Managerial ties,absorptive capacity,and innovation |
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Authors: | Shanxing Gao Kai Xu Jianjun Yang |
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Institution: | (1) School of Management, Xi’an Jiaotong University, No. 28, West Xianning Road, Xi’an, Shaanxi, 710049, China |
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Abstract: | Managerial ties—the boundary-spanning ties and interpersonal connections of top managers—contribute to a corporation’s innovativeness
in emerging economies because of the absence of market supporting institutions, transparent laws, and clear regulations. Moreover,
managerial ties are apt to interact with absorptive capacity to facilitate knowledge sharing and innovation. This paper examines
the joint influence of managerial ties and absorptive capacity in two communities in China, one characterized by a high level
of foreign direct investment (FDI) and the other consisting mainly of local corporations. We find that absorptive capacity
moderates the effect of managerial ties on a corporation’s innovativeness. Furthermore, when examining the two communities
separately, we find that business ties and university ties have opposite effects.
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Keywords: | Absorptive capacity Managerial ties Innovation Community |
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