The role of absorptive capacity in partnership retention

Abstract

This study investigates the moderating role of absorptive capacity in the relationship between the attributes of partner resources and the partnership retention intentions of focal firms. C-level executives from US software small- and medium-sized enterprises (SMEs) were surveyed to obtain data for the study. The results show that absorptive capacity of SMEs positively moderates the relationship between the uniqueness of partner resources and the intention of SMEs to retain the partnership. However, absorptive capacity of SMEs negatively moderates the relationship between the complementarity of partner resources and partnership retention intentions. The results of the study contribute to understanding the role of the absorptive capacity of a focal firm in partnership stability.