Abstract:Within the context of inter-organizational learning process, , this research explored the relationships among absorption capacity, network routines, and radical product innovation from the perspective of formation process of absorption capacity and network routines during inter-organizational learning. By analyzing the sample data of 161 SME's from Pearl River Delta region, it was found that: absorptive capacity and network routines have significant positive effects on radical product innovation, and relationship stability positively moderates the relationship between absorption capacity and radical product innovation. In addition, the different effectiveness was observed that the two sub-dimensions of the network routines have impact on radical product innovation. Specifically, tacit understanding has a significant positive influence on radical product innovation, but the negative influence of specifications acceptance on radical product innovation is not significant.