Quantitative Analyses of the Role of Relational Capital on Absorptive Capacity in Knowledge-intensive SME's

Abstract

The research aimed to measure the relational capital influence (RC) on absorption capacity in knowledge-intensive companies. The direct relationship between the different components of relational capital and absorption capacity was analysed through a model of structural equations of partial least squares (PLS-SEM), tested in SmartPLS. This method was chosen for the following reasons: the use of SEM-PLS allows testing causal paths between second-order latent variables, and in addition to offering extensive and flexible causal modelling resources, the technique is recommended for more complex models, with constructs composed of a greater number of variables and with a smaller number of data, as observed in this research. The method is also justified because this research is based on a composite measurement model with a reflective design approach, which means there are correlations between indicators and dimensions. The SmartPLS 3.0 Software was used to carry out the global model evaluation and measurement and structural model evaluation steps. These analyses were conducted in a sample of 174 small and medium-sized technology enterprises (SMEs) that are part of different innovation networks in Brazil. This study highlights that the development of relational capital is supported by collaborative relations of cooperation, trust, communication, and resources invested by enterprises established in different networks. The proposed statistical model allowed proving the relationship factors that help strengthen the relations between the network actors that facilitate the transfer of knowledge. This relationship still needs to be investigated, especially for small and medium-sized knowledge-intensive companies in emerging countries like Brazil. The research conclusion supported the research hypothesis and proved that relational capital is an independent variable that directly and positively influences the absorption capacity process. This study, quantitatively combining the external perspective of relational capital and the internal organisational dimension of absorption capacity, provides valuable information about using quantitative methodologies to explore intangible organisational resources to promote innovation.