The mediating role of organizational capabilities in the relationship between middle managers’ involvement and firm performance: A European study

SummaryDuring the recent decades, management research has paid a lot of attention to the importance of middle managers’ involvement and middle managers’ knowledge in the running of innovative organizations. This study is in line with a growing literature on the crucial role of middle managers in developing organizational capabilities and subsequently in improving company performance. It is suggested that the involvement of middle managers adds value not only to the implementation of strategy but also to its formulation. The objective of this study is to examine how the involvement of middle managers in the strategy making process and their autonomy contribute to developing organizational capabilities and, as a result, to improving firm performance. In other words, we tested the mediating role of organizational capabilities on the relationship between middle managers’ involvement, middle managers’ autonomy and company performance. To this end, we conducted a quantitative empirical study among 372 European companies that reveals that organizational capabilities play a mediating role in the relationship between middle managers’ involvement, middle managers’ autonomy and firm performance.