Direct and configurational paths of absorptive capacity and organizational innovation to successful organizational performance

Abstract

This study investigates how firms can achieve high levels of organizational performance under different configurations of absorptive capacity and organizational innovation. The study uses partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA) to test relationships among dimensions of absorptive capacity, organizational innovation, and organizational performance. The results provide support for the absorptive capacity's role for organizational innovation and performance. Furthermore, different configurations of absorptive capacity and organizational innovation conditions lead to better organizational performance.