Firms´ absorptive capacity and technology compatibility in transferred technology

Absorptive capacity and technological compatibility are among the many elements that facilitate the transference of technology. However, studies that discussed absorptive capacity overlooked most elements that have been suggested to comprise the construct. In addition, studies on technology transfer have also not integrated both the firm´s capacity to absorb the technology and the appropriateness of the technology, even though both are seen as important to ensure the success of technology transfer. This study used data collected from Malaysian manufacturing firms to determine the relationship between absorptive capacity, technological compatibility and technology transfer performance. The results in multiple regression tests indicated that these variables contributed in explaining the transfer stage.