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Distance to Customers, Absorptive Capacity, and Innovation in High‐Tech Firms: The Dark Face of Geographical Proximity

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  • Manuela Presutti
  • Cristina Boari
  • Antonio Majocchi
  • Xavier Molina‐morales

Abstract

This paper investigates the impact of both geographical and relational proximity on the innovative performance of the firm. We address the role of one firm characteristic—its absorptive capacity—as a specific contingency affecting the relationship between different proximities and innovation. Using data from 158 high‐tech firms located in the Tiburtina Valley in Italy, we studied the relationship between these firms and their key customers. Our findings support the need to downplay the role of geographical proximity in promoting innovation. Our results also show that relational proximity to key customers has a complementary relationship with absorptive capacity, which positively moderates its influence on innovative performance.

Suggested Citation

  • Manuela Presutti & Cristina Boari & Antonio Majocchi & Xavier Molina‐morales, 2019. "Distance to Customers, Absorptive Capacity, and Innovation in High‐Tech Firms: The Dark Face of Geographical Proximity," Journal of Small Business Management, Taylor & Francis Journals, vol. 57(2), pages 343-361, April.
  • Handle: RePEc:taf:ujbmxx:v:57:y:2019:i:2:p:343-361
    DOI: 10.1111/jsbm.12323
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    Cited by:

    1. Shahid, Pirzada Syed Rizwan, 2023. "Founder's Human Capital and the Entrepreneurial Process Duration," OSF Preprints yf6mg, Center for Open Science.
    2. Sharma, Prateek & Shukla, Dhirendra Mani & Raj, Alok, 2023. "Blockchain adoption and firm performance: The contingent roles of intangible capital and environmental dynamism," International Journal of Production Economics, Elsevier, vol. 256(C).
    3. Brieger, Steven A. & Chowdhury, Farzana & Hechavarría, Diana M. & Muralidharan, Etayankara & Pathak, Saurav & Lam, Yan Tong, 2022. "Digitalization, institutions and new venture internationalization," Journal of International Management, Elsevier, vol. 28(4).

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