The Role of Relational Embeddedness in Enhancing Absorptive Capacity and Relational Performance of Internationalized SMEs: Evidence From Mainland China

Abstract

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The social network in the organizational learning process is a critical knowledge source to realize superior performance. The purpose of this study is to examine the relationship between relational memory, relational embeddedness, and absorptive capacity, and their impact on the relational performance of small and middle enterprises (SMEs). This study empirically verifies the research framework from 223 Chinese internationalized SMEs. The results confirm previous studies that indicate positive correlations among relational embeddedness, relational memory, and absorptive capacity. The results also indicate that relational embeddedness and relational memory have positive effects on relational performance. The findings show that relational memory plays a mediating role in the relationship between relational embeddedness, absorptive capacity, and relational performance.

Keywords

• absorptive capacity
• organizational learning
• relational embeddedness
• relational memory
• relational performance
• social capital