Analysis of the mediating role of the technological innovation capabilities in the relationship between the flexible organizational form and organizational performance

Abstract

This paper analyzes the relationship between the flexible organizational form and organizational performance considering as mediating variables the firm's technological innovation capabilities, basing on Resource-Based View postulates. This research question is important because it enable us to understand better the antecedent variables on technological innovation capabilities related to the organizational design and its effect on organizational performance. To contrast empirically the theoretical model, a sample of 159 Spanish industrial firms is taken and a structural equations model is tested through the Partial Least Squares (PLS) technique. Results show that the capability of the firm to introduce product and process innovations acts as a mechanism that intervenes in the relationship between the flexible organizational form and performance through a mediating effect, which explains the positive effect of the former on the latter.