Innovativeness in Brazilian startups: the effect of the absorptive capacity and environmental dynamism

Considering the importance of the innovativeness for the success of the startups, we examined the relationship between absorptive capacity (ACAP), innovativeness and environmental dynamism, with a sample of 104 Brazilian startups surveyed at incubators. The structural equation modelling found several results. (1) Dynamic external environments positively influence the innovativeness of startups. (2) Dynamic environments influence firms to absorb external knowledge. (3) ACAP influence innovativeness, so greater the ACAP, greater the firm's innovativeness. (4) ACAP mediates the relationship between dynamic environments and innovativeness. The findings contribute to innovation approaches by analysing the impact of environmental dynamics, and especially by demonstrate the mediate role of the ACAP. In addition to theoretical advancement, we offer practical contributions to managers interested in intensifying their innovative practices.