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External Knowledge Search and Innovation Performance in Iranian Biopharmaceutical Firms: The Mediating Role of
Fatemeh Babaei1, Nazila Yousefi2, Mohammad Peikanpour3
1Ph.D. candidate of Pharmacoeconomics and Pharma Management, School of Pharmacy, Shahid Beheshti University of Medical Sciences, Iran.
Background:
In the biopharmaceutical sector, characterized by rapid technological change and intense market competition, external knowledge search (EKS) has become a strategic necessity to overcome the limitations of closed innovation. However, while EKS is widely studied in developed economies, its underlying mechanisms remain underexplored in emerging biopharmaceutical sectors.
Objectives:
This cross-sectional study examines how EKS affects innovation performance (IP) in Iranian biopharmaceutical firms, testing the mediating role of knowledge integration capability (KIC) and the moderating effect of R&D intensity, while controlling for firm size and age.
Methods:
Data were collected using a validated questionnaire completed by 92 senior executives (CEOs, R&D, and Business Development managers) from 44 Iranian biopharmaceutical companies. The model was analyzed using partial least squares structural equation modeling (PLS-SEM) in SmartPLS.
Results:
EKS significantly enhances both IP (β = 0.462, P < 0.001) and KIC (β = 0.239, P < 0.003). KIC positively influences IP (β = 0.437, P < 0.001) and partially mediates the EKS-IP relationship (indirect effect β = 0.104, P = 0.02). R&D intensity showed no significant moderating effect (β = 0.198, P = 0.10). The model explains 40.5% of IP variance (R² = 0.405). Firm size (β = 0.009, P = 0.924) and age (β = 0.030, P = 0.792) had no significant effects.
Conclusions:
The impact of EKS on IP depends more on a firm's KIC than on its R&D intensity. This study advances open innovation theory by clarifying how external knowledge is effectively translated into innovation outcomes within an emerging biopharmaceutical context.
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