The Mediating Role of Absorptive Capacity in the Relationship between Strategic Entrepreneurship and Business Performance

Abstract

This study examined the mediating role of absorptive capacity in the relationship between strategic entrepreneurship and business performance in Jordanian pharmaceutical companies. The research population consisted of employees from 19 of these companies. A sample of 300 participants was chosen from the employees of these companies. Utilizing a descriptive analytical approach, a 33-item questionnaire was administered to collect data. Relevant statistical methods were employed for data analysis.

The results of the study revealed that the dimensions of strategic entrepreneurship have a significant influence on business performance in the context of Jordanian pharmaceutical firms. Moreover, strategic entrepreneurship, through its various dimensions, significantly impacts absorptive capacity, which in turn has a major effect on business performance. Consequently, absorptive capacity serves as a mediating variable in the strategic entrepreneurship-business performance relationship.

Based on these findings, the study recommends that Jordanian pharmaceutical companies embrace the dimensions of entrepreneurial strategy, particularly entrepreneurial leadership and culture, by providing the necessary resources to foster these dimensions. This entails the adoption of an entrepreneurial vision that stimulates innovation while establishing a supportive organizational culture, and encouraging the innovative process. Furthermore, Jordanian pharmaceutical firms are advised to integrate absorptive capacity in their operations, given its crucial role in enhancing their ability to execute entrepreneurial strategy dimensions which will ultimately elevate the overall business performance.