Impacts of R&D investment on absorptive capacity and firm innovativeness: contingent roles of dysfunctional competition

Abstract

Purpose

Drawing upon relative absorptive capacity (AC) perspective, this study proposes a research model connecting R&D investment, three types of supply chain AC—AC from suppliers, customers and university and research institutes (U&RIs)—and firm innovativeness and investigates the contingent effects of dysfunctional competition on the link between R&D investment and supply chain AC.

Design/methodology/approach

The authors used data collected from 262 manufacturers in three areas of China to empirically examine the conceptual model. The corresponding hypotheses were tested with structural equation modeling and regression analysis.

Findings

The empirical results demonstrate that AC from customers and AC from U&RIs play significant mediating roles in the relationship between R&D investment and firm innovativeness. Moreover, R&D investment has a significantly greater effect on AC from U&RIs under high levels of dysfunctional competition.

Originality/value

First, by conceptualizing AC from a relative view, this study discloses the unique roles of knowledge from different supply chain partners in realizing the benefits of R&D investment in innovation. Second, the exploration of the contingent roles of dysfunctional competition in the emerging economy of China enriches insights on the roles of institutional environment on knowledge absorption and the knowledge on relative AC in emerging economies.

Citation

Zhang, S., Wang, Z., Zhao, X. and Yang, J. (2022), "Impacts of R&D investment on absorptive capacity and firm innovativeness: contingent roles of dysfunctional competition", International Journal of Operations & Production Management, Vol. 42 No. 10, pp. 1630-1652. https://doi.org/10.1108/IJOPM-12-2021-0747