Impact of the interactive mechanism between resource transfer and absorptive capacity on innovation performance: evidence from two Ghanaian automobile clusters
by Hu Xuhua; Michael Addai; Adelaide Spio-kwofie; Chosniel Elikem Ocloo; Abdul-Aziz Ibn Musah
European J. of International Management (EJIM), Vol. 20, No. 4, 2023

Abstract: This study examined the impact of the interactive mechanism between resource transfer and absorptive capacity on innovation performance. The significance of this study is to expatiate on the knowledge, the positioning and the role of absorptive capacity in the process of resource transfer and innovation performance. Data were procured through questionnaire administration using a two-stage cluster sampling procedure in selecting 561 small-scale automobile firms from two automobile clusters in Ghana. We employed the structural equation modelling analytical tool for our analysis. Our result explicitly revealed that the interactive mechanism (A_X_B) between resource transfer and AC results in a far more positive and significant impact on innovation performance than AC acting as a mere moderator. We recommended that Ghanaian automobile cluster-based firms should develop their absorptive capacity to ensure that, at all times they possess the capacity to identify resources that only have the grounded potential to enhance innovation performance.

Online publication date: Thu, 20-Jul-2023

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