Factors affecting Technology transfer performance in the Petrochemical Industry in Thailand: A Case study
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Published:
May 27, 2018
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Abstract
The Petrochemical Industry in Thailand relies on the importance of technology transfer from the more advanced companies in order to develop its production process and competitive ability. However, technology transfer from one country to another country or from one company to another relies on several factors regarding technology sender and recipient. These factors clearly affect the effectiveness of technology transfer. Therefore, this research study aims to investigate the factors influencing the performance of technology transfer in the petrochemical industry in Thailand. This study is a quantitative study using questionnaires as a tool to collect data. Data is analyzed through the Exploratory Factor Analysis (EFA) technique and the Structure Equation Model (SEM). The research findings shows that the crucial factors influencing the performance of technology transfer are: 1) absorptive capacity, 2) partner characteristics, 3) the complexity of technology, and 4) inter-organizational relationships. These factors are grouped into two groups, namely human-oriented factors and technology-oriented factors. This research contributes to a better understanding of technology transfer in the pharmaceutical industry context. These findings can be used as the basis for technology transfer process development in Thailand.
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How to Cite
Distanont, A., Khongmalai, O., & Kritpipat, P. (2018). Factors affecting Technology transfer performance in the Petrochemical Industry in Thailand: A Case study. WMS Journal of Management, 7(2), 23–35. Retrieved from https://so06.tci-thaijo.org/index.php/wms/article/view/125725
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Research Articles-Academic Articles
References
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Bozeman, B. (2000), “Technology transfer and public policy: a review of research and theory”, Research Policy, Vol. 29, No. 4-5, pp. 627-655.
Chen, C.J., Hsiao, Y.C. and Chu, M.A. (2014), “Transfer mechanisms and knowledge transfer: the cooperative competency perspective”, Journal of Business Research, Vol. 67, No. 12, pp. 2531-2541.
Chen, X. and Sun, C. (2000), “Technology transfer to China: alliances of Chinese enterprises with western technology exporters”, Technovation, Vol. 20, pp. 353-362.
Cohen, W. M. and Levinthal, D.A. (1990), “Absorptive capacity: a new perspective on learning and innovation”, Administrative Science Quarterly, Vol. 35, No. 1, pp. 128-152.
Daghfous, A. (2004), “Organizational learning, knowledge and technology transfer: a case study”, The Learning Organization, Vol. 11, No. 1, pp. 67-83.
Distanont, A., Haapasalo, H., Kamolvej, T. and Meeampol, S. (2012), “Interaction patterns in collaborative product development (CPD)”, International Journal of Synergy and Research, Vol. 1, No. 2, pp. 21-43.
Distanont, A., Haapasalo, H. and Vaananen, M. (2014), “Organising Knowledge Transfer in requirements engineering over organisational interfaces”, International Journal of Innovation and Learning, Vol.15, No.1, pp. 41-64.
Dogra, R., Garg, R. and Jatav, P. (2013), “Technology transfer in pharmaceutical industry: transfer of process from development to commercialization”, International Journal of Pharmaceutical Sciences and Research, Vol. 4, No. 5, pp. 1692-1708.
Easterby-Smith, M., Graça, M., Antonacopoulou, E. and Ferdinand, J. (2008), “Absorptive capacity: A process perspective”, Management Learning, Vol. 39, No. 5, pp. 483-501.
Fang, Y., Jiang, G. L., Makino, S. and Beamish, P. W. (2010), “Multinational firm knowledge, use of expatriates, and foreign subsidiary performance”, Journal of Management Studies, Vol.47, pp. 1-28.
Ganesan, S. and Kelsey, J. (2006), “Technology transfer: international collaboration in Sri Lanka”, Construction Management and Economics, Vol.24, No. 7, pp.743-757.
Gibson, D. V. and Raymond, W. (1991), “Key variables in technology transfer: a field-study based empirical analysis”, Journal of Engineering and Technology Management, Vol. 8, No. 3, pp. 287-312.
Grant, R.M. (1996), “Toward a knowledge-based theory of the firm”, Strategic Management Journal, Vol. 17, No. S2, pp. 109-122.
Golob, T. F. (2003). “Structural equation modeling for travel behavior research”: Transportation Research Part B Methodological, Vol. 37, No. 1, pp. 1-25.
Hoekman, B. Maskus, K. and Saggi, K. (2004), “Transfer of technology to developing countries: unilateral and multilateral policy options”, working paper, Institute of Behavioural Science, University of Colorado, Boulder.
Hussey, D. M., and Eagan, P. D. (2007). “Using structural equation modeling to test environmental performance in small and medium-sized manufacturers: can SEM help SMEs?”. Journal of Cleaner Production, Vol. 15, No.4, pp. 303-312.
Jabar, J. Soosay, C. and Santa, R. (2011), “Organisational learning as an antecedent of technology transfer and new product development: A study of manufacturing firms in Malaysia", Journal of Manufacturing Technology Management, Vol. 22, No.1, pp.25 - 45
Jafari, M., Akhavan, P. and Rafiei, A. (2014), “Technology transfer effectiveness in knowledge-based centers: providing a model based on knowledge management”, International Journal of Scientific Knowledge, Vol. 4, No. 7, pp. 24-39.
Jones, O. (2006), “Developing absorptive capacity in mature organizations: The change agent’s role”, Management Learning, Vol. 37, No. 3, pp. 355-376.
Kinoshita, Y. (1999). “Technology spillovers through foreign direct investment”, working paper, 221, University of Michigan William Davidson Institute, Ann Arbor, MI.
Khalil, T. (2000), Management of Technology, McGraw-Hill, Boston.
Kim, Y.J. and Vonortas, N.S. (2006), “Determinants of inter-firm technology licensing: the case of licensors”, Managerial and Decision Economics, Vol. 27, No. 4, pp. 235-249.
Kokko, A. (1992). Foreign direct investment, host country characteristics, and spillovers. The Economic Research Institute, Stockholm, Sweden.
Kowasiwarat, S. and Songlork, K. (2011), “Petrochemical encyclopedia”, PTT Public Company Limited, Bangkok, 439 pp.
Lane, P. J. and Lubatkin, M. (1998), “Relative absorptive capacity and inter organizational learning”, Strategic Management Journal, Vol. 19, No. 5, pp.461-477.
Lin, B. W. and Berg, D. (2001), “Effects of cultural difference on technology transfer projects: An empirical study of Taiwanese manufacturing companies”, International Journal of Project Management, Vol. 19, No. 5, pp. 287-293.
Liu, Chun-C. (2006), “Modelling the transfer of technology to Taiwan from China”, Journal of International Business Research, Vol. 5, No. 2.
Lee, C. Y. and Wu, F. C. (2010), “Factors affecting knowledge transfer and absorptive capacity in multinational corporation”, The Journal of International Management Studies, Vol. 5, No. 2, pp. 118-126.
Li-Hua, R. and Khaill, T. (2006), “Technology management in China: a global perspective and challenging issues”, Technology Management in China, Vol. 1, pp. 9-26.
Lucas, L. M. (2006), “The role of culture on knowledge transfer: The case of the multinational corporation”, The Learning Organization, Vo. 13, No. 3, pp. 257-275.
Lueprasithikul, W. (1992), “Knowledge about petrochemical industry and the development of petrochemical industry in Thailand”, DearBook Publisher, Bangkok.
Mahboudi, M. and Ananthan, B.R. (2010), “Effective factors in technology transfer in the pharmaceutical industries of Iran: a case study”, The IUP Journal of Knowledge Management, Vol. 8, No. 1 & 2, pp. 98-110.
Malik, K. (2002), “Aiding the technology manager: A conceptual model for intra-firm technology transfer”, Technovation, Vol. 22, No. 7, pp. 427-436.
May, C. (2006), “The world intellectual property organization”, New political economy, Vol. 11, No. 3, pp. 435-445.
Malik, K. (2002), “Aiding the technology manager: a conceptual model for intra-firm technology transfer”, Technovation, Vol. 22, No. 7, pp. 427-436.
McBeath, A. and Ball, P. (2012), “Towards a framework for transferring technology knowledge between facilities”, Strategic Outsourcing: An International Journal, Vol. 5, No. 3, pp. 213-231.
Mohaghar, A., Monawarian, A. and Raassed, H. (2012), “Evaluation of technology transfer strategy of petrochemical process”, Journal of Technology Transfer, Vol.37, No.4, pp. 563-576.
Mohamed, A. S., Sapuanb, S.M., MegatAhmadc, M.M.H., Hamoudad, A.M.S. and Hang Tuah Bin Baharudin, B.T. (2012), “Modeling the technology transfer process in the petroleum industry: evidence from Libya”, Mathematical and Computer Modelling, Vol. 55, No. 3-4, pp. 451-470.
Nguyen, T.D.N. and Aoyama, A. (2014), “Achieving efficient technology transfer through a specific corporate culture facilitated by management practices”, The Journal of High Technology Management Research, Vol. 25, No. 2, pp. 108-122.
Osman‐Gani, A.A.M. (1999), “International technology transfer for competitive advantage:
a conceptual analysis of the role of hrd”, Competitiveness Review: An International Business Journal, Vol. 9, No. 1, pp. 9 – 18.
Plastics Intelligence Unit. (2011), “An important factor affecting the petrochemical industry”, Plastics Intelligence Update.
Purushotham, H. Sridhar, V. and Sunder S. (2013), “Management of technology transfer from Indian publicly funded R&D institutions to industry-modelling of factors impacting successful technology transfer”, International Journal of Innovation, Management and Technology, Vol. 4, No. 4, pp. 422-428.
Ramanathan, K. (1994). “An Overview of Technology Transfer and Technology Transfer Models”, available at file://C:/Users/anyanitha/Downloads/Documents/An%20overview%20of%20TT%20and%20TT%20Models_3.pdf.
Sazali, A.W. and Raduan, C. R. (2011), The Inter Firm Technology Transfer in Malaysia – A Holistic Approach, VDM Verlag Publishing, Saarbrucken.
Siegel, D.S., Waldman, D. and Link, A. (2003), “Assessing the impact of organizational practices on the relative productivity of university technology transfer offices: An exploratory study”, Research Policy, Vol. 32, pp. 27-48.
Siti Aishah, M. H. and Othman, A. (2011), “Development of absorption capability attributes for technology transfer performance: a pilot study in national automotive industry”, proceeding of international management conference, Kuala Terengganu, April.
Smith, R. and Sharif, N. (2007), “Understanding and acquiring technology assets for global competition”, Technovation, 27, 643-649.
Souder, W.E., Nashar, A.S. and Padmanathan, V. (1990), “A guide to the best technology transfer practices”, Journal of Technology Transfer, Vol., 15, No. 1-2, pp. 5-16.
Tanaka, M. (1992), “Technology Transfer in Petrochemical Industry”, The MIT Japan Program, MITJP 92-06. Massachusetts Institute of Technology. Cambridge, Mass.
Teece, D. (2000), “Firm capabilities and economic development: implications for newly industrialising countries”, in Kim, L. and Nelson, R.R., (eds.), Technology, Learning and Innovation, Cambridge University Press.
The Office of Industrial Economics (2015), “The status of petrochemical in Thailand”, Retrieved from http://www.oie.go.th/academic/index
Wang, J., and Blomström, M. (1992). “Foreign investment and technology transfer: a simple model”, European Economic Review, Vol 36, No. 1, pp. 137–155.
Wang, P., Tong, T. W. and Koh, C. P. (2004), “An integrated model of knowledge transfer from MNC parent to China subsidiary”, Journal of World Business, Vol. 39, No. 2, pp.168-182.
Waroonkun, T. and Stewart, R. A. (2008), “Modelling the international technology transfer process in construction projects: evidence from Thailand”, The Journal of technology transfer, Vol. 33, No. 6, pp. 667-687.
Wie, T. (2005), “The major channels of international technology transfer to Indonesia: an assessment”, Journal of the Asia Pacific Economy, Vol. 10, No. 2, pp. 214-236.
Williams, F. and Gibson, D. (1990), Technology transfer: A communication perspective, Sage Publications, Beverly Hills, California, USA.
Zahra, A. S. and George, G. (2002), “Absorptive capacity: a review, reconceptualization, and extension”, Academy of Management Review, Vol. 27, No. 2, pp. 185-203.
Awang, A.H. Hussain, M.Y. and Malek, J.A. (2013), “Knowledge transfer and the role of local absorptive capability at science and technology parks”, The learning Organisation, Vol. 20, No. 4/5, pp. 291-307.
Balas, E. A. and Elkin, P. L. (2013), “Technology transfer from biomedical research to clinical practice: measuring innovation performance”, Evaluation and the Health Professions, Vol. 36, No. 4, pp. 505-517.
BASF (2013), “The chemical company report: economic, environmental and social performance”, available at: https://www.basf.com/documents/corp/en/about-us/publications/reports/2014/BASF_Report_2013.pdf (accessed 18 August 2015).
Black, C., Akintoye, A. and Fitzgerald, E. (2000), “An analysis of success factors and benefits of partnering in construction”, International Journal of Project Management, Vol. 18, No. 6, pp. 423-434.
Bozeman, B. (2000), “Technology transfer and public policy: a review of research and theory”, Research Policy, Vol. 29, No. 4-5, pp. 627-655.
Chen, C.J., Hsiao, Y.C. and Chu, M.A. (2014), “Transfer mechanisms and knowledge transfer: the cooperative competency perspective”, Journal of Business Research, Vol. 67, No. 12, pp. 2531-2541.
Chen, X. and Sun, C. (2000), “Technology transfer to China: alliances of Chinese enterprises with western technology exporters”, Technovation, Vol. 20, pp. 353-362.
Cohen, W. M. and Levinthal, D.A. (1990), “Absorptive capacity: a new perspective on learning and innovation”, Administrative Science Quarterly, Vol. 35, No. 1, pp. 128-152.
Daghfous, A. (2004), “Organizational learning, knowledge and technology transfer: a case study”, The Learning Organization, Vol. 11, No. 1, pp. 67-83.
Distanont, A., Haapasalo, H., Kamolvej, T. and Meeampol, S. (2012), “Interaction patterns in collaborative product development (CPD)”, International Journal of Synergy and Research, Vol. 1, No. 2, pp. 21-43.
Distanont, A., Haapasalo, H. and Vaananen, M. (2014), “Organising Knowledge Transfer in requirements engineering over organisational interfaces”, International Journal of Innovation and Learning, Vol.15, No.1, pp. 41-64.
Dogra, R., Garg, R. and Jatav, P. (2013), “Technology transfer in pharmaceutical industry: transfer of process from development to commercialization”, International Journal of Pharmaceutical Sciences and Research, Vol. 4, No. 5, pp. 1692-1708.
Easterby-Smith, M., Graça, M., Antonacopoulou, E. and Ferdinand, J. (2008), “Absorptive capacity: A process perspective”, Management Learning, Vol. 39, No. 5, pp. 483-501.
Fang, Y., Jiang, G. L., Makino, S. and Beamish, P. W. (2010), “Multinational firm knowledge, use of expatriates, and foreign subsidiary performance”, Journal of Management Studies, Vol.47, pp. 1-28.
Ganesan, S. and Kelsey, J. (2006), “Technology transfer: international collaboration in Sri Lanka”, Construction Management and Economics, Vol.24, No. 7, pp.743-757.
Gibson, D. V. and Raymond, W. (1991), “Key variables in technology transfer: a field-study based empirical analysis”, Journal of Engineering and Technology Management, Vol. 8, No. 3, pp. 287-312.
Grant, R.M. (1996), “Toward a knowledge-based theory of the firm”, Strategic Management Journal, Vol. 17, No. S2, pp. 109-122.
Golob, T. F. (2003). “Structural equation modeling for travel behavior research”: Transportation Research Part B Methodological, Vol. 37, No. 1, pp. 1-25.
Hoekman, B. Maskus, K. and Saggi, K. (2004), “Transfer of technology to developing countries: unilateral and multilateral policy options”, working paper, Institute of Behavioural Science, University of Colorado, Boulder.
Hussey, D. M., and Eagan, P. D. (2007). “Using structural equation modeling to test environmental performance in small and medium-sized manufacturers: can SEM help SMEs?”. Journal of Cleaner Production, Vol. 15, No.4, pp. 303-312.
Jabar, J. Soosay, C. and Santa, R. (2011), “Organisational learning as an antecedent of technology transfer and new product development: A study of manufacturing firms in Malaysia", Journal of Manufacturing Technology Management, Vol. 22, No.1, pp.25 - 45
Jafari, M., Akhavan, P. and Rafiei, A. (2014), “Technology transfer effectiveness in knowledge-based centers: providing a model based on knowledge management”, International Journal of Scientific Knowledge, Vol. 4, No. 7, pp. 24-39.
Jones, O. (2006), “Developing absorptive capacity in mature organizations: The change agent’s role”, Management Learning, Vol. 37, No. 3, pp. 355-376.
Kinoshita, Y. (1999). “Technology spillovers through foreign direct investment”, working paper, 221, University of Michigan William Davidson Institute, Ann Arbor, MI.
Khalil, T. (2000), Management of Technology, McGraw-Hill, Boston.
Kim, Y.J. and Vonortas, N.S. (2006), “Determinants of inter-firm technology licensing: the case of licensors”, Managerial and Decision Economics, Vol. 27, No. 4, pp. 235-249.
Kokko, A. (1992). Foreign direct investment, host country characteristics, and spillovers. The Economic Research Institute, Stockholm, Sweden.
Kowasiwarat, S. and Songlork, K. (2011), “Petrochemical encyclopedia”, PTT Public Company Limited, Bangkok, 439 pp.
Lane, P. J. and Lubatkin, M. (1998), “Relative absorptive capacity and inter organizational learning”, Strategic Management Journal, Vol. 19, No. 5, pp.461-477.
Lin, B. W. and Berg, D. (2001), “Effects of cultural difference on technology transfer projects: An empirical study of Taiwanese manufacturing companies”, International Journal of Project Management, Vol. 19, No. 5, pp. 287-293.
Liu, Chun-C. (2006), “Modelling the transfer of technology to Taiwan from China”, Journal of International Business Research, Vol. 5, No. 2.
Lee, C. Y. and Wu, F. C. (2010), “Factors affecting knowledge transfer and absorptive capacity in multinational corporation”, The Journal of International Management Studies, Vol. 5, No. 2, pp. 118-126.
Li-Hua, R. and Khaill, T. (2006), “Technology management in China: a global perspective and challenging issues”, Technology Management in China, Vol. 1, pp. 9-26.
Lucas, L. M. (2006), “The role of culture on knowledge transfer: The case of the multinational corporation”, The Learning Organization, Vo. 13, No. 3, pp. 257-275.
Lueprasithikul, W. (1992), “Knowledge about petrochemical industry and the development of petrochemical industry in Thailand”, DearBook Publisher, Bangkok.
Mahboudi, M. and Ananthan, B.R. (2010), “Effective factors in technology transfer in the pharmaceutical industries of Iran: a case study”, The IUP Journal of Knowledge Management, Vol. 8, No. 1 & 2, pp. 98-110.
Malik, K. (2002), “Aiding the technology manager: A conceptual model for intra-firm technology transfer”, Technovation, Vol. 22, No. 7, pp. 427-436.
May, C. (2006), “The world intellectual property organization”, New political economy, Vol. 11, No. 3, pp. 435-445.
Malik, K. (2002), “Aiding the technology manager: a conceptual model for intra-firm technology transfer”, Technovation, Vol. 22, No. 7, pp. 427-436.
McBeath, A. and Ball, P. (2012), “Towards a framework for transferring technology knowledge between facilities”, Strategic Outsourcing: An International Journal, Vol. 5, No. 3, pp. 213-231.
Mohaghar, A., Monawarian, A. and Raassed, H. (2012), “Evaluation of technology transfer strategy of petrochemical process”, Journal of Technology Transfer, Vol.37, No.4, pp. 563-576.
Mohamed, A. S., Sapuanb, S.M., MegatAhmadc, M.M.H., Hamoudad, A.M.S. and Hang Tuah Bin Baharudin, B.T. (2012), “Modeling the technology transfer process in the petroleum industry: evidence from Libya”, Mathematical and Computer Modelling, Vol. 55, No. 3-4, pp. 451-470.
Nguyen, T.D.N. and Aoyama, A. (2014), “Achieving efficient technology transfer through a specific corporate culture facilitated by management practices”, The Journal of High Technology Management Research, Vol. 25, No. 2, pp. 108-122.
Osman‐Gani, A.A.M. (1999), “International technology transfer for competitive advantage:
a conceptual analysis of the role of hrd”, Competitiveness Review: An International Business Journal, Vol. 9, No. 1, pp. 9 – 18.
Plastics Intelligence Unit. (2011), “An important factor affecting the petrochemical industry”, Plastics Intelligence Update.
Purushotham, H. Sridhar, V. and Sunder S. (2013), “Management of technology transfer from Indian publicly funded R&D institutions to industry-modelling of factors impacting successful technology transfer”, International Journal of Innovation, Management and Technology, Vol. 4, No. 4, pp. 422-428.
Ramanathan, K. (1994). “An Overview of Technology Transfer and Technology Transfer Models”, available at file://C:/Users/anyanitha/Downloads/Documents/An%20overview%20of%20TT%20and%20TT%20Models_3.pdf.
Sazali, A.W. and Raduan, C. R. (2011), The Inter Firm Technology Transfer in Malaysia – A Holistic Approach, VDM Verlag Publishing, Saarbrucken.
Siegel, D.S., Waldman, D. and Link, A. (2003), “Assessing the impact of organizational practices on the relative productivity of university technology transfer offices: An exploratory study”, Research Policy, Vol. 32, pp. 27-48.
Siti Aishah, M. H. and Othman, A. (2011), “Development of absorption capability attributes for technology transfer performance: a pilot study in national automotive industry”, proceeding of international management conference, Kuala Terengganu, April.
Smith, R. and Sharif, N. (2007), “Understanding and acquiring technology assets for global competition”, Technovation, 27, 643-649.
Souder, W.E., Nashar, A.S. and Padmanathan, V. (1990), “A guide to the best technology transfer practices”, Journal of Technology Transfer, Vol., 15, No. 1-2, pp. 5-16.
Tanaka, M. (1992), “Technology Transfer in Petrochemical Industry”, The MIT Japan Program, MITJP 92-06. Massachusetts Institute of Technology. Cambridge, Mass.
Teece, D. (2000), “Firm capabilities and economic development: implications for newly industrialising countries”, in Kim, L. and Nelson, R.R., (eds.), Technology, Learning and Innovation, Cambridge University Press.
The Office of Industrial Economics (2015), “The status of petrochemical in Thailand”, Retrieved from http://www.oie.go.th/academic/index
Wang, J., and Blomström, M. (1992). “Foreign investment and technology transfer: a simple model”, European Economic Review, Vol 36, No. 1, pp. 137–155.
Wang, P., Tong, T. W. and Koh, C. P. (2004), “An integrated model of knowledge transfer from MNC parent to China subsidiary”, Journal of World Business, Vol. 39, No. 2, pp.168-182.
Waroonkun, T. and Stewart, R. A. (2008), “Modelling the international technology transfer process in construction projects: evidence from Thailand”, The Journal of technology transfer, Vol. 33, No. 6, pp. 667-687.
Wie, T. (2005), “The major channels of international technology transfer to Indonesia: an assessment”, Journal of the Asia Pacific Economy, Vol. 10, No. 2, pp. 214-236.
Williams, F. and Gibson, D. (1990), Technology transfer: A communication perspective, Sage Publications, Beverly Hills, California, USA.
Zahra, A. S. and George, G. (2002), “Absorptive capacity: a review, reconceptualization, and extension”, Academy of Management Review, Vol. 27, No. 2, pp. 185-203.