The mediating role of organisational absorptive capacity in the effect of corporate memory and organisational agility on firm performance

In today's dynamic business world, organizations need to be in harmony with environmental sustainability and be able to effectively manage change to cope with intense competition and rapid technological developments. The high rate of change experienced globally, especially the developments in information systems and increasing digitalization, affects all sectors, causing organizations to continue their activities in increasingly volatile markets. The need to quickly adapt to these changes brings to the fore dynamic concepts such as organizational agility, organizational absorptive capacity and corporate memory in terms of organizations learning from past knowledge and experiences. In this context, the mediating role of organizational absorptive capacity is investigated by examining the relationships between corporate memory, organizational agility and firm performance in the service sector. It aims to contribute to the enrichment of the literature and business life by investigating the effects of the variables examined in this study on firm performance in the service sector context. Within the scope of the research, data was collected through a survey from 445 people, including business owners and managers, working in the service sector in Istanbul, Turkey. The collected data were analyzed using SPSS 24 and Smart PLS 4 programs. As a result of the analyses, it was partially supported that organizational absorptive capacity has a mediating role in the effect of corporate memory and organizational agility on firm performance.