Mohammad Suleiman Awwad , Ala'a Adden Abuhommous , Ali Mohammad Adaileh
{"title":"揭示吸收能力、创新和财务绩效之间的关系:一项纵向研究","authors":"Mohammad Suleiman Awwad , Ala'a Adden Abuhommous , Ali Mohammad Adaileh","doi":"10.1016/j.ijis.2025.02.001","DOIUrl":null,"url":null,"abstract":"<div><div>This study explores the intricate relationships among absorptive capacity, innovation, and financial performance in nonfinancial firms. Using data from COMPUSTAT spanning 1966 to 2020, including 25,392 observations, Tobin's Q is used as a measure of financial performance. Absorptive capacity, measured by the ratio of research and development expenses to total revenue, has a significant positive direct impact on both innovation and financial performance. However, innovation, represented by the natural logarithm of total intangible assets, has a negative influence on financial performance and mediates the positive relationship between absorptive capacity and financial performance. This reveals the suppressive role of innovation in the absorptive capacity-financial performance relationship. This challenges the conventional belief that innovation invariably leads to improved financial outcomes, highlighting the nuanced dynamics involved. The study underscores the trade-offs between short-term gains and long-term potential, emphasizing the complexity of organizational success in today's competitive landscape.</div></div>","PeriodicalId":36449,"journal":{"name":"International Journal of Innovation Studies","volume":"9 2","pages":"Pages 116-128"},"PeriodicalIF":4.2000,"publicationDate":"2025-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"Unravelling the relationship between absorptive capacity, innovation, and financial performance: A longitudinal study\",\"authors\":\"Mohammad Suleiman Awwad , Ala'a Adden Abuhommous , Ali Mohammad Adaileh\",\"doi\":\"10.1016/j.ijis.2025.02.001\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"<div><div>This study explores the intricate relationships among absorptive capacity, innovation, and financial performance in nonfinancial firms. Using data from COMPUSTAT spanning 1966 to 2020, including 25,392 observations, Tobin's Q is used as a measure of financial performance. Absorptive capacity, measured by the ratio of research and development expenses to total revenue, has a significant positive direct impact on both innovation and financial performance. However, innovation, represented by the natural logarithm of total intangible assets, has a negative influence on financial performance and mediates the positive relationship between absorptive capacity and financial performance. This reveals the suppressive role of innovation in the absorptive capacity-financial performance relationship. This challenges the conventional belief that innovation invariably leads to improved financial outcomes, highlighting the nuanced dynamics involved. The study underscores the trade-offs between short-term gains and long-term potential, emphasizing the complexity of organizational success in today's competitive landscape.</div></div>\",\"PeriodicalId\":36449,\"journal\":{\"name\":\"International Journal of Innovation Studies\",\"volume\":\"9 2\",\"pages\":\"Pages 116-128\"},\"PeriodicalIF\":4.2000,\"publicationDate\":\"2025-02-22\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"International Journal of Innovation Studies\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://www.sciencedirect.com/science/article/pii/S2096248725000013\",\"RegionNum\":0,\"RegionCategory\":null,\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q2\",\"JCRName\":\"MANAGEMENT\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Innovation Studies","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S2096248725000013","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"MANAGEMENT","Score":null,"Total":0}
Unravelling the relationship between absorptive capacity, innovation, and financial performance: A longitudinal study
This study explores the intricate relationships among absorptive capacity, innovation, and financial performance in nonfinancial firms. Using data from COMPUSTAT spanning 1966 to 2020, including 25,392 observations, Tobin's Q is used as a measure of financial performance. Absorptive capacity, measured by the ratio of research and development expenses to total revenue, has a significant positive direct impact on both innovation and financial performance. However, innovation, represented by the natural logarithm of total intangible assets, has a negative influence on financial performance and mediates the positive relationship between absorptive capacity and financial performance. This reveals the suppressive role of innovation in the absorptive capacity-financial performance relationship. This challenges the conventional belief that innovation invariably leads to improved financial outcomes, highlighting the nuanced dynamics involved. The study underscores the trade-offs between short-term gains and long-term potential, emphasizing the complexity of organizational success in today's competitive landscape.