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The purpose of this paper is to empirically investigate the impact of organizational intellectual capital (IC) components on absorptive capacity (ACAP) such as potential absorptive capacity (PACAP) and realized absorptive capacity (RACAP). Furthermore, it attempts to investigate the mechanism through which PACAP and RACAP jointly influence innovation strategies (i.e.) exploitative and exploratory innovations.

This is an explanatory research using a deductive approach. This study uses survey data from 184 manufacturing export firms analyzed through partial least squares structural equation modelling.

The results have found that the cognitive and social capital of a firm positively affects PACAP and RACAP, whereas relational capital has a significant effect on RACAP. Moreover, the study reveals that both potential and realized absorptive capacities considerably lead to the development of organizational exploitative and exploratory innovation strategies.

The research focused on two driving factors, i.e. IC components and ACAP dimensions, and overlooked how each component of IC and ACAP influences ambidextrous innovative strategy.

Providing managers with insights about the critical role of developing IC to facilitate the transfer and exchange of crucial absorptive capacity necessary for ambidextrous innovative strategy.

This study makes a significant contribution to the existing literature by highlighting the importance of ACAP and provides useful insights for firms in developing economies to improve their exploitative and exploratory innovation capability. This study likewise reveals the significance of the four dimensions of IC, which can facilitate bringing in knowledge from developing economies.

The aim of this paper is to analyse the moderating effect of digital transformation (DT) on the relationship between innovation capacity and the performance of agrifood businesses.

Based on a structured questionnaire, data on 98 agrifood small and medium-sized enterprises operating in Spain were collected. The data were analysed using partial least squares structural equation modelling to test the proposed model and study the moderating effect of DT on the relationship between the innovation capacity and performance of agrifood businesses.

The study finds support for the hypotheses and shows the existence of a direct positive relationship between the DT and performance of agrifood businesses. Developing new practices focussed on customer service and performing actions such as improving sales, promoting a new product or service and including a post-sales service influence the capacity of a business to undertake DT.

Future studies should include other factors in the analysis. For example, the impact of knowledge transfer and research and development (R&D) on agrifood businesses' performance should be studied. Education and training, as well as having a diverse network, can help develop and boost businesses' capacity to use and apply the required innovation. Networks play an important role in learning how to apply DT.

This quantitative study is the first to examine the moderating effect of DT in the Spanish agrifood sector on the relationship between innovation capacity and performance. The study examines the role of the DT of companies and explores the competitiveness and efficiency tools that digitalisation offers. Innovation capacity is crucial for the application of these tools.

Absorptive capacity, technological collaboration and servitization are analyzed to establish ways to overcome the balance between products and services in manufacturing companies. A fresh perspective is introduced by presenting a framework for innovation strategy, moving beyond product-based R&D.

The hypotheses are tested using data on Spanish firms in the high-tech chemical and pharmaceutical industries through ordinary least squares regression analysis. The sample consists of 112 manufacturing firms included in the Spanish Survey of Business Strategies.

The results show that absorptive capacity facilitates servitization and that technological collaboration moderates the relationship between absorptive capacity and servitization. The synergies between absorptive capacity and technological collaboration for servitization are recognized from the perspective of open innovation as a way of resolving the trade-off between products and services.

Future research should introduce more sources of collaboration by broadening the value chain perspective. Other approaches to innovation may also be considered, including relationships to process innovation.

The results can provide meaningful guidance for companies to determine the key opportunities of servitization driven by absorptive capacity, and the best ways to leverage open innovation and collaboration strategies to exploit such approaches.

This research enriches theories on servitization, open innovation and innovative behavior. Open innovation strategy should be linked to greater servitization activity and should support an open service strategy. This approach is crucial for building innovation capabilities through technological collaboration.

In this paper, the authors focus on participatory budgeting (PB) as an organizational issue in local government. The aim of this study is to analyze the premises of PB becoming institutionalized in local governance by scrutinizing the factors that enable or disable PB as a collaborative innovation process, and that in turn build innovative capacity. The authors study how the collaborative innovation process constructs the innovation capacity of local government and further how this enables PB to institutionalize in local government. With this study, the authors deepen the understanding of PB as a collaborative innovation process that may encounter obstacles and hindrances, but also enablers and drivers for creating and transforming sustainable collaborative practices in local government.

In this paper, the authors present a case study from one Finnish local government, the city of Lahti. The authors employ multifaced empirical data collected from the city of Lahti in two PB rounds between 2019 and 2022. Data include surveys for citizens and employees and municipal councilors and altogether 24 interviews with employees and councilors. The authors also gathered data by observing the PB process in Lahti, taking parts in workshops and meetings between 2019 and 2022. Municipal documents were likewise used as data in this study.

The institutionalization of PB in a local government organization requires organizational innovation capacity, not only individuals who are keen, motived and committed to work on PB. However, the Lahti case shows that successful PB results from the citizens' viewpoint can on one hand be reached while simultaneously the sustainability of PB needs more organizational commitment and support that materializes into managerial activities. The authors found that adequate resourcing is a key question in the institutionalization of PB.

In the present study, the authors approach the often-neglected topic of PB from the professional viewpoint in public administration. The originality of the empirical setting is the multifaced data collection during the first two rounds of PB in Lahti. It is highly relevant to analyze PB in its early stages as the organizational difficulties and resistance are at the time at their highest. This study offers a unique perspective on to the initialization of a novel participatory method in a city where no such efforts on this scale have been implemented before.

This article focusses on the hybrid strategy, a simultaneous combination of cost leadership and differentiation strategy. The study aims to examine the impact of hybrid strategy on firm performance through its anticipated positive effects on process and product innovation. In addition, we study the moderating role of adaptive capacity in the direct relationships of hybrid strategy with process and product innovation.

Structural equation modelling was used to analyse 1,842 Spanish firms with fewer than 250 employees. We randomly selected small and medium-sized enterprises (SMEs) operating in Spain from the Spanish Central Business Directory (2021) database. The overall sample design was based on stratified sampling.

We found that hybrid strategy is positively related to firm performance and to process and product innovation. Additionally, in firms implementing hybrid strategies, process innovation fostered firm performance. Finally, adaptive capacity strengthened the relationships of hybrid strategy with process and product innovation. This sheds light on how and when hybrid strategy is most effective in fostering SME performance.

We highlight that SMEs need to establish strategies that use diverse resources and capabilities and not just generate competitive advantage using one strategy (cost leadership or differentiation strategy). This requires an agile and flexible systems and structures.

Our research provides novel results by proposing the adoption of hybrid strategies instead of pure strategies (cost leadership and differentiation strategy) as a way for SMEs to survive during crises. Unlike “stuck in the middle” strategies, our study demonstrates the importance of hybrid strategies in a comprehensive model that links them to innovation and firm performance, with adaptive capacity being a determining factor.

This paper examines the effect of market knowledge on market success of product innovativeness and the moderating role of absorptive capacity. We separated market knowledge into market diversity and market significance components and examined their effects on radical product innovation performance.

This paper adopted the secondary database study. Excluding cases with missing values of main variables, a total of 1,219 Taiwanese manufacturing firms from the Third Taiwan Technology Innovation Survey (TTIS3) database were used to test the hypotheses. A moderated hierarchical regression approach was utilized to analyze the data.

The results revealed that the relationship between market diversity and radical product innovation performance is a predominantly positive concave downward curve. In contrast, the relationship between market significance and radical product innovation performance is a predominantly negative concave downward curve. Furthermore, the results also indicated that absorptive capacity has different moderating effects on the relationships between market diversity/significance and radical product innovation performance. Absorptive capacity enhances the negative effect of market significance but suppresses the positive effect of market diversity on radical product innovation performance.

This paper is the first research which contributes to examining the relationship between market knowledge and radical product innovation sale performance.

This study social based on cognitive theory (SCT), aims to better understand how transformational leadership affects team-level knowledge sharing and absorptive ability in the construction industry. It also examines the moderating influence of the AI-based virtual assistant on the indirect relationship between transformational leadership and team innovation through knowledge sharing and absorptive ability at the team level.

This study used a simple random sample approach to gather data from several small and medium-sized construction firms in Anhui Province, China. A total of 407 respondents, including 89 site engineers and 321 team members, provided their responses on a five-point Likert scale questionnaire.

The findings showed that AI-based virtual assistants significantly moderated the direct and indirect association between transformational leadership and knowledge sharing, and subsequently with team innovation. Unexpectedly, the findings showed that AI-based virtual assistant did not moderate the direct relationship between transformational leadership and team-level absorptive capacity.

This study adds a fresh perspective to the literature on construction management by examining team innovation driven by transformational leadership through an underlying mechanism. It is unique in that it uses the team adaptation theory to investigate the understudied relationship between transformational leadership and team innovation in the construction industry.

The purpose of this study is to simultaneously investigate a comprehensive analysis of the extent to which strategic orientations, namely, imitation and innovation orientations, and knowledge management affect firm performance.

Drawing on the theoretical frameworks of the resource-based view and dynamic capability theory, this scholarly inquiry has proposed a comprehensive framework that delineates the relationships amongst imitation, innovation, absorptive capacity (ACAP), innovation performance and financial performance. To scrutinize the proposed research model, bootstrap routines were used through Smart partial least squares to estimate the procedures. To collect the necessary data, a questionnaire and financial statements were acquired from a sample of 100 Iranian firms listed on the Tehran Stock Exchange. The findings of the study have important implications for both scholars and practitioners seeking to enhance firm performance through the effective utilization of imitation, innovation and ACAP.

The results indicate that imitation activities have directly led to the improvement in innovation performance, even in the presence of innovation and ACAP. However, the relationship has not been confirmed by financial performance.

Imitation and innovation orientations have been identified as pivotal strategic orientations that can significantly affect firm performance. As far as the authors know, this investigation represents the first comprehensive examination of both imitation and innovation activities as a critical transition in emerging markets (EMs) characterized by complex economies, such as Iran. The findings may aid firms in enhancing their performance by providing insight into the strategic importance of imitation and innovation orientations in EMs.

This study aims to explore how not-for-profit organisations (NFPs) adopt service innovation and improve their employee resilience capabilities as a response to environmental changes arising from marketisation of public services.

Using a multiple case-study research design, this study involved 32 interviews with frontline employees working in a not-for-profit care-providing organisation.

This study finds that the development of absorptive capacity can facilitate service innovation adoption in NFPs and improve employee resilience in times of transition.

This study offers theoretical insights on service innovation, absorptive capacity and employee resilience in NFPs. It makes practical recommendations that will enable NFPs to help frontline employees better adopt service innovation practices in business models endorsed by the private sector.

Recent work in the economics of innovation in developing countries increasingly considers the formality of business as a determining factor of economic development. However, current knowledge on how formality determines both innovation and business performance remains mixed. This article examines this relationship by analyzing, on the one hand, the role of formality on innovation and, on the other hand, the moderating effect of formality on the relationship between innovation and the performance of business in francophone Sub-Saharan Africa.

Based on a sample of 1,369 Cameroonian and Senegalese small and medium-sized enterprises (SMEs) from the International Development Research Center (IDRC), the Crepon Duguet et Maraise (CDM) technique was used to reduce the endogeneity bias inherent in this type of analysis.

The results show that formal companies have a better capacity for innovation. In addition, formality positively moderates the relationship between innovation and the performance of businesses in the case of product and commercial innovations. On the other hand, it negatively moderates the relationship between innovation and the performance for process and organizational innovations.

These results show that the advantages of formalization widely relayed by national public institutions and international organizations can present a risk for business if the expected gains are not accompanied by innovations.

This paper contributes to research by taking into account the heterogeneity of firms because it is one of the first to study formality as a moderator in the relationship between innovation and firm performance in Sub-Saharan African economies.