Project performance and innovation: The impact of absorptive capacity and learning culture

Previous studies indicate that absorptive capacity (ACAP) is a key factor for companies to achieve dynamic capability and competitive advantage. This construct is usually operationalized from two dimensions, namely the potential absorptive capacity (PACAP) and the realized absorptive capacity (RACAP). This study investigates the influence of both ACAP dimensions concerning project performance and project innovation, in addition to analyzing the mediating role played by the learning culture in these relations. Moreover, these relations are investigated based on the structural equation modeling (SEM) method, using the partial least square (PLS) approach, applied to a sample of 128 companies in the automotive industry that manufacture auto parts. According to the results, project performance and project innovation are differently impacted by PACAP and RACAP. Furthermore, the study points out that learning culture only influences relations between RACAP and project performance and project innovation.