The moderating effect of financial performance exerts on the interaction of absorptive capacity and organizational performance

Authors

  • Thiago Coelho Soares Programa de Pós-Graduação em Administração, Universidade do Sul de Santa Catarina (UNISUL), Palhoça, SC, Brasil https://orcid.org/0000-0002-7470-6271
  • Stephane Louise Boca Santa Programa de Pós-Graduação em Administração, Universidade do Sul de Santa Catarina (UNISUL), Palhoça, SC, Brasil
  • Kristinne Kelly Rosa Borges Vaz Programa de Pós-Graduação em Administração, Universidade do Sul de Santa Catarina (UNISUL), Palhoça, SC, Brasil https://orcid.org/0000-0002-7007-7068
  • Sandro Vieira Soares Programa de Pós-Graduação em Administração, Universidade do Sul de Santa Catarina (UNISUL), Palhoça, SC, Brasil https://orcid.org/0000-0001-7076-4936

DOI:

https://doi.org/10.14211/regepe.esbj.e2205

Keywords:

absorptive capacity, financial management, organizational performance, small business

Abstract

Objective of the study: In this paper, we will analyze the moderating effect of financial performance exerts on the interaction of absorptive capacity and organizational performance. Methodology / approach: A conceptual model was developed to assess the relationship between absorptive capacity, financial performance, and organizational performance in small and medium-sized Brazilian companies. To capture the multidimensional nature of absorptive capacity, this study uses structural equation modelling and measures the meditating effects of financial performance. Main results: The main finding is the moderating effect. The effect of absorptive capacity on organizational performance has a moderating effect of financial performance. Theoretical / methodological contributions: Small businesses ought to recognize and take advantage of the practical benefits of absorptive capacity. However, entrepreneurs should find motivation to develop more formalized absorptive capacities to raise the organizational performance. The results can help companies identify ways to better appropriate external information and knowledge to improve absorptive capacity. Relevance / originality: The research contributes to the proposition and empirical test of a predictive model of organizational performance in small and medium-sized enterprises, which can predict organizational performance in Brazilian´s SMEs. This study represents one of the first attempts to investigate the relationships between absorptive capacity, organizational performance, and financial performance. Social / management contributions: The results can help companies identify ways to better appropriate external information and knowledge to improve absorptive capacity.

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Author Biographies

Thiago Coelho Soares, Programa de Pós-Graduação em Administração, Universidade do Sul de Santa Catarina (UNISUL), Palhoça, SC, Brasil

is a professor at the Graduate Program in Administration at the University of Southern Santa Catarina (Unisul). He has a doctorate from UFSC, a master's from UFSC and a degree from Unisul. His areas of interest include Finance, Performance Appraisal and Entrepreneurship. His articles have been published in magazines such as International Journal of Sustainability in Higher Education, Sustainable Development, Stochastic Environmental Research and Risk Assessment, Brazilian Business Review.

Stephane Louise Boca Santa, Programa de Pós-Graduação em Administração, Universidade do Sul de Santa Catarina (UNISUL), Palhoça, SC, Brasil

is a doctoral student in the Graduate Program in Administration at the University of Southern Santa Catarina (Unisul). She has a master's degree from UFSC and a graduation from UFSC. His areas of interest include Finance, Performance Appraisal and Entrepreneurship. Her articles have been published in magazines such as Sustainable Cities and Society.

Kristinne Kelly Rosa Borges Vaz, Programa de Pós-Graduação em Administração, Universidade do Sul de Santa Catarina (UNISUL), Palhoça, SC, Brasil

is an employee of the Federal University of Tocantins. She has a master's degree from Unisul and a graduation from UFTO. His areas of interest include Finance, Performance Appraisal and Entrepreneurship.

Sandro Vieira Soares, Programa de Pós-Graduação em Administração, Universidade do Sul de Santa Catarina (UNISUL), Palhoça, SC, Brasil

is a professor at the Graduate Program in Administration at the University of Southern Santa Catarina (Unisul). He has a doctorate from USP, a master's degree from UFSC and a degree from UFSC. His areas of interest include Accounting, Performance Appraisal, and Management Teaching and Research. His articles have been published in magazines such as Contabilidade Vista & Revista, Ibero-American Magazine of Strategy, Administration Teaching and Research.

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Published

2023-03-28

How to Cite

Soares, T. C., Boca Santa, S. L., Vaz, K. K. R. B., & Soares, S. V. (2023). The moderating effect of financial performance exerts on the interaction of absorptive capacity and organizational performance. REGEPE Entrepreneurship and Small Business Journal, 12(1), e2205. https://doi.org/10.14211/regepe.esbj.e2205