Relational embeddedness and disruptive innovations: The mediating role of absorptive capacity

What are the driving factors of disruptive innovations in emerging economies from a network perspective? We argue that three forms of absorptive capacity (i.e. exploratory, exploitative and transformative learning) mediate the relationship between a firm's network relations and disruptive innovations. We tested the hypotheses with a survey of 251 firms in China and iterated the conceptual model to reflect the crucial insight that disrupters in emerging economies can leap from exploratory learning to disruptive innovation. We surmise exploratory learning help disrupters outsource transformative and exploitative learning via their supply chains. Suggestions for future research and limitations are also discussed.