Abstract
This study explores how potential and realized absorptive capacity affects innovation capability. This study aims to empirically examine the path relationship between potential absorptive capacity, realized absorptive capacity, and innovation capability in mini market in West Java, thus enhance our understanding of the mechanism between absorptive capacity and innovation capability. The authors have conducted a survey among employees with a valid response from 597 respondents. Multiple regression was used to assess the research model. The results provide evidence to show that potential and realized absorptive capacity are positively related to innovation capability, but in different proportions, and potential absorptive capacity affects positively to realize absorptive capacity. This study will contribute in an acceptable way to highlight the effects and role of both the potential absorptive capacity and the realized absorptive capacity in their role as independent variables and the results of this in innovation capability in turn as a dependent variable.Keywords: potential absorptive capacity realized absorptive capacity innovation capability
Highlights
In a complex business environment, innovation is an important resource for success and organizational life (Abbing, 2010; Canh et al, 2019; Cho & Pucik, 2005)
Sri Raharso: Innovation Capability Performance through Potential and Realized Absorptive Capacity: an Empirical Study in the West Java Mini Market consumer goods (FMCG), around 21%; grew by 8% in 2018, with 75% of consumers shopping in mini market formats, and visiting mini markets on average twice a week (Bella, 2019)
Samples were obtained by the accidental sampling technique, by visiting each mini market and asking the employees' willingness at that time to participate in this research
Summary
In a complex business environment, innovation is an important resource for success and organizational life (Abbing, 2010; Canh et al, 2019; Cho & Pucik, 2005). Innovation creates new business opportunities, forms new markets, and improves performance (Chen, 2017; Canh et al, 2019; Kim, 1997a, 1997b). Innovation is a complex process and depends on a set of capabilities. These capabilities are scattered throughout the company structure, but all these capabilities can be aligned with a specific strategy. This set of capabilities forms a meta-capability known as innovation capability (Guan & Ma, 2003; Wang et al, 2008). Innovation capabilities are the result of a complementary set of capabilities (Wonglimpiyarat, 2010), which is the embryo of innovation
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