Effect of equity and non-equity cooperation on firm product and process innovation: the moderating role of absorptive capacity

摘要

This study examines the influences of equity and non-equity cooperation (equity cooperation involves equity sharing or exchange, while non-equity does not) on firms' product and process innovation from a knowledge-based perspective. The moderating effects of potential and realised absorptive capacity are also explored. In particular, the results of a survey of 281 firms in China show that equity cooperation has a stronger positive effect on process innovation than non-equity cooperation, whereas non-equity cooperation has a stronger positive effect on product innovation than equity cooperation. We further find that potential absorptive capacity enhances the relationship between non-equity cooperation and innovation (both product and process), and realised absorptive capacity enhances the relationship between equity cooperation and innovation (both product and process).