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The interaction effect of absorptive capacity and partner types on product innovation in SMEs

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  • Soohyun Park
  • Seung-Pyo Jun
  • Chul Lee
  • Hyoung Sun Yoo

Abstract

This paper aims to examine the relationship between absorptive capacity (ACAP) of small and medium-sized enterprises (SMEs) and their external partner types for successful product innovation. There has been little empirical research regarding the synergy between SMEs’ internal capabilities and partner types in collaborative R&D projects. We developed and tested an integrated model from the knowledge- and resource-based views to explain the substantial disparities in payoff of collaborative R&D projects that exist between firms. Our study of 2,360 government-funded R&D projects in South Korea found that the direct effect of ACAP and interactions with science-based partners had a positive effect on product innovation success, whereas interactions with market-based partners had no significant effect. Our findings provide meaningful evidence for SMEs and policymakers who have to decide between R&D partners for their innovation strategy.

Suggested Citation

  • Soohyun Park & Seung-Pyo Jun & Chul Lee & Hyoung Sun Yoo, 2024. "The interaction effect of absorptive capacity and partner types on product innovation in SMEs," Knowledge Management Research & Practice, Taylor & Francis Journals, vol. 22(4), pages 418-429, July.
    • Handle: RePEc:taf:tkmrxx:v:22:y:2024:i:4:p:418-429
    DOI: 10.1080/14778238.2023.2261891
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