The main purpose of this study is to examine the effects of university and firm interpartner resource alignment and absorptive capacity on knowledge transfer performance from the University-Industry (U-I) perspective. Regression analysis was used to test the hypotheses in a sample of 120 observations of Taiwanese firms. The findings suggest that U-I resource utilization is positively related to U-I interaction; that when the effect of a firm's absorptive capacity is higher, U-I interaction is more favorable; and that U-I interaction is positively related to knowledge transfer performance. These empirical evidence support the process-oriented view and indicate that U-I interaction plays the mediating role between resource alignment, absorptive capacity and knowledge transfer performance. Managerial implications and future research directions are discussed.