Managing intellectual capital: role of corporate entrepreneurship and absorptive capacity on firm performance

Drawing upon the resource-based view (RBV) theory, the present study examined the mediating role of absorptive capacity on the relationship between corporate entrepreneurship and firm performance. A time lagged survey-based quantitative study was carried out for which the questionnaire was adopted from different published sources. With a total of 347 responses, the data was analysed using SmartPLS-3. The findings of the study supported all the hypotheses. The direct corporate entrepreneurship and firm performance relationship sought empirical support. Accordingly, absorptive capacity resulted as a significant contributor towards firm performance. Notably, it also mediated the corporate entrepreneurship and firm performance association. The paper underlines the novel idea of mediating role of absorptive capacity (ACAP) on the corporate entrepreneurship and firm performance relationship. In doing so, this paper explains how information plays a critical role in enabling a culture and performance factor of an organisation.