The Effect of Knowledge Absorptive Capacity on Strategic Innovation across Strategic Orientation: Companies in Tehran University Science and Technology Park

The primary purpose of this confirmatory survey was to examine the effect of knowledge absorptive capacity on strategic innovation in companies located in Tehran University Science and Technology Park with a focus on the moderating role of strategic orientation. To serve the purpose, an extensive extensive literature was undertaken to design a 33-item questionnaire. Its face and content validity was verified by experts in the field and its construct validity was verified through confirmatory factor analysis. The reliability of the questionnaire was also examined through Cronbach alpha, composite reliability, and variance average. The research population comprised all company employees from whom samples of 198 employees were randomly selected from 86 companies based on Kukran Table. Then, the data obtained from the research sample were further analyzed using Smart PLS software, Pearson Correlation Matrix, Structural Equation Modelling, and fitness test. The results indicated a significant relationship between knowledge absorptive capacity and strategic orientation which was not significant with regard to the minor research hypotheses. Moreover, the relationship was found to be reinforced in competitor-oriented and customer-oriented companies and to be weakened in cost-orientations companies. That is, to boost strategic innovation, and thereby, constantly adapting working models to fluctuations, the companies should not only enhance their absorptive knowledge capacity but also adopt competitor-oriented and customer-oriented strategies.