Exploring absorptive capacity and its impact on organizational performance: evidence from strategic alliances in retail pharmacy MSMEs in Brazil

Purpose This study aims to analyze the relationship between absorptive capacity and firm performance in micro, small and medium-sized enterprises (MSMEs) in the Brazilian retail pharmacy sector that are involved in strategic alliances. Design/methodology/approach A survey was carried out with 116 MSMEs in the retail pharmacy sector in a Brazilian Midwest state. The data obtained were analyzed using SmartPLS (PLS-SEM) to test a structural model. Findings The results showed that absorptive capacity and strategic alliance success have a positive impact on the organizational MSME performance. This evidence is relevant because, in the globalized and competitive context with which MSMEs are faced, both absorptive capacity and strategic alliance success can be essential for firms in this business sector to achieve sustainable competitive advantage. The empirical evidence revealed that strategic alliance success has a mediating effect on the relationship between absorptive capacity and organizational performance. The paper also presents findings regarding the influence of MSME size and age, showing that neither the size nor the age of MSMEs influenced the relationships proposed in the structural model proposed. Originality/value This study presents information that contributes to the literature, extending previous findings on the importance of strategic alliances in the relationship between absorptive capacity and MSME performance.