This article develops and tests absorptive capacity’s relationship with one of its important forerunners – systems thinking – which, although postulated as an important element, has received little empirical attention in the absorptive capacity literature. Our contribution lies in the introduction of unique pathways through which systems thinking influences absorptive capacity and how it affects various interrelated dimensions of high-tech small and medium-sized enterprises’ performance, by examining evidence from South Korea’s semiconductor industry.
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