Differences of technology absorptive capacity: Evidence from China´s automotive industry

Technology absorptive capacity (TAC) is critical for innovation and competitiveness of enterprises in latecomer countries. The current literature lacks deep study on the differences of corporate TAC. Taking automotive industry as an example, this study selected 13 self-brand passenger car manufacturers in China and researched on the existence and dimensions of differences in corporate TAC through principal component analysis, complemented with analysis of major reasons causing the differences. The results proved to be significant, with emerging enterprises´ TAC generally stronger than traditional ones. Specifically, emerging enterprises have much stronger realized technology absorptive capacity (RTAC), while traditional enterprises are slightly advantageous in potential technology absorptive capacity (PTAC). The fundamental reason of traditional automobile companies´ weakness in TAC, in spite of their abundant prior knowledge, is low intensity of effort and lack of input in assimilation and transformation, which is a validation of Kim´s absorptive capacity model.