Does Governance in Information Technology Matter When It Comes to Organizational Performance in Pakistani Public Sector Organizations? Mediating Effect of Innovation
Abstract:Information technology governance (ITG) is recognized as a vital organizational ability to exploit opportunities for innovation and enhance organizational performance. However, the potential of ITG for public sector innovation and performance has not been fully grasped in Pakistani public sector organizations (PakPSOs). This study has presented an explanatory model to investigate the mediating effect of innovation in the relationship between ITG and organizational performance in PakPSOs. Partial least squares … Show more
“…First, adopt the Hamann one-way test. Put all latent variables into the factor analysis without rotation, and observe whether the principal component of the first precipitation is lower than 50% ( Ali et al, 2021 ). The results showed that the first principal component explanation accounted for 34.48%, so the Hamann one-way test passed.…”
Section: Resultsmentioning
confidence: 99%
“…When knowledge redundancy arises, enterprises will take the initiative to reintegrate the current workforce or set up a rotation system to establish a good talent flow ( Scott, 2012 ), which prompts employees to unshackle themselves from rigid thinking and increase their intrinsic motivation to innovation. Additionally, we hold that the essence of innovation is to generate new ideas and opportunities through the progressive accumulation and recombination of existing and new knowledge ( Ali et al, 2021 ), in the process of job rotation, innovative employees can acquire varied and complex knowledge, enhance their technological innovation ability and promote exploratory innovation.…”
Section: Theoretical Background and Hypotheses Developmentmentioning
Entering the challenging and promising knowledge era, it is clear that enterprises should leverage knowledge management activities in improving innovation performance to maintain competitive advantages. This study sheds light on the improvement path of innovation ambidexterity (i.e., exploratory and exploitative innovation) from the perspectives of knowledge redundancy and typical leadership style. It is noted that we determined the research theme through quantitative analysis and conducted qualitative analysis through 209 questionnaire data collected from respondents in different regions and industries in China. The empirical results indicated that knowledge redundancy significantly improves exploratory and exploitative innovation, and transactional leadership negatively moderates the above relationships. This study is of managerial implications to encourage employees to fully master and apply the existing knowledge to strengthen their innovation abilities in value creation. We also contribute to the theories pertaining to knowledge management, innovation, and ambidexterity by providing a deeper understanding of the influencing mechanism of knowledge redundancy in innovation ambidexterity while elaborating on the indirect effects of transactional leadership.
“…First, adopt the Hamann one-way test. Put all latent variables into the factor analysis without rotation, and observe whether the principal component of the first precipitation is lower than 50% ( Ali et al, 2021 ). The results showed that the first principal component explanation accounted for 34.48%, so the Hamann one-way test passed.…”
Section: Resultsmentioning
confidence: 99%
“…When knowledge redundancy arises, enterprises will take the initiative to reintegrate the current workforce or set up a rotation system to establish a good talent flow ( Scott, 2012 ), which prompts employees to unshackle themselves from rigid thinking and increase their intrinsic motivation to innovation. Additionally, we hold that the essence of innovation is to generate new ideas and opportunities through the progressive accumulation and recombination of existing and new knowledge ( Ali et al, 2021 ), in the process of job rotation, innovative employees can acquire varied and complex knowledge, enhance their technological innovation ability and promote exploratory innovation.…”
Section: Theoretical Background and Hypotheses Developmentmentioning
Entering the challenging and promising knowledge era, it is clear that enterprises should leverage knowledge management activities in improving innovation performance to maintain competitive advantages. This study sheds light on the improvement path of innovation ambidexterity (i.e., exploratory and exploitative innovation) from the perspectives of knowledge redundancy and typical leadership style. It is noted that we determined the research theme through quantitative analysis and conducted qualitative analysis through 209 questionnaire data collected from respondents in different regions and industries in China. The empirical results indicated that knowledge redundancy significantly improves exploratory and exploitative innovation, and transactional leadership negatively moderates the above relationships. This study is of managerial implications to encourage employees to fully master and apply the existing knowledge to strengthen their innovation abilities in value creation. We also contribute to the theories pertaining to knowledge management, innovation, and ambidexterity by providing a deeper understanding of the influencing mechanism of knowledge redundancy in innovation ambidexterity while elaborating on the indirect effects of transactional leadership.
“…Innovation enables organizations to establish conditions for structural, processes, management systems, and product/service improvements (Ali et al, 2021) and therefore, enhances productivity and financial outcomes in organizations (Ni et al, 2020). Innovation is beneficial to organizations at various organizational levels.…”
Section: Innovation and Organizational Performancementioning
confidence: 99%
“…Other researchers utilized innovation as an independent variable and employed other perspectives of innovation and found that innovation leads toward improved OP (Bowen et al, 2010; Tuan et al, 2016). Researchers also employed different perspectives of innovation as mediators and moderators with wide variety of independent and dependent variables (AlAnazi et al, 2021; Ali et al, 2021; R. Li et al, 2020).…”
Strategic flexibility is deemed to be an important organizational capability for enhancing innovation and improving organizational performance (OP) in uncertain, turbulent, and ever-changing business environments. Many studies have investigated the impact of strategic flexibility on innovation and OP in various contexts and found that strategic flexibility enhances innovation and improves OP. Other studies have found negative association or no association between strategic flexibility and OP. Therefore, it is not much clear whether strategic flexibility improves OP directly or through innovation. Especially, the mediating role of innovation in the association between strategic flexibility and OP in engineering project-based organizations has not been fully grabbed in prior literature and Pakistan remained unexplored. This study has strived to examine the mediating role of innovation in the association between strategic flexibility and OP in this context. Drawing upon resource based and dynamic capability views, an explanatory model was developed and tested by applying PLS-SEM higher order component modeling approach using sample data from 184 organizations in Pakistan. The results revealed that strategic flexibility is positively associated with innovation and OP. Innovation is positively associated with OP. The association between strategic flexibility and OP is partially mediated by innovation. The study promotes academic rigor and provides a new theoretical model. Mangers, decision-makers, and policy-makers can utilize the results to update their plans to achieve sustainable OP. The other organizations in various countries operating under similar conditions can also take the advantage of this study.
“…For example, they would appreciate and foster employee creativity in generating new products and providing new and innovative ideas. Previously, some scholars studied strategic flexibility as a significant factor affecting firm performance (Awais et al, 2023;Gorondutse et al, 2021). Some studied it as a mediator for certain relationships (Jian et al, 2023;Sen et al, 2023).…”
Transformational leadership is believed to be crucial factor behind an organization’s success. Studies have been conducted on leaders’ transformational leadership style, but there has been limited research on transformational leadership climate (TLC) in an organization and its effect on new product development process (NPDP) and business sustainability (BS). This study fulfills this gap and it also contributes to the literature by testing the moderating role of strategic flexibility (SF) between TLC and NPDP & BS. The study draws its hypothesis on the basis of contingency theory, upper echelons theory and transformational leadership theory. The authors collected the data from the top managers of private educational institutes affiliated with BISE Multan and used SmartPLS for analyses of data. Based on the analyses of 145 questionnaires, we report that TLC enhances NPDP and BS whereas SF has a significant moderation impact on the relationship between TLC and BS. For the educational institutes, we suggest top management to acknowledge and implement TLC in their organizations for sustaining their performance and for successful launching of new programs/services. Additionally, the importance of resource and coordination flexibility is emphasized for sustainability.
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