Exploring the Moderating Impact of Absorptive Capacity on Strategic Thinking, Innovative Behavior, and Entrepreneurial Orientation at the Organizational Level of Analysis

Abstract

This research theoretically explores the extant strategic and entrepreneurial literatures and presents a theoretical model purporting the moderating role of absorptive capacity (ACAP) at the organizational level of entrepreneurial orientation (EO). Strategic thinking and innovative behavior (IB) influence at the firm level has not been examined with a moderating influence. In a practical sense, this research presents opportunities to conceptualize ACAP on firm-level potential and realized capabilities. This research develops a theoretical model that provides new testable linkages between constructs that have gone untested in strategic and entrepreneurial literature. It is proposed that ACAP moderates the relationship between strategic thinking and IB, producing a potentially stronger and significant impact on firm-level EO, thereby creating firm-level climates that cultivate strategic behaviors. This exploratory research and theoretical model provide three proposals for future exploration and research consideration.