A Mediation Model of Absorptive and Innovative Capacities: The Case of Spanish Family Businesses

Abstract

This work analyses the mediating effect of innovative capacity on the influence of absorptive capacity in the performance of family businesses. For the analysis of results, the use of a second-generation structural equation method is proposed (PLS-SEM) using smartPLS 3.2.7 computer software, applied to the data of 218 Spanish family businesses. The main contribution of this work is that the performance of family businesses is determined by the absorptive capacity (absorptive capacity is able to explain 36.1% of the performance variability of family businesses). The second contribution of this work is that the influence of the absorptive capacity on the performance of family businesses is strengthened by the effect of innovative capacity, explaining 40.6% of the variability. The third contribution is that the absorptive capacity is a precedent for innovation capacity, able to explain 50% of its variability.