Organizational Innovation and Tech Innovation Persistence

Abstract

In developing economies, little is invested in research and development. Therefore, it is proposed that lower-tech firms develop their absorptive capacity and be linked through market and institutional networks to achieve technological innovation persistence. This study uses an ordinal logistics model applied to a sample of Peruvian manufacturing firms, concluding that there is an effect on product and process innovation persistence. Thus, executives can emphasize organizational innovation and absorptive capacity as means to achieve product innovation in developing countries. Moreover, firms should to prioritize the relationships with the market and institutions to achieve a better good or service.

The mediating and moderating of absorptive capacity on human capital toward product innovation within MSMEs in Indonesia

“…Secondly, absorptive capacity must display a clear link with product innovation (Hair, Black, Babin, & Anderson, 2019;Sekaran & Bougie, 2016). In this particular context, a preponderance of empirical evidence corroborates the linkage between human capital and absorptive capacity (Ahmed et al, 2020;Bye & Faehn, 2022;Kato, 2020;Oliveira et al, 2020;Wu, 2020), while concurrently establishing the nexus between absorptive capacity and product innovation (Akram et al, 2021;Coronado-Medina et al, 2020;Gallegos et al, 2020;Gao et al, 2022;Jeong et al, 2019). Hence, it is plausible to deduce that absorptive capacity indeed mediates the intricate relationship existence between human capital and the realization of product innovation.…”

“…A moderating effect may occur in conditions where the independent variable has an influence on the dependent variable, and an intended moderating variable has a relationship on the both of independent and dependent variable (Hair et al, 2019;Sekaran & Bougie, 2016). In this case, human capital has an effect on product innovation (Atiase & Dzansi, 2020;Fu et al, 2020;Marvel et al, 2020;You et al, 2021), human capital has a relationship with absorptive capacity (Ahmed et al, 2020;Bye & Faehn, 2022;Kato, 2020;Oliveira et al, 2020;Wu, 2020), and absorptive capacity has a relationship with product innovation (Akram et al, 2021;Coronado-Medina et al, 2020;Gallegos et al, 2020;Gao et al, 2022;Jeong et al, 2019). Therefore, it can be concluded that absorptive capacity has a moderating effect on the relationship between human capital and product innovation.…”

“…The organization's ability to manage and leverage new knowledge acquired from digital transformation is instrumental in achieving successful product innovation. Gallegos et al (2020), emphasized the significance of fostering absorptive ability development in facilitating product creation was underscored. By building robust absorptive capacities and fostering strong relationships with markets and institutions, companies can achieve elevated level of product innovation.…”

“…Human capital, which encompasses the knowledge, skills, and experience of employees, has long been recognized as a valuable resource for fostering innovation (Atiase & Dzansi, 2020;Fu, Liu, Yang, Jiao, & Jin, 2020;Marvel, Wolfe, & Kuratko, 2020;You, Zhou, & Jia, 2021). However, in dynamic environments, it becomes imperative to explore absorptive capacity, contribute to innovation and potentially influence the relationship between human capital and product innovation (Akram, Ghosh, & Joseph, 2021;Coronado-Medina, Arias-Pérez, & Perdomo-Charry, 2020;Gallegos, Salvador Durand, & Soria Gomez, 2020;Gao, Ding, & Wu, 2022;Jeong, Chung, & Roh, 2019). Hence, the primary objective of this study is to examine how absorptive capacity affects the relationship between human capital and product innovation as a mediating and moderating component.…”