Keywords: absorptive capacity, China, knowledge transfer, learning, resources, technology sourcing, technology management
Resources, absorptive capacity, and technology sourcing
This paper explores the determinants of firms' external technology sourcing mode. Instead of focusing on opportunistic behaviour in knowledge transactions and assuming minimising transaction costs as a firms' objective, I focus on firms' absorptive capacity and emphasise gains from knowledge transfer in technology sourcing. I analyse how a firm matches a sourcing mode with its absorptive capacity to enhance knowledge transfer in technology sourcing, and I find positive relations between a firms' absorptive capacity and interactive technology sourcing modes.