• Abstract

    THE MEDIATING ROLE OF ABSORPTIVE CAPACITY BETWEEN EXTERNAL SOURCES OF KNOWLEDGE AND INNOVATION PERFORMANCE: A CASE STUDY IN AN ELECTRICITY COOPERATIVE

    Published date: 19/12/2023

    Objective: This study investigates the mediating role of absorptive capacity between external sources of knowledge and product innovation performance within the context of an electricity cooperative.

    Design/Methodology/Approach: Conducted with a quantitative methodology, the study involved administering a questionnaire to 82 supplier companies of an electricity cooperative, using the Partial Least Squares (PLS) method to test the structural model.

    Results: The findings indicate that external sources of knowledge, mediated by absorptive capacity, have a significant and positive association with the performance of product innovation. Organizations need to utilize both scientific and industrial external sources of knowledge to develop both potential and realized absorptive capacities, in order to perceive financial, market, technical, customer, and strategic benefits from innovation.

    Originality/Value: This highlights the strategic importance of knowledge management in maintaining competitive and innovative organizations in the current business environment. In this sense, the study addresses the need for organizations to develop practices related to knowledge absorption, emphasizing that these practices not only allow for the acquisition of relevant business information but also facilitate the propagation and transformation of routines, leading to improvements in products and services.

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