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EFFECTIVENESS OF EXTERNAL TECHNOLOGY TRANSFER TO CEPP, UTM CHEONG YEE WAH UNIVERSITI TEKNOLOGI MALAYSIA

Transcript of EFFECTIVENESS OF EXTERNAL TECHNOLOGY TRANSFER TO …

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EFFECTIVENESS OF EXTERNAL TECHNOLOGY TRANSFER

TO CEPP, UTM

CHEONG YEE WAH

UNIVERSITI TEKNOLOGI MALAYSIA

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EFFECTIVENESS OF EXTERNAL TECHNOLOGY TRANSFER

TO CEPP, UTM

CHEONG YEE WAH

This dissertation is submitted in partial fulfilment of the requirements for the

award of the degree of Master of Management (Technology).

Faculty of Management and Human Resources Development

Universiti Teknologi Malaysia

DECEMBER, 2010

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Dedicated to my beloved father, mother, friends, lecturers, and relatives

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ACKNOWLEDGEMENT

I would like to confine my appreciation to my supervisor, Dr. Noraini binti

Abu Talib and the administration department of SPS for giving the guideline and

information during accomplishment of this study. Regard to the helping, I am able to

carry out the research smoothly and hand on time.

Besides, I would like to extent the appreciation to my course mate as they are

assist me during I am confronted problems with the data analysis which preoccupied

a major element for the research reliability. Indeed, their willingness to feedback that

information for me makes the research progress smoothly. By the way, the

administrator from Pustakaan Sultanah Zanariah (PSZ) had assisted me a lot during

gathering of information required along the research is carried out.

Lastly, I need to thanks to my family for giving me the fully support in term of

encouragement, lovely respond when I am lack of patient in proceeding my study.

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ABSTRACT

External technology transfer becomes more important as the increase of

interdependent of the world due to globalization. Therefore linkage between research

centre and industry is critical for both institutes to survival in this competitive

landscape. The industry required advance technology to compete in global market

while the research centre needs industry knowledge to sustain the continuous

developing applicable technology. As a result, how effective the transfer of those

technologies was concerned by scholar. Hence the study is carried out to investigate

the factors that influence technology transfer from the industry to the research centre

of UTM-Chemical Engineering Pilot Plant (CEPP) in Skudai, Johor. The objective of

research is investigate the factor that influence the CEPP technology transfer project

and clarify how the factor influence the effectiveness of CEPP technology transfer

project. Factors that studied included: prior experience of transferor and transferee,

inter-organizational interaction, nature of technology and culture difference. Set of

interview questions were derived to conduct interview with 4 key personnel from the

CEPP technology transfer project. The qualitative data gathered was analyzed by

Miles and Hurberman (1994) to identify the pattern and themes. According to the

findings, all of the factors show positive effective on the technology transfer

performance except culture difference. This may due to the culture embedded by

both parties is not significant different. It was recommended that embedded ‘open’

culture and cross functional interaction could improve efficiency during technology

transfer.

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ABSTRAK

Pemindahan teknologi secara luaran semakin penting sementara dunia terjejas

daripada kesan-kesan era globalisasi. Demikian, perhubungan antara industri dan

pusat penyelidikan semakin kritikal untuk memanfaatkan kedua-dua pihak. Industri

memerlukan teknologi tambahan untuk bersaing di era globalisasi manakala pusat

penyelidikan memerlukan ilmu teknologi daripada industry untuk penyelidikan

dalam bidang aplikasi teknologi. Oleh sebab itu, keberkesanan permindahan

teknologi dapat menarik perhatian daripada penyelidik. Dengan itu, penyelidikan

dijalankan untuk mengkaji faktor-faktor yang mempengaruhi keberkesanan

permindahan teknoogi dari industri ke pusat penyelidikan UTM, iaitu Loji Pandu

Kejuruteraan Kimia (CEPP) di Skudai, Johor. Objektif bagi penyelidikan ini adalah

menentukan faktor-faktor yang mempengaruhi keberkesanan projek pemindahan

teknologi CEPP dan menjelaskan bagaimana faktor-faktor yang mempengaruhi

keberkesanan projek pemindahan teknologi CEPP. Faktor-faktor yang dikaji

termasuk: pengalaman pemindah dan penerima, interaksi antara organisasi, jenis

teknologi dan perbezaan budaya. Persoalan temuhramah telah disediakan untuk

mengutip data daripada 4 orang penting dalam projek pemindahan teknologi CEPP.

Qualitatif data yang dikumpul telah dianalisasi dengan mengunakan Miles and

Hubermna (1994) method. Keputusan menunjukan semua factok memberi kesan

kepada prestasi teknologi pemindahan CEPP kecuali prebezaan budaya. Ini disebab

oleh berbezaan budaya pemidah dan penerima tidak ketara. Akhirnya, praktik budaya

‘buka’ dan interaksi antara kumpulan fungsi boleh memperbaiki kebersanan

pemindahan teknologi.

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II LITERATURE REVIEW

2.0 Introduction 7

2.1 What is Technology? 8

2.1.1 Characteristic of Technology 9

2.1.1.1 Tacit Dimension of Technology 10

2.1.1.2 Transmission of Technology 11

2.1.1.3 Assimilation of Technology 12

2.2 Technological Innovation Life Cycle 13

2.2.1 Uncertainty in Technological Innovation 15

2.3 Technology Transfer (TT) 16

2.3.1 Component of Technology Transfer 17

2.3.1.1 Transfer Scope 18

2.3.1.2 Transfer Methods 19

2.3.1.3 Knowledge Architecture 21

2.3.1.4 Organizational Adaptive Ability 23

2.3.2 Knowledge Management in Technology Transfer 24

2.4 Background of CEPP Technology Transfer Project 25

2.4.1 Chemical Engineering Pilot Plant (CEPP) 26

2.4.2 Phases of CEPP Project 27

2.4.2.1 Phase I 28

2.4.2.2 Phase II 29

2.4.2.3 Phase III 30

2.4.3 Background of Energieconsulting Heidelberg

(ECH) 30

2.4.3.1 Profile of ECH’s representatives 31

2.5 Previous Study 32

2.5.1 External Technology Integration

(ETI) Effectiveness Model by Stock and

Tatikonda (2004) 32

2.5.2 Theoretical Model for Technology

Transfer Effectiveness by Lin and Berg (2001) 35

2.6 Research Framework 37

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2.6.1 Prior Experience of Transferor and Transferee 39

2.6.2 Inter-organizational Interaction 42

2.6.3 Nature of Technology 43

2.6.4 Culture Difference 45

2.7 Conclusion 47

III METHODOLOGY

3.0 Introduction 49

3.1 Delimiting of Sample 51

3.2 Method of Data Collection 52

3.2.1 Primary Data 52

3.2.2 Secondary Data 53

3.3 Data should Obtained from Interviewee 53

3.4 Instrument Design 54

3.5 Method of Data Analysis 54

3.6 Validity of Research 57

IV DATA ANALYSIS

4.0 Introduction 58

4.1 Informant’s Analysis 59

4.2 Findings of Research 60

4.2.1 The CEPP Project 61

4.2.2 Prior Experience of Transferor and Transferee

toward TT Effectiveness 62

4.2.2.1 Role and Function of Prior Experience 63

4.2.2.2 Prior Knowledge on Partner’s Organization

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Context 64

4.2.2.3 Pros and Cons of Experienced Transferor

From the point view of Transferee 65

4.2.2.4 Role of Adsorptive Capability in Technology

Transfer 67

4.2.3 Inter-organizational Interaction toward TT

Effectiveness 68

4.2.3.1 Hamonious Atmosphere for Workplace 68

4.2.3.2 Informal Interaction among Functional

Team Member 69

4.2.3.3 Coordination Activity in the Project 70

4.2.4 Nature of Technology toward TT Effectiveness 71

4.2.4.1 Maturity and Standardization of

Technology 71

4.2.4.2 Complexity of Technology 72

4.2.4.3 Codification of Technology 73

4.2.5 Cultural Differences toward TT Effectiveness 73

4.2.5.1 Organizational Culture effect in

Commitment 74

4.2.5.2 Culture Differences of CEPP and ECH 74

4.2.5.3 Effect of Culture Different in

Relationship Building 75

V RECOMMENDATION AND CONCLUSION

5.0 Introduction 77

5.1 Summary of Objective and Methodology 77

5.2 Summary of Findings 78

5.2.1 Effect of Prior Experience toward TT

Effectiveness 79

5.2.2 Effect of inter-organizational Interaction

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toward TT Effectiveness 79

5.2.3 Effect of Nature of Technology toward TT

Effectiveness 80

5.2.4 Effect of Culture Differences toward TT

Effectiveness 81

5.3 Conclusion 82

5.4 Recommendation for Technology Transfer Project 82

5.5 Research Limitations and Recommendation for

Future Research 83

REFERENCES 85

APPENDIX 93

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LIST OF TABLES

TABLE NO. TITLE PAGE

2.1 Rothwell’s 5 Generations of Innovation Models 13

2.2 Categories and Sub-Categories of the Technology Transfer

Framework 17

2.3 Transfer Methods Categories and Examples 20

2.4 Profile of ECH’s Representative 31

3.1 Profile of Targeted Informants 51

3.2 Factors and Headings 56

4.1 Summary of Informants’ Profile 59

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LIST OF FIGURES

FIGURE NO TITLE PAGE

2.1 Process of Technological Innovation 8

2.2 Innovation Life Cycle Model 14

2.3 Industry Life Cycle Model 15

2.4 Plant –Concept 26

2.5 Phases of Consultancy 27

2.6 ETI Effectiveness 33

2.7 The ETI Matrix 34

2.8 Theoretical Model for Technology Transfer Effectiveness 35

2.9 Research Framework 38

3.1 Process Flow of Research 50

3.2 Miles and Huberma Analysis Technique 55

4.1 Phase Model for CEPP Technology Transfer Project 62

4.2 Organization Chart of CEPP Technology Transfer Project 66

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TABLE OF CONTENTS

CHAPTER TITLE PAGE

TITLE PAGE i

DECLARATION ii

DEDICATION iii

ACKNOWLEDGEMENT iv

ABSTRACT v

ABSTRAK vi

TABLE OF CONTENTS vii

LIST OF TABLES xii

LIST OF FIGURES xiii

NOMENCLATURE xiv

I INTRODUCTION

1.0 Introduction 1

1.1 Research Background 2

1.2 Statement of Problems 3

1.3 Purpose of Research 4

1.4 Scope of Research 5

1.5 Significant of Research 6

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NOMENCLATURE

CEPP Chemical Engineering Pilot Plant

ECH Energieconsulting Heidelberg

ETI External Technology Integration

GMP Good Manufacturing Practice

IBM International Business Machines Corporation

MIS Management Information System

R &D Research and Development

S & T Science and Technology

TT Technology Transfer

UTM Universiti Teknologi Malaysia

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CHAPTER I

INTRODUCTION

1.0 Introduction

This study addresses key theme in external technology transfer, particularly

in research centre in UTM- Chemical Engineering Pilot Plant (CEPP). This chapter

provide a brief scenario to the research, beginning with the general background to the

study area and the problems of statement of the research. This is followed by an

explanation of the research objectives and research questions. The significance of the

research and the scope that guided the research are highlighted briefly in the

subsequent section.

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1.1 Research Background

Technology is widely accepted as the essential factor for economic growth in

a nation which have attached important in ability to manage and generating

technological change as technology capability that serve as decisive factor of a

country’s global competitiveness and capacity to grow. The world becomes

increasingly interdependent due to globalization, therefore firms in developing

countries are seeking for global R&D partnership and Science and Technology (S

&T) collaboration to strengthen their capability and enhance their core competencies

for maintaining market shares in global marketplace (Jian and Chiu et. al., 2006).

University research centre become one of the most attractive sources of

technology acquisition for the industry. Established strong link between industry and

research centre can facilitate the exchange of technology between research centre and

industry. Some of the exchange program had launched to transfer expertise and

information from industry to laboratory or from laboratory to industry. The industry

realizes the urgent needs to keep up with the global competitive market whereas

research centre needs the industry’s knowledge to develop more advance and

applicable successful technology development. Cooperation with private firm

provides an insight into today’s international technology market to university and

institutions (Lee and Win, 2004).

Technology transfer (TT) has long been studied extensively by many

academic areas. Cusumano and Elenkov (1994) cited that recent literature on

technology transfer have concern with the development of technology at corporate

from the point view of transferee. As suggested by Chen and Sun (2000), there are

three major issues concerns by researchers in technology transfer. First, the reason to

acquire the technology; second, the effectiveness of the acquired technology; and

third, lessons from the process and further opportunity for technology transfer

between transferor and transferee.

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Keller and Chinta (1990) cited that a critical factor to success in a

competitive environment is the ability of a company to transfer technology

effectively and quickly. Therefore, required strategic planning and implementation

geared to effective technology transfer by clarifying the factors that influence the

peformance of technology transfer. Kedia and Bhagat (1988) had suggested, in the

field of international management, effective transfer of technology has been concern

as the central to the international management’s mission and this field has

emphasized a lot of factors that affect technology transfer.

1.2 Statements of Problem

As cited by Keller and Chinta (1990), technology transfer is difficult enough

due transfers of technology generally involve two parties located in two different

cultures that could be the barriers of technology transfer. Kedia and Bhagat (1988)

had reported that culture different between transferor and transferee is the major

causes in effect the buillding up a good communication that hinder technology

transfer as two parties might practice different habit and behavior in workplace

which can lead to conflict happen during technology transfer process. Same

condition for the CEPP technology transfer project, CEPP representative’s embedded

with Malaysia’s culture while Energieconsulting Heidelberg (ECH) is engineering

based consultancy company from Germany. Both parties embedded with difference

culture which may lead to difference in pespective, norm and understanding.

Therefore, the influence of culture difference should be carifying in considered a

feasibility of a technology transfer project.

As stated by Stock and Tatikonda (2000) technology transfer is usual deal

with the integration of new technology in a new situation, such as installation of an

advanced logistics information system or a flexible manufacturing system sourced

from transferor. As a result, organization must be able to asses the characteristics of

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the technology relative to the oganization’s own capabilities and experience. The

new technology from ECH to CEPP might not be able to fit in the new situation due

to the present situation and capability of CEPP; therefore, the assesment of the

capability, pior experience of the representative need to be considered before

acquired the technology, so that able to ensure they are able to handling the

complexity of the technology.

As stated by Stock and Tatikonda (2000), inter-organizational relationship is

emphasized to improve the effectiveness from external sources. However effective

joint between transferor and transferee is not always achieved. CEPP’s

representatives had to comprehend with the information about the performance of the

new technology and ECH have to understand the current capability and situation so

that able to propose the suitable technology for CEPP. Therefore interaction between

both parties is playing a main role to establish a channel about the information on

existing operations, equipment and process modifications. Creating linkages between

these areas can also moves the locus of decision-making closer to the source of

relevant information. Lack of interaction between both parties might cause the

missing part of relavant information.

To address the afforementioned problems, two research questions were

indentify and formulated to reflect the effectiveness of external technology transfer

that is pictured Chemical Engineering Pilot Plant (CEPP) in Universiti Teknologi

Malaysia (UTM).:

i. What are the factors that influence the effectiveness of CEPP technology

transfer project?

ii. Based on the above question, how the factors influence the effectiveness

of CEPP technology transfer project?

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1.3 Purposes of Research

This study is an attempt to identify the factors that influenced the

effectiveness of CEPP technology transfer project and clarify how the factors

influenced the effectiveness of CEPP technology transfer project.

1.4 Scope of Research

The research scope is constraint within the Chemical Engineering Pilot Plant

(CEPP). The aim of research is to investigate the factors that influence technology

transfer at project level. The phenomenon of technology transfer in corporate level

would be neglected as study on this level requires more exploration. The research

will be discussed based on the case study on technology transfer project of CEPP.

However the mode of cooperation between industry and university centre will not be

examined.

Previous literature on technology transfer included: examine the effect of

culture difference to technology transfer (Lin and Berg, 2001; Kedia and Bhagat,

1988), effectiveness of technology transfer and innovation performance in China

(Jian et. al., 2006).However, none of these studies are directly investigate and

examine the circumstances in Malaysia’s research centre. This understanding is

required in order to give a better picture of technology transfer in Malaysia scenario.

Therefore the direction of the study is oriented to the CEPP, UTM.

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1.5 Significant of Research

This research is expected to expand the existing knowledge on factor that

influenced external technology transfer in project level. The research addresses the

effectiveness of external technology transfer. The study identifies the factors that

influence effectiveness of external technology transfer. These can give impact in

assessment of efficiency in technology transfer process within a technology transfer

project. Therefore, the study has important implications for address problems solving

at project level and assisting in development a more appropriate for transfer of

management knowledge. Besides, the study can be served as a reference for other

researcher in field of technology innovation.

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