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A Study on the Mechanisms Linking Environmental Dynamism to Innovation Performance
Open AccessArticle

Relationship between User Innovation Activities and Market Performance: Moderated Mediating Effect of Absorptive Capacity and CEO’s Shareholding on Innovation Performance

College of Business Administration, Konkuk University, Seoul 05029, Korea
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Sustainability 2020, 12(24), 10532; https://doi.org/10.3390/su122410532
Received: 26 November 2020 / Revised: 13 December 2020 / Accepted: 14 December 2020 / Published: 16 December 2020
(This article belongs to the Special Issue Ambidextrous Open Innovation for Sustainability)
Although user innovation has been regarded as an important source of firms’ competitive advantage, the internal processes and mechanisms involved in the relationship between firms’ user innovation activities and market performance are seldom studied. By applying moderated mediation analyses, we examine (1) whether firms’ user innovation activities have a positive impact on market performance and (2) how and under what conditions user innovation activities can have a positive impact on a firm’s market performance. The findings on a sample of Korean manufacturing firms indicate that user innovation activities significantly increase firms’ innovation performance, which consequently leads to superior market performance (confirming the mediation effect of innovation performance). Additionally, we observe the positive mediation effect of innovation performance only in firms with higher levels of absorptive capacity (confirming the moderated mediation effect of absorptive capacity). Further analysis confirms that the positive interaction effects between user innovation activities and absorptive capacity on market performance through innovation performance were more pronounced for firms with higher Chief Executive Officer (CEO) shareholding levels (confirming the moderated mediation effect of CEO’s shareholding). Our findings provide theoretical and practical implications on the successful implementation of user innovation strategies. View Full-Text
Keywords: user innovation; absorptive capacity; CEO’s shareholding; innovation performance; market performance user innovation; absorptive capacity; CEO’s shareholding; innovation performance; market performance
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MDPI and ACS Style

Lee, E.H.; Kim, C.Y.; Yoo, J.W. Relationship between User Innovation Activities and Market Performance: Moderated Mediating Effect of Absorptive Capacity and CEO’s Shareholding on Innovation Performance. Sustainability 2020, 12, 10532. https://doi.org/10.3390/su122410532

AMA Style

Lee EH, Kim CY, Yoo JW. Relationship between User Innovation Activities and Market Performance: Moderated Mediating Effect of Absorptive Capacity and CEO’s Shareholding on Innovation Performance. Sustainability. 2020; 12(24):10532. https://doi.org/10.3390/su122410532

Chicago/Turabian Style

Lee, Eun H.; Kim, Choo Y.; Yoo, Jae W. 2020. "Relationship between User Innovation Activities and Market Performance: Moderated Mediating Effect of Absorptive Capacity and CEO’s Shareholding on Innovation Performance" Sustainability 12, no. 24: 10532. https://doi.org/10.3390/su122410532

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