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The Role of Absorptive Capacity and Firm Openness Strategies on Innovation Performance

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  • Gad David Kashosi

    (University of Science and Technology, Beijing, China)

  • Yang Wu

    (University of Science and Technology, Beijing, China)

  • Gutama Kusse Getele

    (University of Science and Technology, Beijing, China)

  • Epede Mesumbe Bianca

    (University of Science and Technology, Beijing, China)

  • Eric Irakoze

    (University of International Business and Economics, Beijing, China)

Abstract

Openness and absorptive capacity are both based on the notion that organizations can use external knowledge to increase their innovation outcome. The objective of this paper is to investigate the joint effect of openness strategies, firms' absorptive knowledge capacity, and the innovation performance of SMEs in a developing country. By using structural equation modeling (SEM) through PLS, the results show that internal practices and means for attracting external knowledge improve innovation performance and indicate that absorptive capacity mediates open search breadth and partially open search depth to affect innovation performance. These results highlight the additional nature of absorptive capacity and reinforce the knowledge of scholars in particularly developing countries.

Suggested Citation

  • Gad David Kashosi & Yang Wu & Gutama Kusse Getele & Epede Mesumbe Bianca & Eric Irakoze, 2020. "The Role of Absorptive Capacity and Firm Openness Strategies on Innovation Performance," Information Resources Management Journal (IRMJ), IGI Global, vol. 33(4), pages 1-16, October.
    • Handle: RePEc:igg:rmj000:v:33:y:2020:i:4:p:1-16
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