Absorptive capacity, innovation, and financial performance

Konstantinos Kostopoulos, Alexandros Papalexandris, Margarita Papachroni, George Ioannou

Research output: Contribution to journalArticlepeer-review

496 Citations (Scopus)


This study here examines the role of absorptivecapacity as both a mechanism to identify and translate external knowledge inflows into tangible benefits, as well as a means of achieving superior innovation and time-lagged financialperformance. Using path analysis in a sample of 461 Greek enterprises participating in the third Community Innovation Survey, this study demonstrates that external knowledge inflows are directly related to absorptivecapacity and indirectly related to innovation. Absorptivecapacity contributes, directly and indirectly, to innovation and financialperformance but in different time spans. This study, therefore, contributes to the understanding of absorptivecapacity's antecedents and outcomes by providing empirical evidence of longitudinal form that offers important research and practical implications.
Original languageEnglish
Pages (from-to)1335-1343
Number of pages9
JournalJournal of Business Research
Issue number12
Publication statusPublished - Dec 2011

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