The Effects of Technological Innovation, Organizational Innovation and Absorptive Capacity on Product Innovation: A Structural Equation Modeling Approach

Wang Z Min,Tan H Piew,Kwek C Ling

doi:10.5539/ass.v12n1p199

Abstract

<p>This study investigates the impacts of organizational innovation, technological innovation and absorptive capacity on product innovation as well as examines the antecedents of technological innovation and organizational innovation in one of the Tertiary Education Institutions in Malaysia. A total of 600 samples were distributed to the tertiary students. A questionnaire survey was adopted as the main method of data collection and structural equation modeling was applied as a data analysis tool. The findings indicate that: (1) Organizational innovation, technological innovation and absorptive capacity are positively related to product innovation respectively; (2) Technological innovation positively mediates the relationship between organizational innovation and product innovation; (3) Technological innovation positively mediates the relationship between absorptive capacity and product innovation; (4) Organizational innovation positively mediates the relationship between absorptive capacity and technological innovation; (5) Organizational innovation positively mediates the relationship between absorptive capacity and product innovation. The findings of this study do provide relevant theoretical, managerial and policy contributions in the literature.</p>

Highlights

The evolution of innovation concepts and models had been presented in the literature since 1890s
The findings indicate that: (1) Organizational innovation, technological innovation and absorptive capacity are positively related to product innovation respectively; (2) Technological innovation positively mediates the relationship between organizational innovation and product innovation; (3) Technological innovation positively mediates the relationship between absorptive capacity and product innovation; (4) Organizational innovation positively mediates the relationship between absorptive capacity and technological innovation; (5) Organizational innovation positively mediates the relationship between absorptive capacity and product innovation
All the scale measurements for the tested constructs in this research were sourced by the relevant literature, including the absorptive capacity was measured by five items that sourcing from Chen (2012); technological innovation was measured by four items that sourcing from Garrido and Camarero (2009); organizational innovation was measured by three items that sourcing from Garrido and Camarero (2009); product innovation was measured by three items that sourcing from Murovec and Prodan (2008)

Summary

Introduction

The evolution of innovation concepts and models had been presented in the literature since 1890s. From the perspective of “change of technological paradigm”, a few key innovation models were presented, including the innovation process (Utterback, 1975; Cooper, 1980), technological innovation (Damanpour & Aravind, 2011), management innovation (Vacaro, 2010), organizational innovation (OECD, 2005) and product innovation (Pine e Cunha et al, 2014). These researchers fail to make a distinction between these types of innovation and how these innovations interact with each other in the innovation study. Open Innovation can be defined as “the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for www.ccsenet.org/ass

Objectives

Methods

Results

Conclusion