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Tzokas, Nikolaos; Kim, Young Ah; Akbar, Hammad; Al-Dajani, Haya
Industrial marketing management, 05/2015, Volume: 47Journal Article
This study focuses on how the interplay between a firm's absorptive capacity (ACAP), and its technological and customer relationship capability contributes to its overall performance. Using structural equation modeling in a sample of 158 firms (316 questionnaires, two respondents per firm) from South Korea's semiconductor industry, we find that a firm's ACAP leads to better performance in terms of new product development, market performance and profitability when used in combination with the firm's capability to engage state of the art technologies in its new product development program (NPD) (technological capability) as well as cultivate strong customer relationships to gain customer insight in NPD (customer relationship capability). By highlighting the interactive nature of absorptive capacity's antecedents and how these relate to firms' performance, this study contributes to the understanding of the role of ACAP as a mechanism for translating external knowledge into tangible benefits in high-tech SMEs, thus leading to important theoretical and practical implications. •ACAP delivers performance when in tandem with technological and customer relationship capability.•ACAP translates external knowledge to performance in high-tech SMEs.•A more robust theory of ACAP is achieved here, with data from high-tech SMEs in the South Korean semiconductor industry.
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