The impact of strategic quality orientation and absorptive capacity on sustainable business growth: the mediating role of innovation

The purpose of this study is to investigate the impact of strategic quality orientation and absorptive capacity on sustainable business growth with the mediating role of innovation.

This study is categorized as applied and descriptive. The statistical population was all managers and experts of Shir Pegah Company in Tehran and the sample size was calculated as 207 people based on Morgan and Krejcie's table. The sampling method was simple random sampling and data collection was done by a researcher-made questionnaire. The content validity of the questionnaire was confirmed using an expert's opinion and its reliability was confirmed by Cronbach's alpha coefficient. Data analysis was performed using the Structural Equation Modeling (SEM)  method in PLS software.

The findings showed that strategic quality orientation and absorptive capacity, both, have a significant impact on innovation and sustainable business growth in Shir Pegah Company. Innovation has a mediating role in the impact of strategic quality orientation and absorptive capacity on sustainable business growth. Based on findings, companies can focus on strategic quality practices, leadership commitment, employee management, continuous improvement, company quality culture, and focus on customer needs; because it enables them to achieve a high level of exploitation and exploration innovation and sustainable business growth. Because while growing business and exploring exploratory innovation is not easy and requires a lot of resources for organizational learning, harnessing existing capabilities may not lead to sustainable competitive advantage.

Originality/Value: 

The concept of strategic quality orientation is derived from the general principles of total quality management and has a significant impact on the sustainable business performance. Innovation is also recognized as the most important strategic option that can significantly increase the organization's ability to meet the changing needs of customers and changing technology and maintain competitive performance. Given the research gap that has existed in previous studies, this study examines the impact of strategic quality orientation and absorptive capacity on sustainable business growth with the mediating role of innovation in the dairy industry.