The Impact Of External Knowledge Channels And Absorptive Capacity On Innovation Performance In Construction Firms

Construction industry is one of the pillar industries in our national economy. However, a lack of innovation capabilities, non-match with the market demand, unsatisfied performance and other problems need a system research to solve that. This research, from a knowledge perspective, focuses on the mechanism which could instruct Chinese construction corporations to utilize the knowledge channel and build absorptive capacity to enhance the innovation performance.This research advanced a series of hypothesis based on the relevant research and the practice of our Chinese construction business units. Then outcomes of this research were listed by the quantitative analysis of the data collected of215firms. First, this study list knowledge channel into two kinds:the scanning of external information and cooperation with external organizations. The scanning of external information is not relevant to innovation performance, while cooperation with external organizations is significantly correlative to innovation performance. Second, this study list absorptive capacity into two kinds:potential and realized absorptive capacity. Absorptive capacity, both potential and realized absorptive capacity, is significantly relevant to firm’s innovation performance. Third, absorptive capacity plays an intermediary role in the way from knowledge channel to innovation performance.In conclusion, this study propounds that our Chinese construction firms should improve the knowledge search mechanism to enhance the innovation performance through cooperation and innovation. In addition,Chinese construction business should also gain an insight into absorptive capacity development in order to achieve competitive advantage through absorption and utilization of knowledge.