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Article
Publication date: 29 November 2022

Khawaja Khalid Mehmood, Mehreen Mushtaq and Jalal Rajeh Hanaysha

This research aimed to investigate absorptive capacity's (AC) mediating effect among four important organizational factors, namely transformational leadership (TL), innovative…

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Abstract

Purpose

This research aimed to investigate absorptive capacity's (AC) mediating effect among four important organizational factors, namely transformational leadership (TL), innovative culture (IC), organizational structure (OS), organizational climate (OC)) and competitive advantage (CA).

Design/methodology/approach

A survey method was used for data collection and 107 valid responses were received from managers and top executives of different hotels operating in Pakistan. Statistical Package for the Social Sciences (SPSS) and Partial Least Squares-Structural Equation Modelling (PLS-SEM) statistical techniques were used to analyze the data and test the hypotheses.

Findings

The findings infer that OC positively affects CA by improving AC in an organization. Furthermore, AC was found as a partial mediator for the relationship among TL and CA as well as for the relationship among IC and CA.

Originality/value

Despite the abundance of research on AC, the empirical studies regarding Ac's mediating effect among various organizational factors and CA are limited. Therefore, this paper makes a noteworthy contribution to the body of knowledge by testing the mediating effect of AC among various organizational factors and CA with reference to hospitality sector in Pakistan.

Details

South Asian Journal of Business Studies, vol. 13 no. 2
Type: Research Article
ISSN: 2398-628X

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Article
Publication date: 17 February 2025

Salman Iqbal, Sami Ullah, Amina Rizwan, Naima Nazeer, Mamoona Rasheed and Ahmad Faisal Imtiaz Siddiqi

The strict regulations and reporting requirements in microfinance institutions require a high level of knowledge and expertise in finance, accounting and risk management…

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Abstract

Purpose

The strict regulations and reporting requirements in microfinance institutions require a high level of knowledge and expertise in finance, accounting and risk management. Therefore, microfinance institutions (MFIs) must possess a high absorptive capacity to understand their customers’ needs and develop appropriate products and services to meet them. This study explains how organizational culture influences absorptive capacity in MFIs, with a particular focus on the mediating role of knowledge sharing.

Design/methodology/approach

Data were collected from 450 randomly selected employees of microfinance banking institutions in Pakistan. The data were tested for reliability and validity, and hypotheses were tested through structural equation modeling in WarpPLS 8.0.

Findings

The findings show that knowledge! sharing mediates the relationship between organizational culture and absorptive capacity. Thus, MFIs should promote knowledge sharing as a cultural value to improve their ability to acquire and utilize new knowledge, enhance absorptive capacity to drive innovation and facilitate the development of new products and services.

Practical implications

MFIs with higher absorptive capacity are more likely to be able to respond to changes in the market, such as new technologies or shifting customer demands. Therefore, managers should promote a culture of sharing knowledge and expertise to ensure adaptability in dynamic market conditions.

Originality/value

This research provides a framework for organizations to better understand the role of knowledge sharing in their success and how to leverage it to enhance their absorptive capacity. It is valuable for academics and practitioners seeking to improve organizational performance and competitiveness.

Details

Journal of Organizational Effectiveness: People and Performance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2051-6614

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