Remote Collaboration, Absorptive Capacity, and the Innovative Output of High-tech Small Firms

Luca Berchicci, Jeroen P.J. de Jong and Mark Freel

No 13-01, DRUID Working Papers from DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies

Abstract: It is generally recognized that firms’ innovative performance can be enhanced by collaborating with remote partners. However, remote collaborations are not without challenges, as geographical distance may frustrate tacit knowledge transfer and inter-organizational learning. We investigate the moderating role of absorptive capacity by proposing that the higher firms’ R&D intensity, the stronger the relationship between remote collaboration and their share of new product revenues. Drawing on survey data of 250 Dutch high-tech small firms, it is confirmed that remote collaboration is associated with innovative performance, but at low values of R&D intensity this relationship disappears.

Date: 2013
New Economics Papers: this item is included in nep-cdm, nep-cse, nep-ent, nep-geo, nep-ino, nep-knm and nep-sbm
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