Abstract
Absorptive capacity is one of the factors that determines the success of technology transfer. It improves one’s ability to assess the current and future needs of firms and leads them to make better choices. At the same time, quality movement in firms also has a similar vision; to make firms move forward in a competitive way. The objective of this paper is twofold. First, was to determine the association between absorptive capacity and technology transfer dimensions. Secondly, this study was conducted to determine the moderating role of firms’ quality practices in the relationship between firms’ absorptive capacity and technology transfer performance. Data was collected from Malaysian firms through mailed questionnaires. With a response rate of 32%, data was analyzed using multiple hierarchical regression and Chi Square method. The results showed quality process interacts significantly with knowledge diversification and transformative capacity during the integration stage. Moreover, the addition of a moderating variable increases the prediction of technology transfer performances. The result suggests firms’investment in quality practices improves the process of transferred technology.
Highlights
Technology transfer is not a new phenomenon
In terms of technology transfer channel, 41.7% were involved in technological assistance, 34.3% were engaged in management and supporting agreements and 26.4% were under licensing, trademark and patent
The findings are similar to Lai & Yap (2004) study who found that technical assistance, licensing, trademarks and patents are the major channel of technology transfer to Malaysian E&E firms
Summary
Technology transfer is not a new phenomenon. Since the 1960s Malaysia has been involved in technology transfer activities when the government began to focus on industrialization aspects. W. Lai & Narayanan, 1997; Narayanan & Rasiah, 1992; Norlela Ariffin & Figueiredo, 2004; Zainal, 2004) They focused on many perspectives such as the human resource aspects, general overview of transfer practices and technological capabilities. The other study by Jegathesan et al (1997) and Lall (2002) suggested that Malaysian workers were unable to adapt and conduct sophisticated repairs due to limited theoretical knowledge which disallow the locals to conduct operation independently from the technology providers. These studies support previous studies by Narayanan & Wah (1993) and Zainal (2004), which indicate locals are still at a low level of technological activities. In order to be useful, the real test of transferred technology is on its contribution towards the development of the industry and the country (Ganesan & Kelsey, 2006)
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