The Effects of Absorptive Capacity and Recipient Collaborativeness as Technology Recipient Characteristics on Degree of Inter-Firm Technology Transfer

Abstract

Problem statement: As an efficient means to increase global competitiveness, technological capabilities and potential for local innovation, organizations in the developing countries are working hard to collaborate, learn and internalize their foreign partner’s technological knowledge by forming strategic alliances or International Joint Ventures (IJVs). Technology recipient characteristics, as one of the important actors/facilitators of inter-firm technology transfer, have increasingly become crucial factors in determining the success or failure of inter-firm technology transfer within IJVs. Since the current issue on inter-firm Technology Transfer (TT) in the developing countries is centered on the efficiency and effectiveness of the transfer process by the Multinationals (MNCs) therefore the success is often associated with or measured by degree of technology transferred to local partners. Based on the underlying knowledge-based view and organizational learning perspective, this study aims to empirically examine the effects of two critical elements of technology recipient characteristics: Absorptive Capacity (ACAP) and Recipient Collaborativeness (RCOL) on degree of technology transfer: Degree of tacit and explicit knowledge in IJVs. Approach: Using the quantitative analytical approach, the theoretical model and hypotheses in this study were tested based on empirical data gathered from 128 joint venture companies registered with the Registrar of Companies Of Malaysia (ROC). Data obtained from the survey questionnaires were analyzed using the correlation coefficients and multiple linear regression analyses. Results: The results revealed that recipient collaborativeness as the critical element of technology recipient characteristics has strong significant effects on both degrees of tacit and explicit knowledge. Although absorptive capacity has been strongly emphasized of its significance effect, however, the results are not statistically significant. Conclusion/Recommendations: The study had bridged the literature gaps in such that it provides empirical evidence on the effects of two generic technology recipient attributes: absorptive capacity and recipient collaborativeness on degree of inter-firm technology transfer: degree of tacit and explicit knowledge.