Article Sidebar

Download
Download Article

Main Article Content

Abstract

Organizational forgetting is one of the keys to success in improving innovation performance in a business for Small and Medium Enterprises (SMEs). This study examines the direct and indirect effects of organizational forgetting on innovation performance through absorptive capacity. This study was conducted on 135 SME owners in Jakarta and Tangerang. PLS-SEM was used as the analysis method of this study. The results show that organizational forgetting plays an important role directly and indirectly in innovation performance through absorptive capacity. Absorption capacity has a significant direct effect on innovation performance. The ability of SMEs to receive information and knowledge can improve their business ability to innovate. The findings of this study indicate the importance of organizational forgetting or not learning in SMEs.

Keywords

Organizational Forgetting Absorptive Capacity Innovation Performance Small and Medium Enterprises

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite
Bongso, G., & Dumonda Silitonga, V. (2025). Revisiting the Past to Innovate the Future: The Mediating Impact of Absorptive Capacity on Organizational Forgetting and Innovation Performance in SME. Golden Ratio of Marketing and Applied Psychology of Business, 5(2), 332–338. https://doi.org/10.52970/grmapb.v5i2.979
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Ardito, L., Raby, S., Albino, V., & Bertoldi, B. (2021). The duality of digital and environmental orientations in the context of SMEs: Implications for innovation performance. Journal of Business Research, 123, 44–56.
  2. Asmaraningtyas, L. W., Rahmawati, I. D., & Fitriyah, H. (2024). Green Business Innovation: Sustainable Business Model Development through Integration of Business Model Canvas, Design Thinking, and Islamic Business Ethics. Golden Ratio of Marketing and Applied Psychology of Business, 4(1), 57–74. https://doi.org/10.52970/grmapb.v4i1.337
  3. Ayduğ, D., & Ağaoğlu, E. (2023). The mediation role of intentional organizational forgetting in the relationship between organizational learning and innovation management. Journal of Workplace Learning, 35(1), 17–34.
  4. Budiono, I., & Bongso, G. (2024). Increasing Innovation Performance in SMEs Trade: Organizational Forgetting, Knowledge Management, and Business Agility as Predictors. Journal of Distribution Science, 22(6), 23–32.
  5. Chen, Y.-S., Lin, M.-J. J., & Chang, C.-H. (2009). The positive effects of relationship learning and absorptive capacity on innovation performance and competitive advantage in industrial markets. Industrial Marketing Management, 38(2), 152–158.
  6. De Holan, P. M., & Phillips, N. (2004). Organizational forgetting as a strategy. In Strategic Organization (Vol. 2, Issue 4, pp. 423–433). Sage Publications Sage CA: Thousand Oaks, CA.
  7. Easterby-Smith, M., & Lyles, M. A. (2011). In praise of organizational forgetting. Journal of Management Inquiry, 20(3), 311–316.
  8. Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedts, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (Third Edition). Sage.
  9. Hong, J., Zheng, R., Deng, H., & Zhou, Y. (2019). Green supply chain collaborative innovation, absorptive capacity, and innovation performance: Evidence from China. Journal of Cleaner Production, 241, 118377.
  10. Huang, D., Chen, S., Zhang, G., & Ye, J. (2018). Organizational forgetting, absorptive capacity, and innovation performance: A moderated mediation analysis. Management Decision, 56(1), 87–104.
  11. Irfandi, N., Halim, E. H., & Wijayanto, G. (2024). The Impact of Market Orientation, Product Innovation, and Competitive Advantage on the Marketing Performance of Culinary Enterprises. Golden Ratio of Marketing and Applied Psychology of Business, 5(1), 66–81. https://doi.org/10.52970/grmapb.v5i1.784
  12. Klammer, A., & Gueldenberg, S. (2020). Honor the old, welcome the new: an account of unlearning and forgetting in NPD teams. European Journal of Innovation Management, 23(4), 581–603.
  13. Kobarg, S., Stumpf-Wollersheim, J., & Welpe, I. M. (2018). University-industry collaborations and product innovation performance: The moderating effects of absorptive capacity and innovation competencies. The Journal of Technology Transfer, 43(6), 1696–1724.
  14. Lu, C., Yu, B., Zhang, J., & Xu, D. (2021). Effects of open innovation strategies on innovation performance of SMEs: evidence from China. Chinese Management Studies, 15(1), 24–43.
  15. Mennens, K., Van Gils, A., Odekerken-Schröder, G., & Letterie, W. (2018). Exploring antecedents of service innovation performance in manufacturing SMEs. International Small Business Journal, 36(5), 500–520.
  16. Nafei, W. A. (2017). The impact of organizational forgetting on knowledge management: evidence from pharmaceutical industry in Egypt. International Business Research, 10(11), 193–205.
  17. Oo, N. C. K. K., & Rakthin, S. (2022). Integrative Review of Absorptive Capacity's Role in Fostering Organizational Resilience and Research Agenda. Sustainability, 14(19), 12570.
  18. Qian, P., & Oe, A. (2024). The impact of the organizational crisis on forgetting and relearning: an empirical study of unlearning in the Japanese electrical industry. International Journal of Technology Management, 94(1), 135–155.
  19. Xie, X., Zou, H., & Qi, G. (2018). Knowledge absorptive capacity and innovation performance in high-tech companies: A multi-mediating analysis. Journal of Business Research, 88, 289–297.
  20. Zou, T., Ertug, G., & George, G. (2018). The capacity to innovate: A meta-analysis of absorptive capacity. Innovation, 20(2), 87–121.