2019SOAS Research Online (SOAS University of London)Open access

Developing IJVs Absorptive Capacity for Promoting Low Carbon Technology Transfer The Role of Intermediaries and External Channels

Linlan Huang, Huan Zou

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Abstract

One of the perquisites of a successful technology transfer is that the firm should have sufficient absorptive capacity. Such capacity is not a take-for-granted product but go through a sophisticated development process. While most studies highlight the absorptive capacity and network in the process, the role of intermediaries is often underlined. In this study, we adopt the process-perspective on examine how international joint ventures conduct external knowledge search via intermediaries in the absorptive capacity development process in IJVs technology transfer. Based on three in-depth qualitative cases in low carbon industry, this study unfolds that successful innovators should not be isolated from intermediaries in the recent model of the innovation system. Instead, they interact with a variety of intermediaries at different stages of technology/knowledge transfer to secure the best-available resources and knowledge supporting absorptive capacity-building and innovation, which finally becomes a part of their market competitiveness.

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One of the perquisites of a successful technology transfer is that the firm should have sufficient absorptive capacity. Such capacity is not a take-for-granted product but go through a sophisticated development process. While most studies highlight the absorptive capacity and network in the process, the role of intermediaries is often underlined. In this study, we adopt the process-perspective on examine how international joint ventures conduct external knowledge search via intermediaries in the absorptive capacity development process in IJVs technology transfer. Based on three in-depth qualitative cases in low carbon industry, this study unfolds that successful innovators should not be isolated from intermediaries in the recent model of the innovation system. Instead, they interact with a variety of intermediaries at different stages of technology/knowledge transfer to secure the best-available resources and knowledge supporting absorptive capacity-building and innovation, which finally becomes a part of their market competitiveness.

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One of the perquisites of a successful technology transfer is that the firm should have sufficient absorptive capacity. Such capacity is not a take-for-granted product but go through a sophisticated development process. While most studies highlight the absorptive capacity and network in the process, the role of intermediaries is often underlined. In this study, we adopt the process-perspective on examine how international joint ventures conduct external knowledge search via intermediaries in the absorptive capacity development process in IJVs technology transfer. Based on three in-depth qualitative cases in low carbon industry, this study unfolds that successful innovators should not be isolated from intermediaries in the recent model of the innovation system. Instead, they interact with a variety of intermediaries at different stages of technology/knowledge transfer to secure the best-available resources and knowledge supporting absorptive capacity-building and innovation, which finally becomes a part of their market competitiveness.

Key concepts: Absorptive capacity, Intermediary, Business, Industrial organization, Process (computing), Knowledge transfer, Technology transfer, Product (mathematics)

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