Moderating Effects of MNCs’ Size in the Relationship between Degree of Inter-Firm Technology Transfer and Local Firms’ Performance

Abstract

The inter-firm technology transfers (TT) through international joint ventures (IJVs), among others, have significantly contributed to a higher degree of local innovation performance/capabilities, technological capabilities, competitive advantage, organizational learning effectiveness, productivity, technological development of local industry, and the economic growth of the host country. Since the focus of inter-firm TT in developing countries has shifted to degree of technology transfer, organizations in developing countries are attempting to assess not only the significant role of technology transfer in strengthening their corporate and human resource performance but also the influence of other critical variables such as MNCs’ size (MNCSIZE), age of JVs, country of origin, and MNC’s type of industries that could significantly moderate the relationship. Based on the underlying knowledge-based view (KBV) and organizational learning (OL) perspectives, the main objective of this paper is to empirically examine the moderating effect of size of MNCs (large vs. medium/small MNCs) in the relationships between degree of inter-firm technology transfer and two dimensions of local firms’ performance: corporate and human resource performances. Using the moderated multiple regression (MMR) analysis, the theoretical models and hypotheses in this study were tested based on empirical data gathered from 128 joint venture companies registered with the Registrar of Companies of Malaysia (ROC). The results revealed that size of MNCs has significantly affected the relationships between degrees of technology transfer and local firms’ human resource performance; where the relationship was found stronger for large MNCs as compared to medium/small MNCs. However, size of MNCs did not significantly moderate the relationship between degree of technology transfer and local firms’ corporate performance. The study has bridged the literature gaps in such that it offers empirical evidence and new insights on the significant moderating effects of size of MNCs in the relationships between degree of inter-firm technology transfer and local firms’ performance technology using the Malaysian sample.