Threshold effects, technology purchasing, and firm outcomes: An absorptive capacity perspective

Zhongjuan Sun, Zhu Yu, Cizhi Wang and Hanqing Fang

Emerging Markets Review, 2023, vol. 55, issue C

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.

Keywords: Technology purchasing; Innovation; Threshold effect; Absorptive capacity (search for similar items in EconPapers)
JEL-codes: M10 M11 O32 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:55:y:2023:i:c:s1566014122000905

DOI: 10.1016/j.ememar.2022.100973

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