Special Issue-Application of Structural Equation Modeling in Business, Sport, Tourism, Recreation, Education, and Language Studies

EXPLORING THE RELATIONSHIP BETWEEN ENTREPRENEURIAL

ORIENTATION, INNOVATION AND FINANCIAL PERFORMANCE:
THE MEDIATING ROLE OF ABSORPTIVE CAPACITY AND
TECHNOLOGICAL INNOVATION CAPABILITY

Sirinthra Sungthong1, Somnuk Aujirapongpan2,*, and Kanokwan Meesook3

Abstract

The purpose of this research was to study the relationship between entrepreneurial
orientation, innovation and financial performance, through the mediating role of absorptive
capacity and technological innovation capability. The study used a quantitative research
method to collect data via questionnaire from the executive officers of 156 startup
organizations in Thailand. Respondents were selected using a simple random sampling method
and Structural Equation Modeling (SEM). The results demonstrate that entrepreneurship
orientation is a variable directly and significantly correlated with innovation and financial
performance. However, it was found that entrepreneurship orientation does not correlate
indirectly with innovation or financial performance via the mediation of absorptive capacity
and technological innovation capacity. The results of the study can enable startup businesses in
Thailand to create and pay attention to the behavior of entrepreneurship orientation to improve
the organization’s innovation and financial performance.

Keyword: Entrepreneurship, Innovation Management, Technological Innovation Capability,

Absorptive Capacity, Financial Performance, Performance Management

JEL: D24 D80 M40 O14 O16 O30

INTRODUCTION consequences of COVID-19 have required

every organization to make significant efforts
Currently, there is intense competition to endure the pandemic’s effects (Rapaccini et
amid uncertain business conditions, making it al., 2020; Kraus et al., 2020). As a result of
difficult to improve efficiency and maintain a marketing globalization, technological
competitive advantage for sustainable growth advancement, shorter product life cycles, and
(Yoo et al., 2018). Additionally, the new innovative development, there are

1
Ms. Sirinthra Sungthong is currently working as a lecturer in the Faculty of Management Sciences, Phuket
Rajabhat University, Phuket, Thailand. She obtained a M.B.A. in General Management of Ramkhamhaeng
University, Thailand. She also is a Ph.D. Candidate of the Graduate Study in Innovation Management and
Business Development Program, Walailak University, Thailand.
2*
Assoc. Prof. Dr. Somnuk Aujirapongpan (corresponding author) is currently working as a lecturer in the
School of Accountancy and Finance, Walailak University, Thailand. He obtained a Ph.D. in Technopreneurship
and Innovation Management from Chulalongkorn University, Thailand. Email: asomnuk@wu.ac.th
3
Dr. Kanokwan Meesook is currently working as a lecturer in the School of Accountancy and Finance,
Walailak University, Thailand. She obtained a Ph.D. in Regional and Rural Development Planning from Asian
Institute of Technology, Thailand.

ABAC Journal Vol.43 No.4 (October-December 2023, pp - ) https://doi.org/10.59865/abacj.2023.49

Sirinthra Sungthong, Somnuk Aujirapongpan, and Kanokwan Meesook

currently many studies on advantage retention Technological innovation capabilities are

strategies in sustainable competition, includ- considered to be key strategic resources that
ing work performance improvement in enable organizations to achieve sustainable
rapidly changing and unpredictable business competitive advantages when facing dynamic
conditions (Choi, 2016; Bayraktar, 2016; environments (Rahim and Zainuddin, 2016).
Teece, 1997). One purpose of these studies Additionally, technological innovation capa-
was to investigate the ways that each business bilities represent the acquisition of ideas or
used entrepreneurship to improve the effec- the enhancement of knowledge to predict
tiveness of innovation and financial perfor- economic advantages that impact positively
mance (Sarsah et al., 2020). The resource- on the performance of an organization (Zahra
based view (RBV) is a popular approach to and Nielsen, 2002). This shows that the
understand business competitive dynamics. organization is able to implement, develop,
Organizations with full resources and high suggest, and apply new concepts and
capabilities can gain a competitive advantage, technology to products, services, and produc-
leading to higher efficiency, by utilizing the tion processes (Rhodes et al., 2018). The
RBV, especially if these organizations have implementation of technological innovation
valuable resources that are uncommon, and its strategies requires planning, problem
unique, and irreplaceable, including the solving, and innovative behavior in the
ability to organize and fully utilize those organization (Yoo et al., 2018); these are
resources and capabilities (Rahim and major characteristics of entrepreneurial
Zainuddin, 2016). orientation.
Entrepreneurial orientation is a type of The present research aims to study
strategy that represents an organization’s startup businesses in Thailand which have
plans for innovation, proactive working, and been impacted by rapid change, showing how
risk-taking (Sarsah et al., 2020). It indicates people can be easily connected by using
that entrepreneurs can improve their ability to technology. The internet has brought all
acquire and absorb external knowledge in businesses closer, resulting in a marketing
order to create new products and processes revolution in a variety of businesses.
that are fundamentally different from existing Consequently, the ambitious entrepreneur is a
ones (Sarsah et al., 2020). Consequently, the key person in the initiation of new
current competitive environment requires technologies to solve problems and bring out
entrepreneurs to not only produce new changes in many business sectors. In addition,
knowledge within their organizations, but startup businesses can generate significant
also to have absorptive capacities for new income in a short period of time. This
technology (Lau and Lo, 2019). Absorptive business can often be expanded, and the
capacity plays an important role in effectively operating costs are not necessarily high. This
acquiring external knowledge (Matusik and type of business will strengthen the economy
Heeley, 2005); this knowledge will be trans- of the country in which it is based, both now
formed into economically valuable outcomes and in the future. Therefore, it is helpful to
(Murovec and Prodan, 2009). According to predict the factors affecting technological
Calantone et al. (2002), the absorption of innovation capabilities and performance of
knowledge from outside the organization such organizations (Jiraphanumes et al.,
fosters creativity, stimulates new ideas, and 2011). This can in turn help executives to
increases the potential of the company to realize the value of external knowledge in
create innovations. Having a highly entrepre- leveraging innovation capabilities that play a
neurial orientation may enhance the absorp- key role in learning new techniques, increas-
tive capacity to assimilate new essential ing creativity and proactive enthusiasm, and
information from business partners and to lowering the level of risk involved in the
transform this information into innovations innovation process (Noor and Aljababi,
(Aljanabi, 2017). 2016).
 Exploring the Relationship Between Entrepreneurial Orientation, Innovation and Financial Performance

THEORETICAL REVIEW AND HYPO- important role in business success (Boone et

THESIS DEVELOPMENT al., 2019). Entrepreneurial orientation is one
of the main resources that has a significant
Innovation and Financial Performance impact on the adaptation capacity of organiza-
(IFP) tions to environmental changes through
providing different types of innovation (Noor
The intense competition and uncertainty and Aljababi, 2016).
of modern business circumstances has made it Miller (1983) defined entrepreneurial
more difficult to improve efficiency and orientation as a business orientation that
maintain competitive advantages for sustaina- emphasizes risk-taking and elevating the
ble growth (Yoo et al., 2018). This also relates business through innovation in order to
to innovation capacities which are increas- compete proactively with others. According
ingly important to business success (Aljanabi, to Miller’s definition, there are three main
2017). Innovation performance involves aspects of entrepreneurial orientation com-
improving existing quality and service. Novel posing of (1) innovativeness, which refers to
technologies can be used in production or the inclination of an organization to support
services as customers accept the speed of new ideas, creative processes, and new
introducing new products and services, products and services (Aljanabi, 2017); (2)
including new features for existing products risk taking, which is involved with the
or services (Nguyen, 2019). An organiza- tendency of an organization to invest large
tion’s innovation performance reflects the amounts of resources to high-risk projects;
results of the organization’s innovative ability and (3) proactiveness, which relates to the
to adapt to market changes (Nguyen, 2019). capacity of an organization to take advantage
Most studies focus on the financial dimen- of market opportunities and to improve the
sions of a company’s performance, but may satisfaction feedback when compared with
use different measurement plans (Brozovic, competitors (Aljanabi, 2017), such as launch-
2018). Financial performance refers to the ing new products or services before competi-
financial activities of an organization. It tors, and anticipating future needs that will
represents the achievement of financial objec- bring about changes (Aljanabi and Noor,
tives, which involves a process of measuring 2015). According to the study of Lumpkin and
the policy and operation of the organization in Dess (1996), it was found that there are two
terms of money. This is used to measure other aspects which are essential to entrepre-
overall financial health over a specified neurial orientation. Firstly, autonomy is the
period of time. It can also be used to compare freedom to work independently or in groups
similar businesses in the same industry, or to to develop ideas or visions, including the
compare industries or sectors as a whole. This freedom to limit organizational constraints,
provides a true reflection of the return on which may result in creativity evolving to
investment, return on assets, and added value become an important driving force for the
(Al-Mamany et al., 2020). In this challenging organization (Lumpkin and Dess, 1996).
time for business, the present study focuses on Secondly, competitive aggressiveness is the
methods to increase financial performance effort of the organization to stay ahead of
and innovation. The study aims to measure competitors and/or maintain its position in the
organizational performance, to examine the sector by engaging in directly competitive
efficiency of innovation and financial perfor- strategies (Aljanabi, 2017).
mance. Entrepreneurial orientation is thus the
behavior that leads to proactive actions when
Entrepreneurial Orientation (EO) opportunities arise by applying creativity to
business changes and dealing with high risks
In the era of modernization and globali- and uncertainties in order to achieve goals
zation, innovation and creativity play an (Anderson and Ronteau, 2017). It also
Sirinthra Sungthong, Somnuk Aujirapongpan, and Kanokwan Meesook

includes the capacity to be aware of the needs through marketing and technology (Sarsah et
of both the market and customers, and to meet al., 2020). The second dimension is the
those needs through innovation (Mohd Noor realized absorptive capability involving
et al., 2017). This capacity is an important knowledge transformation and exploitation,
feature in shaping organizational growth and making changes in products and production
adaptation to environmental changes (Covin (Sarsah et al., 2020). Hence, it can be
and Miller, 2014; Lumpkin and Dess, 1996). concluded that absorptive capacity is
It is a key feature in shaping organizational composed of the following four components.
growth and adaptation to environmental Firstly, acquisition shows the ability of the
changes (Covin and Miller, 2014; Lumpkin company to identify and acquire external
and Dess, 1996) by inventing a variety of knowledge which is important to the company
innovations and enhancing the organization’s (Lau and Lo, 2019). Secondly, assimilation
capacities to respond to environmental fluctu- represents the ability to interpret, analyze and
ations (Nguyen et al., 2021). Entrepreneurial understand external knowledge (Engelen et
orientation is therefore considered as a strate- al., 2014). Thirdly, transformation improves
gic resource of the organization in increasing company practices in order to promote the
the efficiency of finance and innovation fusion of existing and new knowledge to
(Usman and Mat, 2017; Tang et al., 2015). develop a new business model based on the
Thus, the first hypothesis of the study is new knowledge set (Makhloufi et al., 2021).
presented as follows: Finally, exploitation illustrates the ability
Hypotheses 1 (H1): Entrepreneurial needed to take advantage of the knowledge set
orientation positively affects innovation and for commercial goals.
financial performance. The nature of entrepreneurial orientation
encourages organizations to consider new
Absorptive Capacity (AC) ideas, engage in creative investments, accept
high risks, and work proactively (Aljanabi,
In the face of a highly dynamic business 2017). It also supports the absorptive capacity
environment, organizations are not only of the organization to acquire external
building their own knowledge within the knowledge (Aljanabi, 2017). Entrepreneurial
organization, but also absorbing external orientation may be more effective if the
knowledge to foster innovation and improve organization has knowledge acquisition and
productivity (Lau and Lo, 2019). Absorptive exploitation capabilities to increase its inno-
capacity is a dynamic ability embedded in vation capabilities (Sciascia et al., 2014).
organizational practices and culture. It is the Meanwhile, the absorptive capability acts as a
capacity to produce and use the knowledge mechanism to acquire and assimilate only
required to develop other competences, such relevant and necessary knowledge, with that
as production, sales, and marketing (Zahra knowledge then transformed into valuable
and George, 2002). outputs (Hodgkinson et al., 2012). Especially
Numerous previous studies have in startup businesses, which are characterized
classified absorptive capacity as a cognitive by starting the business from a small point but
ability (Andersén, 2012; Andersén and Kask, a capacity to grow rapidly, or gradually, while
2012; Martinkenaite, 2012; Tseng et al., also being a business which arises from ideas
2011). The absorption and use of external to solve everyday problems. A startup busi-
knowledge (Aljanabi, 2017) as described by ness can also arise from seeing business
Zahra and George (2002) divided the opportunities that no one has ever thought of
structure of absorbency into two dimensions. or implemented before (The Stock Exchange
The first dimension represents the potential of Thailand, 2016). Absorption capability
absorptive capability related to knowledge plays a crucial role as a startup business
acquisition and assimilation in order to requires external research and instruction
distribute that knowledge to the company from customers, competitors and stakeholders
 Exploring the Relationship Between Entrepreneurial Orientation, Innovation and Financial Performance

to apply existing knowledge and take technological innovation and management

advantage of that knowledge. Hence, absorp- innovation. Technological innovation refers
tive capacity is a core competency that allows to new production, products, and services,
entrepreneurship-oriented companies to while management innovation is defined as
access new information and knowledge about unconventional procedures and policies that
business opportunities through various are non-technological innovations (Jiménez-
channels (Makhloufi et al., 2021). As a result, Jiménez and Valle, 2011). The purpose of the
the effects of entrepreneurial orientation on present study is to investigate the dimension
innovation outcomes are dependent on the of technical innovation capability, which is
company’s absorptive capacity in effectively the ability to adapt to unanticipated techno-
assimilating external knowledge (Sarsah et logical developments, produce new products,
al., 2020). This leads to the second hypothe- and employ new technological processes to
sis, presented as follows: meet current and future needs (Adler &
Hypotheses 2 (H2): Absorptive capacity Shenbar, 1990). Technical innovation capabil-
mediates the relationship between entrepre- ity consists of two components. The first is the
neurial orientation and innovation and finan- ability for product innovation, which includes
cial performance. processes to differentiate products, such as
developing new items and modifying existing
Technological Innovation Capability (TIC) ones (Nguyen et al., 2021). The second
component is the capacity for production
According to the resource-based view innovation, which involves the use of
(RBV), organizations who have resources and production technology to enhance innovation
high capacities can achieve a sustainable capacity and the strategic promotion of new
competitive position in turbulent markets, production techniques and procedures
while they can also perform better than their (Zawislak et al., 2012). Startups are a new
competitors (Zhang et al., 2019). Through group of enterprises with the potential for
technological innovation, businesses can rapid growth. This group of entrepreneurs can
make a wide range of new products and apply science, technology, and innovation to
services that are important for making them create a business that grows rapidly. Technol-
more efficient and making more profits ogy and innovation are at the heart of creating
(Camisón and Villar-López, 2014). When it a business (The Stock Exchange of Thailand,
comes to sustaining a company’s competitive 2016). Therefore, technological innovation
advantage, technical innovation capability is capability is a capability that reflects the key
a key component of organizational compe- characteristics that startups should have.
tency (Zastempowski and Glabiszewski, Entrepreneurial-oriented organizations
2020), including the implementation of often capitalize on opportunities with passion
strategies. Technological innovation capabil- and effort (Nguyen et al., 2021), to take risks,
ity is also vital in maintaining a company’s seize opportunities, innovate products and
competitive advantage (Burgelman et al., production, create advantages in competition,
1996). In the face of a highly competitive and improve their dynamic capabilities
business environment, organizations require (Gupta et al., 2004). The entrepreneurial
technological innovation to maintain their orientation also helps determine the infra-
continued competitiveness and to face new structure, behaviors, and strategic tools that
challenges (Rahim and Zainuddin, 2016). are adequate and necessary to boost an
The concept of technological innovation organization’s ability to innovate in technol-
capability in this study follows Damanpour’s ogy. Previous studies have shown that compa-
(1991) definition: a specialized resource of a nies which use technological innovation are
company to optimize existing products and required to develop new procedures, capabili-
production, and to invent new products ties, and management skills (Chen et al.,
(Aljanabi, 2017); this can be categorized into 2019), which affect organizational outcomes.
Sirinthra Sungthong, Somnuk Aujirapongpan, and Kanokwan Meesook

Absorptive
Capacity

Innovation and
Entrepreneurial Financial
Orientation Performance

Technological
Innovation
Capability

Figure 1 Research Framework

Also, some studies revealed that technologi- under the condition of determining the
cal innovation has positive impacts, since it minimum sample size for the structural
can improve competitiveness, financial effi- equation model analysis of Hair et al. (2010)
ciency and innovation (Rahim and with latent variables of less than or equal to 7,
Zainuddin,2016). This leads to the third and each latent variable being measured from
hypothesis as follows. more than 3 observed variables, states a mini-
Hypotheses 3 (H3): Technological inno- mum sample size of 150. Data collection from
vation capability mediates the relationship a sample of the study population involved
between entrepreneurial orientation and surveying corporate executives using a simple
innovation and financial performance. random sampling method. For this, a random-
ized table of numbers that listed the entire
Based on theoretical review and hypoth- population was used. Data collection for this
esis development, the study has a research study was conducted with a complete sample
framework as shown in Figure 1. of 156 organizations, meeting the minimum
sample size specified.
METHODOLOGY
Survey Instrument
Sample and Data Collection
The instrument used in this study was a
The sample used in this study was questionnaire derived from the literature
collected from a population of 467 Startup review which passed examination by experts
organizations in Thailand (Startup Thailand to determine the consistency index of the
Ecosystem, 2022). The recommended number questionnaire using the IOC (Index of Item
 Exploring the Relationship Between Entrepreneurial Orientation, Innovation and Financial Performance

Objective Congruence) value. Part 1 of the analysis (CFA) to verify the validity of the
questionnaire dealt with the personal data of hypothesis test.
the respondents utilizing a single-choice Structural Equation Modeling (SEM) is a
answer form. Part 2 collected data relating to method of statistical analysis used to test a set
the features of Entrepreneurial Orientation of variables in a study to determine whether
which demonstrates behavior innovativeness, or not the causal relationship structure is as
risk taking, proactiveness, autonomy and defined in the assumed model. It is possible to
competitive aggressiveness. Part 3 collected examine multiple relationships at the same
data about the features of Absorptive Capacity time, while some variables in a structure may
which are characterized by acquisition, be both latent and observed variables, such
assimilation, transformation and exploitation. that researchers can answer research ques-
Part 4 of the questionnaire collected data tions, understand the purpose of the research,
about technological innovation capability, and apply statistics effectively. Therefore,
and process innovation capability. Techno- SEM is suitable for this study (Songsraboon,
logical innovation capability relates to 2018).
product innovation capability, the processes
used to differentiate a product, such as RESULTS
developing a new product and improving an
existing one. Meanwhile, process innovation Demographic and Descriptive Statistics
capability involves using production technol-
ogy to develop innovation capability. Part 4 The subjects in the study, as shown in
also considered the strategic use of these Table 1, consisted of 71.80% chief executive
technologies to promote new techniques, pro- officers and 29.20% business owners. The
cesses and methods in manufacturing. Part 5 majority of respondents were male (65.40%)
of the questionnaire collected data on the while only 34.60% were female. Around
variables affecting organizational perfor- 57.70% of respondents were between the ages
mance in the dimension of innovation and of 31 and 40, 38.50% were between the ages
financial performance. of 41 and 50, 3.20% were 30 years of age or
In part 2 – 5, the questionnaire utilized a less, and 0.60% were between the ages of 51
5-level Likert Scale, while the questionnaire’s and 60. The vast majority of the subjects ran
reliability was tested via the Internal Con- a startup company in the areas of AgriTech,
sistency Method and Cronbach’s Alpha FoodTech, Business Service, or Online
Coefficient. Marketing. However, a sizeable minority of
them, accounting for approximately 26.90%
Data Analysis of the total, ran a startup company in the areas
of IndustryTech, HealthTech, GovTech &
Analysis of part 1 of the questionnaire EdTech, PropertyTech & UrbanTech, or
involved descriptive statistics, including FinTech & TravelTech respectively. The
frequency and percentage, to analyze personal majority of the subjects had been in business
data of respondents. for 5 years or less (64.10%), while a smaller
Parts 2-5 of the questionnaire which used number had experience of 6-10 years
a Likert rating scale, were also analyzed via (32.70%), or 11-15 years (3.20%).
descriptive statistics, namely the mean and
standard deviation. Inferential statistics were Measurement Model
used to study the linear structural equation
model (SEM) via the M-Plus program accord- Confirmatory Factor Analysis was used
ing to the conceptual model which was in this study to evaluate the measurement
constructed with covariance-based SEM (CB- tools in order to reduce measurement errors.
SEM) to study the relationship between the In the present study, there were four key
variables by applying it to confirmatory factor factors: Entrepreneurial Orientation (EO),
Sirinthra Sungthong, Somnuk Aujirapongpan, and Kanokwan Meesook

Absorptive Capacity (AC), Technological four elements is shown in Table 2. There were
Innovation Capability (TIC) and Innovation five indicator questions relating to EO, AC,
and Financial Performance (IFP). The and IFR, and three indicator questions relating
measurement model was tested, and X2 = to IEP. The results show that the standard
222.359 with a determined p-value of less weight value of EO was between 0.540 and
than 0.001. The df value was 127, X2/df is 0.700, while the standard weight value of AC
1.75, while the acceptable range for X2/df is was between 0.500 and 0.967, the standard
between 1 and 3 (Hair et al., 2014, p. 668). weight value of TIC was between 0.766 and
Also, SRMR = 0.072, which was less than 0.915, and the standard weight value of IFP
0.08, was within the acceptable range was between 0.619 and 0.731. Cronbach’s
(Hensler et al., 2015). The CFI value was Alpha values ranged between 0.700 and
0.943, while the TLI value is 0.932, both of 0.920, all of which were not less than 0.700,
which were higher than 0.9 (Bollen, 2015). indicating that the variable has good
The index value of RMSEA = 0.069, precision. Construct Reliability (CR) values
indicating that the model corresponds to the were between 0.700 and 0.921, all of which
data, as this value should be between 0.03 and were not less than 0.700, indicating that all
0.08. It can be concluded that the model is indicator questions had good structural
consistent with the empirical data. reliability (Carmines & Zeller, 1988; Hair et
The confirmation factor analysis of the al., 2014).

Table 1 Personal Data

Item Frequency Percentage
Gender
Male 102 65.40
Female 54 34.60
Age
30 years or less 5 3.20
31 – 40 years 90 57.70
41 – 50 years 60 38.50
51 – 60 years 1 0.60
Position
business owners 44 28.20
chief executive officers 112 71.80
Business Type
IndustryTech 37 23.70
FinTech 10 6.40
PropertyTech & UrbanTech 11 7.10
TravelTech 8 5.10
HealthTech 36 23.10
GovTech & EdTech 12 7.70
Other 42 26.90
Business Period
5 years or less 100 64.10
6 – 10 years 51 32.70
11 – 15 years 5 3.20
 Exploring the Relationship Between Entrepreneurial Orientation, Innovation and Financial Performance

Table 2 Confirmatory Factor Analysis

Factors/Items Loading Mean SD. Cronbach’s CR

Alpha

Entrepreneurial Orientation (EO) 4.341 0.389 0.762 0.726

The organization is aware of research and 0.573
development, technological leadership, and
innovation.
The organization invests in high-risk projects. 0.561
and start a new venture with the uncertainty of
the market
The organization is frequently the first to 0.565
introduce new products or services,
administrative processes, production
technologies, and so on when competing with
others.
The organization gives staff the freedom to 0.700
create ideas and visions to implement, which
results in creative change.
The organization is able to identify 0.540
competitors' weaknesses in order to
implement more effective competitive
strategies.
Absorptive Capacity (AC) 4.591 0.431 0.893 0.881
The organization is able to analyze and 0.500
interpret rapidly changing market demands.
The organization always thinks about how 0.562
changing market needs will affect the
development of new products and services.
The organization is quickly aware of the 0.862
benefits of supplementing existing knowledge
with new external knowledge.
The organization applies what it has learned 0.967
in its daily operations.
The company always keeps thinking about 0.901
new ways to improve how it makes use of
existing knowledge.
Technological Innovation Capability 4.586 0.453 0.920 0.921
(TIC)
The organization is able to use new 0.829
technologies to improve products/services.
The organization has made innovations to 0.822
upgrade production and internal management
systems.
The organization is able to effectively control 0.766
the production time of products/services to
meet urgent needs.
Sirinthra Sungthong, Somnuk Aujirapongpan, and Kanokwan Meesook

Table 2 (continued)
The organization has a good mechanism for 0.915
technology transfer from research to product
development.
The organization has technological 0.849
capabilities that enable efficient
manufacturing of products/services.
Innovation and Financial Performance 4.209 0.406 0.700 0.700
(IFP)
Sales have consistently increased as a result of 0.632
new technological products and services or
improved products.
The profits have consistently increased as a 0.619
result of new technological products and
services or improved products.
The number of products/commercial services 0.731
have increased compared to the past 5 years.

Table 3 Pearson Correlation

1 2 3 4
1.Entrepreneurial Orientation (EO) 1
2.Absorptive Capacity (AC) 0.457** 1
3.Technological Innovation Capability (TIC) 0.492** 0.444** 1
4.Innovation and Financial Performance (IFP) 0.435** 0.338** 0.334** 1
Note **p < 0.01

The correlation test for all variables is Structural Equation Modelling (SEM)
shown in Table 3. At the .001 level, there was Results
a statistically significant relationship in the
same direction. Also, the values of the Direct Effect
Pearson correlation coefficient were between
0.334 and 0.492, all of which were less than The statical results, X2 = 223.209,
0.70, showing that there was no multicollin- p-value < 0.001, df = 128, X2/df = 1.74,
earity problem with the components. In SRMR = 0.075, CFI = 0.943, TLI = 0.932 and
addition, the verification of discriminant RMSEA = 0.069 were used to find the correla-
validity by comparing the √AVE value of each tion of the model and the empirical data. The
variable with the correlation coefficient of effects of entrepreneurial orientation and
other variables (Fornell &Larcker, 1981) innovation and financial performance were
shows that the √AVE values for all variables analyzed, and direct effects (DE) illustrated in
displayed in italics diagonally were higher Table 4. The results indicate that EO has a
than the correlation coefficients among the positive influence on IFP (= 0.529, p-value
variables. This indicates that indicator ques- 0.01); hence, Hypothesis 1 (H1) was
tions possessed discriminant validity, result- accepted. In addition, the findings show that
ing in the correlation of all variables and the EO also positively affects AC (β = 0.567,
empirical data, while they could also be said p-value < 0.001). However, AC and TIC did
to be reliable, valid and suitable to be used in not have any impact on IFP (β = 0.071, β
testing the hypotheses. = 0.053 respectively, p-value > 0.05). The
 Exploring the Relationship Between Entrepreneurial Orientation, Innovation and Financial Performance

Table 4 Direct Effect

Beta Values Z Statistics p Values
EO  TIC 0.653*** 10.107 0.000
EO  AC 0.567*** 8.076 0.000
EO  IFP 0.529** 3.038 0.002
AC  IFP 0.071 0.602 0.547
TIC  IFP 0.053 3.371 0.711
Note. *** p < 0.001, ** p < 0.01, * p < 0.05

Table 5 Indirect Effects

Beta Z p
Hypotheses
Values Statistics Values
H2: Absorptive capacity mediates between entrepreneurial
0.040 0.608 0.543
orientation and innovation and financial performance.
(H3): Technological innovation capability mediates the
relationship between entrepreneurial orientation and innovation 0.035 0.374 0.709
and financial performance.
Note. *** p < 0.001, ** p < 0.01, * p < 0.05

variance of AC and TIC explained by EO entrepreneurship orientation can provide

were 29.8% and 40.8% respectively. more development and profit opportunities in
an increasingly competitive environment,
Mediator Testing especially in intense competitions in the
current world. Entrepreneurship orientation
Indirect effects between EO and IFP were will also lead to success by increasing the
analyzed to verify the functions of AC and efficiency of innovation (Iqbal, S. et al.,
TIC as mediators of the correlation based on 2021). To do this, the organization must be
Baron and Kenny (1986). The results as ready to enhance innovation and launch new
displayed in Table 5 indicate that EO does not products and services as well as fostering new
affect IFP, so AC (β = 0.040, p-value > 0.05) research, new production development, and
and TIC (β = 0.035, p-value > 0.05) are not risk-taking enhancement to enter developing
able to be mediators between EO and IFO; markets by allocating resources to enable
hence, hypotheses 2 (H2) and 3 (H3) were organizations to innovate (Lumpkin and Dess,
rejected. The variance of IFP explained by EO 1996).
was 36.6%. However, from the results of the study, it
was found that AC and TIC had no direct
DISCUSSION effect on IFP, unlike previous studies that
confirmed that AC and TIC had a direct effect
The findings of the present study show on organizational performance (Kale et al.,
that entrepreneurship orientation positively 2019; Alkatheeri et al., 2021). Startup busi-
affects innovation and financial performance, nesses should be made aware of the
where EO affects IFP by 36.6%. This helps to importance of absorbing external knowledge
fulfill the body of knowledge for a better and applying it to the internal knowledge that
study of the relationship between the two the organization has. Also, startups should
factors. The results of this study are also focus on TIC so that they can find new and
similar with those of other studies in the SME better solutions or services to offer to
sectors (Ming Zhai et al., 2018; Isichei et al., customers. Startup business-related agencies
2019) indicating that organizations with an in Thailand, such as the National Innovation
Sirinthra Sungthong, Somnuk Aujirapongpan, and Kanokwan Meesook

Agency (NIA), Office of The Permanent Sec- EO and IFP in startups in Thailand. This is
retary, and Digital Economy Promotion because the business sector still lacks an
Agency (DEPA), should establish policies to understanding of startups and is unaware of
promote the education system in Thailand in the importance of technological innovation.
line with the ever-evolving Startup business In developed countries, the structures of
context by supporting knowledge-building startups clearly rely on technology to find
activities such as training and the exchange of better solutions or new services for customers,
business experiences. Startups are always that are designed to be used without limits,
there to enable organizations to absorb and allowing the company to grow rapidly.
order new knowledge from outside, as well as However, in this study, it was found that EO
to build an understanding of the structure of directly affects TIC, where EO affects TIC by
the startup business that relies on technologi- 40.8%, This is because having entrepreneur-
cal advances. To recognize the importance of ship orientation provides the organization
TIC building to meet the changing needs of with opportunities to adapt itself to technolog-
the market, such as successful startups in ical change, develop new products, and use
developed countries. new technologies to respond to needs now and
The findings in this study also show that in the future (Aljanabi, 2017). As a result,
absorptive capacity does not function as a startups in Thailand must be aware of the use
mediator between EO and IFP in startup of technology and innovation in enhancing
businesses in Thailand. This can be explained business value to achieve business success
by the fact that the education system in (SME Bank, 2017).
Thailand is still not aligned with ongoing Although the findings in this study show
developments in business. Also, entrepre- that absorptive capacity and technological
neurs in Thailand do not absorb and instruct innovation capability do not mediate EO and
external knowledge to establish new business, IFP, the results confirm that both absorptive
which is a significant impediment that makes capacity and technological innovation
it difficult for startups to succeed. However, capability are dependent variables directly
the results in this study found that EO has affected by EO. Therefore, these findings can
direct effects on absorptive capacity, where be added to the academic concepts, and they
EO affects AC by 29.8%, reflecting that can be more fully implemented in startups. It
organizations with entrepreneurship orienta- can be concluded that entrepreneurship
tion will be able to better develop their orientation is a key part of an organization’s
absorptive capacity. This is because entrepre- ability to grow and adapt to new situations. It
neurship orientation is a strategy which leads is also a key strategic resource for increasing
an organization to proactively work when an innovation and financial performance. EO
opportunity arises, and it can be used also improves the organization’s ability to
creatively in business change, including absorb new knowledge from outside sources
managing risks and uncertainties, in order to and properly apply it to its existing
achieve organizational goals (Anderson and knowledge. EO not only helps the organiza-
Ronteau, 2017). With entrepreneurship orien- tion adapt itself to technological change, but
tation, an organization is able to anticipate the EO also encourages the organization to
demands of the market and customers and develop products and make use of new
respond to those needs by using new technological procedures to better meet the
innovations (Mohd Noor et al., 2017). Entre- needs of the market.
preneurship orientation is a strategy that
enhances the organization’s ability to better CONCLUSION
absorb new knowledge from outside (Cui et
al., 2018). In the present study, the correlations
Further, the findings of this study between entrepreneurship orientation, inno-
revealed that TIC does not mediate between vation and financial performance, absorptive
 Exploring the Relationship Between Entrepreneurial Orientation, Innovation and Financial Performance

capacity, and technological innovation capa- population There were a total of 156 com-
bility, were tested. The relationships between pleted questionnaires utilized for analysis.
the antecedents that affect startup innovation According to the conditions for determining
and financial performance in Thailand were the minimum sample size for the analysis of
investigated using the correlations of direct the structural equation model (Hair et al.,
and indirect variables. The results demon- 2010), the minimum sample size was deemed
strate that entrepreneurship orientation is a to be 150. The obtained test was therefore in
variable directly and significantly correlated accordance with the specified minimum
with innovation and financial performance, sample size. However, the sample used as
absorptive capacity, and technological inno- data for the analysis may still be considered
vation capability. The findings in this study too small. Due to the limitation in the
also confirm that entrepreneurship orientation disclosure of startup information to third
helps the organization to increase innovation parties, many startups are quite concerned
and financial performance and gain, absorb, about maintaining business secrets. This may
and apply external knowledge to create new be a factor that causes the results of the study
internal knowledge. In addition, entrepreneur- to find that the variables are not related.
ship orientation gives the organization a Therefore, in future studies, researchers
technological innovation capability that should pay greater attention to clarifying
allows it to react to unanticipated technologi- reasons and benefits for collecting data for use
cal changes, create new products, and apply in studying startups and may focus on
new technological techniques to suit both studying other business organizations that can
present and future needs. disclose financial and management infor-
However, it was found that entrepreneur- mation to the public, such as those listed on
ship orientation does not have an indirect the stock exchange. This will allow the
correlation with innovation and financial researcher to obtain accurate and sufficient
performance, via the mediation of absorptive information for use in analyzing the study
capacity and technological innovation results.
capacity. This result did not support the
hypotheses. This can be explained by the fact ACKNOWLEDGMENTS
that entrepreneurship orientation enables the
organization to increase innovation and This research was approved by the
financial performance without relying on the Institutional Review Board (IRB) of the
acquisition, assimilation, and exploitation of human research ethics committee of Nakhon-
external knowledge. It also does not require ratchasima College (NMCEC-0012/2565).
the ability to adapt to unexpected technologi- Assoc. Prof. Dr. Somnuk Aujirapongpan is a
cal changes, develop new products, or use corresponding author in this article. Dr.
new technological procedures in order to meet Kanokwan Meesook is also a co-correspond-
market demands. ing author.

LIMITATIONS AND RECOMMENDA- REFERENCES

TIONS
Adler, P. S. & Shenbar, A. (1990). Adapting
This study was conducted among Startup your technological base: the organiza-
organizations in Thailand with the objective tional challenge, Sloan Management
of investigating the relationship between Review. 1990, 32, 25-37.
entrepreneurial orientation, innovation and Aljanabi, A. R. A. (2017). The mediating role
financial performance, through the mediating of absorptive capacity on the relationship
role of absorptive capacity and technological between entrepreneurial orientation and
innovation capability. Data were collected via technological innovation capabilities.
questionnaire from a sample of the target International Journal of Entrepreneurial
Sirinthra Sungthong, Somnuk Aujirapongpan, and Kanokwan Meesook

Behavior & Research, 24, 818–841. Technology Analysis & Strategic

https://doi.org/10.1108/ ijebr-07-2017- Management, 7325, 1–15.
0233 Bollen, K.A. (1989). A new incremental fit
Aljanabi, A.R.A. & Noor, N.A.M. (2015). index for general structural equation
The mediating role of market orientation models. Sociology Methods Research,
on entrepreneurial orientation, absorp- 17, 303–316.
tive capacity and technological innova- Boso, N., Cadogan, J.W. & Story, V.M.
tion capabilities. Asian Social Science, (2012a). Entrepreneurial orientation and
11, 219. market orientation as drivers of product
Alkatheeri, H.B., Jabeen, F., Mehmood, K. & innovation success: a study of exporters
Santoro, G. (2021). Elucidating the effect from a developing economy. Interna-
of information technology capabilities on tional Small Business Journal, 31, 57-81.
organizational performance in UAE: a Boso, N.; Cadogan, J.W.& Story, V.M.
three-wave moderated-mediation model. (2012b). Complementary effect of
International Journal of Emerging entrepreneurial and market orientations
Markets. on export new product success under
https://doi.org/10.1108/IJOEM-08-2021- differing levels of competitive intensity
1250 and financial capital. International
Al-Mamary, Y. H., Alwaheeb, M. A., Business Review, 21, 667-681.
Alshammari, N. G. M., Abdulrab, M., Brozovic, D. (2018). Strategic flexibility: a
Balhareth, H., & Soltane, H. B. (2020). review of the literature. International
The effect of entrepreneurial orientation Journal of Management Reviews, 20, 3-
on financial and non-financial perfor- 31.
mance in Saudi SMES: A review. Critical Calantone, R.J., Cavusgil, S.T. & Zhao, Y.
Review, 7, 270–278. (2002). Learning orientation, firm
Andersén, J. (2012). Protective capacity and innovation capability, and firm perfor-
absorptive capacity: managing the mance. Industrial Marketing Manage-
balance between retention and creation ment, 31, 515–24.
of knowledge-based resources, The Camisón, C. & Forés, B. (2010). Knowledge
Learning Organization, 19, 440-452. absorptive capacity: New insights for its
Andersén, J. & Kask, J. (2012). conceptualization and measurement.
Asymmetrically realized absorptive Journal of Business Research, 63, 707 -
capacity and relationship durability, 715.
Management Decision, 50, 43-57. Camisón, C. & Villar-López, A. (2014).
Anderson, A. & Ronteau, S. (2017). Towards Organizational innovation as an enabler
an entrepreneurial theory of practice; of technological innovation capabilities
emerging ideas for emerging economies. and firm performance. Journal of
Journal of Entrepreneurship in Emerging Business, 67, 2891–2902.
Economies, 9, 110–120. Carmines, E. G. & Zeller, R. A. (1988).
Baker, W.E. & Sinkula, J.M. (2009). The Reliability & validity assessment.
complementary effects of market orienta- California: Sage.
tion and entrepreneurial orientation on Chen, Q., C. H. Wang & S. Z. Huang. (2019).
profitability in small businesses. Journal Effects of Organizational Innovation and
of Small Business Management, 47, 443- Technological Innovation Capabilities on
464. Firm Performance: Evidence from Firms
Bayraktar C. A., Hancerliogullari, G., in China’s Pearl River Delta. Asia Pacific
Cetinguc, B. & Calisir, F. (2016). Business Review, 26, 72–96.
Competitive strategies, innovation, and doi:10.1080/13602381.2019.1592339
firm performance: an empirical study in Cheng, Y. L. & Lin, Y. H. (2012).
a developing economy environment. Performance evaluation of technological
 Exploring the Relationship Between Entrepreneurial Orientation, Innovation and Financial Performance

innovation capabilities in uncertainty. Hair, J. F., Anderson, B. W., Babin, B. J. &

Procedia-Social and Behavioral Anderson, R. E. (2014). Multivariate
Sciences, 40, 287-314. data analysis with reading. New Jersey:
Choi K., Narasimhan R. & Kim S. W. (2016). Prentice-Hall, 8
Opening the technological innovation Henseler, J., Ringle, C. M. & Sarstedt, M.
black box: The case of the electronics (2015). A new criterion for assessing
industry in Korea. European Journal of discriminant validity in variance-based
Operational Research, 250, 192–203. structural equation modeling. Journal of
Covin, J.G. & Miller, D. (2014). International the Academy of Marketing Science, 43,
entrepreneurial orientation: conceptual 115–135.
considerations, research themes, meas- Huang, S.K. & Wang, Y.L. (2011).
urement issues, and future research Entrepreneurial orientation, learning
directions. Entrepreneurship Theory and orientation, and innovation in small and
Practice, 38, 11–44. medium enterprises, Procedia Social and
Cui, L., Fan, D., Guoa, F. & Fan, Y. (2018). Behavioral Sciences, 24, 563-570.
Explicating the relationship of entrepre- Ince, H., Imamoğlu, S. Z. & Türkcan, H.
neurial orientation and firm perfor- (2016). The Effect of Technological
mance: underlying mechanisms in the Innovation Capabilities and Absorptive
context of an emerging market. Capacity on Firm Innovativeness: A
Industrial Marketing Management, 71, Conceptual Framework. Procedia Social
27–40. and Behavioral Sciences, 235, 764-770.
Damanpour, F. (1991). Organizational https://doi.org/10.1016/j.sbspro.2016.11
innovation: a meta-analysis of effects of .078
determinants and moderators, Academy Iqbal, S., Moleiro Martins, J., Nuno Mata, M.;
of Management Journal, 34, 555-590. Naz, S., Akhtar, S. & Abreu, A. (2021).
Engelen, A., Kube, H., Schmidt, S. & Flatten, Linking Entrepreneurial Orientation with
T.C. (2014). Entrepreneurial orientation Innovation Performance in SMEs; the ole
in turbulent environments: The moderat- of Organizational Commitment and
ing role of absorptive capacity. Research Transformational Leadership Using
Policy, 43, 1353–1369. Smart PLS-SEM. Sustainability, 13,
Fornell, C., & Larcker, D. F. (1981). 4361.
Evaluating structural equation models https://doi.org/10.3390/su13084361
with unobservable variables and meas- Isichei, E.E., Agbaeze, K.E. & Odiba, M.O.
ure. Journal of marketing research, 18, (2020). Entrepreneurial orientation and
39-50. performance in SMEs. International
Gebauer, H., Worch, H. & Truffer, B. (2018). Journal of Emerging Markets, 15, 1219–
Absorptive capacity, learning processes 1241.
and combinative capabilities as determi- Jiménez-Jiménez, D. & Valle, R. S. (2011).
nants of strategic innovation, European Innovation, organizational learning, and
Management Journal, 30, 57-73. performance. Journal of Business
Guan, J. & Ma, N. (2003). Innovative Research, 64, 408-417.
capability and export performance of http:/dx.doi.org/10.1016/j.jbusres.2010.
Chinese firms. Technovation, 23, 737- 09.010.
747. Jiraphanumes, K., Aujirapongpan, S. &
Gupta, V., MacMillan, I.C. & Surie, G. Chamchang. P. (2011). The Effect of
(2004). Entrepreneurial leadership: Entrepreneurial and Strategic Orientation
developing and measuring a cross- on Innovativeness and Performance: The
cultural construct. Journal of Business Empirical Study of the Listed Companies
Venturing, 241–260. in the Market for Alternative Investment
Sirinthra Sungthong, Somnuk Aujirapongpan, and Kanokwan Meesook

(MAI), Journal of management Sciences, Martinkenaite, I. (2012). Antecedents of

28, 1-15. knowledge transfer in acquisitions,
Kale, E., Aknar, A., & Bas¸ar, O. ¨ (2019). Baltic Journal of Management, 2012, 7,
Absorptive capacity and firm perfor- 167-184.
mance: The mediating role of strategic Matusik, S. F. & Heeley, M. B. (2005).
agility. International Journal of Hospi- Absorptive capacity in the software
tality Management, 78, 276–283. industry: Identifying dimensions that
Kraus, S., Clauss, T., Breier, M., Gast, J., affect knowledge and knowledge
Zardini, A. & Tiberius, V. (2020). The creation activities. Journal of Manage-
economics of COVID-19: initial empiri- ment, 31, 549-572.
cal evidence on how family firms in five Miller, D. (1983). The correlates of entre-
European countries cope with the corona preneurship in three types of firms.
crisis, International Journal of Entrepre- Management Science, 29, 770-791.
neurial Behavior and Research, 26, Morris, M.H., Coombes, S., Schindehutte, M.
1067-1092, doi: 10.1108/IJEBR-04- & Allen, J. (2007). Antecedents and
2020-0214. outcomes of entrepreneurial and market
Kostopoulos, K., Papalexandris, A., orientations in a non-profit context:
Papachroni, M. & Ioannou, G. (2011). theoretical and empirical insights,
Absorptive capacity, innovation, and Journal of Leadership & Organizational
financial performance, Journal of Studies, 13, 12-39.
Business Research, 64, 1335–1343. Murovec, N. & Prodan, I. (2009). Absorptive
Laforet, S. (2011). A framework of capacity, its determinants, and influence
organizational innovation and outcomes on innovation output: Cross-cultural
in SMEs, International Journal of validation of the structural model.
Entrepreneurial Behaviour & Research, Technovation, 29, 859-872.
17, 380-408. Nguyen, P. V., Huynh, H. T. N., Lam, L. N.
Lang, T.M., Lin, S.H., Vy, T.N.T. (2012). H., Le, T. B. & Nguyen, N. H. X. (2021).
Mediate effect of technology innovation The impact of entrepreneurial leadership
capabilities investment capability and on SMEs’ performance: the mediating
firm performance in Vietnam, Procedia – effects of organizational factors. Heliyon,
Social and Behavioral Sciences, 40, 817- 7, 1–13.
829. https://doi.org/10.1016/j.heliyon.2021.
Lau, A.K. & Lo, W. (2019). Absorptive e07326.
capacity, technological innovation Nguyen, T.O. (2019). The relationship
capability and innovation performance: between innovation capability, innova-
an empirical study in Hong Kong, tion type and innovation performance in
International Journal of Technology FDI enterprises in Vietnam, Interna-
Management, 80, 107-148. tional Journal of Economics and
Lumpkin, G.T. & Dess, G.G. (1996). Finance, 11, 28-34.
Clarifying the entrepreneurial orientation Noor, N.A.M. & Aljababi, A.Q.R.A. (2016).
construct and linking it to performance. Moderating role of absorptive capacity
Academy of Management Review, 21, between entrepreneurial orientation and
135–172. technological innovation capabilities,
Makhloufi, L., Laghouag, A., Sahli, A.A. & International Review of Management
Belaid, F. (2021). Impact of and Marketing, 6, 704-710
entrepreneurial orientation on innovation doi: 10.1108/IJEBR-07-2017-0233.
capability: The mediating role of Rapaccini, M., Saccani, N., Kowalkowski, C.,
absorptive capability and organizational Paiola, M. & Adrodegari, F. (2020).
learning capabilities. Sustainability, 13, Navigating disruptive crises through
5399. service-led growth: the impact of
 Exploring the Relationship Between Entrepreneurial Orientation, Innovation and Financial Performance

COVID-19 on Italian manufacturing on business unit innovation and

firms?. Industrial Marketing Manage- performance, Academy of Management
ment, 88, 225-237. Journal, 44, 996-1004.
Ren, R. & Yu, Z. (2016). Innovation- Tseng, C.Y., Pai, D.C. & Hung, C.H. (2011).
orientation, dynamic capabilities and Knowledge absorptive capacity and
evolution of the informal Shanzhai firms innovation performance in KIBS,
in China: a case study, Journal of Entre- Journal of Knowledge Management, 15,
preneurship in Emerging Economies, 8, 971-983.
1-12. Usman, M. & Mat, N. (2017). Assessing the
Rhodes, J., Cheng, V., Sadeghinejad, Z. & importance of entrepreneurial orientation
Lok, P. (2018). The relationship between on innovation in service sector,
management team (TMT) metacogni- International Journal of Business and
tion, entrepreneurial orientations and Management Invention, 6, 2319-8028.
small and medium enterprises (SMEs) Wales, W.J., Gupta, V.K. & Mousa, F.T.
firm performance. International Journal (2011). Empirical research on entrepre-
of Management Practice, 11, 111–140. neurial orientation: an assessment and
Sarsah, S. A., Tian, H., Dogbe, C. S. K., suggestions for future research, Interna-
Bamfo, B. A. & Pomegbe, W. W. K. tional Small Business Journal, 31, 357-
(2020). Effect of entrepreneurial orienta- 383.
tion on radical innovation performance Wiklund, J. & Shepherd, D. (2003).
among manufacturing SMEs: The Knowledge-based resources, entre-
mediating role of absorptive capacity. preneurial orientation, and the perfor-
Journal o Strategy and Management, 13, mance of small and medium-sized
551–570. businesses, Strategic Management
https://doi.org/10.1108/JSMA-03-2020- Journal, 24, 1307-1314.
0053. Yam, R. C., Guan, J. C., Pun, K. F. & Tang, E.
Sciascia, S., D’Oria, L., Bruni, M. & P. (2004). An audit of technological
Larrañeta, B. (2014). Entrepreneurial innovation capabilities in Chinese firms:
orientation in low-and medium-tech some empirical findings in Beijing,
industries: the need for absorptive China. Research policy, 33, 1123-1140.
capacity to increase performance, Yoo, W.J., Choo, H.H. & Lee, S.J. (2018). A
European Management Journal, 32, 761- Study on the Sustainable Growth of
769. SMEs: The Mediating Role of
Tang, G., Chen, Y. & Jin, J. (2015). Organizational Metacognition. Sustain-
Entrepreneurial orientation and innova- ability, 10, 2829.
tion performance: roles of strategic HRM Zahra, S.A. & George, G. (2002). Absorptive
and technical turbulence, Asia Pacific capacity: a review, reconceptualization,
Journal of Human Resources, 53, 163- and extension, Academy of Management
184. Review, 27, 185-203.
Teece D. J., Pisano G. & Shuen A. (1997). Zahra, S.A & Nielsen, A.P. (2002). Sources of
Dynamic Capabilities and Strategic capabilities, integration and technology
Management. Strategic Management commercialization, Strategic Manage-
Journal, 18, 509–533. ment Journal. 2002, 23, 377–398.
Todorova, G. & Durisin, B. (2007). Absorp- Zawislak, P.A., Alves, A.C., Tello-Gamarra,
tive capacity: Valuing a reconceptualiza- J., Barbieux, D. & Reichert, F.M. (2012).
tion. Academy of management journal, Innovation capability: from technology
32, 774–786. development to transaction capability,
Tsai, W. (2001). Knowledge transfer in Journal of Technology Management and
intraorganizational networks: effects of Innovation, 7, 14–25.
network position and absorptive capacity
Sirinthra Sungthong, Somnuk Aujirapongpan, and Kanokwan Meesook

Zastempowski, M. & Glabiszewski, M.

(2020). Technological innovation
capabilities of small and medium-sized
enterprises, European Research Studies
Journal, 23, 460-474.
Zellweger, T.M., Nason, R.S. & Nordqvist,
M. (2011). From longevity of firms to
transgenerational entrepreneurship of
families: introducing family entrepre-
neurial orientation, Family Business
Review, 25, 136-155.
Zhai, Y.M., Sun, W.Q., Tsai, S.-B., Wang, Z.
& Zhao, Y. (2018). An Empirical Study
on Entrepreneurial Orientation, Absorp-
tive Capacity, and SMEs’ Innovation
Performance: A Sustainable Perspective.
Sustainability, 10, 314.
Zhang, Y., Khan, U., Lee, S. & Salik, M.
(2019). The influence of management
innovation and technological innovation
on organization performance: a mediat-
ing role of sustainability, Sustainability,
11, 495.