The mediating role of an innovative culture in the relationship between absorptive capacity and technical and non-technical innovation

Unlike previous research, this study operationalizes the two dimensions of absorptive capacity (ACAP)—potential absorptive capacity (PACAP) and realized absorptive capacity (RACAP)—separately. This study builds and tests an integrated model to investigate the relationship among PACAP, RACAP, innovative culture (IC), and organizational innovation (OI). This study explores these relationships using a multivariate data analysis technique: partial least square (PLS), a structural equation modeling (SEM) approach along with reflective-formative type hierarchical latent variables, with data sample of 347 from a multiple industrial sector in Korea. The results suggest that PACAP and RACAP happen in sequence and influence OI directly and through the intervening variable IC. The study provides several theoretical and practical implications for further research.