Relative absorptive capacity as a booster of innovation in an automotive cluster

Purpose This study aims to address the relevance of the mediating role of the relative absorptive capacity (ACAP-R) in the relation between absorptive capacity and innovation, contributing to a better understanding of innovation in a business network. Participants' firms in this study are part of the supply network of an automotive cluster. Design/methodology/approach The study is developed in 225 companies that are part of the supply network of an automotive cluster in Mexico. A survey was applied to key firm informants who had been involved on processes of innovation, quality or continuous improvement. During data analysis, structural equation modeling was implemented with the support of SmartPLS 3.0 to understand the mediation role of relative absorptive capacity as a novel insight of innovation in a Mexican cluster. Findings The results demonstrate the partial mediator role of the ACAP-R among the absorptive capacities and the level of innovation of the companies that make up the network studied. The findings represent an approach to the understanding of one of the key dynamic capacities in the innovation process and, thus, to the competitiveness of organizations, which has scarcely been studied from the perspective of business networks. Originality/value The findings provide useful insights not only in terms of understanding the link between absorptive capacity and innovation, but also how to improve levels of innovation through knowledge exchanges that occur during the participation of suppliers and customers in a business network. Firms with high levels of ACAP are more likely to recognize the opportunity to benefit from external knowledge and to participate intensely in collaborative efforts. That is, technological similarity or similar knowledge base between source or recipient firms impacts their innovation.