The effects of a firm's capabilities on its innovativeness: the mediating roles of resource flexibility

Abstract

PurposeThis study examines the effects of technological and marketing capabilities on administrative and product innovativeness, and the mediation effects of resource flexibility.Design/methodology/approachThis study tests a conceptual model based on survey data from 303 Chinese firms using structural equation modeling.FindingsTechnological and marketing capabilities are found to have positive effects on administrative and product innovativeness, as well as resource flexibility. Resource flexibility positively influenced administrative innovativeness and product innovativeness, and resource flexibility mediated the relationships between technological and marketing capability and administrative and product innovativeness.Originality/valueThis study advances the authors' understanding of firm innovativeness and resource flexibility, addresses the missing link between firm capability and firm innovativeness, and contributes to the authors' knowledge of value-generating paths in resource management research.