Moderating Effect of Absorptive Capacity on the Relationship between Resource Transfer and Innovation Diffusion for Product Co-Creation

Basil Kusi, Cai Li, Shumaila Naz, Jerry Mireku-Afful


Recognizing the growing role of innovation in developing countries under the new field of research at the intersection of innovation management and Development studies and has been opened. This paper explores the moderating effect of absorptive capacity in the relationship between resource transfer and innovation diffusion for product co-creation. The results show that the stronger the absorptive capacity the higher the innovative performance and vice versa and this is statistically significant at 95% confidence interval (p=0.000). This means that, the greater an organization's absorptive capacity, the more probable it will appreciate the value of the knowledge and resources acquired from the network ties. This enables firms to change the transfer of information and resources from just acquisition to a more innovation practice. Having the capacity to do as such should add to any positive outcome that network-based resources could have on resource acquisition since all the information and resources acquired would have been sifted to explicitly address the actual needs of the organization

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