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Social capital, absorptive capability, and firm innovation

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  • Yu, Sui-Hua

Abstract

The purpose of this study is to examine the relationship between social capital and firm innovation as well as the moderating effects of absorptive capability. In general, network-level technological diversity is utilized to measure a firm's social capital and in this case, an empirical investigation of 748 high-tech firms in Taiwan indicates that such diversity in a firm's social network has an inverted U-shaped relationship with the firms' innovation performance. In addition, we find that by increasing absorptive capability, it will systematically increase the slope and amplitude of the positive effects of diversity as well as maximize the overall value of network-level technological diversity for firm innovation performance. These results also suggest that an overabundance of network-level technological diversity can have a negative impact on firm innovation while a moderate level of such diversity can lead to high levels of innovation performance.

Suggested Citation

  • Yu, Sui-Hua, 2013. "Social capital, absorptive capability, and firm innovation," Technological Forecasting and Social Change, Elsevier, vol. 80(7), pages 1261-1270.
    • Handle: RePEc:eee:tefoso:v:80:y:2013:i:7:p:1261-1270
    DOI: 10.1016/j.techfore.2012.12.005
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    Cited by:

    1. Wang, Liukai & Li, Min & Wang, Weiqing & Gong, Yu & Xiong, Yu, 2023. "Green innovation output in the supply chain network with environmental information disclosure: An empirical analysis of Chinese listed firms," International Journal of Production Economics, Elsevier, vol. 256(C).
    2. Atzmon, Morane Batya & Vanderstraeten, Johanna & Albers, Sascha, 2022. "Small-firm growth-enabling capabilities: A framework for young technology-based firms," Technovation, Elsevier, vol. 117(C).
    3. İ. Semih Akçomak & Hanna Müller-Zick, 2018. "Trust and inventive activity in Europe: causal, spatial and nonlinear forces," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(3), pages 529-568, May.
    4. Xiaoli Li & Kun Li & Hao Zhou, 2022. "Impact of Inventor’s Cooperation Network on Ambidextrous Innovation in Chinese AI Enterprises," Sustainability, MDPI, vol. 14(16), pages 1-21, August.
    5. Lian, Xiangpeng & Guo, Ying & Su, Jun, 2021. "Technology stocks: A study on the characteristics that help transfer public research to industry," Research Policy, Elsevier, vol. 50(10).
    6. Chigu Kim & Chul Lee & Jina Kang, 2018. "Determinants Of Firm’S Innovation-Related External Knowledge Search Strategy: The Role Of Potential Absorptive Capacity And Appropriability Regime," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(06), pages 1-33, August.
    7. Zhang, Liangliang & Huang, Shoujun, 2022. "Social capital and regional innovation efficiency: The moderating effect of governance quality," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 343-359.
    8. Sun, Helin & Cappa, Francesco & Zhu, Jia & Peruffo, Enzo, 2023. "The effect of CEO social capital, CEO duality and state-ownership on corporate innovation," International Review of Financial Analysis, Elsevier, vol. 87(C).
    9. Najam ul zia & Ladislav Burita & Yumei Yang, 2023. "Inter-organizational social capital of firms in developing economies and industry 4.0 readiness: the role of innovative capability and absorptive capacity," Review of Managerial Science, Springer, vol. 17(2), pages 661-682, February.
    10. Ortiz García Navas, Beatriz & Donate Manzanares, Mario Javier & Guadamillas Gómez, Fátima, 2019. "Social capital as a theoretical approach in Strategic Management," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    11. Ruiz-Ortega, María J. & García-Villaverde, Pedro M. & Parra-Requena, Gloria, 2018. "How structural embeddedness leads to pioneering orientation," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 186-198.
    12. Arora, Sanjay K. & Foley, Rider W. & Youtie, Jan & Shapira, Philip & Wiek, Arnim, 2014. "Drivers of technology adoption — the case of nanomaterials in building construction," Technological Forecasting and Social Change, Elsevier, vol. 87(C), pages 232-244.
    13. Mindaugas Laužikas & Simona Dailydaitė, 2015. "Impacts of social capital on transformation from efficiency to innovation-driven business," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 16(1), pages 37-51, February.
    14. Heuschneider, Sara & Herstatt, Cornelius, 2016. "External search for exploration of future discontinuities and trends: Implications from the literature using co-citation and content analysis," Working Papers 92, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    15. Hatak, Isabella & Kautonen, Teemu & Fink, Matthias & Kansikas, Juha, 2016. "Innovativeness and family-firm performance: The moderating effect of family commitment," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 120-131.
    16. Kazancoglu, Yigit & Sezer, Muruvvet Deniz & Ozkan-Ozen, Yesim Deniz & Mangla, Sachin Kumar & Kumar, Ajay, 2021. "Industry 4.0 impacts on responsible environmental and societal management in the family business," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    17. Wonglimpiyarat, Jarunee, 2016. "Government policies towards Israel's high-tech powerhouse," Technovation, Elsevier, vol. 52, pages 18-27.
    18. Yu-En Lin & Jia-Qi Yu & Hsiang-Hsuan Chih & Kung-Cheng Ho, 2022. "Near is more: learning efficiency in research and development innovation among interlocking firms," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-30, December.

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