Innovating Via Building Absorptive Capacity: Interactive Effects of Top Management Support of Learning, Employee Learning Orientation and Decentralization Structure

13 Pages Posted: 21 Nov 2018

See all articles by Chenwei Li

Chenwei Li

San Francisco State University

Li‐Yun Sun

Macau University of Science and Technology

Yuntao Dong

University of Connecticut - Department of Management

Date Written: December 2018

Abstract

Building on the organizational learning perspective, the study examines the effect of learning‐related personal and contextual factors on organizational absorptive capability (AC) and subsequent innovative performance, as well as how a decentralized organizational decision‐making structure may moderate these relationships. Using data collected from 112 manufacturing firms, we found a positive effect of top management support of learning and employee learning orientation on AC and subsequent firm innovative performance. Further, we found that decentralization moderated the effect of top management support of learning on innovative performance via AC such that the indirect effect was significant only when decentralization was higher. However, we did not find that the indirect effect of employee learning orientation on innovative performance via AC varied significantly as a function of decentralization structure. This study extends the AC literature by highlighting the importance of managerial learning‐supportive practices and employee learning orientation, and by revealing how decentralization structure facilitates the organization and employees to translate the learning support and learning motivation to AC and innovation.

Suggested Citation

Li, Chenwei and Sun, Li‐Yun and Dong, Yuntao, Innovating Via Building Absorptive Capacity: Interactive Effects of Top Management Support of Learning, Employee Learning Orientation and Decentralization Structure (December 2018). Creativity and Innovation Management, Vol. 27, Issue 4, pp. 431-443, 2018. Available at SSRN: https://ssrn.com/abstract=3288711 or http://dx.doi.org/10.1111/caim.12261

Chenwei Li (Contact Author)

San Francisco State University ( email )

1600 Holloway Avenue
San Francisco, CA 94132
United States

Li‐Yun Sun

Macau University of Science and Technology

China

Yuntao Dong

University of Connecticut - Department of Management ( email )

Storrs, CT 06269-1041
United States

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