The role of absorptive capacity in the relationship global diversification-performance

Many researchers have tried to test whether there really is a relationship between global diversification and firm performance, although many of them only deal with one aspect, be it market diversification or product diversification, without considering the role of the internal capacities of the company. Considering the importance of knowledge and its management in complex and uncertain contexts such as the current ones, the study investigates the effect of absorptive capacity on the global diversification-performance relationship. This research analyses the global diversification-firm relationship, considering the moderating role of absorptive capacity, in a sample of 496 Spanish medium-high and high technology companies for the period corresponding to 2019. The conclusions obtained, through statistical inference tests confirm an inverted U-shaped relationship between diversification and firm performance and, partially, the moderating effect of absorptive capacity in this relationship.