Investigating the mediating role of managerial engagement in the South African university service retail sector toward innovation and organisational performance

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.