Effects of entrepreneurial decision-making on the realized absorptive capacity of knowledge-intensive companies

Objective: To investigate how entrepreneurial decision-making influences the relationship between Potential Absorptive Capacity (PACAP) and Realized Absorptive Capacity (RACAP) in knowledge-intensive companies engaged in public innovation policies. Methodology/approach: Parallel mediation analysis was conducted with data from 119 companies participating in the Economic Clusters of Innovation program. Data were collected via surveys and analyzed through multiple regression. Originality/Relevance: This study addresses theoretical gaps by exploring the mediation of entrepreneurial decision-making logics — Causation and Effectuation — in the transition from PACAP to RACAP. Main results: Effectuation significantly influenced the relationship between PACAP and RACAP, whereas Causation did not, emphasizing the role of flexibility and adaptability in fostering innovation. Theoretical/methodological contributions: This research reinforces the critical role of absorptive capacities in innovation, highlighting Effectuation as a pivotal enabler of RACAP. Social/management contributions: The findings advocate for policies that encourage entrepreneurial adaptability, enhancing innovation outcomes in dynamic contexts.