Examining the Moderating Effects of MNCs’ Country of Origin in the Relationship between Degree of Inter-Firm Technology Transfer and Local Firms’ Performance

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.

Employee Development and Organizational Performance: The Role of Strategic Organization Development Interventions

“…Firms achieve many benefits after JV. Wahab et al, (2011) stated that IJVs provide opportunities of transferring capabilities, technologies, learning, productivity and the economic growth of the host country. They studied and compared various forms of strategic alliance like distribution and supply agreements, R&D partnerships or technical and management contract.…”

“…They further stated that honesty, trust and commitment are good strategies to make the JV process more successful. Wahab et al, (2011) suggested that future studies should explore the area. Researchers should investigate the effect of other aspects like culture, collaborative know-how, prior JV experience and learning capacity during IJV process and performance.…”

Factors Influencing Technology Transfer in Companies at Emerging Economies

“…As a result of the systemic literature search, the review included the results of research on technology acquisition performance by Lin et al (2004), Lin et al (2009), Li (2010), Jabar and Soosay (2010), Sazali et al (2011), Grimpe and Hussinger (2013), Nguyen and Aoyama (2014), and Iyengar et al (2015). The review is structured based on the Siegel and Wright (2015) research on the technology transfer centres in the higher education institutions, technology licencing and start-up creation.…”

“…(Appendix 2 continued) Source Measurement Sazali et al (2011) The variable is characterised by-1) tacit knowledge in terms of new product/service development, managerial systems and practice, process designs and new marketing expertise, and 2) explicit knowledge in terms of manufacturing/service techniques/skills, promotion techniques/skills, distribution know-how and purchasing know-how.…”

“…technologiesIyengar et al (2015) The variable is characterised by the following statements-Our office always uses technology provided by RE/ MAX; Our office makes use of the complete range of functionality provided by RE/MAX technologies; RE/MAX technologies are completely ingrained in our business practices;The technologies that we use are provided by RE/MAX. with a university degree over R&D expenses.Being part of a groupGrimpe and Hussinger (2013) Dummy variable indicating whether a firm is part of a firm group.MNCs' country of originSazali et al (2011) MNCs' country of origin-Western MNCs (United States and European countries) or Asian MNCs (Japan and other Asian countries).…”