Abstract
The question addressed in this chapter is, Why are some home-based enterprises (HBEs) in developing countries successful in absorbing new technologies and others are not? We address this question from the perspective of the absorptive capacity of firms: that is, ‘the dynamic capability pertaining to knowledge creation and utilization that enhances a firm’s ability to gain and sustain a competitive advantage’ (Zahra and George 2002:185). We raise two specific questions: How does absorptive capacity mediate the impact of new technologies on the performance of HBEs? Does local networking compensate for weak absorptive capacity within HBEs?
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© 2016 Jan Fransen and Pahala H.L. Gaol
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Fransen, J., Gaol, P.H.L. (2016). Absorptive Capacity and Local Networking of Home-Based Enterprises in ‘Kampong Cyber’, Yogyakarta, Indonesia. In: Gómez, G.M., Knorringa, P. (eds) Local Governance, Economic Development and Institutions. EADI Global Development Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137557599_16
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DOI: https://doi.org/10.1057/9781137557599_16
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