Technological Absorptive Capacity and Performance in Microenterprises: The Mediating Role of Product Innovation in Ecuador

Abstract

Technological innovation is a key driver of global competitiveness; however, in Latin America, limited evidence persists on how microenterprises transform external technological knowledge into innovation and business performance. This study analyzes the influence of technological absorptive capacity on the performance of microenterprises, considering the mediating role of product innovation. A quantitative approach was adopted, with a descriptive and correlational scope, using a cross-sectional design. Data were collected through an online survey administered to 110 Ecuadorian microenterprise owners, and the data were analyzed using partial least squares structural equation modeling (PLS-SEM). The results show that technological absorptive capacity positively influences both product innovation and business performance, while product innovation directly contributes to performance. Overall, the model demonstrates adequate explanatory and predictive power, providing relevant evidence for understanding innovation and performance processes in microenterprises in emerging economies.