The Effects of Technological Innovation, Organizational Innovation and Absorptive Capacity on Product Innovation: A Structural Equation Modeling Approach

This study investigates the impacts of organizational innovation, technological innovation and absorptive capacity on product innovation as well as examines the antecedents of technological innovation and organizational innovation in one of the Tertiary Education Institutions in Malaysia. A total of 600 samples were distributed to the tertiary students. A questionnaire survey was adopted as the main method of data collection and structural equation modeling was applied as a data analysis tool. The findings indicate that: (1) Organizational innovation, technological innovation and absorptive capacity are positively related to product innovation respectively; (2) Technological innovation positively mediates the relationship between organizational innovation and product innovation; (3) Technological innovation positively mediates the relationship between absorptive capacity and product innovation; (4) Organizational innovation positively mediates the relationship between absorptive capacity and technological innovation; (5) Organizational innovation positively mediates the relationship between absorptive capacity and product innovation. The findings of this study do provide relevant theoretical, managerial and policy contributions in the literature.