Reconsidering measurement of absorptive capacity in the case of knowledge transfer from Nordic to the Baltic countries

Abstract

Knowledge transfer and benefits from spillover are one of the most desirable expectations from FDI and/or collaborations between domestic and foreign capital companies. However, the company may gain knowledge from collaboration if it has abilities properly to use knowledge or technologies that are accessible. The goal of the article is to provide a measurement tool for absorptive capacity. The study focuses on the collaboration between Nordic and Baltic countries. Thus, the targeting companies for research have been chosen as either Nordic capital companies operating in Lithuania and Estonia or domestic companies with an international relationship with Nordic capital companies. The article contributes to the theory of absorptive capacity and to the theory of internalization as well. The construct has been validated, and reliability has been estimated while testing 158 companies. The proposed measurement construct can be instrumental for further research of knowledge transfer from international collaborating companies of different capital origins for the mining industry sector since raw materials industries encounter new performance challenges in the context of the war in Ukraine, which caused a severe energy crisis.