The effect of social capital on exploratory and exploitative innovation

Abstract

Purpose The purpose of this paper is to advance new insights into how internal and external social capital (SC) facets influence exploratory and exploitative innovation directly, and indirectly through absorptive capability (AC), by drawing on the relational and knowledge-based views. Design/methodology/approach The paper empirically tests the developed model using 135 survey responses from managers in construction contractor firms. Data were factor analysed, and path estimates determined using partial least squares structural equation modelling to test the hypotheses. Findings The results reveal that each social capital (SC) facet has direct benefits for both exploratory and exploitative innovation. The findings also show a mix of full and partial mediation paths between the facets of SC and innovation types through AC. Originality/value Extant research linking SC facets with innovation categories is fragmented. Added to this fragmentation is the dearth of studies linking both intra-firm and inter-firm SC with exploratory and exploitative innovation in firms. This paper makes a novel contribution by testing a model of the direct and indirect links (through AC) between internal and external SC and both exploratory and exploitative innovation in the context of construction contractor firms. The findings show how both facets of SC are necessary for exploratory and exploitative innovation. It reveals the types of relationships and capabilities necessary for specific innovation objectives.

Intra-Organizational Social Capital and Product Innovation: The Mediating Role of Realized Absorptive Capacity

“…Recent studies have shown, from a qualitative point of view, how internal SC positively impacts performance in knowledge-intensive contexts ( Salas−Vallina et al, 2020 ). Other papers have analyzed the relationships between SC and PACP (knowledge identification capability and external knowledge acquisition) ( Ortiz et al, 2017 , 2018 ), and others have focused on examining the mediating role of absorptive capacity (PACAP and RACAP) on the relationship of SC and innovation ( Duodu and Rowlinson, 2019 ; Wang et al, 2020 ). However, most of them have focused on analyzing SC from an external or inter-organizational point of view.…”

Strengthening digital collaboration to enhance social innovation capital: an analysis of Italian small innovative enterprises

“…The decision to adopt a quantitative technique to study the investigated topic and assess the survey data using an ordinary least squares (OLS) regression analysis appears to be appropriate and justified because previous studies have called for a more finegrained understanding of the contribution SIC could offer to firm innovativeness (McElroy, 2002). The choice to adopt a quantitative method was in line with the proposed research and with previous studies (Duodu and Rowlinson, 2019). It was based on the analysis of the relationship between sharing resources and sharing intensity (independent variables) and their effect on SIC (dependent variable).The OLS regression results are presented in Table 4.…”

What drives inter-organisational knowledge management? The cause and effect analysis using a multi-layer multi-criteria decision-making framework

“…Observed as the technology advancement receptivity, Zahra and George (2002) formulate it as the organisation's capability to acquire, absorb, transform and apply knowledge. Absorptive aptitude is also deemed as the firm's ability to learn from others (Duodu & Rowlinson, 2019). Hence, it is perceived as the firm's internal process, which shows how they can prior knowledge such as experience and existing practices (Easterby-Smith et al, 2008).…”