The Effect of Knowledge Absorptive Capacity and Corporate Foresight Capabilities on Organizational Performance (Study of Case: Iranian Banking System)

This article aimed at promoting banking industry performance by combining capabilities of knowledge absorptive capacity and corporate foresight in organizations, as well as its effects on innovation and strategic decision-making. Initially, introducing knowledge absorptive capacity and corporate foresight, different dimensions of the construct are mentioned. Then, the relationship between knowledge absorptive capacity and corporate foresight and innovation and strategic decision-making is examined and its effect on organizational performance is analyzed through a structural model.

Using questionnaire and financial analyses, data was collected from the banking industry of Iran including 30 banks (Commercial Government banks, Specialized Government banks, Gharzolhasaneh and Non-Government Banks). Reliability of the measurement model with 93 samples was confirmed through descriptive, inferential statistical analyses and Structural Equation Modeling (SEM) and Importance-Performance Map Analysis (IPMA), using SPSS and SmartPLS software.

The results indicate that there is a significant relationship between knowledge absorptive capacity and corporate foresight. Knowledge absorptive capacity is also indirectly affecting organizationl performance through innovation, corporate foresight and strategic decision-making. Corporate foresight is directly affecting organizational performance and is also indirectly affecting organizational performance with mediation of innovation and strategic decision-making.