Influence of knowledge flow and knowledge stock on the technological niche through absorptive capacity in the R&D network

The technological niche in an R&D network is a pulse of sustainable innovation for enterprises. Through a knowledge-based view (KBV) lens, this study examines the role of knowledge flow (stock) to elevate technology niche breadth (overlap) with a moderating effect of absorptive capacity. Chinese automobile industry patent data for 2005–2018 have been analysed through STATA 12. The results verify that knowledge flow (stock) has an inverted U-shaped effect on technology niche breadth, whereas, the effect on niche overlap is U-shaped. Furthermore, when absorption capacity is high, a moderate knowledge flow widens the technological niche and shrinks the overlap. But, at higher absorptive capacity knowledge stock widens the technology niche breadth but has no significant influence on niche overlap. This study is one of its types to optimise the technological niche through absorptive capacity and adds to KBV and technology management literature. Practitioners should optimise knowledge stock and knowledge flow to elevate the technological niche.