The Mediating Effect of Organizational Innovation on the Relationship Between Opportunity Competency and Sustainable Performance in Myanmar-Based Trading Companies in Bangkok
Main Article Content
Abstract
This study examined the mediating role of organizational innovation in the relationship between opportunity competency and sustainable performance in Myanmar-based trading companies in Bangkok, Thailand, employing a quantitative research approach grounded in resource-based theory. Survey data were collected from 408 top executives, representing the top three key executives from each company in Bangkok, for a response rate of 75.56%. Hypothesis testing using PLS-SEM revealed a series of counterintuitive findings. Results showed that while opportunity competency is a significant driver of organizational innovation (β = 0.662, p < .001), it had no direct effect on sustainable performance (β = -0.031, p = .266). Most critically, organizational innovation was found to have a significant negative impact on sustainable performance (β = -0.339, p < .001). Consequently, the overall mediation (H4) was not supported. These findings highlight a critical ‘dark side’ to innovation, suggesting that for these specific SMEs, innovation may be consuming resources and harming long-term viability. The study offers practical recommendations for managers and business owners in the trading industry in Bangkok to prioritize a more cautious and strategic approach to innovation.
Highlights
This study reveals a novel adverse mediation effect in Myanmar-based SMEs in Thailand, demonstrating that organizational innovation significantly harms sustainable performance, thereby challenging the optimistic assumptions of Resource-Based Theory.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright: CC BY-NC-ND 4.0
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