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PurposeDrawing 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/approachThe 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.FindingsThe 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/valueFirst, 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.

PurposeThe purpose of this paper is to investigate how supplier concentration influences a buyer firm's R&D intensity. This study proposes a mediation and moderation model to test this relationship in the Chinese household appliance industry. Specifically, this study tests the mediation effect of operational slack on the relationship between supplier concentration and R&D intensity and the moderation effect of financial constraints on this relationship.Design/methodology/approachDrawing upon real options theory and resource dependence theory, the proposed relationships are tested with the Chinese household appliance market using financial data from listed companies over a ten-year span from 2012 to 2021. Fixed effects (within-group) panel regression models are used to test the hypotheses. In addition, the authors use the bias-corrected bootstrap method to test the mediation effect.FindingsThe authors find that supplier concentration negatively affects a buyer firm's R&D intensity and that internal operational slack mediates this relationship. Interestingly, financial constraints from the external financing organization weaken the negative relationship between the buyer firm's supplier concentration and R&D intensity.Originality/valueBased on the argument of real options theory and resource dependence theory, this study provides novel insights into the issue of how concentration on several major suppliers may reduce buyer firms' R&D intensity. First, this study introduces operational slack as a form of internal uncertainty that mediates the supplier concentration–R&D intensity relationship. Second, this study suggests that the effect of supplier concentration on R&D intensity is contingent upon firms' financial constraints from external financial organizations, disclosing a synergetic interactive effect of supplier concentration and financial constraints on firms' R&D activities. Third, this study is conducted in the unique institutional context of China, providing meaningful insights into the relationship between supplier concentration and R&D intensity.