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

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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.

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  • 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, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 19(2), pages 213-235.
    • Handle: RePEc:nms:joeems:jeems-2014-02-ahlin
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    File URL: https://www.nomos-elibrary.de/10.5771/0949-6181-2014-2-213
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    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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