Alliance network heterogeneity, absorptive capacity and innovation performance: a framework for mediation and moderation effects

Abstract

The purpose of this paper is to present a perspective of alliance network heterogeneity, absorptive capacity and their effect on innovation performance. Although extant research recognises alliance network, network heterogeneity and absorptive capacity as predictor to innovation performance; mediation effect of network heterogeneity between innovation performance and its antecedents has been neglected. On the other hand, interaction effect of absorptive capacity has been widely researched, but these studies have not sufficiently analysed the influence of absorptive capacity on innovation performance due to conflicting results, especially regarding the multidimensional character of absorptive capacity. Present study intends to posit and set the stage for future research, whether relationship between innovation and its antecedents is mediated by firm’s alliance network heterogeneity. Furthermore, we posit whether absorptive capacity acts as mediator or moderator between alliance network heterogeneity and innovation performance.