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Competitive Advantage and Knowledge Absorptive Capacity: the Mediating Role of Innovative Capability

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Abstract

The manufacturing industry is constantly faced with the undeniable challenge of gaining and maintaining a competitive advantage in a dynamic and changing marketplace. This study aims to investigate the mediating role of innovation capability between absorptive capacity and competitive advantage. This study focused on the manufacturing industry in the State of Mexico. This research is quantitative and transversal. The confirmatory level of a sample of 116 managers was calculated. The research model was tested by way of second-generation (PLS-SEM) analysis. The findings indicate that innovation capacity is a mediating variable in the relationship between absorptive capacity and competitive advantage. The originality of this study is found in the fact that it is the first study designed as a second-order model. This study constitutes a significant contribution to the literature. Additionally, this study contains a series of practical implications which may contribute to a competitive advantage in emerging markets.

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  1. Department of Administration, Autonomous University of the State of Mexico, Toluca, Mexico

    Minerva Martínez Ávila

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Appendix 1

Appendix 1

Absorptive capacity

Acquisition

  • Ac-1 In order to acquire new knowledge, our company regularly interacts with other organizations.

  • Ac-2 Our employees visit other departments regularly to acquire new knowledge.

  • Ac-3 Our company collects information from the industrial sector by informal means such as meals with friends in the sector or conversations with business partners.

  • Ac-4 In general, new knowledge is acquired by visiting other areas in the company.

Assimilation

  • As-1 In general, new opportunities to provide our customers with a quick service are identified within our company.

  • As-2 Changing market demands are quickly analysed and interpreted.

Transformation

  • Ts-1 The implications of changing market demands for new products and services are regularly considered by company experts.

  • Ts-2 Our company is willing to acknowledge the usefulness of new external knowledge, regardless of pre-existing knowledge.

  • Ts-3 We act quickly to make the most of opportunities for new external knowledge in order to benefit our organization.

  • Ts-4 Regular meetings are held to discuss the consequences of market trends and the development of new products.

Exploitation

  • Ex-1 How to make better use of knowledge is a constant topic of consideration for us.

  • Ex-2 Employees talk about our products and services in plain language.

Innovation Capability

  • Ic-1 Innovation capability is a key factor for recruitment.

  • Ic-2 On the whole, our company encourages staff to be innovative.

  • Ic-3 Our company always procures the acquisition of new skills and/or equipment in order to improve manufacturing operations or service-oriented processes.

  • Ic-4 New skills are always being developed so as to transform old products into new and innovative ones. These products are destined for the market.

  • Ic-5 Our company has superior research and development capabilities for new products or services in comparison to that of our competitors.

Competitive advantage

  • Ca-1 In terms of research and development, this company is more capable than its competitors.

  • Ca-2 This company has better capacity management than its competitors.

  • Ca-3 This company is more profitable than its competitors.

  • Ca-4 The corporate image of this company is superior to that of its competitors.

  • Ca-5 Competitors find it hard to gain a competitive advantage over my company.

  • ***cn.

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Ávila, M.M. Competitive Advantage and Knowledge Absorptive Capacity: the Mediating Role of Innovative Capability. J Knowl Econ 13, 185–210 (2022). https://doi.org/10.1007/s13132-020-00708-3

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