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The Impact of Institutional Pressure on Supply Chain Open Innovation in SMEs: The Mediating Role of Absorptive Capacity

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  • Cong Gao

    (Center for Central and Eastern European Studies, Zhejiang Wanli University, Ningbo, P. R. China†UCSI Graduate Business School, UCSI University, Kuala Lumpur, Malaysia)

  • Siti Fatimah Hashim

    (��UCSI Graduate Business School, UCSI University, Kuala Lumpur, Malaysia¶De Institute of Creative Arts and Design, UCSI University, Kuala Lumpur, Malaysia)

  • Hwee Ling Siek

    (��UCSI Graduate Business School, UCSI University, Kuala Lumpur, Malaysia¶De Institute of Creative Arts and Design, UCSI University, Kuala Lumpur, Malaysia)

  • Yongsheng Luo

    (��Taizhou Vocational and Technical College, Taizhou, P. R. China)

  • CuiHua Xie

    (�Overseas Warehouse and Digital Governance, International Science and Technology Cooperation Base, Wenzhou University of Technology, Wenzhou, P. R. China)

  • Guoqing Yan

    (�Overseas Warehouse and Digital Governance, International Science and Technology Cooperation Base, Wenzhou University of Technology, Wenzhou, P. R. China)

  • Zhaoxia Zhang

    (�Overseas Warehouse and Digital Governance, International Science and Technology Cooperation Base, Wenzhou University of Technology, Wenzhou, P. R. China)

Abstract

This study analyses the mediating role of absorptive capacity and explores in depth the impact of institutional pressure on open innovation in small and medium-sized enterprises (SMEs). Using structural equation modelling (SEM), based on 306 valid questionnaires, this study reveals that SMEs optimise knowledge acquisition, transformation and application through absorptive capacity. Research has shown that coercive and mimetic pressures can stimulate the knowledge management potential of SMEs and promote their open innovation activities, while normative pressures drive enterprises to focus more on compliance, limiting the possibility of knowledge being transformed into innovative results. This study expands the research on absorptive capacity and open innovation within the framework of knowledge management, providing a new perspective for enterprises to enhance their innovation capabilities through optimising knowledge management strategies in complex institutional environments. It also provides guidance for SMEs to design knowledge management practices based on absorptive capacity, helping them efficiently acquire, integrate and utilise knowledge resources in the face of external pressures to promote innovation and enhance competitiveness. This study will contribute in promoting industrial innovation and the integration and application of knowledge resources, thereby achieving SDG 9: industry, innovation and infrastructure, and SDG 17: partnerships for the goals.

Suggested Citation

  • Cong Gao & Siti Fatimah Hashim & Hwee Ling Siek & Yongsheng Luo & CuiHua Xie & Guoqing Yan & Zhaoxia Zhang, 2025. "The Impact of Institutional Pressure on Supply Chain Open Innovation in SMEs: The Mediating Role of Absorptive Capacity," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-29, August.
  • Handle: RePEc:wsi:jikmxx:v:24:y:2025:i:04:n:s0219649225500315
    DOI: 10.1142/S0219649225500315
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