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Article

Impact of Entrepreneurial Orientation on Innovation Capability: The Mediating Role of Absorptive Capability and Organizational Learning Capabilities

1
Department of Technology Management and Logistics, College of Business, University Utara, Sintok 06010, Malaysia
2
Department of Business Administrative, College of Business, King Khalid University, Abha 62552, Saudi Arabia
3
Faculty of Management, Economics & Sciences, Lille Catholic University, 59000 Lille, France
*
Author to whom correspondence should be addressed.
Academic Editors: Olimpia Meglio and Nadia Di Paola
Sustainability 2021, 13(10), 5399; https://doi.org/10.3390/su13105399
Received: 27 March 2021 / Revised: 20 April 2021 / Accepted: 29 April 2021 / Published: 12 May 2021
(This article belongs to the Special Issue Innovation and Entrepreneurship for Well-Being and Sustainability)
Learning and knowledge creation are acknowledged as crucial drivers associated with entrepreneurial orientation (EO) and innovation capability (IC). Absorptive capacity (AC) harmonizes internal innovation-building activities with external opportunities, while organizational learning capabilities (OLC) foster entrepreneurial cognitive skills and innovation capabilities. This study aims to (1) predict the impact of absorptive capacity and organizational learning on IC and (2) to estimate the mediation effect of OLC and AC on the relationship between entrepreneurial orientation and innovation capabilities. Drawing upon the dynamic capability theory, the study had applied a cross-sectional survey targeting Algerian firms to test the hypotheses. The study findings indicate that EO is positively associated with innovation capability. Besides, even though both OLC and AC partially increase EO’s interaction impact on innovation capability as a mediation role, suggesting that the more a firm is entrepreneurially oriented, the more learning and knowledge creation processes are involved in the interaction relationship. This study’s core focus is to overcome the substantial role of learning and knowledge creation processes as an intangible proactive resource that fosters the EO mindset to get involved in innovation activities. It has been discovered that AC and OLC as a connectedness mechanism links external knowledge and internal learning processes to accompany EO readiness during innovation development. View Full-Text
Keywords: entrepreneurship orientation; organizational learning capability; innovation capability; absorptive capacity; dynamic capability view entrepreneurship orientation; organizational learning capability; innovation capability; absorptive capacity; dynamic capability view
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MDPI and ACS Style

Makhloufi, L.; Laghouag, A.A.; Ali Sahli, A.; Belaid, F. Impact of Entrepreneurial Orientation on Innovation Capability: The Mediating Role of Absorptive Capability and Organizational Learning Capabilities. Sustainability 2021, 13, 5399. https://doi.org/10.3390/su13105399

AMA Style

Makhloufi L, Laghouag AA, Ali Sahli A, Belaid F. Impact of Entrepreneurial Orientation on Innovation Capability: The Mediating Role of Absorptive Capability and Organizational Learning Capabilities. Sustainability. 2021; 13(10):5399. https://doi.org/10.3390/su13105399

Chicago/Turabian Style

Makhloufi, Lahcene, Abderrazak A. Laghouag, Alhussain Ali Sahli, and Fateh Belaid. 2021. "Impact of Entrepreneurial Orientation on Innovation Capability: The Mediating Role of Absorptive Capability and Organizational Learning Capabilities" Sustainability 13, no. 10: 5399. https://doi.org/10.3390/su13105399

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