Abstract:
The digital revolution has inspired endless possibilities in economic growth globally and as a result, retailers in
particular are challenged to re-engineer their systems and processes in order to gain competitive advantage. Apart
from an organisation’s ability to acquire new technologies, there are various internal organisational factors that play a
crucial role in facilitating innovation. Therefore, the primary aim of this study was to investigate the mediating role of
managerial engagement in the relationship between innovation and organisational performance with a South African
University as a service retailer. The study implored a quantitative research design which was conducted with all of
the relevant stakeholders and consisted of a sample size of seventy-six respondents. In order to analyse the study’s
collected data, Statistical Package for Social Sciences (SPSS) was transferred to a second order, reflective-formative
model through Partial Least Squares Structural Equation Modelling (PLS-SEM). After testing the hypothesis by applying
the bootstrapping method, the results of the study revealed that managerial engagement partially mediates the
relationship between innovation and organisational performance in the South African service retail sector. In addition
to that, the study also provided meaningful insight into how innovation positively influences managerial engagement
and organisational performance. Recommendations on how to effectively leverage managerial engagement as a key
driver and facilitator of innovation are also noted.
