Threshold Effects, Technology Purchasing, and Firm Outcomes: An Absorptive Capacity Perspective
Abstract
External technology purchasing is frequently adopted as a strategy to facilitate technology innovation and to enhance firm performance. However, research shows that there is considerable heterogeneity across firms with respect to innovation output and firm performance after technology purchasing. This study uses an absorptive capacity perspective in proposing the existence of an R&D employees threshold and a technology purchasing scale threshold. Using a sample of 1460 high-tech companies in China, we find support for both thresholds. We also find that the two variables are complementary with each other, jointly promoting innovation when both thresholds are crossed.
Recommended Citation
Sun, Z., Yu, Z., Wang, C., & Fang, C. (2022). Threshold Effects, Technology Purchasing, and Firm Outcomes: An Absorptive Capacity Perspective. Emerging Markets Review Elsevier.
The definitive version is available at https://doi.org/10.1016/j.ememar.2022.100973
Department(s)
Business and Information Technology
Keywords and Phrases
Absorptive capacity; Innovation; Technology purchasing; Threshold effect
International Standard Serial Number (ISSN)
1873-6173; 1566-0141
Document Type
Article - Journal
Document Version
Citation
File Type
text
Language(s)
English
Rights
© 2023 Elsevier, All rights reserved.
Publication Date
01 Jan 2022
Comments
National Natural Science Foundation of China, Grant 71602127