Volume 29, Issue 5, 2020
DOI: 10.24205/03276716.2020.1198
Strategic Thinking and Innovation Performance; The Mediating Role of Absorptive Capabilities
Abstract
Purpose – This paper aims to explore the relationship between strategic thinking and its dimensions on innovation performance. It also investigates whether improved innovative performance is attributable to strategic thinking competency and absorptive capabilities among IT firms in Nigeria.
Design/methodology/approach – cross-sectional data were obtained using a survey administered to 182 senior-level and mid-level managers of information technology firms in Nigeria. This paper applied the PLS-SEM to test the hypothesized relationships.
Findings – This study results show that strategic thinking components: systematic thinking, divergent thought, and reflection positively impact innovation performance while absorptive capability insignificantly mediates their relationship.
Originality/value – The study fills unattended gaps proposed in extant literature by delving into the relevance of strategic thinking as an orchestration, contributing to innovation performance among the organization's top hierarchy by providing evidence from a dynamic industry in Nigeria. The research supports prior literature investigating the relationship between innovation performance and strategic thinking. It offers new insights into similar organizational capabilities that can aid innovativeness and similar organizational outcomes, especially in a dynamic environment.
Keywords
Absorptive capabilities, Innovation performance, Strategic thinking.