The role of relative absorptive capacity in improving suppliers' operational performance

Abstract

Purpose

The purpose of this paper is to examine the link between relative absorptive capacity and suppliers' operational performance.

Design/methodology/approach

The paper uses structural equation modelling of survey data from 218 Canadian manufacturers referring to a particular relationship with one of their customers.

Findings

Results suggest that only the first dimension of the relative absorptive capacity – knowledge sharing routines – influences the knowledge transferred from the customer to the supplier. Knowledge transfer acts as a mediator between knowledge sharing routines and the supplier's operational performance improvement.

Research limitations/implications

The absence of a significant association between the second dimension of relative absorptive capacity – overlapped knowledge bases – and knowledge transfer is a surprising result that should be further investigated.

Originality/value

This appears to be the first study to operationalise and empirically test relative absorptive capacity and its consequences in the particular context of customer‐supplier relationships.

Citation

Nagati, H. and Rebolledo, C. (2012), "The role of relative absorptive capacity in improving suppliers' operational performance", International Journal of Operations & Production Management, Vol. 32 No. 5, pp. 611-630. https://doi.org/10.1108/01443571211226515