The moderating effect of absorptive capacity on the relationship between knowledge transfer and innovative capacity

Purpose Global market pressure drives companies to innovate, leading them to partner with universities for knowledge transfer. This study investigates the effects of knowledge transfer (KT) on companies' innovative activities and the moderating effect of absorptive capacity (AC) on the relationship between KT and innovative capacity. The analysis was done to distinguish the knowledge acquired nationally and internationally. Design/methodology/approach The methods employed are logistic regression, using a sample of 100058 observations from 14 countries in the Eurostat Community Innovation Survey dataset. Findings Both national and international knowledge transfer (KT) have a positive influence on product and process innovation. AC is an essential source of competitive advantage, although it negatively moderates the relationship between national KT and innovation (of products and processes). On the other hand, research also shows that AC does not significantly affect the relationship between international KT and innovations, whether in products or processes. Originality/value This study contributes to the knowledge-based view by clarifying the nuanced roles of KT and AC in innovation. It offers comparative insights into national and international KT and highlights the conditional role of AC, providing implications for companies, universities, and policymakers.