Boundary decisions for new technology acquisition: An empirical study on Korean SMEs in high-tech manufacturing sector

This paper investigated how firms would determine their boundary decision for technology acquisition. Drawing on transaction costs (TC) and resource based (RB) perspectives, this study tested the impacts of specialized asset investment, environmental uncertainty and technological uncertainty on the acquisition method of new technology and the role of organizational capability as a moderator in those relationships. Using the sample of 271 Korean SMEs in high-tech manufacturing sector, this study found that the responding firms preferred to choose internal technology acquisition when they perceived high degree of specialized asset investment and technological uncertainty for the technology acquisition activity. However, such relationship varied when the firms possessed strong organizational capability in a way that the preference for internal technology acquisition is rather weaken for those firms. This study contributed that the TC perspective provides much powerful explanation to our research concern when it is combined with the concept of RB perspective. Some of the practical implication is also provided.