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Moderating Effect of Structural Holes on Absorptive Capacity and Knowledge-Innovation Performance: Empirical Evidence from Chinese Firms

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  • Xiaomin Zhou

    (School of Economics & Management, Tongji University, Shanghai 200092, China)

Abstract

Under open innovation, the position of the innovation subject in the knowledge network plays a vital role. The purpose of this paper was to identify the role of structural holes in the relationship between the knowledge-absorption capacity and the innovation performance. Previous studies have ignored the role of structural holes in this relationship. Moreover, there are differences between structural-hole theory and weak-relationship theory on the mechanism of the network location on the innovation performance. A hierarchical regression model was applied to test the hypothesis. The findings from a study of 74 Chinese-listed integrated-circuit companies confirm the positive effect that the absorptive capacity has on the innovation performance, as well as the moderating role of structural holes in this relationship. By benefiting from the advantages of information and control, structural-hole spanners often have stronger knowledge-absorption abilities, and they thus achieve higher innovation performances. The results suggest that the synergy of structural holes should be taken seriously by those enterprises that are trying to strengthen their knowledge-absorption abilities to improve their innovation performances.

Suggested Citation

  • Xiaomin Zhou, 2022. "Moderating Effect of Structural Holes on Absorptive Capacity and Knowledge-Innovation Performance: Empirical Evidence from Chinese Firms," Sustainability, MDPI, vol. 14(10), pages 1-13, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:10:p:5821-:d:813458
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