Abstract
The manufacturing industry is constantly faced with the undeniable challenge of gaining and maintaining a competitive advantage in a dynamic and changing marketplace. This study aims to investigate the mediating role of innovation capability between absorptive capacity and competitive advantage. This study focused on the manufacturing industry in the State of Mexico. This research is quantitative and transversal. The confirmatory level of a sample of 116 managers was calculated. The research model was tested by way of second-generation (PLS-SEM) analysis. The findings indicate that innovation capacity is a mediating variable in the relationship between absorptive capacity and competitive advantage. The originality of this study is found in the fact that it is the first study designed as a second-order model. This study constitutes a significant contribution to the literature. Additionally, this study contains a series of practical implications which may contribute to a competitive advantage in emerging markets.
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