Effects of organizational innovation and technological innovation capabilities on firm performance: evidence from firms in China’s Pearl River Delta

Abstract

This study assesses the relationship between organizational innovation (OI) and technological innovation capabilities (TICs) and analyzes their effect on firm performance. Using a sample of 265 manufacturing firms from the Pearl River Delta in China, we examined whether TICs mediated the effects of OI on firm performance. We also examined how OI moderated the relationship between TICs and firm performance. Results from structural equation modeling (SEM) analyses showed that TICs partially mediated the relationship between OI and firm performance. Similarly, OI partially moderated the relationship between TICs and firm performance. Implications of our findings for research and practice are discussed.