Rivalling firms’ absorptive capacity congruence in coopetition relationships: the reciprocal effects on firms’ innovation performance

Abstract

ABSTRACT Drawing upon theinterfirm absorptive capacity relationship and coopetition theory, this studyexamines how the congruence between a firm’s own absorptive capability and itsrival’s absorptive capability affect the firm’s innovation performance. Wepropose a theoretical framework embodying the interactive hypotheses and testthe extent to which the fit versus non-fit between a firm’s own absorptivecapability and its rival’s absorptive capability affect influences the firm’sinnovation performance by considering the appropriability as a moderator. A Thepolynomial regression analysis based on a dyad-style sample consisting of 200manufacturing firms in China indicates that varying the congruence degrees of afirm’s absorptive capability and its rival’s absorptive capability would affectinnovation performance differently. We also discuss some of the implicationsfor firms expecting to enhance their competitiveness in a coopetitionenvironment.