The effect of nonfinancial performance measures, absorptive capacity, and organizational learning on innovation performance

Article

Chong, Vincent K., Mia, Lokman, Sands, John and Wang, Zhichao Alex. 2023. "The effect of nonfinancial performance measures, absorptive capacity, and organizational learning on innovation performance." Journal of Management Control. 34 (2), pp. 201-233. https://doi.org/10.1007/s00187-023-00355-0
Article Title

The effect of nonfinancial performance measures, absorptive capacity, and organizational learning on innovation performance

ERA Journal ID213324
Article CategoryArticle
AuthorsChong, Vincent K., Mia, Lokman, Sands, John and Wang, Zhichao Alex
Journal TitleJournal of Management Control
Journal Citation34 (2), pp. 201-233
Number of Pages33
Year2023
PublisherSpringer
Place of PublicationGermany
ISSN2191-4761
2191-477X
Digital Object Identifier (DOI)https://doi.org/10.1007/s00187-023-00355-0
Web Address (URL)https://link.springer.com/article/10.1007/s00187-023-00355-0
AbstractThis study develops a conceptual model to examine the effect of nonfinancial performance measures on absorptive capacity, organizational learning, and innovation performance. We collected online survey data from 148 senior-level managers from US manufacturing firms and used the component-based structural equation modeling-partial least squares (SEM-PLS) statistical technique to evaluate our conceptual model’s psychometric properties and hypothesis testings. Our results show that nonfinancial performance measures are positively associated with absorptive capacity and organizational learning, as well as both absorptive capacity and organizational learning, are positively associated with a firm’s innovation performance. In addition, the relationship between nonfinancial performance measures and innovation performance is serially mediated by absorptive capacity and organizational learning. Our study adds to prior research by advocating absorptive capacity and organizational learning as two critical factors that affect the relationship between nonfinancial performance measures and innovation performance.
KeywordsAbsorptive capacity; Nonfinancial performance measures; Organizational learning; Innovation performance
ANZSRC Field of Research 2020350105. Management accounting
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Byline AffiliationsUniversity of Western Australia
Griffith University
School of Business
Australian National University
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