Technology Absorptive Capacity Research Articles

Broken links: Absorptive Capacity and the internationalisation process of high-tech companies

This study develops propositions regarding the impact of Absorptive Capacity (AC) on the internationalisation process. It generates a conceptual model based on the empirical examination of small-to-medium sized agro-technology companies. The paper demonstrates that the extent to which firms capture and exploit new information is highly influenced by their AC. The goal is to determine the type of knowledge which firms need, to exploit new and emerging markets. We suggest that AC in high-tech companies exists as two subsets: technological AC and non-core AC. The two ACs affect the daily activities of firms in different ways and influence their strategies, particularly their international strategies.

Is technology acquisition enough to improve China's product quality? Evidence from firm-level panel data

As developing countries open themselves up to trade, many industrial firms in these countries are finding it difficult to compete internationally due to poor product quality and low product variety. Although China has been the largest producer of crude steel since 1996, China's steel firms have produced an overabundance of low-quality steel while domestic purchasers of steel have increasingly demanded higher quality steel products. Many have argued that for Chinese steel firms to improve product quality they must adopt more advanced technologies. Employing firm-level panel data of steel firms in China, we econometrically test the relative importance of two possible sets of factors affecting a firm's ability to utilize technology to improve product quality: technology acquisition factors and technology absorptive capacity factors. We find that technology complements such as in-house R&D and foreign knowledge must be combined with technology for Chinese firms to improve product quality.

Examining the Level of Sophistication and Success of Destination Marketing Systems

Great variations have been observed in the sophistication, interactivity and quality of the destination marketing systems operated by destination marketing organizations (DMOs). This paper argues that DMOs' Website characteristics (i.e., sophistication and interactivity) have a great impact on the success of their online marketing activities. It also argues that DMOs' organizational factors not only determines the level of sophistication of their marketing system, but also defines the level of success with their Web-based marketing efforts. The study provides empirical evidence to support the notion that the sophistication level of destination marketing systems does positively impact the performance of DMOs' Web-based marketing efforts. The results of the study show that three organizational factors have the most impact on Web marketing success: technology competence, organizational innovativeness, and absorptive capacity. It also shows that two organizational factors have significant impact on Website sophistication: organizational innovativeness and financial commitment. Discussions and implications are provided based on the study results.

ASPECTOS ORGANIZACIONALES Y DE COOPERACIÓN EN I+D COMO CRITERIOS DE CLASIFICACIÓN. EL CASO DE LA INDUSTRIA ALIMENTARIA EN LA COMUNIDAD VALENCIANA

The present paper addresses a proposal for a taxonomy of the local Valencia food industry by means of cluster analysis. This technique allows conforming conglomerates with similar characteristics which will facilitate its analysis and the design and application of public support policies contingent with the firms needs belonging to each cluster. In relation to factors and variables for the clusters conformation the following were emphasized: collaboration with university, firm size, existence of a dedicated R&D department as well as two factors associated with the firm competitiveness: skills at new product development and technology absorption capacity. Three distinctive conglomerates were found: leaders firms, innovators with potential for university collaboration and traditional conservative firms.

Empirical analysis on the negative technology spillover effect of foreign direct investment in China

Summary Drawing upon data collected in 37 industries in China between 1998 and 2003, this empirical study examines the degree to which three factors—size of technological gap, absorptive capability, and technological intensiveness—influence a “negative spillover effect” in reaction to foreign direct investment. The results of our study demonstrate that the size of the technological gap between the local industry and the foreign invested companies does not affect the foreign direct investment's capability to produce a “negative spillover effect.” However, there is a significant correlation between each of the other two factors, namely, absorptive capacity and technological intensiveness, and the negative spillover effect. That a large absorptive capacity of local firms in a technologically intensive industry can have a moderating effect on any negative spillover effect is obvious. However, as the absorptive capacity of the local industry and the technological intensiveness of the industry decline, this moderating effect becomes statistically insignificant. This study then demonstrates that the ability for local industries to catch up depends on the domestic firm's participation in the process of technological innovation and improvement. To overcome technological dependence in high‐technology industries, domestic firms have to strengthen their technological absorptive capacity and their own innovative capabilities.

Technology absorptive capacity, knowledge transfer and commercialisation: traps and success factors

New knowledge as such has no value until it is applied. The objectives of this paper relate to the processes involved in the application of new knowledge for such value-adding applications. The constructs involved include knowledge itself, knowledge transfer, technology diffusion and technology absorptive capacity for existing companies and the critical factors in establishing viable and high growth new spin-off ventures. The key success factors that have been identified are few: careful selection of new business and commercialisation channel, adequacy of resources available initially, and effective planning supported by established commercial competence.

Technologische Absorptionsfähigkeit einheimischer und ausländischer Unternehmen in Südostasien

Technological absorptive capacity of local and foreign firms in Southeast Asia. Examples from Singapore, Penang and Bangkok. The article reflects on the conceptualization of absorptive capacity (AC) and distinguishes between potential and realized AC. Next it analyses potential AC in an exploratory manner for a) all surveyed and b) only R&D-performing local and foreign firms. Using general indicators such as qualification of the workforce and training expenditure as well as R&D-specific indicators such as R&D-expenditure, -personnel and -cooperation, it finds evidence that in general foreign firms tend to possess a higher absorptive capacity while the opposite is true for R&D performing firms.

Development of technological capability by Cuban hospitality organizations

This study investigates the key elements that affect the ability of hospitality organizations to cultivate technological capability through innovation. The focus of analysis is not on the institutional context, but on the hotel and tourist companies. A theoretical framework that links the type of innovation undertaken by the firm, the firm's managerial capabilities, learning culture, organizational structure, systems and procedures, technological absorptive capacity and level of government support with the level of technological capability is presented and tested empirically based on the data on innovation projects from 62 Cuban hospitality companies. Analysis of the data confirmed hypotheses that group management skills, project management skills, learning culture, and government support are significantly related to the development of technological capability in these companies.

Effects of Technology Absorptive Capacity and Technology Proactivity on Organizational Learning, Innovation and Performance: An Empirical Examination

Technology is crucial for organizations in the knowledge society, but little empirical research has been conducted on technology absorptive capacity and technology proactivity. Based on existing theoretical studies, this article formulates a global model to analyse how technology absorptive capacity and technology proactivity influence organizational learning and organizational innovation, and how these dynamics capabilities affect organizational performance. The model also shows how organizational learning affects organizational innovation. The hypotheses are tested using data from 246 Spanish technological firms. The paper discusses the findings and provides several implications for future research. The findings are important for management practice, especially for firms where technology is the main strategic element.

Globalisation and the Adoption of ICTs in Nigerian SMEs

The study aims at investigating the factors that affected the degree of adoption of new technologies in Nigerian SMEs. New technologies are by and large dominated by ICTs. Data for the analysis come from sixty-seven SMEs located in Aba, Ibadan, Lagos and Nnewi. One of the major factors inhibiting ICT diffusion and intensive utilisation is poor physical infrastructure represented by adequate and uninterrupted electricity supply and communication connectivity infrastructure. Findings of multivariate analysis suggest that firm-level variables such as financial capacity and technological absorptive capacity influenced the intensity of the adoption of ICTs. The results also suggest that globalisation of the Nigerian economy also influenced the adoption of new technologies. The study concludes that SMEs need institutional support in terms of human resource development for the augmentation of their competitiveness in the domestic as well as international markets.

A longitudinal comparative study of university research commercialization performance: Australia, UK and USA

SummaryResearch commercialisation surveys are now available for Australia for Financial Years (FY) 2000 and 2002. This paper reviews longitudinal comparative data for research commercialisation performance in Australia, the United Kingdom and the USA. It discusses commercialisation performance measures, with a specific focus on entrepreneurial spin-off companies, and performance comparisons are made based on research expenditure in US dollars adjusted for purchasing power parity. Conclusions from these analyses suggest that, in recent years, Australian public agency performance in generating spin-offs per unit of research expenditure, adjusted for purchasing power parity, has been comparable or superior to some universities in other countries reviewed. However, Australian university revenue from intellectual property licensing royalties and research contracts has been below that of other countries studied. Analysis suggests that this results from problems in both demand – low business investment in R&D and hence low technology absorptive capacity – and supply, that is lack of time and lack of incentive to academic researchers to develop contacts with and meet the expectations of industry and other research users for technology that works.

Technology transfer and innovation performance: Evidence from Chinese firms

This paper explores the relationship between technology transfer activities and innovation performance with special reference to Chinese industrial firms. It is based on a recent nationwide survey covering 2334 Chinese industrial firms. The impact of technology transfer on their innovative performance was analyzed for all the responded firms and similar analyses also addressed the issue from perspectives of general industrial firms versus high-tech firms, and large firms versus small and medium firms. Several critical types of technology transfer activities were identified and both positive and negative impacts were discussed along with the Pearson correlation analysis and stepwise regression analysis. The study revealed that the innovation activities in Chinese manufacturing firms could not be boosted substantially merely through the acquisition of key equipment and apparatus from abroad. The findings also suggested that Chinese firms should develop their technological absorptive capacity and transformative capacity, and foster technology transfer and communications among trading partners. Moreover, it would be crucial for Chinese firms to stress the nurturing of indigenous innovation capabilities so as to sustain their performance improvement.

The impact of technology absorptive capacity on technology transfer performance

Although there have been many empirical studies regarding the key success factors of technology transfer performance, technology absorptive capacity is seldom discussed. In practice, firms could not assimilate and apply the external knowledge successfully without greater technology absorptive capacity. Therefore, the current study explores the associations among technology absorptive capacity and its critical factors including organisational cultures, technology diffusion channels, intra- and inter-organisational interaction mechanisms, and R&D resources, and finally their impacts on transfer performance. The data were collected from Taiwanese electronic and chemical manufacturing firms by questionnaire surveys, and the analyses were conducted by factor analysis and a LISREL model. After the data analyses and the interviews with some R&&D managers, we found that the results reveal a three-stage process of influence. First, the organisational cultures influence intra- and inter-organisational interactions and R&D resources. Secondly, organisational cultures, technology diffusion channels, organisational interactions, and R&D resources show impacts on technology absorptive capacity. Finally, by presenting the effect of technology absorptive capacity on technology transfer performance, we conclude that diverse organisational cultures, organisational interactions, R&D resources and technology absorptive capacity will result in a different technology transfer performance.

Přímé zahraniční investice a technologická změna

Paper focuses on foreign direct investment (FDI) in manufacturing in the Czech Republic, Hungary, Poland and Slovakia (CECs), where FDI penetration jumped to remarkable high levels in recent years. Foreign investment enterprises are more profitable, export oriented and technologically superior compared to domestic companies. FDI is perceived as a main channel of technology transfer and potential source of spillovers in host economy, though, estimates of technology transfer show mixed picture in the CECs. FDI spurs restructuring and productivity growth in foreign investment enterprises but FDI rather crowds-out domestic companies as spillovers are confirmed only to domestic companies with sufficient technological absorptive capacity. Paper concludes with some policy implications regarding FDI promotion and innovation policy.

Public research agencies as sources for innovations and the entrepreneurial absorptive capacity of manufacturing enterprises

SummaryLiterature on technology absorptive capacity for new knowledge has shown business R&D investment, however measured, to be a key factor. Statistical analyses of Australian innovation survey data showed a strong relationship between technology absorptive capacity and the perceived importance of public sector research providers as sources of information and ideas for innovations. The policy implications of these findings are how to better balance government interventions between increased funding for the generation of new knowledge and improving the absorptive capacity for this new knowledge and the associated enterprise entrepreneurial propensity.

The critical factors for technology absorptive capacity

There are numerous studies concerning the key success factors for technology transfer performance, but little empirical research has been conducted on technology absorptive capacity. In the real world, firms cannot successfully assimilate and apply external knowledge without greater absorptive capacity. It is worthwhile exploring the critical factors of absorptive capacity through its impact on transfer performance. Results reveal significant associations between technology absorptive capacity and the critical factors – technology diffusion channels, interaction mechanisms, and R&D resources. Organizational cultures impact on interaction mechanisms, R&D resources, absorptive capacity and transfer performance. Different organizations will experience different technology transfer performance. Focuses explicitly on technology absorptive capacity within the field of empirical technology transfer research. The findings are important for management practice, especially for firms carrying out technology transfer in developing countries.

Building Technological Capability Through Importing Technology: The Case of Indonesian Manufacturing Industry

This research investigates the critical elements affecting the ability of firms in developing countries to cultivate their technological capability through imported technology. The information obtained from forty-five technology recipient Indonesian manufacturing firms indicate that the cultivation of technological capability is affected by several factors such as a firm's technological absorption capacity in terms of RD transfer channels; government's involvement; and a firm's learning culture. Also, the acquisition of mature technology just to boost production capacity or improve product quality contributes very little to the development of technological capability.