Management innovation and firm innovation performance: a moderated moderation effects of absorptive capacity and environmental dynamism

Innovation plays an influential role in the firm's development and sustainability in an exhaustively aggressive business environment. Yet extant literature has not considered the influence of management innovation (MI) on firm innovation performance (FIP) in emerging economies. Building upon the dynamic capabilities view, we construct a moderated moderation model to address how MI affects FIP. Explicitly, we investigate whether the linkage amongst MI and FIP is contingent on absorptive capacity (AC) and environmental dynamism (ED). Using a dataset from 314 firms operating in the manufacturing and service industries in China. Our findings through hierarchical linear modelling reveal that: (1) MI affects FIP positively; (2) AC affects the linkage amongst MI and FIP positively; (3) AC impacts on the linkage amongst MI and FIP upsurges when ED is high than low. Our research offers new insights on how MI enhances the innovation performance of firms operating in emerging economies.