Explain the relationship between decentralization, employee involvement and absorptive capacity in innovation and performance

In the current era, innovation and innovation performance are inevitable in many organizations. Decentralization creates flexibility that enables companies to respond quickly to changing market, customer and technology needs. Employee involvement creates dynamism in the organization and absorptive capacity as an important indicator enables companies to acquire, absorb, transform, and exploit knowledge to maintain competitive advantage. Therefore, the purpose of this research is to examine organizational aspects such as decentralization, employee involvement, absorptive capacity and their interactions on the performance of business innovation and business performance. The research method was survey-analytical and using a questionnaire. The reliability of the questionnaire was confirmed using Cronbach's alpha coefficient which was 0.943 and the validity was confirmed based on the content validity measurement and Lavche formula (CVR). The statistical population includes the staff of the General Department of Wagons. Using random sampling, 50 questionnaires were completed and analyzed by SPSS software. The results of the research show that decentralization, employee involvement and absorptive capacity are positively associated with innovation performance and innovation performance also affects business performance.