THE IMPACT OF IT ASSETS ON INNOVATION PERFORMANCE – THE MEDIATING ROLE OF DEVELOPMENTAL CULTURE AND ABSORPTIVE CAPACITY

Information technology (IT) has been acknowledged as a driver of innovation performance and scholars agree that the impact of IT is mediated by additional organisational factors. Among those mediators between IT and innovation performance, a firm’s absorptive capacity and developmental culture received considerable attention. Empirical evidence suggests that both fully mediate the impact of IT on innovation performance; however, research that jointly considers both dimensions is scarce. Thus, we follow the resource-based view to operationalise IT assets, absorptive capacity, and developmental culture in one research model and apply SEM to test it with a sample of 58 firms from the water industry in Germany. We find simultaneous full mediation effects for both mediators. The fact that both mediation effects are significant in the presence of each other indicates that absorptive capacity and developmental culture explain complementary portions of the variance in innovation performance — a finding we relate to sociomateriality theory.

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