Abstract
Problem statement: The current issue on inter-firm technology transfe r in the developing countries is centered on the efficiency and effecti veness of the transfer process by the Multinational s (MNCs). Thus, organizations in the developing countries are striving hard to collaborate, learn and internalize their foreign partner's technological k nowledge by forming strategic alliances or International Joint Ventures (IJVs) as an efficient mean to increase their competitiveness, technological capabilities and potential for local innovation. Knowledge as the critical element underlying technology has become one of the main factors that affects the success and failure of inter - firm technology transfer within IJVs which is measu red by the degree of technology transferred. Based on the underlying knowledge-based view perspective, this paper aims to empirically examine the effect of three critical knowledge characteristics: Tacitn ess, complexity and specificity on degree of technology transfer and its two dimensions: Degree of tacit and explicit knowledge. Approach: The theoretical model and hypotheses in this study were tested using empirical data gathered from 128 join t venture companies registered with the Registrar of Companies of Malaysia. Data obtained from the survey questionnaires were analyzed using the corre lation coefficients and multiple linear regression analyses. Results: The results revealed that tacitness and complexity as two critical elements of knowledge characteristics have significant effects on both degrees of tacit and explicit knowledge; with complexity recording slightly stronger effect than tacitness. However, although specificity has a strong theoretical foundation, it did not record si gnificant effect. Conclusion: The study has bridged the literature gaps in such that it provides empiri cal evidence on the effects of three generic knowle dge attributes: Tacitness, complexity and specificity o n degree of inter-firm technology transfer and its two dimensions: Degree of tacit and explicit knowledge.
Highlights
Past studies have acknowledged the important role of MNCs as the main source of technology
Based on the underlying knowledge-based view perspective, this paper aims to empirically examine the effect of three critical knowledge characteristics, tacitness, complexity and specificity on the degree of technology transfer
Sample Based on the number of International Joint Ventures (IJVs) companies registered with the Registrar Of Companies (ROC) as at 1st January 2008, the number of IJVs currently operating in Malaysia is 1038
Summary
Past studies have acknowledged the important role of MNCs as the main source of technology. MNCs have been regarded as the most efficient vehicle for transferring technology and knowledge across borders through FDIs and IJVs[12,26]. Previous literature has indicated that foreign MNCs in Malaysia have successfully transferred their technology to local industries[15,32]. The technologies transferred by MNCs benefit the host country in terms of achieving long term economic growth[2,26] providing a higher potentials of innovation performance/capabilities[9,20]. Increasing technological capabilities[14,23], enhancing the competitive advantage[19,38], enhancing the organizational learning effectiveness[8,10], providing a positive effect on productivity[3,22] and increasing the technological development of local industry[27]. IJVs are viewed as the most efficient mode to transfer technology or knowledge which is organizationally embedded and difficult to transfer through licensing agreements[11,31]
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