The Effects of Boundary-Spanning Search, Network Ties, and Absorptive Capacity for Innovation: A Moderated Mediation Examination

Abstract

Innovation is a key driver for organizations to survive and thrive in increasingly hyper-competitive markets. This study investigates the effects of boundary-spanning search on innovation capability. Specifically, it examines the mediating and moderating effects of network ties and absorptive capacity on boundary-spanning search and innovation in Chinese companies. We constructed a theoretical model of an organization’s boundary-spanning search and innovation capability and distributed a survey questionnaire to a sample of specific industries with upstream and downstream relations in Sichuan Province in China for their responses. Results from the study reveal that boundary-spanning search has a positive and significant impact on innovation capability as well as a positive moderating effect on absorptive capacity and innovation capability. This paper shows that enterprises need to continuously focus on exploring networking opportunities in direct and indirect ways to get access to effective flow and diffusion of resources, which in turn can enhance innovation capability.

Impact of knowledge search on product and process innovation: mediating role of absorptive capacity and moderating role of IT capability

“…First, in line with previous empirical research (Flor et al , 2018; Ze et al , 2018), our results show that the knowledge search strategies have a directly significant positive impact on product and process innovation. Furthermore, this study fills the research gap that few studies have examined the differences between the two search behaviors and two different innovative types.…”

How Does A Firm’s Previous Social Network Position Affect Innovation? Evidence from Chinese Listed Companies

“…There is a controversy about whether the increase in social network cooperation is beneficial to innovation in previous empirical studies [28]. Most current research explains the difference in empirical results using the three-dimensional classification of social capital, including relational dimension [52], structural dimension [53], and cognitive dimension [54]. The results of this study show that time is another key dimension that creates a complex impact of social network position on innovation.…”

The Penetration of Green Innovation on Firm Performance: Effects of Absorptive Capacity and Managerial Environmental Concern

“…Our results confirm a positive influence of absorptive capacity on the linkage between green innovation and firm performance dimensions. Indeed, a firm's ability to source and apply external information (absorptive capability) plays a critical role in business growth and sustainability [29]. As fresh knowledge and ideas are generated from external sources through research and development (R&D) activities [29,101], firms can augment internal knowledge and technology stock to ameliorate the costs associated with the process of applying and sustaining green innovation in an organization.…”

“…For the past two decades, the work on absorptive capacity has developed significantly. It has been noted as a principal driving factor for firms implementing innovative plans [29,30]. The concept improves inter-or intra-firm learning [31], and also offers support to partners on the inter-or intra-firm network channel [32].…”