INTER-ORGANISATIONAL COLLABORATION AND BUSINESS MODEL INNOVATION: THE JOINT MODERATING EFFECTS OF ABSORPTIVE CAPACITY AND COLLABORATION DEPTH

Abstract

Informed by the knowledge-based theory of the firm, the study explores how internal absorptive capacity and external inter-organisational collaboration jointly promote business model innovation (BMI). Drawing on the relevant existing literature, a model linking collaboration breadth, collaboration depth, absorptive capacity, and BMI was constructed and tested. Hierarchical multiple regression analysis of the results of a questionnaire-based survey of 317 senior managers in manufacturing firms revealed that both collaboration breadth and collaboration depth are positively related to BMI. Collaboration depth has no significant moderating effect on the collaboration breadth–BMI relationship, and absorptive capacity has no significant moderating effect on relations between BMI and collaboration breadth or collaboration depth. However, the joint moderating effects of absorptive capacity and collaboration depth on the collaboration breadth–BMI relationship were positively significant. These results have a number of implications for research on BMI and innovation management and for the development of knowledge-based theory.