The Effect of IT Human Capability and Absorptive Capacity on Knowledge Transfer

The purpose of this study is to examine the relationship between IT human capability and knowledge transfer and the role of absorptive capacity between them. From the test of both measurement and structural model using Partial Least Squares (PLS), IT human capability is found to be significant to absorptive capacity and knowledge transfer. Absorptive capacity is also significantly related to knowledge transfer. The interesting result found in this study is that the path of absorptive capacity drawn from IT human capability to knowledge transfer is stronger than the direct relationship between IT human capability and knowledge transfer, indicating that absorptive capacity plays an important role in knowledge transfer. This result indicates that IT personnel with stronger technical skill, interpersonal skill and management capability are more likely to acquire and learn knowledge effectively from outside expertise. Moreover, this study shows that absorptive capacity, the individual’s ability to utilize external knowledge is derived from IT human capability and strongly effects on transferring knowledge from outsourcing vendors. This study suggests IT related managers that the development of IT human capability and absorptive capacity should be recognized for a successful exploitation of outside knowledge within a firm. It is also a necessary condition for a successful IT implementation and maintenance independently and economically from outside vendors.