. 13(19), pages 1-19, October.
    9. Md Alamgir Mollah & Jae-Hyeok Choi & Su-Jung Hwang & Jin-Kyo Shin, 2023. "Exploring a Pathway to Sustainable Organizational Performance of South Korea in the Digital Age: The Effect of Digital Leadership on IT Capabilities and Organizational Learning," Sustainability, MDPI, vol. 15(10), pages 1-18, May.
    10. Quang-Huy Ngo, 2023. "The Impact of Entrepreneurial Orientation on SMEs’ Performance in a Transitional Economy: The Mediating Role of Differentiation Advantages and Innovation Capability," SAGE Open, , vol. 13(4), pages 21582440231, October.
    11. Shi, Linda Hui & Smith, J. Brock & Zou, Shaoming & Han, Yuqing & Tan, Kang Frank, 2024. "The mediated and moderated effects of IEO on international performance: An investigation of emerging market SMEs," Journal of World Business, Elsevier, vol. 59(4).
    12. Mohammed Nawaf Jallad & Georgiana Karadas, 2024. "Entrepreneurial Orientation and Performance Outcomes in Palestinian SMEs: The Role of Absorptive Capacity and Industry Type," Sustainability, MDPI, vol. 16(23), pages 1-22, December.
    13. Nabila Abid & Michael Dowling & Federica Ceci & Junaid Aftab, 2023. "Does resource bricolage foster SMEs' competitive advantage and financial performance? A resource‐based perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5833-5853, December.
    14. Adam Figiel & Ayesha Badar, 2025. "Effect of Green Entrepreneurial Orientation and Absorptive Capacity on Green Innovation and Environmental Orientation Among Educated Gen Z’s in Europe," Sustainability, MDPI, vol. 17(2), pages 1-21, January.
    15. Yassin Allammari & Ahmed Taqi & Nadir El Morabit, 2025. "Entrepreneurial Orientation And Sme Performance: A Sequential Mediation Analysis Of Market And Learning Orientation," Post-Print hal-05199204, HAL.
    16. Rima Pusparani & Wahdiyat Moko & Sri Palupi Prabandari, 2023. "The role of service innovation in mediating entrepreneurial orientation, organizational learning capability, and organizational performance relationship: a study on Directorate General of State Assets," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 12(7), pages 24-37, October.

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