J. Eng. Technol. Manage.

41 (2016) 65–78

Contents lists available at ScienceDirect

Journal of Engineering and Technology

Management

Necessitated absorptive capacity and metaroutines in

international technology transfer: A new model
Patrick van der Heidena,* , Christine Pohlb , Shuhaimi Mansorc,
John van Genderend
a
MVI International B.V., Schoolstraat 50, 1719 AW, Aartswoud, The Netherlands
b
Institute of Computer Science, University of Osnabrueck, Barbarastr. 22b, D-49076, Osnabrueck, Germany
c
Aeronautical Engineering Department, Faculty of Mechanical Engineering, Universiti Teknologi Malaysia (UTM), 81310 Johor Bahru, Johor,
Malaysia
d
Faculty of Geoinformation Science and Earth Observation, University of Twente, 7500 AA, P.O. Box 6, Enschede, The Netherlands

A R T I C L E I N F O A B S T R A C T

Article history:
Received 21 August 2015 International technology transfer of advanced technology and knowledge and their
Received in revised form 4 July 2016 subsequent absorption is crucial to firms in developing nations. This research paper aims to
Accepted 27 July 2016 further enhance the understanding and operationalization of the absorptive capacity
Available online 3 August 2016 construct. In the rigorous review of existing literature, organizational routines were found
to play a significant role in enhancing an organization’s absorptive capacity. We present our
JEL classifications: conceptualization of necessitated absorptive capacity as a dynamic organizational
O30 capability in the Necessitated Absorptive Capacity model. This paper contributes to the
O31
existing literature by providing a new model and an enhanced understanding and further
O39
operationalization of absorptive capacity.
L20
D23 ã 2016 The Author(s). Published by Elsevier B.V. This is an open access article under the CC
BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
Keywords:
Technology transfer
Organizational learning
Absorptive capacity
Organizational routines
Metaroutines

1. Introduction

International Technology Transfer (ITT) is a major player in obtaining return on public investment in research and
development (R&D). In addition it stimulates innovation in business and commerce and contributes to economic growth
(Venturini and Verbano, 2014). Nahar et al., 2006 define ITT as the “process by which a technology supplier communicates
and transmits the technology through multiple activities to the receiver, across national borders (2006: 664)”. Their holistic
approach perceives ITT not as a singular event (i.e. the actual transfer of a particular technology) but rather as an elaborate
process starting with identifying needs and demands for technology, the activities pertaining to the transfer and
implementation leading towards the assurance that the recipient has acquired the technology as initially intended. The

* Corresponding author.
E-mail addresses: patrickvdh30@gmail.com, heiden@mvii.nl (P. van der Heiden), chripohl@uni-osnabrueck.de (C. Pohl), shuhaimi@mail.fkm.utm.my
(S. Mansor), genderen@alumni.itc.nl (J. van Genderen).

http://dx.doi.org/10.1016/j.jengtecman.2016.07.001
0923-4748/ã 2016 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/
licenses/by-nc-nd/4.0/).
66 P. van der Heiden et al. / Journal of Engineering and Technology Management 41 (2016) 65–78

process of technology transfer (TT) exists in two basic forms according to Hall and Johnson (1970): the transfer of physical
items (machinery, tooling, process information, specifications and patents) and personal contact among individuals or
groups of individuals in organizations (e.g. product-embodied or person-embodied). A useful taxonomy of TT can be drawn
from Reisman (1989) perceiving TT as the process by which a particular technology is communicated and transmitted
through various activities by a technology supplier to a receiver. The receiver’s technological capability may be enhanced as a
result of TT. Petroni et al. (2013) synthesize TT in six main phases: (i) technology gap identification; (ii) technology source
identification; (iii) technology selection; (iv) technology supplier selection; (v) TT contracting; and (vi) technology
adaptation. It is important to point out that the actual transfer process may take place between a wide variety of different
entities and individuals in the international scientific, commercial, industrial and developmental realms and across
geographic regions, societies and nations. ITT and absorptive capacity (AC) within the international commercial realm
constitute the contextual nucleus of this paper. Where applicable, differentiations are made in order to distinguish between
the various realms and to identify the actual actors within the ITT process. Although ITT between nations occurs as part of
developmental aid or assistance (Hoekman et al., 2005), when references are made to ITT between nations in this paper,
these constitute the agglomeration of economic activities between firms acting as either technology transferee or recipient
within these nations.
ITT of aerospace technology or information technology (IT), for example, envelops the transfer of advanced technology,
which is innately characterized by a degree of technological complexity. Technological complexity is defined by Meyer and
Curley (1991) as the depth and scope of the programming effort, the user environment, and related technical efforts involved
in building such systems and in implementing them in production environments. The distinctive advanced state of such
technologies can be translated to what Nahar et al. (2006) have defined as a high technology. This requires high utilization of
scientific and engineering manpower and extensive R&D expenditure, thus placing it at the forefront of technological
leadership. As the complexity of a technology increases, its subsequent transfer proves more difficult (Kogut and Zander,
1993). The extent to which technologies are specific or generic is deemed important as the potential of TT depends
significantly on the generic aspects of the technologies (Bach et al., 2002). The movement of technology to another
organization of interest and its utilization often proves to be a complicated and unsuccessful organizational task (Stock and
Tatikonda, 2000). Radosevic (1999) pointed out that “the complexity of technology and the ensuing difficulties in
approximating various types of technology flows are pervasive (1991: 30)” and concluded that the analysis of TT should be
eclectic in order to address the multidimensionality of technology. Ambiguity still exists with regard to the terminology and
understanding of terms such as ITT, diffusion of technology and the parameters involved in the transfer process. Technology
itself is ambiguous because technologies are tacit, specific, and complex. It refers widely and is susceptible to multiple
interpretation (Powell et al., 2006). It may thus leave room for ambiguity aversion to play an important role in the absorption
process (Bryan, 2010).
This review paper does not attempt to serve as an exhaustive review on alternating conceptualizations of (high/advanced)
technology, ITT and AC but rather aims ab initio to build and propose a conceptual model of AC in an effort to operationalize
the AC construct. This exploratory work contributes to existing literature by providing an enhanced understanding of AC as
part of wider research into the role of AC to Less Developed Countries (LDC’s) and Newly Industrialized Nations (NIC’s). In
fulfilment of this paper’s central premise, the conceptualized Necessitated Absorptive Capacity model endeavours to
operationalize the AC construct and enable managers of LDC and NIC firms engaging in cross-border technology transfer to
utilize the model as a template to translate necessitated AC into a set of concrete actions and adjustments in pursuit of the
organization’s strategic goals. In addition, the proposed model aspires to allow for structured analysis of necessitated AC, its
constitutional elements and the intricate role organizational routines play in the AC metaroutines cycle. Lastly, the paper
raises continued awareness among researchers and the international business environment alike for the perpetuated
obscured usage of the concepts of (advanced) technology, ITT and AC in academia and business practice as its implications
continue to impede theoretical contemplation and research as well as the execution of ITT-projects by firms engaging in
cross-border technology and knowledge transfer.

2. International technology transfer

The extend of ITT activities expounds differences in per capita incomes between countries (Acharya and Keller, 2009). ITT
constitutes access to overseas markets, expanded production possibilities, conceivable stronger political influence for the
transferring country and means for infusion of advanced technology, creation of job opportunities and rapid economic
development for the recipient country (Fan and Yu, 1983). Over the past decades ITT has matured to be an important research
field (Al-Obaidi, 1999; Johnson et al., 1997; Robinson, 1988) and has stimulated considerable interest among academic
researchers, policy-makers (Bozeman, 2000) and practitioners (Petroni et al., 2013). ITT’s basic model was conceived in the
1970’s and 1980’s. Four factors determine the effectiveness of technology and knowledge transfer, namely: (i) goals of the
knowledge-administering entity; (ii) its proficiency of mastering knowledge transfer; (iii) aims of the knowledge recipient
and their ability to incorporate the new knowledge and (iv) its (organizational) learning (Liefner et al., 2012). ITT has
transformed from a rather one-sided transfer process of expertise, equipment and funds from a developed country (DC) to a
LDC, characteristic of the 1970’s and 80’s (Hoeke and Irsyam, 1983; Specter, 1989). Since the early 1990’s, the transfer of
technology has increasingly become a two-way affair, with scientific and commercial entities in both countries contributing
 P. van der Heiden et al. / Journal of Engineering and Technology Management 41 (2016) 65–78 67

to the international collaboration (Hoekman et al., 2005; King and Nowack, 2003; Petroni and Verbano, 2000; Rogers et al.,
2001).
From the recipient’s perspective, ITT may be defined rather narrowly as import of a technology from abroad
(Dechezleprêtre et al., 2009); the transfer of required know-how from other nations (scientific or commercial organizations
within these nations) and its subsequent successful utilization (Tidd and Trewhella, 1997); the acquisition, development and
utilization of technological knowledge by a country (scientific or commercial organizations within these countries) other
than the country from where the original know-how came from (Derakhshani, 1984). ITT comprises of a horizontal and
vertical component. The horizontal component exhibits three base elements: a home (supplier) country, a transaction and a
host (recipient) country. The vertical element acknowledges the inherent issues and analyses that are specific to those
countries, industry or firm (Reddy and Zhao, 1990). Horizontal TT involves the transfer of technology from one operational
environment to another whereas the vertical axis depicts a migration of a technology from laboratory research through
various developmental stages to commercialization (Ramanathan, 1994). ITT mechanisms include Foreign Direct Investment
(FDI), trade in capital goods, licensing, movement of people, turnkey projects, training courses, on-the-job training,
establishment of test and integration facilities, acquired technical assistance, R&D collaboration, consultancy by academic
staff (D’Este and Patel, 2007; Dahlman et al., 1987; Hoekman et al., 2005, Leloglu and Kocaoglan, 2008).
In their reflections on ITT and its cultural constraints, Kedia and Bhagat (1988) argue that the ITT process encompasses the
transfer of organized information, skills, rights and services from a supplier organization in a Developed Country (DC) to a
recipient organization in a LDC. King and Nowack (2003) conclude that TT can be perceived along a continuum framed by
event or learning perspectives. Whilst contemplating global variations in the institutional environment and the nature of
technology being developed, Audretsch et al. (2014) suggested that informal TT may be particularly important in emerging
economies. Because of the shortcomings in their infrastructures, these economies may be better able to compete in the
development of technology that does not require expensive laboratories and equipment. The success of ITT projects and
processes and the associated AC dynamics pertaining to the absorption of technology and knowledge, depends on a wide
range of aspects that require additional illumination. Biagini et al. (2014) provided a comprehensive model of technology

Fig. 1. Model of technology transfer and adoption.

Adapted from Biagini et al. (2014)
68 P. van der Heiden et al. / Journal of Engineering and Technology Management 41 (2016) 65–78

transfer in the context of climate change adaptation, which is neutral in respect to the source of innovations (see Fig. 1). The
model was developed for a particular context but its interacting criteria are valid in other domains and may be applied to a
wide range of advanced technology industries. Therefore, Fig. 1 was specifically modified to illustrate the interconnected-
ness, complexity and multidimensionality of ITT and the subsequent absorption of technology and knowledge, depicted in an
integral representation of pivotal aspects associated with ITT and AC.
As can be deduced from this model, issues in the cross-border technology transfer of advanced technologies and their
subsequent absorption by recipient organizations cover a wide range, starting from the technology itself, through end user
characteristics, social context, markets, transfer mechanisms and policy environment. The model places the absorption of
technology at its nucleus as the actual assimilation of the transferred technology by recipient users can be characterized as
one of the most crucial elements in the overall success of any ITT project. The next chapter commences with a comprehensive
overview of AC and its divergent conceptualizations and further addresses the paramount role of AC in the ITT process.
Furthermore, the next chapter explores the constitutional elements of AC and addresses the importance of AC to firms and
organizations in LDC’s and NIC’s.

3. Absorptive capacity

One of the first and most widely cited definitions of AC is suggested by Cohen and Levinthal (1990) as “the ability to
recognize the value of new external information, assimilate it and apply it to commercial ends (1990: 128)”. According to
their explanation, AC is a prerequisite for organizational learning thus enabling a recipient organization to recognize and
digest novel sources of technology. The absorption of these novel technologies and associated knowledge replaces the
recipient’s existing lower level of technology, which the recipient exhibited before the actual absorption of the new
technology or knowledge. Several other researchers have attempted to define AC because of its evidently important role in
the absorption of novel technology and knowledge. Zahra and George (2002) define AC as a set of organizational routines and
processes by which firms acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational ability.
Furthermore, they identified two distinct types of AC, namely potential AC and realized AC. The former comprises of
knowledge acquisition and assimilation (including from external sources) and endeavours aimed at the identification and
acquisition of new knowledge. The latter constitutes knowledge transformation and exploitation, the distillation of novel
insights and acquired knowledge and incorporating the altered knowledge pool into operations. Skiera et al. (1998)
conceptualize AC as the combination of the prior knowledge base with the intensity of effort employed by the recipient of the
technology transfer. Leloglu and Kocaoglan (2008) assert that the primary factor in successful TT is the assimilation ability of
the recipient nation. This capacity to absorb a given technology is correlated to the nation’s human capital, infrastructure and
the overall efficiency of the recipient organization. Consequently, the AC of a given country is, to a large extent, dependent on
the country's prior knowledge base.
Approaching the AC construct from a regional innovations system (RIS) perspective, Vang and Asheim (2006) explain that a
region within a country has an AC “which is a function of the individual firms AC, human capital (formal and tacit), social
capital and financial capital.” They oppose perceiving regional AC narrowly as an aggregate of the individual firms’ AC.
Improved chances to successfully apply new knowledge towards commercial ends, an increased output of innovations and
enhanced business performance are associated with a high degree of AC (Tsai, 2001). Furthermore, commercial
organizations with a superior technological knowledge base and advanced technologies are able to form resource
configurations and organizational processes to create and sustain a competitive advantage (Teece, 1998). Park and Choi
(2014) perceive the AC perspective as “a useful primary lens to understand knowledge acquisition from foreign parents in
overseas subsidiaries.” AC as a dynamic capability can be analysed on macro and micro levels and exists on national, regional,
organizational and individual levels. The AC of a country may be defined as: the organizational routines and processes by
which a country through their industries, firms, universities etc. acquires, assimilates, transform and exploits technology and
knowledge and apply it to practical, commercial and innovative ends.
Lim (2009) argues that AC is frustratingly difficult to observe, thus impeding theoretical research. He contributes to
existing conceptualizations with an important observation of the multifaceted (Jansen et al., 2005) and multidimensional
(Cassiman and Veugelers, 2000; Schmidt, 2010; Todorova and Durisin, 2007) nature of AC and distinguishes three types: (1)
disciplinary AC (i.e. acquisition of raw scientific knowledge and its conversion into forms useful for solving practical
problems, (2) domain-specific AC (i.e. the ability to acquire knowledge directly related to solving those problems in order to
produce commercially useful innovations), (3) encoded AC (i.e. an organization’s ability to absorb knowledge that is
embedded in tools, artefacts and processes). Lane et al. (2006) have raised attention for the prevalence of reified usage of the
AC construct in literature and the subsequent difficulties it represents in understanding AC in research. Schmidt (2010)
concludes that the differences between intra-industry, inter-industry and scientific AC are striking and that research should
consider the proxies and determinants of AC and further differentiate between the types of knowledge to be acquired and the
required absorptive capacities. Pandza and Holt (2007) also point out that the examination of different contextual and firm-
specific factors and their combined influence relationships between various levels of absorptive and transformative capacity
and knowledge flows is important. The lack of empirical work is hampering the definition of the encompassing processes
and dimensions shaping AC, resulting in remaining conceptual ambiguities (Jiménez-Barrionuevo et al., 2011). In a thorough
paper, Patterson and Ambrosini (2015) made an important contribution to expand the limited body of empirically based
research on AC by deepening the components of AC as described in the AC process models by Zahra and George (2002) and
 P. van der Heiden et al. / Journal of Engineering and Technology Management 41 (2016) 65–78 69

Fig. 2. Model of absorptive capacity flows.

Todorova and Durisin (2007). In addition to their configured AC construct (Fig. 2), they emphasize that AC is not an inward-
looking process but should be expanded and connected to external organizations.
Recently, AC has received considerable attention from researchers concerned with the study of ITT, as being one of the
most significant factors determining organizational learning. Organizational learning is defined as a modification in
organizational performance as a result of experience (Madsen and Desai, 2010) and the acquisition and interpretation of
information resulting in behavioural and cognitive changes which ought to have an impact on an organization’s
innovativeness (Dimovski, 1994). Organizational learning comprises of five learning sub-processes: information acquisition,
distribution, interpretation, integration, and organizational memory influenced by four antecedent factors: participative
decision making, organizational openness, learning orientation, and transformational leadership (Flores et al., 2012). The
empirical study of Bolívar-Ramos et al. (2012) shows that technological distinctive competencies and organizational learning
within a firm stimulates organizational performance positively, both directly and indirectly through organizational
innovation. In addition, their results indicate that support of a firm’s top management for technology indirectly influences
technological distinctive competencies through the development of technological skills.
Park (2011) observes that some Western firms are good at absorbing knowledge but they lack the ability to transfer their
information effectively to the recipient partner firm in another country. A high degree of AC is associated with an improved
chance to successfully apply new knowledge towards commercial ends, producing more innovations and better business
performance (Tsai, 2001). Martin and Salomon (2003) list some of the factors involved in this ability. These include: (1)
possession of relevant knowledge by the company transferring technology, (2) open communication between the two
involved partners, (3) active managerial involvement of the foreign parent, (4) transfer of expatriate experts, (5) provision of
training. Lane et al. (2001) contemplate the notion that if one applies AC to knowledge acquisition in international joint
ventures, it refers to their ability to recognize the value of new parent knowledge. This enables joint ventures to link new
knowledge to their existing pool of knowledge and combining it with a diffusion activity in order to distill new knowledge as
a result. Kneller and Stevens (2006) identified two mechanisms that might determine and enhance the AC of a recipient firm
and its subsequent technical efficiency: human capital and R&D. They found that the latter plays a particularly significant and
quantitatively important role in explaining differences in technical efficiency between recipient nations. In an important
contribution to AC and human resources management (HRM) practices, Minbaeva et al. (2003) accentuate that the
individual’s ability and motivation within an organization are vital constituents of AC. In addition, they urge managers within
subsidiaries of multinational corporations (MNC) to improve the AC within their organizations by ‘applying specific HRM
practices oriented towards employees’ ability (training and performance appraisal) and employees’ motivation
(performance-based compensation and internal communication) (2003: 597)’ Within the MNC realm, the study of
Schleimer and Pedersen (2014) shows that MNC parent entities can endorse various mechanisms to directly and indirectly
influence their subunits’ ability to absorb strategic knowledge that originates from other parts within the MNC. The
aforementioned demonstrates the multidimensionality and dynamism of AC as it operates on various levels ranging from the
individual level to a team, organization or MNC and may even comprise of a whole industry or industries on a national level
thus resulting in the analysis and recognition of a country’s AC in relation to these industries.
Mäkinen and Vilkko (2014) ran interesting simulations in their effort to build an exploratory system dynamics model.
Their findings show how managerial decision-making with regard to AC may impact on the evolution of the product
portfolio in high-technology industries. These simulation outcomes hold particular significance for firms as even singular
changes in environmental conditions alter the short-term dynamics in managerial decision-making in favour of balancing
70 P. van der Heiden et al. / Journal of Engineering and Technology Management 41 (2016) 65–78

the firm’s product portfolio while this recourse allocation to short-term goals is simultaneously prone to inferior positions in
depleted and realized AC. The constitutive elements of AC consist of two components, namely: internal and external AC
capabilities according to Lewin and Massini (2003). They perceive internal AC as the role of the intramural exploration and
inception of novel knowledge and its subsequent assimilation. Furthermore, they draw an interesting comparison between
internal AC and the processes of internal variation, selection and replication (VSR), which originates from various
conceptualizations in evolutionary economics after the works of Nelson and Winter (1982) and Hogson and Knudsen (2010)
among others. The VSR processes bear particular relevance for the analysis of internal AC capabilities. Lewin and Massini
(2003) provide a conceptualization of external AC, which encompasses the management aimed at the search for and the
assimilation of new knowledge in the external environment. Becker (2004) points out that the conceptualizations of
organizational routines in research are characterized by widespread interpretations as both behavioural regularities (i.e.
recurrent interaction patterns) and cognitive regularities (i.e. rules, standard operating procedures etc.). He further
illustrates that routines allow organizations to do the following: (1) routines enable coordination; (2) routines provide a
degree of behavioural stability; (3) routinized tasks can be carried out in the realm of the sub-conscious thus economizing on
limited cognitive resources; (4) routines bind (tacit) knowledge; (5) routines captivate the application of knowledge.
In a later paper, Lewin et al. (2011) build upon their previous work by expanding their conceptualization in an effort to
formulate a routine-based theory of AC that differentiates between internal and external metaroutines. They define
metaroutines as: “higher level routines that define the general, abstract purpose of routines and that are expressed by
practiced routines, which are firm specific, idiosyncratic, and observable. Therefore, metaroutines represent the conceptual
foundation that gives rise to observable and executable AC-practiced routines within organizations. Internal AC
metaroutines involve the regulation of activities related to managing internal VSR processes.” According to them, two
conditions appear to determine the overall effectiveness of AC: (1) the extent to which organizations develop organizational
processes addressing all internal and external metaroutines; (2) finding complementarities between configurations of
metaroutines that leverage the effectiveness of individual practiced routines. They identified various internal and external
metaroutines and two interface metaroutines, acting as an intermediate agent between the internal and external
environment of the organization. The internal environment comprises of the following internal metaroutines: (1) facilitating
variation (i.e. formal and informal contextual organization-specific routines); (2) internal selection regime (i.e. emergence and
selection of novel ideas within organizations); (3) sharing and combining (i.e. knowledge and superior practices across the
organization) and (4) reflection and replacement (assessing old practices and their substitution by better ones). External
metaroutines include: (1) identification of external knowledge and (2) learning from and with external organizations.
Management of adaptive tension (i.e. the impetus for stimulating the exploration of internal and external innovations and new
ideas) and transferring external knowledge into the organization are characterized as interface metaroutines.
Despite the apparent obscured usage of the construct and the challenges to fully captivate the multifaceted nature and
divergent differences of AC in research, it is clear that knowledge acquisition is not only determined by the capacity to
transfer knowledge but also substantially influenced by the recipient’s AC. According to Inkpen (1998), this is due to the fact
that as global competition continues to increase everywhere, the inflow of new knowledge that was not previously available
to the recipient of ITT often promotes organizational renewal and therefore strengthens sustainable competitive advantage.
Various theories about knowledge absorption argue that the recipient companies in the technologically less developed
countries (often referred to as “latecomer firms”) can greatly upgrade their knowledge base through active knowledge
absorption. This assumes that knowledge absorption is a stepwise process which is often referred to as the LLL-concept
which stands for: linkage, leverage and learning phases of knowledge absorption (Liefner et al., 2012). They have shown that
the AC of NIC’s has to be understood in the context/setting of such countries. Every generation of Asian NICs, starting with
Taiwan, Korea, Hong Kong and Singapore, pursued by countries such as Malaysia and Thailand, and then China and Vietnam,
could be classified as latecomer countries at the onset of their respective industrialization processes. Latecomer countries,
although suffering from an inferior knowledge base, have cost advantages resulting from low wage levels and active
strategies for technological advancement. Latecomer firms in NIC's which pursue more advanced technology can
successfully apply absorption capacity strategies (Mathews, 2002). In a later paper, Hu and Mathews (2008) demonstrate in
their study of China that absorption capacity theory fits the case of Chinese latecomer firms. However, as shown by various
other authors, the ability to use AC to push for technological upgrading depends on several important factors such as:
companies must be latecomer firms which possess low-cost advantages and these companies must exhibit a demonstrated
desire to place technological advancement at the nucleus of their goals. According to Keller (1996), access to foreign
technologies as a result of an outward orientation of LDC’s alone without notable changes in its AC in human capital will not
lead to higher growth rates. In an interesting study on local and international linkages of firms from an emerging economy
operating in another emerging economy, Liao and Yu (2013) found that AC does not have a significant moderating impact on
the relationship between international linkages and innovation. They argue that a plausible reason for this may be the
limited AC that firms from emerging economies have. Furthermore, Liao and Yu (2013) warn that the importance of AC
should not be underestimated. The results of their study show that the direct impact of AC is significant and crucial to the
improvement of innovation of a (foreign) firm.
Li and Kozhikode (2008) described the catching-up process of latecomer firms and classified these firms either as blind
imitators or emulators. They argued that blind imitators will develop rigid routines whereas emulators develop critical
flexible routines allowing a transition from imitation to innovation. In the spirit of Keller’s (1996) remarks about the
necessity of positive change in human capital, Li and Kozhikode (2008) further emphasize the importance of the acquisition
 P. van der Heiden et al. / Journal of Engineering and Technology Management 41 (2016) 65–78 71

of “other types of resources such as management and marketing know-how” besides the acquisition of technological assets,
which they perceive to be a key driver for catching-up. Bell and Pavitt (1993) are critical of the wide held school of thought
that LDC’s could benefit from the diffusion (i.e. acquisition) of industrial technology without incurring the costs of
technological innovation and that LDC’s, by learning from the basic skills to operate these technologies efficiently, would
achieve higher labour growth rates in industry. In addition, they argue that these assumptions have been profoundly
misplaced and increasingly misleading because of the changing nature of industrial technology. In their view, the role of
adopters of technology has been oversimplified and rendered insignificant, as it pays no tribute to the fact that innovation
continues during the absorption process. They point out that original innovations “are moulded to fit particular conditions of
use in a widening range of specific situations” and may be further improved “to attain higher performance standards beyond
those originally achieved (1993: 160)”. A further overview of relevant cases has been presented by Goldberg et al. (2008).
They present some key statistics relevant to the AC of companies in LDC’s. Another useful paper illustrating absorption
mechanisms and the required pre-conditions for successful knowledge absorption is that by Chen et al. (2009), in which the
example of several Taiwanese firms epitomizes the relevance of technology AC of companies in LDC’s. Katrak (1997) observes
the various factors that directly relate to the AC of LDC firms. He states that the AC of firms in NIC’s can be shown to relate to
factors such as size of the firm, age of the workforce, ownership structure of the company, R&D activities, export sales and
qualified personnel. Hoekman et al. (2005) indicate that open trade policies are crucial for LDC’s to attract and acquire
technology. They underline the importance of strong AC to effect local technical change, which in turn depends upon an
adequate supply of engineering, management skills and domestic education and training policies. Hussinger (2012) points
out that in firms with a significant degree of AC, effective communication and integration schemes to integrate externally
developed knowledge and novel ideas have evolved over time. Whilst contemplating ITT and AC in LDC’s and NIC’s, the
nascent ‘reverse innovation’ phenomena is of increasing importance to both the LDC’s/NIC’s and technologically more
developed nations alike. Govindarajan and Ramamurti (2011) explain that LDC’s and NIC’s may no longer just absorb
technological innovations from DC’s but also from time to time contribute technological innovations to the rest of the world.
They synthesize reverse innovation as the process ‘where an innovation is adopted first in a poor country before being
adopted in rich countries’ but also add that examples of reverse innovation only sporadically occur. Conceivably, firms in
LDC’s and NIC’s with enhanced levels of AC may also be able to utilize previously absorbed technology or knowledge from a
DC entity to further innovate and develop the technology. The enhanced innovation may then be transferred back to firms in
DC’s thus contributing to the augmentation of the competitiveness of the LDC/NIC and DC firm alike. The reverse innovation
phenomena illustrates that the ITT and AC processes are not exclusively manifested in the more ‘classical’ and rather
ingrained DC-to-LDC/NIC mechanism but increasingly occurs vice versa. LDC’s and NIC’s are not only typically characterized
as technology and knowledge recipients but are increasingly commanding roles as innovation transferees to more developed
nations. Because of the evidently importance of dynamic capabilities such as organizational routines and human capital to
AC, this paper adopts the views that AC is an inherently dynamic construct (Song, 2014) and that AC ‘never constitutes a static
infrastructure but ideally exists in a fluid state, constantly accelerated and strengthened’ (van der Heiden et al., 2015)
through an optimum application of human capital.

4. Conceptual development of necessitated absorptive capacity model

Building upon the conceptualizations of AC by Patterson and Ambrosini (2015) and Lewin and Massini (2003), as well as
Lewin et al. (2011) and the theoretical grounding as provided in the previous chapters, the exploratory nature of this paper
gives rise to a new model of AC, which we call the ‘Necessitated Absorptive Capacity model’. The model and its constituents
are described in detail in the following paragraphs. Furthermore, the model incorporates the various metaroutines and their
tacit, informal, firm-specific and idiosyncratic characteristics and attribute substantial importance to these defining
organizational practices in the establishment of necessitated AC. The model describes a structured process to develop an
organization’s AC over time. Necessitated AC is a dynamic organizational capability and can be conceptualized as the void
between the actual and aspired degree of AC that needs to be bridged to meet the minimum level of AC capabilities required
to absorb a given technology or knowledge (as depicted in Fig. 3). Necessitated AC inherently exists in a transformative state
and comprises of an optimum constellation of constitutive elements, thus allowing an organization to orchestrate its
transition from the actual towards the desired AC capabilities through a structured plan of action. From the identified gap,
firms in LDC’s and NIC’s could derive a clear set of required actions and a framework for direct and peripheral actors and
stakeholders along various relevant disciplines and dimensions, hence improving ITT and the actual absorption process. An
organization’s ability to demonstrate vision by defining their strategic aims and goals beyond their current level of AC and
accommodate AC as a dynamic capability within the organization, stands at the nucleus of our model.
The model is specifically tailored towards the incremental development of an organization’s AC over time through the
acquisition and absorption of new technologies and knowledge. As such, ITT constitutes the primary mechanism through
which the organization is actively enhancing its AC. In the model, the organization itself plays the role as the recipient of new
technologies and knowledge. Although the focus is primarily trained on AC, the model bears substantial relevance to ITT as it
illustrates the complex dynamics of a recipient organization and allows technology and knowledge transferring entities to
gain a better understanding of the complexities, challenges and mechanics involved with which a recipient organization is
confronted. The rectangle encompassing all elements illustrated in the model, characterizes the organization in which the
various processes of the model take place. This organization symbolizes a commercial firm but could, for example, also
72 P. van der Heiden et al. / Journal of Engineering and Technology Management 41 (2016) 65–78

Fig. 3. Necessitated Absorptive Capacity model.

conceivably be a research institute or university or any other given organization striving to enhance its current AC level.
Although the model exclusively captivates the dynamics of the recipient organization, it is important to realize that the
organization itself operates in a wider external environment with all its associated socioeconomic, political, environmental,
cultural and technological attributes from which it draws external knowledge and technology. The organization possesses an
actual level of AC, which is depicted as actual AC capabilities on the left side of the model as an oblique rectangle. The actual AC
capabilities of the organization symbolize its current capacity to absorb novel technological innovations and associated
knowledge in the spirit of Cohen and Levinthal (1990). The absorption of novel technological innovations and associated
knowledge can be understood along Lim’s (2009) distinction between his conceptualizations of disciplinary, domain-specific
and encoded types of AC. The oblique rectangle on the right side of the model exemplifies the organization’s desired AC
capabilities. The desired level of AC capabilities could be perceived in light of realized AC (Zahra and George, 2002) as realized
AC constitutes knowledge transformation, exploitation and the incorporation of the altered body of knowledge into the
organization. However, it is important to emphasize that the organization’s desired AC capabilities in this model are not a
fixed end state but functions as an intermediate step in a cycle of perpetuated change and improvement of the organization’s
overall AC. The transition from the organization’s actual AC capabilities to its desired AC capabilities is essential to the
increment of the organization’s level of AC in order to realize its desired strategic aims and goals. The elements, processes
and metaroutines within the oblique rectangle actual AC capabilities, are now further elaborated.
The organization requires the development of effective business strategies, which is of pivotal importance to the
continuity of its business (Thornhill and Amit, 2003). The circle Desired strategic aims & goals of the organization in the lower
part of the oblique rectangle actual AC capabilities symbolizes the strategic orientation of the organization. These aims and
goals may exist as part of a broader organizational strategy but are primarily directed at the coveted augmentation of the
 P. van der Heiden et al. / Journal of Engineering and Technology Management 41 (2016) 65–78 73

organization’s level of AC in accordance with the broader ambition to which the organization aspires. The importance of an
organization’s strategy towards AC was emphasized in the works of Barkema and Vermeulen (1998), Lane et al. (2006), Li and
Kozhikode (2008), Müller-Seitz (2012). The black arrow pointing both directions linking the organization’s desired strategic
goals & aims with the larger circle depicting the set of internal metaroutines in the upper part of the oblique rectangle
indicated continuous interaction between these elements. The evident importance of organizational routines (Zahra and
George, 2002) as both behavioural regularities and cognitive regularities (Becker, 2004) and the conceptualizations of
internal and external metaroutines (Lewin et al., 2011) determining the overall effectiveness of AC, are particularly relevant
to the proposed Necessitated Absorptive Capacity model.
The agglomeration of the three internal metaroutines facilitating variation, internal selection regime and sharing and
combining knowledge can be perceived as the fertile soil through which the organization’s desired strategic goals & aims
organically emerge. Conversely, these emerging aims and goals may in turn influence the dynamics and characteristics of the
internal metaroutines. Facilitating variation refers to the processes, norms and attitudes that facilitate the manifestation and
exploration of novel ideas at various levels of the organization. Internal selection regime can be translated as the mechanisms
directed at managing internal diversity, thus allowing the emergence and selection of novel ideas and associated activities
within an organization. Sharing and combining knowledge correspond to the wide range of processes and activities utilized by
organizations to transmit and share new knowledge and superior (enhanced) practices throughout the organization, thus
contributing to a wide diffusion of new knowledge and associated practices. In the middle of the oblique rectangle actual AC
capabilities the circle encompassing the external metaroutine external knowledge identification overlaps both the internal
metaroutines and desired strategic goals & aims circles, which symbolizes the iterative nature of the various constituents of
the actual AC capabilities. According to Lewin et al., (2011) external knowledge identification revolves around the capability to
identify and recognize the value of externally conceived knowledge. Empirical data in the study of Patterson and Ambrosini
(2015) suggested that the recognition of value (external technology and knowledge) is driven by the organization’s strategy.
In accordance with the organization’s desired strategic goals & aims, this capability can be utilized and directed to the
identification and recognition of knowledge outside the organization that would contribute to the realization of the strategic
aims and goals of the organization and the augmentation of its level of AC. The model proposes that the formulated strategic
aims and goals and the dynamism and interplay between the internal metaroutines cumulate into the external metaroutine
external knowledge identification, commensurate with the organization’s stated goals and leading to a concrete plan of action.
The concrete action plan can be derived along the constitutional elements of necessitated AC which in turn leads to the
establishment of a sufficient degree of AC capabilities, resulting in the realization of the organization’s aspired aims and goals
through the acquisition, transformation, exploitation and assimilation of the identified knowledge. The space between the
two oblique rectangles denotes the concept of necessitated AC as a transformative state of AC but also symbolizes the various
constitutional elements of the concrete plan of action enabling the organization to forge a constellation of elements with
which to realize necessitated AC. Examples of constitutional elements of necessitated AC an organization has to address in
order to ensure the establishment of a sufficient degree of AC capabilities are: additionally required education and training,
enhanced management skills, human capital and resources adjustments (i.e. recruitment of better skilled staff), various
organizational, infrastructural and policy adjustments. This is by no means an exhaustive list and may vary for individual
organizations and their specific characteristics. These constitutional elements are associated with the enhancement of AC.
The role education and training plays has been demonstrated to constitute a primary determinant of knowledge absorption,
which significantly corresponds with AC (Knudsen et al., 2001). Kocoglu et al. (2015) perceive AC as an important contributor
to an organization’s overall knowledge management strategy. Based upon a survey in another high-technology sector
(biotechnology), Ferreras-Méndez et al. (2015) conclude that managers in firms could gain and sustain competitive
advantages by developing strategies on the synergies between the external knowledge search and the advancement of AC.
The paramount role of management skills in relation to AC was acknowledged in the works of de Araújo Burcharth et al.
(2015), Despres and Chauvel (2000), Kotabe et al. (2011), Krishen (2011), Lundquist (2003), Peeters et al. (2014), van der
Heiden et al. (2015). The lack of human capital constitutes a major barrier to the establishment of AC within a range of
organizations. AC, as Cohen and Levinthal in their seminal 1990 article righteously asserted whilst contemplating the
individual level of an organization’s AC, depends on the absorptive capacities of the individuals of which the organization
comprises. Based upon empirical data utilizing 165 firms in the Taiwan’s information and communication technology
industry, Huang et al. (2015) found that R&D human capital constitutes a pivotal indicator for AC. In addition to these
constitutional elements exhibiting a direct association with AC, a wide range of organizational, infrastructural and policy
adjustments are also intricately linked with establishing necessitated AC and should primarily be aimed at the augmentation
of the AC-associated constitutional elements. The arrow at the bottom of the space between the two oblique rectangles
illustrates the transition from the actual AC capabilities through necessitated AC and the constitutive elements it
encompasses towards the organization’s desired AC capabilities.
The elliptical shape containing the external metaroutine learning from collaborations with external organizations illustrates
the external exchanges of the organization with other firms, customers, suppliers, partners, etc., which allows for continued
learning and the acquisition of knowledge. In the contextual dynamics of the model, this metaroutine symbolizes all types of
interaction including collaborations with external entities. Although it overlaps both the actual and desired AC capabilities
because of its overall relevance to these types of AC capabilities, this metaroutine is however primarily positioned within the
necessitated AC domain because of its value to necessitated AC. Learning from collaborations with other organizations may
impart practically useful knowledge henceforth assisting the organization in its pursuit of establishing necessitated AC as the
74 P. van der Heiden et al. / Journal of Engineering and Technology Management 41 (2016) 65–78

organization may glean specific information on the modus operandi of other organizations pertaining to the necessitated AC
constitutive elements. The interface metaroutine managing adaptive tension, placed at the top of the necessitated AC section
in the model, is particularly useful in the overall orchestration and management of necessitated AC during its transitional
phase towards the establishment of the desired AC. Lewin et al. (2011) emphasize that “managing adaptive tension involves
some form of comparison to the external environment (e.g., selecting a comparison group and placing some weight on the
value of external information)”. Whilst reflecting on the long-term survival of the organization and the need for a rate of
internal change that exceeds the relevant external rate of change in the environment of the organization, they point out that
organizations need routines for managing adaptive tension (creating goals and expectations that stimulate change). As the
impetus for stimulating the exploration of internal and external innovations and new ideas, managing adaptive tension
holds particular relevance to necessitated AC and functions as a dynamic metaroutine stimulating perpetuated change
within the organization and keeping the organization flexible and focused on enhancing its AC to ever-greater and more
sophisticated levels of AC.
After the organization succeeded in orchestrating the optimum constellation of constitutive elements congruent with the
organization’s strategic aims and goals by leveraging its internal and external metaroutines (external knowledge identification
& learning from and with external organizations) and managing adaptive tension incorporated in its concrete plan of action,
necessitated AC has been established. Necessitated AC empowers the organization to progress to and realize its desired level
of AC capabilities. The organization now has enhanced its level of AC sufficiently in order to absorb new and more advanced
technologies and/or knowledge. In the right oblique rectangle the desired AC capabilities are illustrated as the ability of the
organization to, along the lines of the seminal contributions of Cohen and Levinthal (1990), Zahra and George (2002) and
Patterson and Ambrosini (2015), acquire, transform, exploit and ultimately assimilate novel technologies and knowledge.
With the assimilation, the desired level of AC has become the organization’s current level of AC and thus the organization’s
strategic goals and aims, as formulated in the first rectangle on the left, have been accomplished. This model utilizes the
interface metaroutine transferring external knowledge into the organization to diffuse the assimilated external knowledge
within the organization. Lewin et al. (2011) underline the importance of the ability to transfer external knowledge back into
the organization in order to apply it to ‘knowledge creation activities’, thus spurring internal innovation. Whereas the
interface metaroutine transferring external knowledge into the organization coneptualized by Lewin et al. (2011) may refer to a
wide range of knowledge bodies, in the Necessitated Absorptive Capacity model it specifically refers to the advanced
knowledge and technologies for which the organization was aiming to be able to assimilate and diffuse in the first place but
lacked a sufficient level of AC to accommodate the acquisition, transformation, exploitation and assimilation of the desired
knowledge and/or technology. The example of a basic manufacturing company producing relatively straightforward
products or components attempting to upgrade their production facilities and human capital in order to produce more
advanced products illustrates how an organization may utilize the model in order to accommodate the technological
upgrading of its production facilities. The more advanced production facilities and associated knowledge constitute the
specific technology and knowledge the organization set out to assimilate and diffuse within its organization.
Lastly, after the assimilation and absorption of the acquired knowledge, the internal metaroutine reflection of previous
practices and substitution by new practices, plays a crucial part in the perpetuated enhancement of the defining metaroutines
in the actual AC capabilities set of the organization. This internal metaroutine is positioned in the lower part of the model
outside the respective actual and desired AC capabilities and the realm of necessitated AC but within the boundaries of the
organization in order to symbolize the ever-present, continuous and evolving characteristics of the metaroutine. The model
specifically links the acquisition, transformation, exploitation and assimilation processes to this metaroutine as the
organization may be better equipped to evaluate and substitute its previous practices after it has realized the desired level of
AC. However, the organization should exploit the internal metaroutine reflection of previous practices and substitution by new
practices continuously throughout the transformation process of its level of AC capabilities. By leveraging the interface
metaroutine managing adaptive tension throughout the process, the model allows for a strong interplay between managing
adaptive tension and reflection of previous practices and substitution by new practices due to their iterative characteristics, thus
enabling managers to ensure a perpetuated cultivation and enhancement of the organization’s practices and routines. Thus a
loop materializes, ensuring not only the formal acquisition and absorption of the desired knowledge or technology, but also
the enduring sequence of enhanced core metaroutines. These enhanced metaroutines will contribute further to the
organization’s increased ability to complete the loop faster and reach more advanced levels of sophistication in its AC
capabilities, transforming the organization into a proactive and adaptive entity. The identified loop can be conceptualized as
the AC metaroutines cycle.

5. Conclusions

The conceptualizations of AC by Patterson and Ambrosini (2015) and the conception of metaroutines by Lewin and
Massini (2003) and Lewin et al. (2011), are of crucial importance to an organization’s pursuit of advancing its AC through
structured and incremental processes within and outside the organization. With this exploratory work, we intend to build
upon these valuable conceptualizations of internal, external and interface metaroutines by demonstrating their vital
importance to necessitated AC and merge these routines with our conceptualization of necessitated AC in the Necessitated
Absorptive Capacity model. Necessitated AC as a dynamic capability is characterized by an intrinsic transformative nature as
it specifically consists of the integrated requirements and actions directed to the establishment of the desired degree of AC
 P. van der Heiden et al. / Journal of Engineering and Technology Management 41 (2016) 65–78 75

within an organization. As a transitional phase towards a sufficient level of AC capabilities, necessitated AC furthermore
provides a structured approach to establish and further improve an optimum constellation of tangible and intangible
infrastructure along different actors and areas within a firm and its encompassing external environment. This enables
enduring absorption of technology and knowledge, in turn leading towards innovation and technological capacity building.
Our conceptualization of necessitated AC and its interconnectedness with internal, external and interface metaroutines in
the proposed model, is driven by a pragmatic effort to enhance further understanding of AC, to operationalize the AC
construct and to provide an operationalized AC template allowing organizations to augment their level of AC capabilities
over time. The literature review revealed surprisingly few papers that translate the theoretical scrutiny of the AC construct
into models allowing for further operationalization of AC and its applicability to the commercial realm. The model gives rise
to a framework, which allows for structured analysis of necessitated AC, its constitutional elements and the intricate role
organizational routines play in advancing AC within organizations and the dynamism of the AC metaroutines cycle. The
model bears substantial relevance to ITT as it further illuminates the pivotal importance of AC and its inherent complexities
and dynamics, thus contributing to an enhanced understanding of AC as one of ITT’s principle constituents, both in research
and ITT-practice.
The model has particular relevance to firms in LDC’s and NIC’s as it provides a template encompassing this paper’s
contribution to operationalize the AC construct, which could be utilized and further operationalized by managers to translate
necessitated AC into a set of concrete actions and adjustments in pursuit of the organization’s strategic goals. Furthermore,
the model may also provide a structured analysis tool for managers and firms allowing these firms to develop specific AC
strategies and continuously monitor the organization’s progress to more advanced AC levels. The strategies derived from the
practical application and operationalization of the model, could then be merged and become an intricate part of an
organization’s strategic aims and goals, thus institutionalizing AC strategies within the overall organizational strategy. The
pivot of the Necessitated Absorptive Capacity model encompasses the dynamic organizational routines of the recipient
organization and its organizational AC dynamics but also delineates the limitations of the model. As the model attempts to
provide a foundation for necessitated AC on the organizational level by focusing on the organization’s metaroutines and
organizational AC attributes, the external environment and its associated socioeconomic, political, environmental, cultural
and technological attributes are not incorporated in the model. Because of the undisputed importance and relevance of these
external attributes, we encourage the further expansion and refinement of our model with the inclusion of the
complimentary external attributes and their intricate interaction with the organization as a relevant avenue for future
research. In addition, future studies could explore necessitated AC and develop frameworks and methods that can be
incorporated in ITT and technological upgrading practice. In addition, applying the model in case studies to LDC and NIC
firms also proves an interesting avenue for further research and may contribute to a further refinement of necessitated AC,
thus enhancing its operational relevance and applicability to the commercial realm.
We suggest that the transferred technology and/or knowledge should be increasingly placed at the nucleus of analysis
whilst employing holistically based models such as the representation provided by Biagini et al., (2014) in order to capture all
relevant dimensions. These models also demonstrate the multidimensionality of technology and knowledge and the
subsequent implications for AC and human capital that in turn constitutes the driving force behind crucial organizational
routines. Pacey’s (1983) holistic application of the concept of practice in all branches of technology, for example, still has
particular relevance as it captivates the essential social, organizational and cultural aspects and contributes to a more
structured approach towards understanding high technology and its role in transfer and influence on AC. Such
conceptualizations and models allow for a systematic approach to determine if a recipient’s current ability is sufficient to
successfully absorb the desired technology and assists researchers and practitioners alike to assess which expertise and
competences are additionally required. It is emphasized that this not only applies to the stakeholders directly exposed to
actual transfer and absorption but also to more peripheral but equally important dimensions such as the wider business and
institutional policy environment, social and cultural context, markets, local characteristics etc. All these dimensions need to
be mediated and addressed differently and holistic approaches will reveal the interconnectedness and the needed
subsequent set of actions to ensure sufficient AC in every transfer.
As it was also the authors’ aim to raise further awareness, it has to be pointed out that a substantial amount of studies does
not sufficiently consider the properties, characteristics, complexity and nature of the transferred technology and knowledge.
After decades of research, a substantial amount of studies still does not sufficiently consider or even to various degrees
neglect the ambiguity, multidimensionality and complexity of technology, AC and ITT. Studying particular aspects of ITT in
splendid isolation from the actual transferred technologies and their implications for AC, will not entirely captivate the
omnipresent interaction between the complex and ontologically evolving phenomena technology and knowledge and their
inseparability from the equally complex processes involved in their transfer across borders and cultures. A substantial body
of researchers and streams of literature seem no longer concerned by conceptualizations of the constructs and appear to take
earlier syntheses for granted as definite achievements and solid foundations originating from the early years of the relatively
young research fields of AC and ITT knowledge. This paper argues that this trend is not only in stark contrast with the
observed necessity of a holistic approach to technology, ITT and AC but represents a progressively growing risk to future
research. A departure in research from the identified trend is needed because of the complex entanglement of present-day
societies with technology and hence is of increasing importance. The evolution of humankind to ever-increasing levels of
technological advancement and the subsequently expected diversification and intensification of the multidimensionality,
views and perceptions and its tenets and accumulating connotations of technology, justify an increased effort to fully
76 P. van der Heiden et al. / Journal of Engineering and Technology Management 41 (2016) 65–78

captivate the inherent transformative nature of technology and knowledge in relation to AC and ITT. This is by no means a far-
fetched futuristic panorama as the contours of the substantial social, physical and existential fusion of humanity and
technology are already conspicuously noticeable in present-day societies, underlining the immediate and enduring need for
an increased holistic emphasis on the transferred technology and knowledge. Intensification of the amount and quality of
studies that empirically focus on the properties and complexity and multidimensionality of technology in relation to ITT and
AC as part of consistent holistically based research across various disciplines, may serve as a more appropriate template for
future research. In addition to existing and continued efforts, awareness, enhanced understanding and practical knowledge
derived from research and professional practice has to be increasingly elevated from the academic and managerial realms to
stimulate the diffusion of this knowledge among a larger body of practitioners and stakeholders in both private and non-
private sectors. Furthermore, the extensive body of literature on AC shows that the exertion of positive influence of advanced
technologies on domestic production and growth of recipient LDC’s depends prodigiously on the actual AC of the recipient
LDC. A high degree of AC and the subsequent organizational learning of the recipient are evidently crucial in ITT and may well
be characterized as the most important drivers for successful ITT with lasting results. This paper argues that AC should be
addressed in the same holistic fashion as technology and knowledge as argued above and needs to be an integral part in
empirical research into ITT. The Necessitated Absorptive Capacity model therefore contributes to the existing body of
literature on the subject and could be specifically employed to enhance our theoretical understanding of AC in recipient
organizations in LDC’s and NIC’s.

Acknowledgments

The authors would like to acknowledge the support for this research provided by Universiti Teknologi Malaysia (UTM)
and MVI International B.V., based in the Netherlands.

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