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Absorptive Capacity, Exporting Activities, Innovation Openness And Innovation Performance: A SEM Approach Towards A Unifying Framework

Areti Gkypali, Spyros Arvanitis, Kostas Tsekouras
Published 2018 · Economics

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We develop a unified framework, in which internal knowledge creation capacity and the diversity of innovation openness, as measured by R&D collaboration, rule innovation and exports. Theoretical and empirical links between these major components are identified and measured employing Structural Equation Modelling on a sample of Greek R&D active manufacturing firms. The methodology adopted allows multiple feedback loops in the context of a non-recursive system of equations, which in turn elevates the role of indirect effects. The main empirical finding indicates that firms' absorptive capacity – besides fueling directly innovation – plays a key role in filtering and integrating external knowledge stimuli from R&D collaborations. Although the identified indirect effects are statistically significant, the corresponding direct effects remain dominant.
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