Research On Constructing "Outside-in" Logic Of Latecomers' Absorptive Capacity

Traditional absorptive capacity(AC)research suggested that AC may be created as a byproduct of a firm's R&D investment,and need requisite prior related knowledge.AC not only enables a firm to exploit new external knowledge,but to predict more accurately the nature of future technological advances,finally achieving “fortune favors the prepared firms”,which represents “inside-out” logic of AC.However,latecomers in emerging market face two developmental disadvantages,have poor initial resource,and have limited resource to invest in internal R&D and innovation.This dissertation argues that the logic of AC originated from the latecomers differs from western advanced countries.This dissertation integrates resource dependence theory and paradox perspective,to explore why and how latecomers can construct the “outside-in” logic of AC,which may provide a more satisfactory account of “why can fortune also favor the unprepared latecomers”.This dissertation explore the enabling condition,enabling mechanism including behavior dynamic and process dynamic in the processes of constructing the “outside-in” logic of AC.First,this dissertation discusses resource dependence logic of the development of latecomers‘ AC through normative analysis,which is essential for latecomers to construct new logic of AC.We argue that latecomers have a higher resource needs,require external knowledge through inter-organizational knowledge transfer,at the same time,external environment also influence this process.Therefore,latecomers have to establish resource dependence relationship with the external environment,and deeply embedded into this external dual-dependence structure,which suggests that latecomers depend on foreign advanced firms technologically,while are compelled by domestic customers.Furtherly,latecomers with dual-dependence structure will influence their external knowledge acquisition,and incur their ambidextrous behavior.We also argue that external dual-dependence structure is dynamic,because of latecomers‘ learning effect.Second,this dissertation conducts a policy capturing study,to obtain a sample size of 2490 observations,and examine the impact of what latecomer have possessed or controlled(e.g.domestic customer demand and latecomers‘ internal capabilities)on their preference for external technology acquisition,and finally reveal how the resource and capabilities that latecomer have possessed or controlled to drive their learning.Our seemingly unrelated regression analyses reveal that customer demand and latecomers‘ transformation capability are both positively related to their preferences for technology purchase and imitation;R&D capabilities has a negative effect on latecomers‘ preferences for technology purchase.Furthermore,This dissertation also finds that customer demand allows latecomers to prefer technology purchase rather than technology imitation;transformation capability drives latecomers‘ preferences for technology imitation over purchase;latecomers with high R&D capabilities are more inclined to choose “NOT purchase” rather than “NOT imitation”.Third,this dissertation explores the dynamic equilibrium of constructing latecomers‘ AC through an inductive,longitudinal,multiple-cases study for three different business domains within a typical latecomer,and a framework of how latecomers can dynamically respond to the tensions is proposed,which reveals the inertia logic and paradoxical integration of responding to the tensions.Specially,latecomers could not directly cope with overall tension between technology and market domain that results from their resource dual-dependence,but inertially undertaking the overall tension: under the condition of accepting the persistence of tension,latecomers can undertake this overall tension with resource and capabilities that they have possessed or controlled,thus buffering the direct external shock,and further decompose the overall tension into nested tensions within technology and market domain.Then,latecomers can dynamically shift and balance nested tensions through paradoxical integration,and achieving the dynamic interaction between tension shifting and tension balancing.Finally,latecomers can stimulate their intrinsic agency,and release their potential through the dynamic processes of inertially undertaking and paradoxical integration.Finally,this dissertation analyses the enabling condition,enabling mechanism including behavior dynamic and process dynamic in the processes of constructing the “outside-in” logic of AC,which suggests that external resource dependence is the enabling condition,and latecomers‘ ambidextrous behavior and the dynamic equilibrium of responding to the tension are the enabling mechanism.These findings can provide a satisfactory account of why fortune also can favor the unprepared latecomers.This dissertation has several theoretical contributions: first,resource dependence theory is introduced into the research on latecomers‘ AC,and paradox perspective is also integrated,the “outside-in” logic of AC is constructed.Differing from western advanced firms,latecomers can establish external resource dependence with the environment,which enables latecomers to maintain ambidextrous behavior and dynamic equilibrium responding to the tensions.These allow latecomers to construct the “outside-in” logic of AC.Second,this dissertation reveals the core mechanism of AC driving latecomers‘ potential release from their behavior propensity and process dynamic.Latecomers can release their potential,and stimulate their sustainable absorption of external knowledge.Third,this dissertation reveals the tendency of latecomers to transition from exploitation to exploration.Differing from the tendency of organizations to transition from exploitation to exploration,latecomers can shift from exploitation to exploration in organizational learning,which supports the “outside-in” logic of latecomers‘ AC.