Int. J. Technology Transfer and Commercialisation, Vol. 5, Nos. 1/2, 2006 31 An empirical study of the relationship between absorptive capacity and technology transfer effectiveness Naruemon Whangthomkum* Alcan Packaging Strongpack Public Company Limited 91 Moo 13 Kingkaew Rd. T. Rachadhewa, A. Bangplee, Samuthpakran 10540, Thailand Fax: (662) 312–4063 E-mail: naruemon@strongpack.com *Corresponding author Barbara Igel School of Management, Asian Institute of Technology P.O. Box 4, Klong Luang, Pathumthani 12120, Thailand E-mail: igel@ait.ac.th Mark Speece Department of Business and Public Administration University of Alaska Southeast 11120 Glacier Highway, Juneau, Alaska 99801–8672, USA E-mail: fmws@uas.alaska.edu Abstract: This study investigates the relationship of Absorptive Capacity (AC) and its elements to Technology Transfer Effectiveness (TTE) in the flexible packaging industry in Thailand. The relationship of each AC element to each dimension of TTE is assessed. Findings are that TTE is related to all AC elements, but not all to the same degree. While all AC elements were found to have a positive correlation with two TTE dimensions, namely product and process performance and human resources capability, only two AC elements, namely the ability to assimilate and the ability to apply the new technology, showed a strong positive correlation to the TTE dimension of business performance. The findings of this study help academics and practitioners to have a clearer understanding of the different elements of AC and TTE, the impact of AC on TTE, and especially the correlation of each AC element to each TTE dimension. Keywords: technology transfer; absorptive capacity; flexible packaging industry. Reference to this paper should be made as follows: Whangthomkum, N., Igel, B. and Speece, M. (2006) ‘An empirical study of the relationship between absorptive capacity and technology transfer effectiveness’, Int. J. Technology Transfer and Commercialisation, Vol. 5, Nos. 1/2, pp.31–55. Copyright © 2006 Inderscience Enterprises Ltd.