The nexus between technology absorption and firm growth in Africa: A resource-based perspective

By drawing upon the Resource-Based View (RBV) theory, this study investigates the effects of human capital, credit, and electricity on technology absorption among firms in Africa. The technological absorption index for 40 African countries was used to measure technological diffusion and the capacity to absorb new technology among African firms. Secondly, the World Bank’s data on access to credit and electricity for 40 African countries was also employed as explanatory variables. The findings indicate that to support technological absorption and diffusion among African firms, a broad access to credit, electricity and effective human capital development is imperative. Access to credit, electricity and human capital were significant in explaining variances in technological absorption. More so, whiles education quality is significant, African governance structures are insignificant in driving technological absorption.