Absorptive capacity and business performance The mediating effects of innovation and mass customization

• Liu, Xueyuan 
• Zhao, Haiyun 
• Zhao, Xiande 

Indexed by

SCIE

Abstract

Purpose　-　The　purpose　of　this　paper　is　to　examine　the　multiple　paths　of　absorptive　capacity＇s　(AC)　effect　on　business　performance　(BP):　direct　effect　and　indirect　effects　through　innovation　and　mass　customization　(MC).　

Design/methodology/approach　-　The　authors　examined　the　role　of　innovation　and　MC　capability　on　the　relationship　between　AC　and　BP.　Data　from　278　Chinese　firms　in　four　manufacturing　industries　collected　by　questionnaire　are　used　to　empirically　examine　the　proposed　model　by　Structural　equation　modeling.　

Findings　-　The　results　show　that　AC　can　directly　enhance　BP,　and　indirectly　through　innovation　and　MC　capability.　The　study　also　finds　that　MC　capability　has　a　stronger　mediating　effect　than　innovation.　

Originality/value　-　Prior　studies　have　not　yet　built　linkages　between　AC　and　BP　with　both　innovation　and　MC＇s　effects.　This　study　provides　empirical　evidence　of　the　effects　of　AC　on　BP　and　three　paths　are　discussed　including　AC＇s　direct　effect　and　indirect　effects　through　innovation　and　MC　to　firm＇s　BP.　This　study　provides　a　new　direction　for　executives　to　better　understand　the　movement　of　knowledge　along　supply　chain　and　in　intra-organizational　environment,　and　of　the　importance　of　innovation　and　MC　capability　since　they　are　essential　carriers　for　BP　enhancement.

Keyword

• Absorptive capacity
• Innovation
• Business performance
• Mass customization capability

Author Community

[Liu, Xueyuan; Zhao, Haiyun] Wuhan Univ, Econ & Management Sch, Wuhan, Hubei, Peoples R China

[Zhao, Xiande] China Europe Int Business Sch, Shanghai, Peoples R China

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