The current literature has investigated the direct relationship between collaborative innovation networks and new product performance, but the results are inconsistent. This research aims to explore the role of product and process innovation capabilities as two distinct mechanisms through which collaborative innovation networks improve new product performance. The study also examines the contingent effects of absorptive capacity on the relationship between collaborative innovation networks and the two innovation capability dimensions (i.e. product and process innovation). Survey data from 258 respondents from the Iranian high and medium technology manufacturing industries indicates the need for caution when developing collaborative innovation networks. We found that the effects of collaborative innovation networks on either product or process innovation capability are significant only in the presence of absorptive capacity. This finding suggests that the level of collaboration with different partners can enhance firms' innovation capabilities only if the focal firm's managers have developed the capacity to scan and acquire external knowledge. Our analyses further indicate that in the presence of absorptive capacity, only collaboration with research organizations and competitors have a positive effect on product innovation capability. In the case of process 2 | P a g e innovation capability, collaboration with research organizations and suppliers are the most important factors.

The recent marketing literature identifies market orientation and marketing capabilities as key concepts that firms should use to achieve their competitive advantages. Previous research also confirms cross effects of these dimensions in firms' performance. The present study extends the literature on this subject by introducing absorptive capacity (AC) as a moderator of the relationship among market orientation, the interaction of market orientation and marketing capability, and firms' new product performance. This study empirically examines the research model using survey data from 188 manufacturing firms in Sweden. The findings confirm previous studies that claim a positive relationship among market orientation, marketing capability, and new product performance. More importantly, the results indicate that AC positively moderates the relationship between market orientation and firms' new product performance. Furthermore, the findings suggest that experts should consider AC as a competitive factor in line with the complimentary effect of market orientation and marketing capability. This consideration would contribute to explain better firm-related performance, such as new product performance.

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Purpose – The purpose of this paper is to employ agility concept to develop a contingency perspective of relationship between suppliers' involvement, absorptive capacity (AC) and product innovation ( PI ). While the moderating effect of AC on the relationship between supplier involvement and PI performance is investigated, a firm's agility in PI is entered as one dimension of the firm's performance to accommodate a multidimensional perspective. Design/methodology/approach – The paper formulates six hypotheses extracted from the relevant literature. The survey was conducted over the internet by using web-based questionnaire. A sampling frame of 1,200 manufacturing UK-based companies provided 233 usable responses. A confirmatory factor analysis was used to test a validity and reliability of constructs and further the paper employed hierarchical multiple regression to test the research hypotheses. Findings – The results while reaffirm some of the existing theories of the subject provide some differing view of the issues allowing projection of new insight on the approach to PI and involvement of suppliers. The results support the proposition of PI performance multidimensionality where achievements beyond financial and market-related factors play a critical role. Furthermore, research findings suggest AC as a competitive factor that can provide the grounds for proactively winning in the PI game through increasing agility capabilities. Research limitations/implications – This study uses a random sample of UK manufacturing companies, which could be extended to firms from outside the UK too. Originality/value – The paper provides a new insight into the existing literature on “new product innovation” and its relationship with suppliers' involvement as well as the firm's AC by employing agility perspective, as a leading theory to explain dynamics and uncertainties in the business environment.

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