The influence of national and organizational culture on absorptive capacity of Chinese companies

The paper reports on a research study of knowledge acquisition by Chinese firms involved in collaborative ventures with foreign enterprises. The study uses 152 Chinese businesses and examines how absorptive capacity (ACAP), as conceptualized by Cohen and Leventahl (1990) and modified by Zahra and George (2002), and national and organizational culture differences, affect the transfer of knowledge between Chinese firms and their international partners. The study uses a multivariate modeling approach to examine the impact of a number of factors on successful knowledge transfer. It finds that ACAP has a significant effect on successful knowledge transfer but that the relationship is significantly modified by cultural differences and inter-firm communications. Culture per se does not influence knowledge transfer directly but does so through its impact on communications channels and institutions. Knowledge management practices and organization are also able to impact successful knowledge transfer.