Share:


Strengthening innovative behavior: the role of supportive climate and absorptive capacity

    Hasan Rozak Affiliation
    ; Taswan Taswan Affiliation
    ; Anwar Mansyur Affiliation
    ; Olivia Fachrunnisa Affiliation

Abstract

This study explores how to achieve innovative behavior in Indonesian SMEs in the culinary and craft sectors. We conducted a literature review and collected data from 372 SME owners. Using SEM analysis, we found that a supportive climate positively impacts both potential and realized absorptive capacity, which in turn positively impacts innovative behavior. The study’s findings contribute to social exchange theory and have implications for SME sector organizations. Limitations include the data collection method, sample size and selection, research objective, cross-sectional design, and self-reported data. Future research could address these limitations and investigate other organizational factors that may influence innovative behavior in SMEs.

Keyword : supportive climate, potential and realised absorptive capacity, innovative behavior, social exchange theory

How to Cite
Rozak, H., Taswan, T., Mansyur, A., & Fachrunnisa, O. (2024). Strengthening innovative behavior: the role of supportive climate and absorptive capacity. Business: Theory and Practice, 25(1), 350–361. https://doi.org/10.3846/btp.2024.20095
Published in Issue
Jun 19, 2024
Abstract Views
223
PDF Downloads
174
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Ahmad, F., Mohamad, O., & Ibrahim, H. I. (2013). Absorptive capacity and innovative behavior among engineers in Malaysia. Fakhrorazi Elixir Management Arts, 56, 13496–13504.

Albort-Morant, G., Leal-Rodríguez, A. L., Henseler, J., & Cepeda-Carrion, G. (2018). Potential and realised absorptive capacity as complementary drivers of green product and process innovation performance. Sustainability, 10, Article 381. https://doi.org/10.3390/su10020381

Alagarsamy, S., & Mehrolia, S. (2023). Exploring chatbot trust: Antecedents and behavioural outcomes. Heliyon, 9(5), Ar­ticle e16074. https://doi.org/10.1016/j.heliyon.2023.e16074

Ali, M., Ali, I., Al-Maimani, K. A., & Park, K. (2018). The effect of organisational structure on absorptive capacity in single and dual learning modes. Journal of Innovation and Knowledge, 3(3), 108–114. https://doi.org/10.1016/j.jik.2017.03.007

Almazrouei, S., Bani-Melhem, S., & Mohd Shamsudin, F. (2023). How having job impact leads to employee innovative behavior: A moderated mediation model of servant leadership and work meaningfulness. International Journal of Public Sector Management, 36(4/5), 382–403. https://doi.org/10.1108/IJPSM-11-2022-0254

Alqhaiwi, L. A., & Abukaraki, R. B. (2021). The impact of entrepreneurial orientation on supporting creative behavior of managers (An empirical study on medium-sized enterprise in Amman city-Jordan). International Journal of Entrepreneurship, 25(Special Issue 1), 1–23.

Amabile, T. M., Conti, R., Coon, H., Lazenby, J., & Herron, M. (1996). Assessing the work environment for creativity. Academy of Management Journal, 39(5), 1154–1184. https://doi.org/10.2307/256995

Anderson, N. R., & West, M. A. (1998). Measuring climate for work group innovation: Development and validation of the team climate inventory Climate. Journal of Organizational Behavior, 19(3), 235–258. 3.0.CO;2-C> https://doi.org/10.1002/(SICI)1099-1379(199805)19:3<235::AID-JOB837>3.0.CO;2-C

Arbuckle, J. L. (2019). IBM SPSS Amos 26 User’s Guide. IBM.

Arundel, A. (2023). Data analysis and reporting. Elgar Online. https://doi.org/10.4337/9781800376175.00011

Baran, M., Hazenberg, R., Iwińska, K., Kasianiuk, K., Perifanos, I., Ferreira Da Silva, J. M., & Vasconcelos, C. (2023). Between innovative and habitual behavior. Evidence from a study on sustainability in Greece, Poland, Portugal, Sweden, and the United Kingdom. Frontiers in Energy Research, 10(January). https://doi.org/10.3389/fenrg.2022.1030418

Blau, P. M. (1964). Social exchange and power in social life. Wiley.

Bogilović, S., Bortoluzzi, G., Černe, M., Ghasemzadeh, K., & Žnidaršič, J. (2021). Diversity, climate and innovative work behaviour. European Journal of Innovation Management, 24(5), 1502–1524. https://doi.org/10.1108/EJIM-03-2020-0100

Burcharth, A. L. L. de A., Lettl, C., & Ulhøi, J. P. (2015). Extending organisational antecedents of absorptive capacity: Organisational characteristics that encourage experimentation. Technological Forecasting and Social Change, 90, 269–284. https://doi.org/10.1016/j.techfore.2013.12.024

Butler, M. J. R., & Ferlie, E. (2020). Developing absorptive capacity theory for public service organizations: Emerging UK empirical evidence. British Journal of Management, 31(2), 344–364. https://doi.org/10.1111/1467-8551.12342

Casper Ferm, L.-E., & Thaichon, P. (2021). Customer pre-participatory social media drivers and their influence on attitudinal loyalty within the retail banking industry: A multi-group analysis utilising social exchange theory. Journal of Retailing and Consumer Services, 61, Article 102584. https://doi.org/10.1016/j.jretconser.2021.102584

Chen, M., Mi, X. M., Xue, J., Li, Y., & Shi, J. (2023). The impact of entrepreneurial team psychological capital on innovation performance: The mediating role of knowledge sharing and knowledge hiding. Frontiers in Psychology, 14(March), 1–14. https://doi.org/10.3389/fpsyg.2023.1133270

Cepeda-Carrion, G., Cegarra-Navarro, J. G., & Jimenez-Jimenez, D. (2012). The effect of absorptive capacity on innovativeness: Context and information systems capability as catalysts. British Journal of Management, 23(1), 110–129. https://doi.org/10.1111/j.1467-8551.2010.00725.x

Cohen, S. K., & Caner, T. (2016). Converting inventions into breakthrough innovations: The role of exploitation and alliance network knowledge heterogeneity. Journal of Engineering and Technology Management, 40, 29–44. https://doi.org/10.1016/j.jengtecman.2016.03.002

Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128–152. https://doi.org/10.2307/2393553

Cropanzano, R., & Mitchell, M. S. (2005). Social exchange theory: An interdisciplinary review. Journal of Management, 31(6), 874–900. https://doi.org/10.1177/0149206305279602

Dzhengiz, T., & Niesten, E. (2020). Competences for environmental sustainability: A systematic review on the impact of absorptive capacity and capabilities. Journal of Business Ethics, 162(4), 881–906. https://doi.org/10.1007/s10551-019-04360-z

Ebers, M., & Maurer, I. (2014). Connections count: How relational embeddedness and relational empowerment foster absorptive capacity. Research Policy, 43(2), 318–332. https://doi.org/10.1016/j.respol.2013.10.017

Escribano, A., Fosfuri, A., & Tribó, J. A. (2009). Managing external knowledge flows: The moderating role of absorptive capacity. Research Policy, 38(1), 96–105. https://doi.org/10.1016/j.respol.2008.10.022

Fachrunnisa, O., Adhiatma, A., Lukman, N., & Majid, N. A. (2020). Towards SMEs’ digital transformation: The role of agile leadership and strategic flexibility an empirical study from Indonesia and Malaysia. Journal of Small Business Strategy, 30(3). https://libjournals.mtsu.edu/index.php/jsbs/article/view/1610

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., Black, W. C., & Anderson, R. E. (2019). Multivariate aata analysis (8th ed.). Cengage Learning.

Hong, Y., Liao, H., Raub, S., & Han, J. H. (2016). What it takes to get proactive: An integrative multilevel model of the antecedents of personal initiative. Journal of Applied Psychology, 101(5), 687–701. https://doi.org/10.1037/apl0000064

Huang, K. F., Lin, K. H., Wu, L.-Y., & Yu, P. H. (2015). Absorptive capacity and autonomous R&D climate roles in firm innovation. Journal of Business Research, 68(1), 87–94. https://doi.org/10.1016/j.jbusres.2014.05.002

Hu, J., Erdogan, B., Jiang, K., Bauer, T. N., & Liu, S. (2018). Leader humility and team creativity: The role of team information sharing, psychological safety, and power distance. Journal of Applied Psychology, 103(3), 313–323. https://doi.org/10.1037/apl0000277

Janssen, O. (2000). Job demands, perceptions of effort- reward fairness and innovative work behaviour. Journal of Occupational and Organizational Psychology, 73(3), 287–302. https://doi.org/10.1348/096317900167038

Jiménez-Barrionuevo, M. M., García-Morales, V. J., & Molina, L. M. (2011). Validation of an instrument to measure absorptive capacity. Technovation, 31(5–6), 190–202. https://doi.org/10.1016/j.technovation.2010.12.002

Kang, M., & Lee, M. J. (2017). Absorptive capacity, knowledge sharing, and innovative behaviour of R&D employees. Technology Analysis and Strategic Management, 29(2), 219–232. https://doi.org/10.1080/09537325.2016.1211265

Karatepe, O. M., Aboramadan, M., & Dahleez, K. A. (2020). Does climate for creativity mediate the impact of servant leadership on management innovation and innovative behavior in the hotel industry? International Journal of Contemporary Hospitality Management, 32(8), 2497–2517. https://doi.org/10.1108/IJCHM-03-2020-0219

Kuruzovich, J., Paczkowski, W. P., Golden, T. D., Goodarzi, S., & Venkatesh, V. (2021). Telecommuting and job outcomes: A moderated mediation model of system use, software quality, and social exchange. Information & Management, 58(3), Article 103431. https://doi.org/10.1016/j.im.2021.103431

Lagacé, M., Van de Beeck, L., & Firzly, N. (2019). Building on intergenerational climate to counter ageism in the workplace? A cross-organisational study. Journal of Intergenerational Relationships, 17(2), 201–219. https://doi.org/10.1080/15350770.2018.1535346

Lane, P. J., Koka, B. R., & Pathak, S. (2006). The reification of absorptive capacity: A critical review and rejuvenation of the construct. The Academy of Management Review, 31(4), 833–863. https://doi.org/10.5465/amr.2006.22527456

Leal-Rodríguez, A. L., Ariza-Montes, J. A., Roldán, J. L., & Leal-Millán, A. G. (2014). Absorptive capacity, innovation and cultural barriers: A conditional mediation model. Journal of Business Research, 67(5), 763–768. https://doi.org/10.1016/j.jbusres.2013.11.041

Li, M., & Hsu, C. H. C. (2016). Linking customer-employee exchange and employee innovative behavior. International Journal of Hospitality Management, 56(July), 87–97. https://doi.org/10.1016/j.ijhm.2016.04.015

Lim, S. G. (Edward), & Ok, C. “Michael.” (2021). Fostering absorptive capacity and facilitating innovation in hospitality organisations through empowering leadership. International Journal of Hospitality Management, 94(December 2020), Article 102780. https://doi.org/10.1016/j.ijhm.2020.102780

Lioukas, C. S., & Reuer, J. J. (2015). Isolating trust outcomes from exchange relationships: Social exchange and learning benefits of prior ties in alliances. Academy of Management Journal, 58(6), 1826–1847. https://doi.org/10.5465/amj.2011.0934

Lita, R. P., Faisal, R. F., & Meuthia, M. (2020). Enhancing small and medium enterprises performance through innovation in Indonesia: A framework for creative industries supporting tourism. Journal of Hospitality and Tourism Technology, 11(1), 155–176. https://doi.org/10.1108/JHTT-11-2017-0124

Liu, D., Jiang, K., Shalley, C. E., Keem, S., & Zhou, J. (2016). Motivational mechanisms of employee creativity: A meta-analytic examination and theoretical extension of the creativity literature. Organisational Behavior and Human Decision Processes, 137, 236–263. https://doi.org/10.1016/j.obhdp.2016.08.001

Lowik, S., Kraaijenbrink, J., & Groen, A. (2017). Antecedents and effects of individual absorptive capacity: A micro-foundational perspective on open innovation. Journal of Knowledge Management, 21(6), 1319–1341. https://doi.org/10.1108/JKM-09-2016-0410

Méndez, J. L. F., Sanz Valle, R., & Alegre, J. (2018). Transformational leadership and absorptive capacity: An analysis of the organisational catalysts for this relationship. Technology Analysis and Strategic Management, 30(2), 211–226. https://doi.org/10.1080/09537325.2017.1299859

Miao, Q., Newman, A., & Huang, X. (2014). The impact of participative leadership on job performance and organisational citizenship behavior: Distinguishing between the mediating effects of affective and cognitive trust. The International Journal of Human Resource Management, 25(20), 2796–2810. https://doi.org/10.1080/09585192.2014.934890

Muchiri, M. K., McMurray, J. A., Nkhoma, M., & Pham, H. C. (2020). Mapping antecedents of innovative work behavior: A conceptual review. The Journal of Developing Areas, 54(4), 33–40. https://doi.org/10.1353/jda.2020.0047

Mulkay, C. D. (2019). Investigating the utilisation of surfactant in liquid unloading experiments of a propped fracture. The University of Texas at Austin.

Murray, J. Y., & Fu, F. Q. (2016). Strategic guanxi orientation: How to manage distribution channels in China? Journal of International Management, 22(1), 1–16. https://doi.org/10.1016/j.intman.2015.10.003

Naseer, S., Khawaja, K. F., Qazi, S., Syed, F., & Shamim, F. (2021). How and when information proactiveness leads to operational firm performance in the banking sector of Pakistan? The roles of open innovation, creative cognitive style, and climate for innovation. International Journal of Information Management, 56(July 2019), Article 102260. https://doi.org/10.1016/j.ijinfomgt.2020.102260

Newman, A., Round, H., Wang, S., & Mount, M. (2020). Innovation climate: A systematic review of the literature and agenda for future research. Journal of Occupational and Organizational Psychology, 93(1), 73–109. https://doi.org/10.1111/joop.12283

Ottosson, S. (2019). Developing and managing innovation in a fast changing and complex world. In Developing and managing innovation in a fast changing and complex world. Springer. https://doi.org/10.1007/978-3-319-94045-8

Parker, S. K., Williams, H. M., & Turner, N. (2006). Modeling the antecedents of proactive behavior at work. Journal of Applied Psychology, 91(3), 636–652. https://doi.org/10.1037/0021-9010.91.3.636

Pascual-Fernández, P., Santos-Vijande, M. L., López-Sánchez, J. Á., & Molina, A. (2021). Key drivers of innovation capability in hotels: Implications on performance. International Journal of Hospitality Management, 94(May 2020), Article 102825. https://doi.org/10.1016/j.ijhm.2020.102825

Purc, E., Laguna, M., & Moriano, J. A. (2023). Entrepreneurs’ personal values and the innovative behavior of their employees: A cross-level mechanism. Creativity Research Journal, 1–18. https://doi.org/10.1080/10400419.2023.2285122

Quade, M. J., McLarty, B. D., & Bonner, J. M. (2020). The influence of supervisor bottom-line mentality and employee bottom-line mentality on leader-member exchange and subsequent employee performance. Human Relations, 73(8), 1157–1181. https://doi.org/10.1177/0018726719858394

Reeve, J., & Jang, H. (2006). What teachers say and do to support students’ autonomy during a learning activity. Journal of Educational Psychology, 98(1), 209–218. https://doi.org/10.1037/0022-0663.98.1.209

Rodrigues, N., & Rebelo, T. (2023). Can employees capitalize upon their role breadth self-efficacy and innovative work behaviour to enhance their prospects of promotion? European Journal of Work and Organizational Psychology, 32(4), 562–574. https://doi.org/10.1080/1359432X.2023.2198707

Sameer, Y. M., & Ohly, S. (2017). Innovative behavior of employees: A model of antecedents and consequences, a deeper look at psychological and organisational factors (Working Paper No. 45). Faculty of Management Technology.

Samsir, S. (2018). The effect of leadership orientation to innovation and its relationship to competitive advantages of small and medium enterprises in Indonesia. International Journal of Law and Management, 60(2), 530–542. https://doi.org/10.1108/IJLMA-01-2017-0005

Shanker, R., Bhanugopan, R., van der Heijden, B. I. J. M., & Farrell, M. (2017). Organisational climate for innovation and organisational performance: The mediating effect of innovative work behavior. Journal of Vocational Behavior, 100, 67–77. https://doi.org/10.1016/j.jvb.2017.02.004

Siswanti, Y., & Muafi, M. (2022). Ethical leadership style in moderating the influence of green organizational culture on green innovative behavior: SMEs cases. International Journal of Sustainable Development and Planning, 17(4), 1153–1160. https://doi.org/10.18280/ijsdp.170413

Skilton, P. F., Bernardes, E., Li, M., & Creek, S. A. (2020). The structure of absorptive capacity in three product development strategies. Journal of Supply Chain Management, 56(3), 47–65. https://doi.org/10.1111/jscm.12223

Stockemer, D. (2019). Quantitative methods for the social science: A practical introduction with examples in SPSS and stata. Sociology, 50(3). https://doi.org/10.1177/0038038515583637

Stoffers, J. M. M., Van der Heijden, B. I. J. M., & Jacobs, E. A. G. M. (2020). Employability and innovative work behaviour in small and medium-sized enterprises. International Journal of Human Resource Management, 31(11), 1439–1466. https://doi.org/10.1080/09585192.2017.1407953

Strese, S., Adams, D. R., Flatten, T. C., & Brettel, M. (2016). Corporate culture and absorptive capacity: The moderating role of national culture dimensions on innovation management. International Business Review, 25(5), 1149–1168. https://doi.org/10.1016/j.ibusrev.2016.02.002

Sutrisno, Fachrunnisa, O., & Widodo. (2022). The effectiveness of directing optional activities as capital for small and medium enterprises based on digitalization in the crisis. International Journal of Professional Business Review, 7(2), 1–23. https://doi.org/10.26668/businessreview/2022.v7i2.468

Thomas, R., & Wood, E. (2014). Innovation in tourism: Re-conceptualising and measuring the absorptive capacity of the hotel sector. Tourism Management, 45, 39–48. https://doi.org/10.1016/j.tourman.2014.03.012

Trentin, L. (2023). Organizational climate practices in absorptive capacity: An analysis from the textile industry. Revista de Administração Da UFSM, 16(3). https://doi.org/10.5902/1983465973655

Tu, Y., Lu, X., Choi, J. N., & Guo, W. (2018). Ethical leadership and teamlevel creativity: Mediation of psychological safety climate and moderation of supervisor support for creativity. Journal of Business Ethics, 159, 551–565. https://doi.org/10.1007/s10551-018-3839-9

Uhunoma, O., Lim, D. H., & Kim, W. (2021). The mediating role of informal learning on work engagement: Older workers in the US public sector. European Journal of Training Development, 45, 200–217. https://doi.org/10.1108/EJTD-04-2020-0062

Vlasov, M. V. (2020). Innovative behavior of small and medium-sized enterprises of an industrial region. Ekonomika Regiona, 16(4), 1335–1348. https://doi.org/10.17059/ekon.reg.2020-4-22

Volberda, H., Foss, N., & Lyles, M. (2010). Absorbing the concept of absorptive capacity: How to realise its potential in the organisation field. Organization Science, 21(4), 931–951. https://doi.org/10.1287/orsc.1090.0503

Volery, T., & Tarabashkina, L. (2021). The impact of organisational support, employee creativity and work centrality on innovative work behaviour. Journal of Business Research, 129(May), 295–303. https://doi.org/10.1016/j.jbusres.2021.02.049

Wang, J. C. K., Ng, B. L., Liu, W. C., & Ryan, R. M. (2016). Can being autonomy-supportive in teaching improve students’ self-regulation and performance? In W. C. Liu, J. C. K. Wang, & R. M. Ryan (Eds.), Building autonomous learners (pp. 227–243). Springer. https://doi.org/10.1007/978-981-287-630-0_12

Yaseen, S. G., Al-Janaydab, S., & Alc, N. A. (2018). Leadership styles, absorptive capacity and firm’s innovation. International Journal of Knowledge Management, 14(3), 82–100. https://doi.org/10.4018/IJKM.2018070106

Zahra, S. A., & George, G. (2002). Institutional knowledge at Singapore Management University absorptive capacity: A Review reconceptualisation and extension. Academy of Management Review, 27(2), 185–203. https://doi.org/10.2307/4134351

Zhao, S., Jiang, Y., Peng, X., & Hong, J. (2020). Knowledge sharing direction and innovation performance in organisations: Do absorptive capacity and individual creativity matter? European Journal of Innovation Management, 24(2), 371–394. https://doi.org/10.1108/EJIM-09-2019-0244

Zhao, H. (2015). Leader-member exchange differentiation and team creativity: A moderated mediation study. Leadership & Organization Development Journal, 36(7), 798–815. https://doi.org/10.1108/LODJ-12-2013-0172

Zhu, D., Lin, M. T., Thawornlamlert, P. K., Subedi, S. (Bichitra), & Kim, P. B. (2023). The antecedents of employees’ innovative behavior in hospitality and tourism contexts: A meta-regression approach. International Journal of Hospitality Management, 111(March), Article 103474. https://doi.org/10.1016/j.ijhm.2023.103474

Zhu, Y., Liu, J., Lin, S., & Liang, K. (2022). Unlock the potential of regional innovation environment: The promotion of innovative behaviour from the career perspective. Journal of Innovation and Knowledge, 7(3), Article 100206. https://doi.org/10.1016/j.jik.2022.100206