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Thriving in management innovation: an institutional perspective
Journal article   Peer reviewed

Thriving in management innovation: an institutional perspective

Pouria Khosravi, Cameron Newton, Azadeh Rezvani, Reza Ghanbarzadeh and Morteza Akbari
European journal of innovation management, Vol.27(8), pp.2886-2904
09/12/2024
DOI: https://doi.org/10.1108/EJIM-09-2022-0524
Appears in  Recent Faculty of Science and Engineering Publications

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UN Sustainable Development Goals (SDGs)

This output has contributed to the advancement of the following goals:

#9 Industry, Innovation and Infrastructure

Source: InCites

Abstract

Institutional pressures Absorptive capacity Organisational innovation Management innovation
Purpose Management innovation is one of the most vital practices underpinning economic growth and is considered to be one of the fundamental components of gaining a superior business position in market conditions that are continually fluctuating. Drawing upon neo-institutional theory as well as absorptive capacity, the current empirical study unpacks the relationships between external institutional forces (i.e. regulative, mimetic and normative pressures) and management innovation through investigating the role of absorptive capacity as a mediator. Design/methodology/approach The research model is tested using survey data from Australian organisations. The study used Partial Least Squares (PLS), a component-based structural equation modelling (SEM) method, in order to perform the data analysis. Findings The results confirm that the various dimensions of institutional forces have diverse influences on management innovation. The authors found mimetic and normative pressures have positive influences on realised and potential absorptive capacity of an organisation. In addition, realised absorptive capacity mediates the relations between institutional forces and management innovation. Originality/value Dissimilar to preceding studies, this research shows that organisations not only innovate to pursue higher performance but sometimes strive for legitimacy. In addition, the significant associations between absorptive capacity and management innovation and the mediation role clearly signify that institutional forces and absorptive capacity play significant roles in the adoption of management innovation.

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