Innovation capabilities and market performance in the Zimbabwean telecommunications industry: The mediating role of individual activity

Abstract

Drawing upon the dynamic capabilities approach, this research examined the impact of innovation capabilities on market performance. Innovation capabilities are widely acknowledged as critical ingredients of entrepreneurial performance. Consequently, there has been a plethora of research work on this concept. However, owing to the multifaceted nature of innovation capability as a construct, there has been increased calls for more research on this concept. Hence, this study adopted the survey method and collected data from 170 managers from the Zimbabwean Telecoms sector. Results, analysed using Structural Equation Modelling, revealed the significant direct impact of participatory leadership culture and individual activity on market performance. Individual activity partially mediated the relationship between participatory leadership culture and market performance. However, no mediation was found between work climate and well-being and market performance. This study contributes to the innovation literature by examining the mediating mechanisms through which innovation capabilities enhance firm-level performance. Finally, the research extends the innovation literature by validating the link between innovation capabilities and market performance.