Absorptive capacity moderates the relationship between knowledge sharing capability and innovation capability

The research investigates the relationships between knowledge sharing capability, absorptive capacity, and innovation capability. We used statistical hypotheses and Structural Equation Modeling to study these relationships based on the data sampled from 114 companies of information and communication technology industry in Indonesia including telecommunication service provider, support service provider, network vendors, and consumer devices vendors. Four hypotheses will be tested in this study, to find out whether absorptive capacity is the intervening variable between knowledge sharing capability and innovation capability. The result shows that knowledge sharing capability has a significant influence to potential absorptive capacity. While realized absorptive capacity is significantly influenced by potential absorptive capacity.