Abstract
The main objective of this paper is to empirically examine the moderating effect of MNCs’ country of origin (Western vs. Asian MNCs) in the relationships between degree of inter-firm technology transfer and two dimensions of local firms’ performance: corporate and human resource performances. Using the moderated multiple regression (MMR) analysis, the theoretical models and hypotheses in this study were tested based on empirical data gathered from 128 joint venture companies registered with the Registrar of Companies of Malaysia (ROC). The results revealed that MNCs’ country of origin has significantly affected the relationships between degrees of technology transfer and local firms’ corporate performance; where the relationship was found stronger for Asian MNCs as compared to Western MNCs. However, MNCs’ country of origin did not significantly moderate the relationship between degree of technology transfer and local firms’ human resource performance. The study has bridged the literature gaps in such that it offers empirical evidence and new insights on the significant moderating effects of MNCs’ country of origin in the relationships between degree of inter-firm technology transfer and local firms’ performance technology using the Malaysian sample.
Highlights
When compared to various forms of strategic alliance such as distribution and supply agreements, research and development partnerships or technical and management contract, the international joint ventures (IJVs) are considered as the most efficient formal mechanism for technology transfer (TT) to occur via inter-partner learning between foreign MNCs and local firms (Kogut and Zander, 1993; Inkpen 1998a, 2000)
This R2 means that 48.2% of the variance in the corporate performance (CPERF) is explained by TTDEG scores and MNCs’ Country of Origin (MNCCOO)
Model 2 shows the results after the product term (TTDEG*MNCCOO) was included in the equation
Summary
When compared to various forms of strategic alliance such as distribution and supply agreements, research and development partnerships or technical and management contract, the international joint ventures (IJVs) are considered as the most efficient formal mechanism for technology transfer (TT) to occur via inter-partner learning between foreign MNCs and local firms (Kogut and Zander, 1993; Inkpen 1998a, 2000). A review of literature reveals that majority of empirical studies on inter-firm technology and knowledge transfer in strategic alliance IJVs are limiting their focus on the performance of the IJVs (for example Lyles www.ccsenet.org/ass and Salk, 1996; Lane et al, 2001; Tsang et al, 2004; Dhanaraj et al, 2004; Steensma and Lyles, 2000). Dhanaraj et al (2004) found tacit knowledge was negatively related to IJVs’ performance
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