THE MEDIATING ROLE OF ORGANISATIONAL ABSORPTIVE CAPACITY IN THE EFFECT OF CORPORATE MEMORY AND ORGANISATIONAL AGILITY ON FIRM PERFORMANCE

Abstract

In today's dynamic business environment, organizations need to be in harmony with environmental sustainability as well as managing change effectively in order to cope with intense competition and rapid developments in technology. The need to quickly adapt to these changes brings to the fore dynamic concepts such as organizational agility, organizational absorptive capacity and corporate memory in terms of organizations learning from past knowledge and experiences. In this context, the mediating role of organizational absorptive capacity is investigated by examining the relationships between corporate memory and organizational agility and firm performance in the service sector. It is aimed to contribute to business life by investigating the effects of the variables examined in this study on firm performance in the service sector. Within the scope of the research, data was collected by questionnaires from 429 people, consisting of business owners and managers working in the service sector in Istanbul, Turkey. The collected data were analysed using the SPSS software. As a result of the analysis, it has been confirmed that organizational absorptive capacity has a mediating role in the effect of corporate memory and organizational agility on firm performance. It has been found that a total of four sub-dimensions, namely the history of the organization sub-dimension of corporate memory, the flexibility and speed sub-dimensions of organizational agility, and the use of knowledge sub-dimension of organizational absorptive capacity, have a positive relationship with firm performance. In addition, according to the research findings, it was concluded that there is a negative relationship between the professional knowledge sub-dimension of corporate memory and company performance.