The Mediating Effect Of Technology Transfer In Strategic Technology Alliances : A Study On Malaysian Manufacturers

Juhaini , Jabar and Norfaridatul Akmaliah, Othman and Md Nor Hayati, Tahir (2012) The Mediating Effect Of Technology Transfer In Strategic Technology Alliances : A Study On Malaysian Manufacturers. Project Report. UTeM, Melaka, Malaysia. (Submitted)

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Abstract

Manufacturing organizations in developing economies are finding ways to access the latest technologies because of intense competition and pressure to produce innovative products and technologies to meet market demand. Given their lack of knowledge and capabilities in R&D to innovate and develop new technologies, they form strategic technology alliances (ST A) to acquire external technologies and resources in order to stay abreast with global players. This study draws on the Resource Based View and Organizational Learning to identify the factors that influence ST A. Based on cross-sectional data collected from 335 firms in the Malaysian manufacturing industry and using structural equation modeling, our findings demonstrate that the absorptive capacity of firms and type of alliances are factors which instigate the formation of ST A in the Malaysian manufacturing industry and that such alliances are an effective mechanism for enhancing overall firm performance. The study however indicates that despite the onset of successful alliance formation and resultant technology transfer, these firms will still need to invest in developing their resources, employee skills, production methods and industrial processes in order to sustain their competitiveness in the global economy.

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