Dynamic Absorptive Capability and Innovation Performance: Evidence from Chinese Cities

Meiqi Jiao, Debin Du, Wentian Shi, Chunguang Hou and Qinchang Gui
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Meiqi Jiao: Institute for Global Innovation and Development, East China Normal University, Shanghai 200062, China
Debin Du: Institute for Global Innovation and Development, East China Normal University, Shanghai 200062, China
Wentian Shi: Department of Hospitality Management, Shanghai Business School, Shanghai 200235, China
Chunguang Hou: Institute for Global Innovation and Development, East China Normal University, Shanghai 200062, China
Qinchang Gui: Institute for Global Innovation and Development, East China Normal University, Shanghai 200062, China

Sustainability, 2021, vol. 13, issue 20, 1-20

Abstract: Absorptive capability is the capability of actors to acquire, assimilate and exploit external knowledge. In this paper, we consider absorptive capability to be multi-dimensional and to have three dimensions. Although a sufficient amount of work in the literature discusses dynamic absorptive capability, empirical studies are relatively rare. At the urban or regional levels, related empirical studies are even fewer. In this paper, we build a framework of the dynamic absorptive capability at the urban level by using 339 Chinese cities at the prefecture level and above as our sample. In order to take the geographical distance into consideration, we use a Spatial Durbin Model to measure the effects of the acquirement, assimilation, and exploitation of absorptive capability. The results show that all of the core variables (acquirement, assimilation, and exploitation) have significant positive impacts on innovation performance. Additionally, the two control variables (R&D personnel and R&D investment) have significant positive impacts on innovation performance. In this way, the role performed by multidimensional absorptive capability in fostering innovation performance is highlighted, and some policy recommendations are provided.

Keywords: absorptive capability; urban innovation; social networks; regional development; dynamic capability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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