Assessing the roles of foreign knowledge acquisition and absorptive capacity in the relationship between market orientation, innovativeness and performance

Abstract

Purpose This study aims to examine the effect of market orientation on foreign knowledge acquisition. It also assesses the moderating role of absorptive capacity in the relationship between foreign knowledge acquisition, firm innovativeness and performance. Design/methodology/approach A questionnaire was administered to 257 respondents who were owners, managers or owner/managers of export firms in Ghana. The data were analyzed with structural equation modeling. Findings The findings show that customer orientation significantly influenced foreign business knowledge acquisition but not performance, and that competitor orientation significantly influenced both foreign business knowledge acquisition and firm innovativeness. Absorptive capacity was found to play a significant role in linking foreign business knowledge to innovativeness. Originality/value The study adds to the literature on knowledge management in firms by identifying the moderating role of absorptive capacity in the relationship between foreign business knowledge acquisition, innovativeness and performance.