technology transfer model for the information and communication ...

TECHNOLOGY TRANSFER MODEL FOR THE INFORMATION AND COMMUNICATION INDUSTRY 1

ALI HASSAN, 2MD. YUSOFF JAMALUDDIN, 3ABDELBASET QUEIRI

1,2

Department of Electrical, Electronics and Systems Engineering, Faculty of Engineering and Built Environment, Universiti Kebangsaan Malaysia (UKM), 43600 Bangi, Malaysia 3 Multimedia University, Graduate School of Management, Cyberjaya, Malaysia E-mail: [email protected]

Abstract- The purpose of this work is to develop and empirically test a model that describes the TT process of embracing of foreign advanced technology by ICT companies as well as entrepreneurial and ICT-based SME’s projects in Libya. The past relevant TT models are reviewed in order to investigate and sort out the most influential ITT factors. These factors are verified upon formulating the TT model that addresses the TT process in ICT projects and SME survival. The model defines the following factors (enablers) that influence that ITT process: TT government support initiatives, transferor characteristics, transferee characteristics, TT environment, learning centres, and their respective sub-factors (variables). The outcome (achievements) factors are identified and explained through their relevant sub-factors. The questionnaire that conducted recently in the TT process in the Libyan ICT industry was utilized to verify the model and investigate the interrelationships between the model’s factors. This paper is a part of an ongoing study to develop a technology transfer model for the Libyan ICT industry. Statistical analysis methods were used to analyse the data received. . Keywords- International Technology transfer, ITT, Information and communication technology, ICT, Small and medium enterprises, SMEs, modelling

industry were gathered from a survey that recently conducted.

I. INTRODUCTION Technology has become one of the important elements of social and economic development in several newly industrialized countries. Technology is involving knowledge, equipment, and documents can assist firms to upgrade their performance (Wang & Chien 2007). The technology transfer process in developing countries was investigated by several researchers and in different industrial areas. They were acknowledged that the ITT process is a multifaceted process that is influenced by several factors. A surveyed literature on relevant TT models shown that none of these researches were dedicated to studying the TT process in the area of ICT-based SME’s projects. The aim of this study is to develop and empirically test a model that describes the TT process of embracing of foreign advanced technology by ICT companies as well as entrepreneurial and ICT-based SME projects in Libya. The variables which extracted and modified from the past investigated studies are classified as factors and sub-factors in a conceptual ICT industry context model to investigate their interrelationships. These ITT process influential factors are identified as TT government support initiatives, transferor characteristics, transferee characteristics, TT environment, learning centres and their respective sub-factors (variables). The outcome (achievements) factors are identified and explained through their relevant sub-factors (variables). The TT model is specifically designed to be applied to the study of technology transfer from developed countries to the Libyan ICT industry. Moreover, the results of the evaluation study of the TT process influential and outcome factors in the Libyan ICT

II. ITT MODEL BASED ON ENTREPRENEUR ICT BASED SME PROJECT The model shown in figure (1) defines all the important factors that influence the effectiveness of the ITT process and results (achievements). These relevant factors are modified from the examined literature on TT phenomenon and technology adoption. The model presents five groups of identifying factors and how they influence the TT process and the outcome factor.

Fig. 1ITT model based on the entrepreneur ICT-based SMEs

2.1 TT government support initiatives As stated by Calantone et al. (1990), the policies, regulations, and enforcement practices of the host government can greatly influence the effectiveness of TT process. Several studies have recognized the financial factor as a significant influence on the

Proceedings of Academics World 2nd International Conference, Kuala Lumpur, Malaysia, 5th Sept. 2015, ISBN: 978-93-85465-88-8 13

Technology Transfer Model For The Information And Communication Industry

effectiveness of the TT process. Lee et al. (1988) and Waroonkun et al. (2006) argue that the success of any TT process requires adequate infrastructure, which is a government-related matters. According to the literature, the government imitative support policy is strongly related to the capability of SMEs to effectively source, evaluate, and adapt new technologies. Meanwhile, parent companies through sub-contracting can provide the sub-contractors (medium enterprises) with the designs of the products and the required training (Islam 1992). In addition, parent companies help with the emergence of entrepreneurs and skilled workers, who in turn can initiate similar industries at a smaller scale.

culture differences, TT agent, and relationships between the transferor and the transferee. The mode of TT can have a critical role in the TT process and may affect the performance of such process. Therefore, the nature and means of the TT mechanism can take different forms and may be appropriate or inappropriate. The collaboration between the host and foreign project management teams is a major concern when technology is transferred to the host country’s projects. (Simkoko 1992; Black et al.200) Devapriya & Ganesan 2002). The information needs to be conveyed clearly and effectively in a total error-free communication setting and a proper cultural relationship between the host and foreign partner must be determined in advance. Effective communication was given a very high rating by Black et al. (2000), Devapriya & Ganesan (2002), Malik ( 2002), and Ganesan & Kelsey (2006). The role of the entrepreneurial agent middleman is also considered in ITT process management. Harvey et al. (2003) suggests that the agent middlemen can assist in ensuring that the TT is efficient and effective for both parties and according to the transfer agreement.

2.2 Learning centres and ICT entrepreneurs’ learning capability The learning capability is concerned with the effects of the sub-factors that facilitate the learning capability of the technology being transferred between foreign and local companies. According to the surveyed literature, the ability of developing countries to receive, transfer, adopt, develop, and manage technologies depends on the development of endogenous technological capability and human resources, local industry and university cooperation, and existing of technology incubators.

2.6 TT achievements Based on the objectives, the present study identifies four main areas where potential benefits may be derived from ITT initiatives. These benefits are represented as achievement sub-factors: economic development, project (firm) performance, knowledge and technological capability improvements, and development & survival of ICT-based SMEs. According to the literature, firms in developing countries are able to increase productivity through access to technological know-how, management techniques, and technical skills from industrial countries. TT process also could enhance the utilization of natural and human resources. The recipient mastering the imported technology has been suggested as a measure of the effectiveness of the TT process; the improved project performance results from the effective TT.

2.3 Transferor Characteristics This factor is concerned with a transferor’s willingness to transfer technology, knowledge base and transfer capacity, and prior experience. The transferor that is willing to transfer the appropriate technology is one of the essential elements in achieving successful technology (Malik 2002) and (Di Benedetto et al. 2003). Knowledge is difficult to transfer when motivation is lacking and when transferors are highly protective (Simonn 2004). The capacity of the technology provider to transfer refers to the firm-specific knowledge and the ability to impart that knowledge. 2.4 Transferee Characteristics Among the recipient characteristics that have been acknowledged by the literature as influencing TT are absorptive capacity, prior knowledge and experience, and learning capacity.The previous international experience of the transferee is expected to improve the learning capability and efficiency of the transferee in the technical communication process. The operational capabilities, dynamic learning capabilities, and investment capabilities of transferees as well as intent to learn and learning capability are supposed as critical issues in the transfer process.

III. MATERIALS AND METHODS This study aims to investigate only the TT process in Libyan ICT industry. A questionnaire survey was carried out on the sample targeting ICT companies' employees who have involved in TT processes. In this study the TT processes were defined as some form of ICT equipment, materials, or knowledge are transferred from a foreign party (organization) to another local party (Libyan organization). Thus, respondents from Libya's ICT industry were considered to be the appropriate respondents to evaluate the adoptions and the importance of factors affecting the TT process and the outcomes that can be gained. In addition to the respondent background information, the questionnaire consists of four

2.5 TT process (TT environment) This factor is concerned with the technology itself and covers the following: technology characteristics, TT mechanism, management of the TT program, relationship between the supplier and the recipient,



sections, the first one was concerned with the respondent’s opinion about a number of statements related to TT process. The second was related to rating the impact of a number of factors on a TT process. Whereas the third and fourth sections concerned with the respondent’s opinion on TT process achievements and rating the degree of improvement observed of the number of factors related to a TT process. Respondents were requested to provide rating for their opinion and the perceived impact on a five-point Likert scale. The survey was conducted from Jan. 05 to April 08.2015 Statistical analysis methods which include mean, standard deviation, correlation, to be used to analyse the data received from the questionnaire survey. Fig. 3 Number of the TT process participated by respondents

IV. RESULTS & DATA ANALYSIS

Large numbers of the respondents had participated in between 2 to 5 TT process. This indicates that the sample encompasses expert people, as shown in Figure (3). Most of the respondents’ companies were the main contractors in the joint venture projects, as shown in Figure (4). Also, the respondents belong to various sectors, ranging from ICT infrastructure companies to Internet Telecommunication services companies, whereby substantial amount of the respondents belong to the latter companies, as depicted in Figure (5).

The data were collected from a reasonable sample size. The target population was experts who have a reliable background on technology transfer process (TT) and who had participated in TT projects in association with international companies. The data entry accuracy was checked through the minimum and maximum values. The selected respondents were asked to give their opinions with regard to the relevancy of several factors for the TT process. 4.1 Respondent Profile According to the position of the respondents the majority were engineers with a (40%); followed by administrative officers (25%); (15%); academic staff (10%); consultant and technician (5%). The highest frequency of respondents had a bachelor degree (75%) while the Master and Diploma holders come with the same percentage (10%) and the doctorate (5%). Figure (2) shows that the respondents have various working experience ranging from less than 5 years to more than 20 years. The respondents with experience of 6 to 10 years got the highest frequency (35%). The respondents with experience of 16 to 20 years and less than 5 years got the same frequency (20%). (15%) of the respondents had experience of 11-15 years while 10% of them with more than 20 years of experience.

Fig.4 Company Type

Fig.5 Respondent’s Company Type

Fig. 2 Respondent’s Working Experience



cause-effect between model factors and indicators and to formulating TT constructs and determining causal paths. The structural equation modelling technique could be used to confirm the variables in each factor (confirm the model structure) and determine the significant causal paths between factors.

4.2 Model factors profile The respondents indicated that the transferee’s characteristics are the most important factor that will result in effective TT process. However, respondents had agreed to a large extent that the factor chosen for this study is important towards effective TT process. For instance, the respondents agreed that government initiative/support, learning centres, transferor’s characteristic and TT process to be substantial towards TT effectiveness. Additionally, the respondents were asked to rate the impact of several factors on TT process. Again, the transferee’s characteristics factor was perceived to be with highest impact on TT process. The rest of the factors were rated to have high impact on TT process, with transferor’s characteristics was rated to have the second highest impact on TT process.

DISCUSSION AND CONCLUSION This work explores the existing models developed across different industry sectors, and come with a conceptual ITT model endeavours to transfer technology to Libyan ICT companies as well as ICTbased SME projects. The model defines the following factors (enablers) that influence that ITT process: TT government support initiatives, transferor characteristics, transferee characteristics, TT environment, learning centres, and their respective sub-factors (variables). The outcome (achievements) factors are identified and explained through their relevant sub-factors (variables). These factors are evaluated by conducting a questionnaire survey of carefully selected respondents who have a reasonable experience in ITT process and had participated in TT projects in association with international companies. The respondents indicated that the transferee’s characteristics are the most important factor that will result in effective TT process. The rest of the factors were rated to have high impact on TT process, with transferor’s characteristics was rated to have the second highest impact on TT process. However, respondents had agreed to a large extent that the factor chosen for this study is important towards effective TT process. Economic development was perceived to be the most vital outcome upon successful TT process, followed by knowledge improvement, firm performance and development and survive of ICT technology. Alternatively, the respondents have seen high improvement, mostly on the knowledge and technological capabilities and on economic development.

4.3 TT process achievements profile Furthermore, the respondents were asked their opinion on the contribution of successful TT process on the economic development, firm performance, knowledge and technological improvement and development and survive of ICT SMEs. Economic development was perceived to be the most vital outcome upon successful TT process, followed by knowledge improvement, firm performance and development and survive of ICT technology. Alternatively, the respondents were asked to rate the observed improvement subsequent to the TT process project. The respondents have seen high improvement, mostly on the knowledge and technological capabilities and on economic development, as indicated by means score for both factors. V. FUTURE RESEARCH DIRECTIONS Despite the results of this study were derived from a recent survey conducted on the technology transfer process in Libyan ICT industry only. The model provides a clear picture on how to better utilize TT processes to create value for ICT technology to the developing countries. This paper is a part of an ongoing study to develop a technology transfer model for the Libyan ICT industry; it represents a preliminary stage of comprehensive model development. To validate the model, there are a few stages (statistical tests) shall be done. These could be: (1) Rating TT Enabling and Outcome Variables using Analysis of Variance (ANOVA) (2) Analysis of variance (ANOVA) could be used to ensure that respondents having different positions (e.g. Site engineer, consultant, etc.) and from different types of organizations (contractor, consultant, etc.) could be considered as a single sample. (3) Statistical techniques including exploratory factor analysis, confirmatory factor analysis and structural equation modelling could be used for modelling the

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