Investigating the Mediating Role of Cross-Border Knowledge and Knowledge Absorption Capacity in the Relationship Between Social Capital and Innovative Performance of SMEs in Kerman Province

Purpose: This research aims to investigate the impact of social capital on the innovative performance of SMEs in Kerman province, with a focus on the mediating role of cross-border knowledge search and knowledge absorption capacity.Methodology: The study adopts an applied research approach, employing a survey method. A total of 210 SMEs in Kerman province were selected as the sample population, and 420 questionnaires were distributed to managers and vice presidents of these companies. Data collected was analyzed using SPSS 26 and SmartPLS 3 software.Findings: The results reveal that structural, communicative, and cognitive social capitals significantly influence the innovative performance of SMEs. Social capital impacts innovative performance through the mediating roles of cross-border technical knowledge search, cross-border market knowledge search, and knowledge absorption capacity.Conclusion: The findings suggest that SMEs in Kerman province should prioritize enhancing their innovative performance to remain competitive. Utilizing social capital, engaging in cross-border knowledge search, and improving knowledge absorption capacity are crucial for innovation and product development in these companies.Value: Understanding the relationship between social capital, cross-border knowledge, knowledge absorption capacity, and innovative performance is essential for SME managers in Kerman province to enhance their company's performance and competitiveness in the market.