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The relationship between innovation and performance in special nonprofit firms: Social and cooperative agrifood firms

Published online by Cambridge University Press:  20 January 2016

Hsing Hung Chen
Affiliation:
School of Business, Macau University of Science and Technology, Taipa, Macau
Amy H I Lee*
Affiliation:
Department of Technology Management, Chung Hua University, Hsinchu, Taiwan
Jack Chen
Affiliation:
Department of Research and Development, Poktech Corporation Limited, Shanghai, China
*
Corresponding author: amylee@chu.edu.tw

Abstract

Firms are continually trying to identify innovation sources in order to improve organizational performance, but the identification of such origins is a complex and poorly understood issue, particularly as far as nonprofit firms are concerned. The social and cooperative agrifood arrangement has become one of the main and newest types of nonprofit organization in China since the implementation of the law related to specialized cooperatives, on July 1, 2007. In this research, a conceptual model is proposed to show that the characteristics of innovative sources can determine a firm’s absorptive capacity, which in turn can impact its performance. Therefore, absorptive capacity can be expected to enable the mediation of the relationships of innovative sources with the performance of firms. By means of theoretical analysis and practical investigation, this paper provides an assessment of the use of innovation sources and finds critical factors that may foster competitive and sustainable advantages.

Type
Research Article
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2016 

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