The effect of shipping knowledge and absorptive capacity on organizational innovation and logistics value

Purpose – The purpose of this paper is to examine what types of shipping knowledge are crucial in order for shipping companies to survive in dynamic business environment, and to investigate how the shipping knowledge affects the company’s performance (i.e. organizational innovation and logistics value). This paper also diagnoses the moderating effect of absorptive capacity on the relationship between the shipping knowledge and its effectiveness. Design/methodology/approach – Based on the literature, a theoretical framework and relevant hypotheses are established so as to show associated relationships between shipping knowledge, absorptive capacity, and organizational innovation and logistics value. Data are collected for an empirical analysis and a moderated hierarchical regression analysis is conducted to test the hypotheses. Findings – Results show that a high level of shipping knowledge has a positive influence on the organizational innovation and logistics value of shipping companies. The findings also indicate that, while the absorptive capacity of shipping companies moderates the positive impact of shipping knowledge on the logistics value, it directly affects the improvement of organizational innovation. Research limitations/implications – This research verifies that effective knowledge management of shipping companies plays a significant role in developing organizational innovation and improving logistics performance. The research findings provide shipping companies with a strategic insight into the identification of critical sources for competitive advantage and greater organizational performance from an organizational learning perspective. Practical implications – This line of research is served as an indicator of a good strategic direction for the practitioners engaged in the maritime transport and logistics industry, in order for them to become better integrated entities in a global logistics system as well as maximize their competitive advantages. Originality/value – This paper makes the first attempt in its kind at empirically examining the types of shipping knowledge and its overall effectiveness in terms of the improvement of organizational innovation and logistics value. The moderating role of absorptive capacity on the impact of knowledge on organizational performance has also been initiated in the maritime logistics research.