Organizational forgetting, absorptive capacity, and innovation performance

Abstract

PurposeThe purpose of this paper is to examine how the organizational forgetting affect innovation performance under the consideration of the environmental turbulence as a moderating factor of the analysis framework.Design/methodology/approachThis study constructs and verifies a moderated mediating model of organizational forgetting to innovation performance, using the exploratory factor analysis and the hierarchical regression analysis based on a survey sample of 320 Chinese companies.FindingsThe organizational forgetting is a critical determinant for improving innovation performance of an enterprise. A more detailed analysis reveals that first organizational forgetting cannot promote organization’s innovation performance without absorptive capacity. Second, the mediating effect of absorptive capacity is more positive when environmental turbulence is higher.Practical implicationsThis study provides empirical evidence about the importance of organizational forgetting in the firm innovation.Originality/valueThis paper adds to the existing literature by providing a clear explanation of the impacts of organizational forgetting on innovation performance through a comprehensive empirical study. Contrasting with previous research, this research clarifies the boundary conditions under which organizational forgetting enhances innovation performance. In particular, the authors find that organizational forgetting is not equally positive but instead increases with the level of environmental turbulence.