The effectiveness of absorptive capacity formation mechanism on innovation performance by industry

Abstract

Technical innovation is becoming more and more important in order to create competitive advantage in this management environment that the speed of technical changes is getting faster and the lifecycle of product is being reduced. To improve the performance of technical innovation, companies need to have absorption ability to utilize external knowledge and skills effectively. Such absorption ability is formed through interaction with internal and external resources of an organization and the characteristics of environment and so has important association with the results of corporate technical innovation. Accordingly, this study divides the factors of absorption ability into exploratory learning, transformative learning, and exploitative learning and made an empirical analysis of the impact of these three factors on organizational commitment and organizational innovation outcome. According to the 2-step approach of higher-order latent variable, path analysis and total effectiveness analysis were conducted directly. As a result of analysis, exploratory learning had a significant impact on organizational commitment and organizational performance and organizational commitment had a significant impact on performance. Transformative learning and exploitative learning had a significant impact on organizational commitment, but did not have an impact on performance.