Abstract:

This study aims at investigating the influence that absorptive capability has on competitive advantage of Portuguese textile small and medium enterprises (SMEs). Therefore, a quantitative methodological approach was used, conducting a descriptive, exploratory and transversal empirical study, having applied a questionnaire to a sample of Portuguese exporting firms.

The research results suggest that absorptive capability enhances competitive advantage in the analysed SMEs, through the acquisition (cost leadership and differentiation), assimilation (cost leadership), transformation (cost leadership) and exploitation (cost leadership and differentiation). Therefore, the findings sustain the necessity to invest in absorptive capability, which contributes to the firms’ competitive advantage in foreign markets.