Absorptive capacity affects innovation. However, little is known about interorganizational factors that shape absorptive capacity, especially in low- and medium- tech firms. We offer new insights into how various types of external collaborations affect different dimensions of absorptive capacity. Considering the antecedents and consequences of absorptive capacity, we shed light on how low- and medium-tech firms can bolster their ability to absorb external knowledge and harness it to advance product innovation. Examining 171 firms within Iran’s automotive sector suggests that the scope of novel knowledge, more than the firm’s place in the knowledge hierarchy, influences potential absorptive capacity, and that realized absorptive capacity is linked to product innovation.
Co-author (s): Omid Aliasghar
Journal: Research-Technology Management
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