Abstract
Abstract This study investigates the factors inhibiting latecomer firms’ technological innovation and eventually their catch-up process. Accordingly, it relies on resource-based theory to advance an absorptive capacity argument and develop a multiple mediation model. This model is tested using the data collected from 166 Chinese manufacturing firms. Furthermore, this study provides theoretical arguments and empirical evidence about the role of each dimension of absorptive capacity in studying the catch-up process of latecomer firms, with particular reference to knowledge transformation. It also offers insights into the limitations of predominant latecomer firms’ innovation strategies and suggests shifts in managerial practice and policymaking.
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