Abstract
Knowledge transfer is one of the most important aspects of improving the enterprise's innovation capability. This study investigates the internal mechanism through which knowledge transfer affects innovation capability. To reveal this internal mechanism, we propose a moderated mediation model of absorptive capability and network reliance. Using survey data from 218 managers in China, structural equation modeling is used to investigate mediation and moderation effects. The results show that absorptive capability positively mediates the relationship between knowledge transfer and innovation capability. Moreover, network reliance positively moderates not only the relationship between absorptive capability and innovation capability but also the overall mediation model. This demonstrates that individuals with high network reliance have higher innovation capability when they have accumulated enough business knowledge. Based on these findings, we conclude that innovation capability may be promoted more effectively through the complex process of knowledge transfer, absorptive capability, and network reliance.
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