Determinants of innovation performance

Abstract

Purpose The purpose of this paper is to analyse the relationship between organisational learning capabilities (OLCs) and innovation performance (IP) in organisational contexts where knowledge creation and exploitation are the business’ main source of competitive advantage. Design/methodology/approach The study hypotheses are tested on a unique sample of 74 high-performance businesses operating in knowledge-intensive business services (KIBS) industries and non-knowledge intensive sectors in 2016. The study employs a sequential deductive triangulation analysis (QUAN → qual) based on linear regression models and qualitative interviews. Findings The results indicate that OLCs positively impact IP. Additionally, the findings reveal that this relationship is stronger in organisations where knowledge creation and exploitation constitute the main source of competitive advantage, namely, KIBS firms. Research limitations/implications This paper offers insights into how the innovation outcomes of OLCs are heterogeneous across industries. This study contributes to a better understanding of the conditions under which the effects of developing learning-enhancing strategies occur in businesses operating in different industries. Practical implications Both knowledge generation and exploitation processes are critical for business success, and OLCs play a decisive role in this process. In this sense, the results suggest that managers need to turn their attention to the characteristics of business operations when considering the development of strategies aimed at enhancing OLCs. Originality/value The paper further explores the influence of OLCs on IP by analysing how organisational learning strategies interact with relevant organisational characteristics – that are linked here to the exploitation of knowledge-based resources – to yield superior IP.