Crowdsourcing-based social linkage and organizational innovation competence: knowledge transfer effectiveness and absorptive capacity as serial mediators

Abstract

Purpose The purpose of this research is to examine the impact of crowdsourcing-based social connections on the development of innovation competence (IC). The conflicting results in existing studies regarding the influence of crowdsourcing-based social linkage on IC necessitate a thorough investigation into this relationship. Design/methodology/approach The research uses a sample of 300 senior managers from various industries in India. The data is analyzed using partial least squares (PLS), a component-based approach to structural equation modeling. Findings The results of the analysis indicate that knowledge transfer effectiveness and absorptive capacity (ABC) play a significant role as mediators in the relationship between social linkages based on crowdsourcing and IC. This suggests that the effectiveness of knowledge transfer and the organization’s ability to absorb and apply new knowledge are crucial factors in leveraging crowdsourcing-based social connections for enhanced innovation capabilities. Practical implications The findings of this study hold crucial implications for managerial practices. The research highlights that successful crowdsourcing outcomes necessitate more than mere establishment of external social linkages. Managers must recognize that internal organizational readiness plays an equally critical role. This study offers two key managerial insights: first, exclusive focus on external linkages is inadequate; internal capabilities such as ABC and optimized knowledge transfer processes must be actively nurtured. Second, the concept of “crowdsourcing maturity” is introduced, emphasizing the evolving dynamic capabilities over time. Managers are urged to adopt a balanced approach, aligning external partnerships with internal adaptability, to fully optimize IC. Originality/value This research contributes to the existing body of knowledge by shedding light on the mediating variables that influence the conversion of crowdsourcing-based social linkage into improved IC. By considering the role of knowledge transfer effectiveness and ABC, the study provides insights into the mechanisms through which social linkages based on crowdsourcing can impact innovation capabilities. These findings offer valuable implications for organizations seeking to leverage crowdsourcing for innovation purposes and enhance their overall IC.