›› 2017, Vol. 29 ›› Issue (7): 46-60.

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The Impact of Technological Capability on External Technology Sourcing

Yan Zebin1, Yang Zhi1, Zhou Nan2   

  1. 1. School of Management, Huazhong University of Science and Technology, Wuhan 430074;
    2. Marketing Department, City University of Hong Kong, Hong Kong 999077
  • Received:2015-06-23 Online:2017-07-28 Published:2017-07-15

Abstract:

This paper examines the role of technological capability in external technological sourcing.Building on the absorptive capacity and organizational inertia theories, the authors propose that there is an inverted U-shaped relationship between technological capability and external technological sourcing, rather than linear relationship as assumed in prior literature.Results from 1231 firms in China sug-gest:(1) as technological capability increases, firms'external technology sourcing increases, but after it reaches a high level, firms'external technology sourcing will decline;(2) higher technological uncertainty and policy uncertainty make the inverted U-shaped rela-tionship flatter.In addition, our empirical evidences further suggest stable policy environment enhances the positive impact of technologi-cal capability on external technology sourcing.

Key words: technological capability, external technology sourcing, technological uncertainty, policy uncertainty