Innovation capability and firm competitiveness in Ethiopian industrial parks: The moderating role of human capital

Abadir Abrahim Yusuf (), Shimelis Zewdie () and Chalchisa Amentie Kero ()

Journal of Asian Scientific Research, 2024, vol. 14, issue 4, 641-658

Abstract: This research examines the innovation capability and firm competitiveness in Ethiopian industrial parks. Extant empirical literature has demonstrated the crucial role of innovation capability for competitiveness. However, only a few studies have examined the interplay between human capital and innovation capacity in terms of the competitive performance of firms. To this end, this study examines how innovation capability in Ethiopian industrial parks affects firm competitiveness by considering the moderating role of human capital. By adopting a quantitative approach, cross-sectional survey data was collected from 81 active manufacturing firms by targeting firm managers. Partial least squares structural equation modeling (PLS-SEM) using SmartPLS 4 was employed to analyze the data and test the study hypotheses. The results reveal that human capital does not moderate the relationship between innovation capability and firm competitiveness but rather partially mediates it. The findings highlighted that the development of firm human capital quality—creativity and innovative skills—is essential for enhanced firm innovation capacity and competitiveness. Therefore, firms aspiring to develop their competitiveness—operational capability, dynamic capability, and market performance—need to focus not only on developing innovation capacity but also on developing their human capital competencies for innovation. The study helps organizations develop effective innovation capacity development strategies to ensure greater firm competitiveness.

Keywords: Absorptive capacity; Dynamic capability; Ethiopia; Firm competitiveness; Human capital; Industrial parks; Innovation capability; Managerial capability; Marketing capability; Operational capability. (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://archive.aessweb.com/index.php/5003/article/view/5223/8095 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:asi:joasrj:v:14:y:2024:i:4:p:641-658:id:5223

Access Statistics for this article

More articles in Journal of Asian Scientific Research from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().