ABSTRACT

The purpose of this chapter is to unravel the complex linkages between the properties of knowledge, a firm’s absorptive capacities, and innovation performance in Iranian small and medium-sized enterprises (SMEs). We utilize moderated multiple regression (MMR) to explore the complex relationships by using the empirical data of Iranian information technology and electro-communication firms during 2010–2017. The results show that only a few knowledge properties have negative effects on innovation performance. Most knowledge properties have a positive effect on innovation. The results also claim that the relationship between the properties of knowledge and innovation performance is more pronounced when the firm has a higher absorptive capacity. The study indicates that the properties of knowledge and absorptive capacity are two inseparable determinants for innovation performance, and absorptive capacity moderates the relationship between properties of knowledge and innovation performance.