Too much of a good thing? Absorptive capacity, firm performance, and the moderating role of entrepreneurial orientation

William J. Wales, Vinit Parida, Pankaj C. Patel · 2012 · Strategic Management Journal

Summary. Absorptive capacity—a firm's ability to acquire and exploit new knowledge—shows an inverted-U relationship with financial performance in small and medium technology enterprises. Beyond moderate levels, absorptive capacity actually harms performance. Entrepreneurial orientation moderates this relationship, enabling firms to gain more from knowledge absorption at lower levels and sustain returns at higher levels before diminishing returns occur.

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@article{wales-2012-too-much-good-thing-absorptive,
  title   = {Too much of a good thing? Absorptive capacity, firm performance, and the moderating role of entrepreneurial orientation},
  author  = {William J. Wales and Vinit Parida and Pankaj C. Patel},
  journal = {Strategic Management Journal},
  year    = {2012},
  doi     = {10.1002/smj.2026},
  url     = {https://doi.org/10.1002/smj.2026}
}

TY  - JOUR
TI  - Too much of a good thing? Absorptive capacity, firm performance, and the moderating role of entrepreneurial orientation
AU  - William J. Wales
AU  - Vinit Parida
AU  - Pankaj C. Patel
JO  - Strategic Management Journal
PY  - 2012
DO  - 10.1002/smj.2026
UR  - https://doi.org/10.1002/smj.2026
ER  - 

Details

DOI

10.1002/smj.2026

Countries

Sweden

Regions

Europe

Categories

innovation-theory, entrepreneurship, general-innovation

Added

2026-04-28