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Exploring the moderating effects of absorptive capacity on the relationship between social networks and innovation

Author

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  • Ahlin, Branka
  • Drnovšek, Mateja
  • Hisrich, Robert D.

Abstract

Although networks in prior research have been highlighted as a remedy to resource constraints experienced by smaller firms, little attention has been paid to understanding mechanisms through which smaller firms benefit from networks for effective innovation performance. In this paper we develop a conceptual model of direct and moderated network effects on a firm’s innovation. We test this model on a large sample of small and medium-sized firms from a post-transitional and developed economy. We show that absorptive capacity moderates the relationship between networks and innovation outcomes, but with some country level variations. The implications of these results in relation to entrepreneurship theory and practice are discussed.

Suggested Citation

  • Ahlin, Branka & Drnovšek, Mateja & Hisrich, Robert D., 2014. "Exploring the moderating effects of absorptive capacity on the relationship between social networks and innovation," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 19(2), pages 213-235.
    • Handle: RePEc:rai:joeems:jeems-2014-02-ahlin
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    Cited by:

    1. Abou-Foul, Mohamad & Ruiz-Alba, Jose L. & López-Tenorio, Pablo J., 2023. "The impact of artificial intelligence capabilities on servitization: The moderating role of absorptive capacity-A dynamic capabilities perspective," Journal of Business Research, Elsevier, vol. 157(C).
    2. Francesco Saverio Massari & Maria Teresa Riggio & Donato Calace, 2015. "Legal and Managerial Implications of the Italian ‘Contratto Di Rete’," Management, University of Primorska, Faculty of Management Koper, vol. 10(2), pages 131-148.
    3. , Aisdl, 2019. "Creativity and Entrepreneurship: An Exploratory Multiple Case Study of What Entrepreneurs Think," OSF Preprints w2nfz, Center for Open Science.
    4. Marta Gancarczyk & Jacek Gancarczyk & Joanna Bohatkiewicz, 2017. "SME Roles in Modular Value Chains: Perspectives for Growth and Innovativeness," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(3), pages 95-117.
    5. Scott W. Hegerty & Arkadiusz M. Kowalski & Małgorzata S. Lewandowska, 2023. "Complementarity of additionalities resulting from European Union funds: Perspective of the users of research infrastructures," Review of Policy Research, Policy Studies Organization, vol. 40(2), pages 307-331, March.
    6. Marta Gancarczyk & Joanna Bohatkiewicz, 2018. "Research Streams in Cluster Upgrading. A Literature Review," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 4(4), pages 17-42.
    7. Huatao Peng & Chen Zhou & Yang Liu, 2020. "Entrepreneurial Experience and Performance: From the Aspect of Sustainable Growth of Enterprises," Sustainability, MDPI, vol. 12(18), pages 1-24, September.
    8. Limaj, Everist & Bernroider, Edward W.N., 2019. "The roles of absorptive capacity and cultural balance for exploratory and exploitative innovation in SMEs," Journal of Business Research, Elsevier, vol. 94(C), pages 137-153.
    9. Marta Gancarczyk & Jon Mikel Zabala Iturriagagoitia, 2015. "The Process of the Growth of Small and Medium-Sized Enterprises (SMEs)," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 11(4), pages 3-24.
    10. Doris Gomezelj Omerzel, 2016. "The Impact of Entrepreneurial Characteristics and Organisational Culture on Innovativeness in Tourism Firms," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 14(1 (Spring), pages 93-110.

    More about this item

    Keywords

    absorptive capacity; entrepreneur networks; innovation; moderating effect; SMEs; cross-cultural;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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