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

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  • Syed Fazal
  • Sazali Wahab
  • Nowshin Zarin
  • Abu Sofian Bin Yaacob
  • Nur Fadiah Mohd Zawawi

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.

Suggested Citation

  • Syed Fazal & Sazali Wahab & Nowshin Zarin & Abu Sofian Bin Yaacob & Nur Fadiah Mohd Zawawi, 2016. "The Role of Cultural Factors on Intra-Firm Technology Transfer Performance and Corporate Sustainability: A Conceptual Study," Asian Social Science, Canadian Center of Science and Education, vol. 12(9), pages 1-15, September.
    • Handle: RePEc:ibn:assjnl:v:12:y:2016:i:9:p:15
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    References listed on IDEAS

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    1. Oded Shenkar, 2001. "Cultural Distance Revisited: Towards a More Rigorous Conceptualization and Measurement of Cultural Differences," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 519-535, September.
    2. Marjorie A Lyles & Jane E Salk, 1996. "Knowledge Acquisition from Foreign Parents in International Joint Ventures: An Empirical Examination in the Hungarian Context," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 877-903, December.
    3. Foss, Nicolai J. & Pedersen, Torben, 2002. "Transferring knowledge in MNCs: The role of sources of subsidiary knowledge and organizational context," Journal of International Management, Elsevier, vol. 8(1), pages 49-67.
    4. Paul Almeida & Jaeyong Song & Robert M. Grant, 2002. "Are Firms Superior to Alliances and Markets? An Empirical Test of Cross-Border Knowledge Building," Organization Science, INFORMS, vol. 13(2), pages 147-161, April.
    5. Zaidah Mustaffa & Md. Zabid Abdul Rashid & Murali Sambasivan, 2007. "Strategic roles of foreign multinational subsidiaries in Malaysia," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 8(2/3/4), pages 268-289.
    6. Yadong Luo & Seung Ho Park, 2001. "Strategic alignment and performance of market‐seeking MNCs in China," Strategic Management Journal, Wiley Blackwell, vol. 22(2), pages 141-155, February.
    7. Marjorie A Lyles & Jane E Salk, 1996. "Knowledge Acquisition from Foreign Parents in International Joint Ventures: An Empirical Examination in the Hungarian Context," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(5), pages 877-903, December.
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    Cited by:

    1. Chaplygin, V. & Moroz, V., 2022. "Decision making on the technology transfer in regional innovation cluster under uncertainty and risk," Journal of the New Economic Association, New Economic Association, vol. 53(1), pages 121-142.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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