The Mediating Role of Absorptive Capacity in Its Effect on Organizational Support Factors and Technological Innovation

Abdul Qadir Rahomee,Dileep Kumar M

doi:10.22610/imbr.v6i1.1098

Abstract

The purpose of this research is to examine the relations between organizational support factors and absorptive capacity and their combined effects on technological innovation. Through a comprehensive literature review constructs were developed. Multiple regression analysis used to test research hypotheses based on a sample of 52 engineers within the Directorate of Electricity in Sulaimani city in Kurdistan region north of Iraq. Based on empirical research, the results showed that organizational support factors had a significant effect on technological innovation and absorptive capacity. It was also indicated that absorptive capacity plays a full mediation rule between organizational support factors and technological innovation. This appears to be the first research to test the relationships between organizational support factors and absorptive capacity and their consequences in the particular context of technological innovation including product innovation and process innovation.

Highlights

The business environment has become increasingly sophisticated and restricted
On the other hand seems as very significant to this research so as to be able to determine the effect of Organizational Support Factors (OSF) on Technological Innovation (TI) and Absorptive capacity (ACAP) on one hand and the mediating role of ACAP on the other hand
After arrangements with Directorate of Electricity, three out of the eleven branches selected to deliver the questionnaires personally including the headquarter of the directorate, the directorate of production electric power and the directorate of electric power transmission, the reasons behind selecting these branches are embodied in their ability to access to other directorates information, all training courses held in coordination with these branches especially the headquarter and the high experience of their engineers given to their service period which was more than 5 years

Summary

Introduction

The business environment has become increasingly sophisticated and restricted. it is complicated for an organization to create internally all the required knowledge to obtain the required innovation. The organization must, be able to acquire and exploit knowledge existing in relationships with their allies. Many factors that influence an institution's ability to absorb knowledge generation. Just for example, the characteristics of transferred knowledge; the ease of transfer and the shorter time to determine and transfer, the ability of formulate and use it in achieving innovation etc., especially in some certain and vital areas, such as the production of electric power which represents one of the basic needs of the people nowadays in the world in general and in Iraq in particular, where Iraq has suffered from shortages in the provision of electric power for more than 20 years. Due to the importance of the topic, there is a need for a deeper explores into the nature of such organizational factors, organization’s absorptive capacity, and to test their relationship to organizational competitive advantage in achieving innovation in serving the interests of citizens

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Conclusion