Unpacking the drivers of innovation performance: The interplay between managerial, relational, technological, and learning capabilities with innovation strategy

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Abstract

In this paper, the effect of managerial, relational, technological, and learning capabilities on innovation performance is analyzed with a focus on the mediating function of innovation strategy. Leveraging the resource-based view (RBV), dynamic capabilities theory, and absorptive capacity theory, the research deepens our understanding of how companies can use internal and external strengths to advance innovation results (Chen & Kim, 2023; Gama & Magistretti, 2025). According to a quantitative design, the research draws on survey data from 208 Growth Enterprise Market (GEM)-listed high-tech small and medium-sized enterprises (SMEs) in China, analyzed with partial least squares structural equation modeling (PLS-SEM) in SmartPLS 4.0. The results indicate that the four organizational capabilities all have positive effects on innovation performance, while innovation strategy plays a vital mediating role, converting these capabilities to innovation outcomes. These findings emphasize the necessity for integrating managerial, technological, relational, and learning dimensions with a formal innovation strategy to achieve sustainable innovation success. The study provides practical implications for business executives and policymakers by emphasizing the necessity of capability development, strategic intent, and well-defined innovation management in changing market conditions.

Keywords: Innovation Performance, Managerial Capabilities, Relational Capabilities, Technological Capabilities, Innovation Strategy

Authors’ individual contribution: Conceptualization — Y.X.; Methodology — Y.X.; Validation — A.R.J.; Formal Analysis — Y.X.; Investigation — K.K.Y.; Resources — A.R.J.; Data Curation — K.K.Y.; Writing — Original Draft — Y.X.; Writing — Review & Editing — K.K.Y. and A.R.J.; Visualization — K.K.Y.; Supervision — Y.X.; Project Administration — A.R.J.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: L21, M10, O31

Received: 13.03.2025
Revised: 22.05.2025; 18.06.2025; 02.08.2025
Accepted: 19.08.2025
Published online: 22.08.2025

How to cite this paper: Xing, Y., Yeoh, K. K., & Jaafar, A. R. (2025). Unpacking the drivers of innovation performance: The interplay between managerial, relational, technological, and learning capabilities with innovation strategy. Business Performance Review, 3(1), 105–116. https://doi.org/10.22495/bprv3i1p10