Analysis of the innovation performance of knowledge-intensive service companies

Objective. To evaluate the relationship between information sources and absorptive capacity and how this capacity enhances a firm's innovation performance. Methodology. The study presents evidence based on a sample of 212 P-ESICs and 355 T-ESICs from Peru. The research applied a structural equation modeling approach using AMOS software. PROCESS software was employed for conducting the mediation analysis. Results. It was discovered that ESICs are more capable of developing innovations when they are exposed to information from internal, market, institutional, and other sources. However, this condition alone is insufficient as it is necessary to develop the dynamic capability (also referred to as absorptive capacity). Conclusions. This study enhances comprehension of the innovation behavior of ESICs in an emerging economy, specifically the Peruvian one, by acknowledging the distinctive attributes that distinguish emerging economies from more developed ones. Furthermore, in the two categories of ESICs firms analyzed, it was confirmed that absorptive capacity does not mediate the relationship between information sources and innovation performance.