The influence of management innovation on the organisational performance of KIBS: the mediating role of service innovation and technology

Abstract

Purpose Based on the socio-technical systems theory, this study aims to investigate the impact of management innovation (MI) on organisational performance (OP), as well as the mediating role of technology (TEC) use and service innovation (SI) in linking MI and OP. Design/methodology/approach The research data was derived from 163 knowledge-intensive business services firms and analysed through structural equation modelling using SmartPLS software. Findings This study found a significant impact of MI on OP. The analysis also revealed that TEC use and SI influence OP and that MI influences performance indirectly through TEC use and SI. Practical implications This research reinforces the role of MI in firms aiming at improving their performance. The findings of this study suggest that managers’ regular initiatives in management practices, processes and structures influence the enabling role of TEC use and SI on OP. Originality/value Since not every MI lead to the planned performance, this research contributes to the literature on the influence of MI on OP by providing empirical evidence on the role of TEC use and SI on OP. TEC use and SI serve as complementary mediators. Higher levels of MI directly increase OP but also increase TEC use and SI, leading to OP.