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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.
Iranian Journal of Pharmaceutical Research : IJPR
|July 23, 2026
Summary
External knowledge search (EKS) significantly boosts innovation performance (IP) in emerging biopharmaceutical firms, primarily through enhanced knowledge integration capability (KIC). KIC is more crucial than R&D intensity for translating external knowledge into successful innovation outcomes.
Area of Science:
- Biopharmaceutical Innovation
- Open Innovation Strategies
- Knowledge Management
Background:
- The biopharmaceutical sector faces rapid technological change and competition, necessitating external knowledge search (EKS) beyond closed innovation models.
- While EKS is studied in developed economies, its role in emerging biopharmaceutical sectors is less understood.
Purpose of the Study:
- To investigate the effect of EKS on innovation performance (IP) in Iranian biopharmaceutical firms.
- To test the mediating role of knowledge integration capability (KIC) in the EKS-IP relationship.
- To examine the moderating effect of R&D intensity on EKS and IP.
Main Methods:
- Cross-sectional study involving 92 senior executives from 44 Iranian biopharmaceutical companies.
- Data collected via a validated questionnaire.
- Partial Least Squares Structural Equation Modeling (PLS-SEM) used for analysis.
Main Results:
- EKS significantly enhances both IP (β = 0.462) and KIC (β = 0.239).
- KIC positively impacts IP (β = 0.437) and partially mediates the EKS-IP link (indirect effect β = 0.104).
- R&D intensity, firm size, and age did not significantly moderate or affect IP.
Conclusions:
- A firm's knowledge integration capability (KIC) is more critical than R&D intensity for leveraging external knowledge search (EKS) to improve innovation performance (IP).
- This research clarifies how external knowledge is transformed into innovation outcomes in emerging biopharmaceutical markets, contributing to open innovation theory.
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