Moderating Role of Absorptive Capacity between Entrepreneurial Orientation and Technological Innovation Capabilities

Year 2016, Volume: 6 Issue: 4, 704 - 710, 01.09.2016

Nor Azila Mohd Noor Abdul Qadir Rahomee Ahmed Aljanabi

Abstract

The present study purposes to examine the moderating role of absorptive capacity (ACAP) on the relationship between entrepreneurial orientation (EO)
and technological innovation capabilities (TIC) among small and medium enterprises (SMEs) in the construction industry. Due to the critical role of
SMEs in construction industry, the purpose of this article is to examine to what extent the externally generated knowledge manifested in ACAP can
strengthen the relationship between EO and TIC. To validate the proposed model, self-administered questionnaire were conducted to gather data from
SMEs owners, 249 questionnaires returned and used for statistical analysis out of 278 distributed. The outcomes of present research reflect that both
of ACAP and EO have significant effects on TIC. Furthermore, the results indicate the moderating role of ACAP on the nexus between EO and TIC.

Keywords

absorptive capacity, entrepreneurial orientation, technological innovation capabilities