Abstract
This study aims to investigate the mediating role of absorptive capacity (ACAP)
between intellectual capital (IC) and organizational innovation in the context of Higher
education institutions (HEI) of Punjab Pakistan. This study used a structured
questionnaire to collect the data from employees of HEI Pakistan. This study uses a
covariance-based structural equation modeling technique (CB-SEM) for data analysis
through AMOSE software. This study performed CB-SEM in two steps; confirmatory
factor analysis (CFA) and SEM analysis. Confirmatory factor analysis ensures the
reliability and validity of the construct while SEM analysis was used to test the modeled
hypothesis. The study found that IC has a significant positive relationship with ACAP
and organizational innovation. ACAP has a significant and positive relationship with
organizational innovation and also plays a mediating role between IC and organizational
innovation. The study will help the HEIs of Pakistan to boost innovation activities more
effectively in order to improve their innovations performance. This study enriches the
theoretical literature of IC by using five dimensions, human, social, structural, relational
and spiritual capital, of IC and by suggesting a new path for organizational innovations.
Moreover, a few studies investigated a relationship between IC and organizational
innovation with the mediating role of absorptive capacity; however, in HEIs Pakistan
Shazia Kousar, Mahwish Zafar, Syeda Azra Batool, Ali Sajjad. (2019) The Mediating Role of Absorptive Capacity in the Relationship between Intellectual Capital and Organizational Innovation in Higher Education Institutes of Punjab, Pakistan, Pakistan Journal of Commerce and Social Sciences, Volume 13, Issue 3.
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