Title: Dynamic absorptive and innovative capabilities as determinants of family business performance

Authors: Felipe Hernández-Perlines; Wenkai Xu; Luis Andrés Araya-Castillo; Antonio Ariza-Montes

Addresses: Department of Business Administration, University of Castilla-La Mancha, 45071 Toledo, Spain ' Department of Business Administration, University of Castilla-La Mancha, 45071 Toledo, Spain ' Facultad de Economía y Negocios, Universidad Andrés Bello, Santiago de Chile 7591538, Chile ' Social Matters Research Group, Universidad Loyola Andalucía, 14004 Córdoba, Spain

Abstract: This research addresses the relationship between absorptive capacity, innovative capacity and performance in family businesses, using a second-generation structural equation method (PLS-SEM). This work presents the following contributions: 1) absorptive capacity determines 31.8% of the variance in the performance of family businesses; 2) the absorptive capacity positively influences the innovative capacity, being able to explain the first 55.2% of the variance of the second; 3) the effect of the absorptive capacity on the performance of family businesses is reinforced when we consider the mediating role of the innovative capacity, increasing up to 37.4% the explanatory power of the absorptive capacity in the variance of the performance of the family companies; 4) when the innovative capacity is included, the direct influence of the absorptive capacity in the performance of the family companies is annulled, being the mediating effect of the total innovative capacity.

Keywords: innovative capacity; absorptive capacity; performance; family businesses; mediating effect; PLS.

DOI: 10.1504/IJBE.2022.123701

International Journal of Business Environment, 2022 Vol.13 No.3, pp.235 - 258

Published online: 30 Jun 2022 *

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