Absorptive Capacity as Fit in Interorganizational Technology Transfer Context

Abstract

In the present study, the primary objective is to empirically examine the concept of specific firm dyad's absorptive capacity (AC) in a technology transfer context. In such context, the dissimilarity between partner firms maybe obvious but often neglected in assessing the absorption effectiveness. Extending the concept of AC in an age of business cooperation, we examine the concept of AC in specific technology transfer project. Multiple regression analysis, using survey data from managers of ninety-eight high–tech companies for hypothesis testing, demonstrated different contents of absorptive capacity than it was defined in prior research. We argue that a fundamental spirit of the absorptive capacity in technology transfer context is fit. The R&D investment, as included in our proposed model, does benefit the capacity for absorption. However, after the fit factors enter the model, their effects suppress the R&D investments'. Specifically, Cultural fit and interaction between both ends of transfer have significant impact on the absorptive capacity, and in turn on the TT performance. Innovativeness each partner firm articulates for the project is found significant too.