Strategic Alliances, Absorptive Capacity, and Innovation Performance of Nigerian Technology Firms

This study examines the moderating role of absorptive capacity in the relationship between strategic alliances and innovation performance among technology firms in Nigeria. Strategic alliances provide Nigerian tech firms access to external knowledge, yet the ability to exploit this knowledge depends on internal absorptive capacity. The conceptual framework integrates alliance theory with absorptive capacity theory. The research employs a quantitative survey design, targeting innovation managers, partnership directors, and research leads of twenty-five technology companies in Lagos. A total of 120 respondents were selected through purposive sampling. Moderated regression analysis was applied to test interaction effects. Innovation performance was measured through product innovation frequency, process innovation adoption, and R&D investment ratios. Findings indicate that strategic alliances have a significant positive effect on innovation performance, but this relationship is significantly strengthened in firms with higher absorptive capacity scores. The interaction term between alliance quality and absorptive capacity is statistically significant at the 1 percent level, confirming the moderation hypothesis. Firms with strong internal knowledge management processes extract disproportionately higher innovation value from their alliance networks. The study concludes that Nigerian technology firms must invest simultaneously in strategic alliances and internal absorptive capacity building to maximize innovation returns from their partnership portfolios. Keywords: strategic alliances, absorptive capacity, innovation performance, technology firms, Nigeria.