The moderating role of firm’s level of participation in a cluster in the relation between absorptive capacity and sustainability practices

Abstract

Objective: this study aimed to analyze the moderating role of the firm’s participation level in a cluster in the relation between absorptive capacity and economic, social, and environmental sustainability practices. Methods: data were collected through a survey applied to 417 small and medium-sized firms participating in clusters. Results: results indicate that the absorptive capacity influences positively and directly the adoption of economic, social, and environmental sustainability practices. Such relations are moderated by the firm’s level of participation in a cluster. Conclusions: we conclude that it is vital for the firm to seek external information and use it in line with the information and resources it already has to generate economic, social, and environmental sustainability practices. In addition, firms with a higher level of participation in a cluster are more likely to grow, establish partnerships, carry out innovation, and increase productivity.