KIBS deepening and manufacturers’ productivity: the moderating role of absorptive capacity

The outcomes from the associations between manufacturers and knowledge-intensive business services (KIBS) with consequences at the firm and regional levels have been called territorial servitisation. This article explores whether the effect of regional KIBS deepening on productivity growth is dependent on minimum levels of manufacturers' absorptive capacity. An econometric analysis was carried out using a threshold regression model of 125 Brazilian manufacturers collected from 2010 to 2017. Results indicate that KIBS deepening on its own does not bring productivity benefits. Manufacturers may collect positive gains if they are endowed with high levels of absorptive capacity.