The Role of Cultural Factors on Intra-Firm Technology Transfer Performance and Corporate Sustainability: A Conceptual Study

Abstract

Technological innovations have emerged as crucially significant factor for sustaining market competition and achieving sustainable competitive advantage in the 21st century. The Multinational Corporations (MNCs) as celebrities of innovation play significant role in diffusing technological knowledge throughout firms both nationally and internationally. Although numerous studies exist on technology transfer the majority of existing literature addresses the issues related to inter-firm transfer of technology only while the area related to intra-firm transfer of technology has been largely underexposed; study of which is believed to be ideal for fruitful exploration of profitability in technology transfer projects. By exploring the existing relevant literature, the current study would attempt to posit a new model in regards to the effect of host-country cultural environment on the performance of technology transferred by the MNCs to their subsidiaries in Malaysia and its subsequent impact on the corporate sustainability of the firm. In the present study the relative influence of two cultural environment factors, namely national cultural distance and organizational cultural distance have been addressed and the study is expected to contribute both theoretically in the body of knowledge and also in terms of practical implication for policy makers of the host-country and the involved MNCs and hence enriching the existing intra-firm technology transfer literature simultaneously.

An Empirical Investigation of Absorptive Capacity on Technology Transfer Effectiveness Through Organizational Innovation

“…The definitions depend on how the user represents technology and context (Bozeman, 2000). However, Fazal et al (2016) defined technology transfer as an extensive and complicated procedure between two independent units in which both the transferor and transferee agree on the transfer of new technology. This transference will be considered effective and efficient only if the receiver becomes competent in skills and gains capabilities of utilizing, reproducing, improving, and reselling technology.…”

“…Technology Transfer (TT) is a broad and complex process between independent units where both transferor and transferee of new technology co-exist. The technology transfer process is successful and effective only if the transferee can utilize, reproduce, improvise, resell and add value to its capabilities and skills by bringing the innovation (Fazal, Wahab, Zarin, Yaacob, & Zawawi, 2016). Technology attainment involves people, financial resources and investments, efforts, and commitment, which is anticipated from an efficient technology transfer process to attain favourable results (da Silva, Kovaleski, & Pagani, 2019).…”

Exploratory Study of Process Development in Technology Transfer Evidence from Automotive Firms

“…The main objective of knowledge transfer, according to Bou-Llusar and Segar-ra-Ciprés (2006)was to abide to a smooth and efficient flow of knowledge within and across the companies. Actual knowledge was not the main item in the technology transfer, but the ability of the technology receiver to utilize the potential of new knowledge at their place (Fazal et al, 2016). Technology transfer's success in certain technology was subjected to the understanding of the process, or ability to accurately forecast the future performance of the process(Schmidt and Uydess, 2011).…”