The interaction effect of goal orientation and mindfulness of entrepreneurs on firm innovation capability and its impact on firm performance

Abstract

Purpose

Grounded in the resource-based view of the firm, this study aims to examine the effects of goal orientation and the mindfulness of entrepreneurs on firm innovation capability and analyzes that capability’s subsequent impact on firm performance. The authors also analyze whether mindfulness interacts with goal orientation to intensify its effect on firm innovation capability.

Design/methodology/approach

Simple random sampling was used to obtain the sample of Thai firms listed in the Department of Business Development database (n = 304). The data analysis was done by using partial least square structural equation modeling.

Findings

Goal orientation and mindfulness are positively associated with firm innovation capability. The analysis also supports the interaction effect of goal orientation and mindfulness on firm innovation capability. Moreover, firm innovation capability is positively associated with firm performance.

Practical implications

Goal orientation and mindfulness should be considered two essential soft skills that entrepreneurs must develop to build up their firms’ innovation capability. Because entrepreneurs are the key drivers of economic growth and sustainable development, the government agencies responsible for the entrepreneurship development should consider goal orientation and mindfulness as parts of their entrepreneurship training program and development policy.

Originality/value

The finding about the interaction effect of goal orientation and mindfulness on firm innovation capability provides new evidence that was not documented in previous research. The authors clarify that these are entrepreneurial characteristics that could supplement each other to maximize the potential of entrepreneurs and strengthen the innovation capability of their firms.

Citation

Ratanavanich, M. and Charoensukmongkol, P. (2024), "The interaction effect of goal orientation and mindfulness of entrepreneurs on firm innovation capability and its impact on firm performance", VINE Journal of Information and Knowledge Management Systems, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/VJIKMS-06-2023-0135