An Empirical Investigation of Absorptive Capacity on Technology Transfer Effectiveness Through Organizational Innovation

Abstract

Purpose: Achieving technology transfer effectiveness (TTE) remains challenging in developing and underdeveloped economies to improve social infrastructures and develop economic systems. Bringing effectiveness in technology transfer is a complicated process for organizations that require improvement in their absorptive capacity (ACAP) and organizational innovation (OI). In the Information and communication technology (ICT) sector of Pakistan, technology transfer is ineffective due to a lack of ACAP and OI. This study aims to investigate the impact of ACAP and OI on TTE in the ICT sector of Pakistan.
 
 Theoretical framework: This study empirically investigated the relationship of ACAP and OI with TTE with underpinning organizational learning theory.
 
 Design/methodology/approach: A cross-sectional survey design was adapted for collecting data from 393 management representatives from 33 organizations of two main sub-sectors (Telecommunications and Information Technology) of the ICT sector of Pakistan. PLS-SEM was used for the reliability and validity measurement of research constructs. It also tested the hypothesized relationships between ACAP, OI, and TTE.
 
 Findings: This study confirmed the significant relationship of ACAP and OI with TTE. Further, the results also confirmed the mediation of OI between ACAP and TTE in the ICT sector of Pakistan.
 
 Research, Practical & Social implications: The implication of this research is to help government institutions and public and private sectors to develop mechanisms, economic policies, strategies, and business support for effective technology transfer in the ICT sector. This research model is also helpful for researchers and practitioners in its applicability in other industries, countries, and cross-cultural environments.
 
 Originality/value: Due to the lack of research in the ICT sector of Pakistan, this study empirically investigated the hypothesized significant relationships of ACAP and OI with TTE. This study also filled the research gap by evaluating the significant mediation of OI between ACAP and TTE and contributed to the body of knowledge.

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