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Emerald, European Journal of Innovation Management, 2(25), p. 479-500, 2021

DOI: 10.1108/ejim-11-2019-0348

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Geographic search, potential absorptive capacity and radical innovation performance: the moderating role of collaborative network

Journal article published in 2021 by Feng Zhang ORCID, Lei Zhu, Chongchong Lyu
This paper was not found in any repository, but could be made available legally by the author.
This paper was not found in any repository, but could be made available legally by the author.

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Abstract

PurposeA firm's geographic boundaries represent an important demarcation line when searching for new knowledge. Prior research on geographic search has generated conflicting results concerning its influence on firm innovation outcomes. The purpose of this study is to fill the gap by examining how and under which conditions geographic search affects firm radical innovation performance.Design/methodology/approachThis study hypothesizes a positive association between a firm's geographic search and radical innovation performance, which is mediated by potential absorptive capacity (PAC). It further proposes that the influence of geographic search on PAC will be moderated by a firm's collaborative network. Drawing on a random sample of 286 Chinese manufacturing firms, the theoretical model is tested.FindingsThe study's results show a positive relationship between geographic search and radical innovation performance, which is partially mediated by PAC. Moreover, attributes of collaborative networks (i.e. diverse location of and strong relational ties with partners) are observed to enhance the positive effect of geographic search on PAC.Originality/valueThis paper advances the understanding of how and when firms can better capture the benefits of geographic search in the development of radical innovation.