Technology transfer, technological capability, absorptive capacity and firm performance: An investigation of the textile and clothing firms in Pakistan

Nazeer, Nazia and Rasiah, Rajah and Furuoka, Fumitaka (2021) Technology transfer, technological capability, absorptive capacity and firm performance: An investigation of the textile and clothing firms in Pakistan. Malaysian Journal of Economic Studies, 58 (1). pp. 99-124. ISSN 1511-4554, DOI https://doi.org/10.22452/MJES.vol58no1.6.

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Abstract

Research on the web of technological linkages that stimulate firm performance is still evolving, especially when they differ with industry, timing and location. Generally, firms in emerging nations need technologies to build technological capabilities; however in some cases firms are limited in their capacity to acquire the technology because of their low level of absorptive capability. The rising share of resource-based textile exports, which exceeds clothing exports, demonstrate that little or no functional upgrading has taken place in the clothing and textile industry of Pakistan. Hence, using structural equation modeling we examine in this paper the mediating effect of absorptive capacity on the relationship between technological capabilities and technology transfer, and firm performance in a sample of 503 textile and clothing firms in Pakistan. The results show that, absorptive capacity mediates positively and significantly the relation between technology transfer, technological capabilities and firm performance with the former being stronger than the latter.

Item Type: Article
Funders: UNSPECIFIED
Uncontrolled Keywords: Absorptive capability; Firm performance; Smart PLS; Technological capabilities; Technology transfer
Subjects: H Social Sciences > HB Economic Theory > Business cycles. Economic fluctuations
H Social Sciences > HF Commerce > Business
Divisions: Deputy Vice Chancellor (Academic & International) Office > Asia-Europe Institute
Depositing User: Ms Zaharah Ramly
Date Deposited: 06 Sep 2022 01:20
Last Modified: 06 Sep 2022 01:20
URI: http://eprints.um.edu.my/id/eprint/35132

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