Inter-Firm Technology Transfer and Performance in International Joint Venture Firms

Sazali Abdul Wahab,Haslinda Abdullah,Jegak Uli,Raduan Che Rose

doi:10.5539/ijbm.v5n4p93

Abstract

The main objective of this paper is to empirically examine the effects of two distinct degrees of technology transfer: degree of tacit and explicit knowledge on two dimensions of performance: corporate and human resource performances. Using the quantitative analytical approach, the theoretical model and hypotheses in this studywere tested based on empirical data gathered from 128 joint venture companies registered with the Registrar of Companies of Malaysia (ROC). Data obtained from the survey questionnaires were analyzed using the correlation coefficients and multiple linear regressions. The results revealed that degree of tacit knowledge, as adistinct dimension of degree of technology transfer, has a significant effect on both corporate and human resource performances; where its effect was much stronger on corporate performance. Similarly, degree of explicit knowledge has shown consistent strong significant effects on both corporate and human resource performance; where its effect on human resource performance was found much stronger than corporate performance. The study has bridged the literature gaps in such that it offers empirical evidence on the effects of two distinct degrees of technology transfer: degrees of tacit and explicit knowledge on two dimensions of performance: corporate and human resource performances in IJVs.

Highlights

80% of all private R&D expenditures worldwide (Dunning, 1993)
Based on the underlying knowledge-based view (KBV) and organizational learning (OL) perspectives, this study expects to fill in the gap in the existing inter-firm TT literature by empirically examining the effects of two distinct degrees of technology transfer: degrees of tacit (TCTDEG) and explicit (EXPDEG) on two dimensions of local firms’ performance (LFP): corporate and human resource performances using data generated from joint venture companies formed in Malaysia
The finding suggests that technological knowledge on new product/service development, managerial systems and practices, process designs and new marketing expertises which are more tacit, complex and firm-specific could significantly generate a higher degree of corporate performance the business volume, market share, planned goals and profits

Summary

Introduction

80% of all private R&D expenditures worldwide (Dunning, 1993). Past studies have acknowledged the important role of MNCs as the main source of technology; where MNCs are regarded as the most efficient vehicle for transferring technology and knowledge across borders especially through international joint ventures (IJVs), (Tihanyi and Roath, 2002; Kagut and Zander, 1993). When compared to various forms of strategic alliance such as distribution and supply agreements, research and development partnerships or technical and management contract, IJVs are considered as the most efficient formal mechanism for technology transfer (TT) to occur through inter-partner learning between foreign MNCs and local firms (Kogut and Zander, 1993; Inkpen 1998a, 2000). Based on the underlying knowledge-based view (KBV) and organizational learning (OL) perspectives, this study expects to fill in the gap in the existing inter-firm TT literature by empirically examining the effects of two distinct degrees of technology transfer: degrees of tacit (TCTDEG) and explicit (EXPDEG) on two dimensions of local firms’ performance (LFP): corporate and human resource performances using data generated from joint venture companies formed in Malaysia. On the other hand, corresponds with implicit/tacit knowledge underlying technology that is difficult to codify, communicate, transfer, and is generally exchanged through action, commitments and direct involvement such as face-to-face communication or on-the-job/apprenticeship type of training (Ernst and Kim, 2002)

Objectives

Methods

Results

Conclusion