Purpose - Drawing from the absorptive capacity framework and the knowledge-based view inside multinational corporations (MNCs), this study explores linkages among network organizational structure, entrepreneurial orientation, absorptive capacity and influence of these constructs on new product innovativeness.
Design/methodology/approach – The empirical study employed a questionnaire approach. The sample of this study was drawn from the population of multinational corporations around the world with the majority located in Taiwan and Europe. Regression analysis was used to test the hypotheses and analyze data in a sample of 96 corporations.
Findings – The results showed that both entrepreneurial orientation and network organizational structure were significantly related to absorptive capacity. The study united three constructs which previously had little research in terms of collective influence on new product innovativeness. All constructs had positive influence on new product innovativeness. Entrepreneurial orientation showed stronger effect on new product innovativeness in comparison with absorptive capacity and network organizational structure.
Practical implications – MNCs require consistently utilize absorptive capacity represented by four components of acquisition, assimilation, transformation and exploitation of knowledge. Managerial implications include activities and strategies to enhance new product innovativeness drawn on the framework consisting of absorptive capacity mechanism, entrepreneurial orientation and network organizational structure.

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