Information technology and firm performance: mediation role of absorptive capacity and corporate entrepreneurship in manufacturing SMEs |
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| Authors: | Nabeel Rehman Sadaf Razaq Ammara Farooq Nayab Mufti Zohaib Mohammad Nazri |
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| Institution: | 1. Business Strategy and Policy, University of Malaya, Kulal Lumpur, Malaysia;2. Institute of Business and Management, University of Engineering and Technology, Lahore, Pakistan Nabeel_um@hotmail.com;4. Institute of Business and Management, University of Engineering and Technology, Lahore, Pakistan;5. Department of Management Science, Bahria University, Lahore, Pakistan;6. Business Strategy and Policy, University of Malaya, Kulal Lumpur, Malaysia |
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| Abstract: | ABSTRACT The success of small and medium-sized enterprises (SMEs) depends on dynamic capabilities, as it provides opportunities to remain competitive and perform well in the dynamic business environment. Although several studies show the significant positive impacts of dynamic capabilities on firm performance, our knowledge of the underlying mechanism through which IT capabilities affect the firm performance is not yet clear. Applying the dynamic capability view, this study investigates the intervening role of absorptive capacity and corporate entrepreneurship. The data of 417 respondents is collected from medium-sized manufacturing sector SMEs in Punjab, Pakistan. The research hypotheses have been analysed through the structural equation modelling method by using the Smart-PLS software. The research findings show that absorptive capacity and corporate entrepreneurship partially mediates the relationship between IT capabilities and firm performance. Furthermore, the sequential path of IT technical skills, absorptive capacity, corporate entrepreneurship, and firm performance is highly significant as compared to other paths. |
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| Keywords: | Information technology capabilities absorptive capacity corporate entrepreneurship firm performance |
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