Threshold Effects, Technology Purchasing, and Firm Outcomes: An Absorptive Capacity Perspective
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.
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
Business and Information Technology
Keywords and Phrases
Absorptive capacity; Innovation; Technology purchasing; Threshold effect
International Standard Serial Number (ISSN)
Article - Journal
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01 Jan 2022