The mediating role of innovation capability in efficiency of HCMS-based businesses

Abstract:

The changes in the business environment and the increase in competition level have led organizations to focus on improving their operational efficiency. This paper focuses on the analysis of the impact of agility capability on operational efficiency at enterprises located in Ho Chi Minh City with the mediating role of innovation capability. The data of the study were collected from 224 managers at enterprises in Ho Chi Minh City. Structural equation modeling (SEM) was used for testing hypotheses. The results showed that there is a significant impact of agility capability on operational efficiency and innovation capability. Besides, innovation capability plays a mediating role in improving the relationship between agility capability and operational efficiency. Thereby, the paper gives some recommendations on improving agility capability, innovation capability and operational efficiency.