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    How Firm Performs Under Stakeholder Pressure: Unpacking the Role of Absorptive Capacity and Innovation Capability

    Singh, Sanjay Kumar and Del Giudice, Manlio and Nicotra, Melita and Fiano, Fabio (2020) How Firm Performs Under Stakeholder Pressure: Unpacking the Role of Absorptive Capacity and Innovation Capability. IEEE Transactions on Engineering Management. pp. 1-12. ISSN 0018-9391

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    Organizational innovation capability is a critical competitive strategy to generate and execute ingenious ideas necessary to offer new services, processes, and products to stay relevant and competitive. This becomes important in the context of small and medium-sized enterprises (SMEs) who depend significantly on stakeholders for an uninterrupted supply of relevant resources to produce and provide offerings to the markets amidst fierce market competition to stay competitive. We draw upon resource dependence and dynamic capabilities theory to investigate how stakeholder pressure acts upon SMEs to utilize their absorptive capacity of developing innovation capability to improve their overall performance. We collected data from 291 SMEs from the manufacturing sector to test the hypotheses of the study. Results suggest that absorptive capacity mediates the influence of stakeholder pressure on innovation capability. Furthermore, innovation capability too mediates the relationship between absorptive capacity and firm performance. This article contributes to theoretical and practical implications.

    Item Type: Article
    Keywords: Absorptive capacity; ACAP; firm performance; FPERF; organizational innovation capability; small- and medium-sized enterprises; SMEs; stakeholder pressure;
    Academic Unit: Faculty of Social Sciences > School of Business
    Item ID: 15990
    Identification Number:
    Depositing User: Sanjay Singh
    Date Deposited: 24 May 2022 13:26
    Journal or Publication Title: IEEE Transactions on Engineering Management
    Publisher: IEEE
    Refereed: Yes
    Use Licence: This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here

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