The Relationship Between Relational Ties, Absorptive Capacity, And Social Integration Mechanisms In Small Retail Businesses Associated With Direct And Indirect Horizontal Networks.

Background: The objective of this research is to investigate the relationship between relational ties, absorptive capacity, and social integration mechanisms in small retail businesses associated with direct and indirect horizontal networks. Materials and Methods: To achieve the objective, an empirical research study with a quantitative approach was conducted involving 409 retail businesses associated with direct and indirect horizontal networks. The proposed relationships were tested using the structural equation modeling technique. Results: The results indicate that a company's participation in direct horizontal networks has a greater positive impact on relational ties and absorptive capacity than participation in indirect horizontal networks. They also suggest that the use of different types of social integration mechanisms affects the relationship between relational ties and the company's absorptive capacity in different ways. Conclusion The research proves that relationships foster a company's absorptive capacity. It particularly, indicates that it is not just maintaining relationships with other network members that impacts absorptive capacity, but the type of relationship established between network members (direct or indirect) should be considered, as direct relationships have proven to be more favorable. There is sufficient evidence to assert that by investing in interorganizational relationships, the company can enhance its absorptive capacity and thus access various other competitive advantages