Rivalling firms’ absorptive capacity congruence in coopetition relationships: the reciprocal effects on firms’ innovation performance

ABSTRACT Drawing upon the interfirm absorptive capacity relationship and coopetition theory, this study examines how the congruence between a firm’s own absorptive capability and its rival’s absorptive capability affect the firm’s innovation performance. We propose a theoretical framework embodying the interactive hypotheses and test the extent to which the fit versus non-fit between a firm’s own absorptive capability and its rival’s absorptive capability affect influences the firm’s innovation performance by considering the appropriability as a moderator. A The polynomial regression analysis based on a dyad-style sample consisting of 200 manufacturing firms in China indicates that varying the congruence degrees of a firm’s absorptive capability and its rival’s absorptive capability would affect innovation performance differently. We also discuss some of the implications for firms expecting to enhance their competitiveness in a coopetition environment.