Measuring of Technological Capabilities in Technology Transfer (TT) Projects

Transcription

1 Aian Social Science; Vol. 8, No. 15; 2012 ISSN E-ISSN Publihed by Canadian Center Science and Education Meauring Technological Capabilitie in Technology Tranfer (TT) Project ohartini Omar 1, ohana Takim 2 Abdul Hadi Nawawi 2 1 Faculty Technology Management and Buine, epartment Contruction Management, Univerity Tun Huein Onn Malayia (UTHM), Batu Pahat, Johor, Malayia 2 Centre Potgraduate Studie, Faculty Architecture, Planning Surveying, Univerity Technology MAA (UiTM), Shah Alam, Malayia Correpondence: ohartini Omar, Faculty Technology Management and Buine, epartment Contruction Management, Univerity Tun Huein Onn Malayia (UTHM), Batu Pahat, Johor, Malayia. Tel: hartini@uthm.edu.my eceived: July 30, 2012 Accepted: September 25, 2012 Online Publihed: November 30, 2012 doi: /a.v8n15p211 UL: Abtract Technology Tranfer (TT) project involve the cro-boarder tranfer technology with the main purpoe enhancing the local technological capabalitie in repone to a changing economic environment. Technological capability refer to an organiation capacity to deploy, develop and utilie technological reource and integrate them with other complementary reource to upply the differentiated product and ervice. Technological capability i embodied not only in the employee knowledge and kill and the technical ytem, but alo in the managerial ytem, value and norm. Therefore, the phenomena TT project occur at the macro and micro level in organiation. The main problem identified in international TT i the lack managerial capabilitie. The common quetion i how to meaure technological capabilitie from the perpective technology receiver. The objective thi paper i to meaure the level technological capabilitie in TT project. The empirical reearch wa undertaken by mean Cae Studie uing emi-tructured interview with Human eource Management ficer from ix (6) Category G7 contractor companie in Malayia.. A total ix organiation (currently engaged in overea project) were involved repreenting 100% repone rate. The reult were analyed uing NVivo tware verion 8. The finding revealed that, three component for meauring the level technological capabilitie in TT project are production performance (i.e., contruction cot, time, product quality, afety, productivity, pritability, and client atifaction); technology utiliation (i.e., force and organiation management); and firm /orgaiation capability (i.e., equipment, reearch input and development output). Thee meaurement could be ued a a guideline for meauring technological capabilitie in TT project for contruction organiation. Keyword: technology tranfer (TT) project, Malayia, technological capabilitie 1. Introduction Technological capabilitie are the information and kill, technical, managerial and intitutional; that allow productive enterprie to utilize equipment and technology efficiently (Bigg et al. 1995). Technological capabilitie comprie a much broader range effort that every firm mut itelf undertake in order to aborb and build upon the knowledge that ha to be utilized in production. For intance, the ucce TT (i.e., knowledge, kill and ) to a developing country i through acquiition equipment and operating intruction, patent, deign or blueprint. However, it doe not enure that technology will be properly ued. Element a technology embedded in a proce or equipment are accompanied by additional tacit element, which the technology recipient mut acquire (Bigg et al. 1995). Technological capability i more, than a imple um the education and training a firm employee. It include the learning proce undergone by individual in the coure working in the organiation and the way in which the organiation combine and motivate individual to function (Hfman, 1989 cited in Bigg et al. 1995). Thi i in line with the opinion oenberg and Firchtak (1985) who both define that technological 211

2 capability a a proce accumulating technical knowledge or a proce organiational learning. According to Kumar et al. (1999), technological capabilitie can be aeed in term a firm ability to identify it technological need and to elect the technology to fulfill the need; to operate, maintain, modify and improve the elected technology, and; to promote technical learning. Thee may be tranferred through training, peronnel exchange, or managerial and technical upport from upplier (Bell, 1987). However, according to Cuumano and Elenkov (1994), thi TT proce would depend on whether firm can extract the mot from the managerial, technical and other upport provided by upplier and which local peronnel are involved in the proce. Wei (1995) added that the more local employee are involved in the TT proce, the more know-how (i.e., knowledge and kill) capabilitie are likely to accrue to the organiation. Strong linkage among department within the organiation trengthen continuou and intenive contact between functional and technically pecialied group which i eential for the cultivation technological capabilitie (Wallender, 1979; cited in Kumar et al. 1999). In hort, learning capability could be acquired through a cumulative proce learning-by-doing, learning-by-uing, learning-by-interacting and learning-by-earching (i.e., conducting in-houe reearch) (Kumar et al. 1999). Within commercial organiation, TT i intended to enable technology acquirer to manufacture a certain product or provide a particular ervice, thu the acquirer do not only recognie the value technology and aimilate the knowledge, but alo exploit and innovate it baed on learning. Compared with TT that occur within national border, pecific difficultie are encountered when a technology i tranferred internationally. Some the problem are caued by the difference in trategie and capabilitie, technological infratructure, language, the level economic development, culture and attitude between home and hot countrie, a well a high communication cot. In o far a technology i conceived a firm-pecific, and to the extent that it i tacit and cumulative in nature, the tranfer technology involve ignificant reource cot, reflecting the problem replicating knowledge acro the boundarie firm and countrie. Thu the main difficulty a TT i concerned with tranmitting the tacit component the technology. For acquiition technology, the proce aimilating the tranfer technology i bet characteried a a complicated proce organiational learning wherein individual and the organiation acquire the knowledge and kill neceary to effectively apply the technology (Ghang, 2010; Frichman and Kemerer, 1997). The organiational learning could be defined a a learning organiation that actively create, capture, tranfer, and mobilize knowledge to enable it to adapt to a changing environment. At the firm level, change ten go hand in hand with change in organiational capabilitie. Technological capability i embodied not only in the employee knowledge and kill and the technical ytem, but alo in the managerial ytem and the value and norm, i.e., it cannot be developed independently it other capabilitie. Given the above, variou model technological capabilitie have been invetigated from the literature. Thee model technological capabilitie are taken from different indutrie (manufacturing and contruction). Thee model erve to enlighten the critical variable that are needed to mark ucceful tranaction and practical iue in the TT procee. The purpoe i to review the exiting technological capabilitie model from different indutrie in order to capture critical variable for ucceful tranaction technological capabilitie TT proce via mega contruction project. 2. Technological Capabilitie Table 1 preent five type technological capabilitie model gathered from variou reearcher (i.e., Kumar et al. 1999; Smook Van Egmond, 2001; Schoenecker Swanon, 2002; Abu-Bakar, 2004; and utta et al. 2005) acro indutrie. Each the model will be dicued into further detail below: 2.1 Kumar Technological Capabilitie Manufacturing Indutry A conceptual model technological capabilitie developed by Kumar et al. (1999) cover forty-five Indoneian manufacturing firm in the garment, textile, electronic, and footwear indutrie that involved in TT project. Both quantitative and qualitative data on TT project were collected through a combination peronal interview and a elf-adminitered quetionnaire. Kumar et al. (1999) have claified the meaurement technological capabilitie into two categorie: dependent and independent variable. The dependent variable i the matery technology in term operating the technology; maintaining the technology; repairing the technology (in cae a breakdown); making minor modification to the technology; and maintaining product quality. The independent variable however, conit firm pending; firm planning and control the 212

3 technology acquiition; availability technical peronnel; duration training program; government role and mode tranfer ued. The reult revealed that the level ophitication the technology tranferred i imple relative to the firm exiting technology. Thi i confirmed from the hort duration training provided by firm to their employee due to the exiting employee technological capabilitie. However, the duration training i depend on the employee ability to aborb the knowledge (Minbaeva et al. 2003). The employee ability relate to job related kill and educational level. The trength thi model i that the overall concept are imple but it i difficult to implement in mot contruction firm due to the unavailability department in mot contruction companie and duration training alo i not uitable variable to meaure the employee technological capabilitie. 2.2 Smook and Van Egmond Technological Capabilitie Contruction Indutry Smook and van Egmond (2001) developed a model technological capabilitie for contruction indutry. The data were gathered from databae. The model decribe a tudy the productivity and technological performance contruction project executed by large cale and internationally operating contruction companie in the Netherland and in Japan. In thi model, they focued on three important variable: production performance, technology utiliation and technological capability. The production performance could be meaured by product quality, client atifaction, afety, contruction time and cot, productivity and pritability. Facet to meaure technology utiliation are force and organiation management. The technological capabilitie are the number and kind equipment and, reearch input and development output. eveloping a cutting edge technological capabilitie and utaining that capability i vital for contruction companie. To develop a certain unique pecialty can help to be competitive in a certain niche market. Smook and van Egmond (2001) claimed that the problem in contruction indutry, a certain technological capabilitie or pecialty i ten rapidly imitated or copied. The competition among contruction player i required in reearch and development on an ongoing bai to make employee technological capabilitie utained. In that cae, policie to join force with the competition with a kind cooperation or companie are conidered. The trength thi model i that the overall concept are eaily undertood and very imple to implement. Table 1. The meaurement technological capabilitie in technology tranfer (TT) Indutry Manufacturing Contruction Manufacturing Contruction Manufacturing Country Indoneia Netherland Japan United State America (US) Author Kumar et al. (1999) Smook Van Egmond (2001) 213 Schoenecker Swanon (2002) Malayia United State America (US) Abu Bakar (2003) utta et al. (2005) Sample Quetionnaire interview atabae Quetionnaire and atabae Quetionnaire atabae and content analyi -45 Indoneian manufacturing -Large contruction -Pharmaceutical, Electronic -42 Malayian local -64 public traded companie Chemical companie contractor firm Meaurement Meaured by: Meaured by: Meaured by: Meaured by: Meaured by: ependent variable 1) Technological capabilitie -Matery the technology in term operating the technology -Maintaining the technology -epairing the technology in cae a breakdown -Making minor modification to the technology, and -Maintaining product quality Independent variable 1) expenditure 2) Technical peronnel 3) Training -uration (in day) formal training per employee in preparation the tranfer Production Performance 1) Product quality 2) Client atifaction (meeting the market requirement) 3) Safety on contruction ite 4)Productivity 5) Pritability (prit margin) 6) Contruction Cot 7) Contruction time Technology utilization 1) Labor force 2) Organization Management Technological Capability 1) Number and kind equipment and 2) eearch input 3) evelopment output 1) Patent -Number company patent 2) budget -Average annual reearch budget 3) Patent citation core -elative frequency that a firm patent are cited in other patent 4) New product -Number new drug application approved by the FA 5) Financial performance -Compoite index contructed from ix different financial meaure Independent variable 1) Financial (pritability) 2) Capacity 3) Capability Sub-variable 1) The experience in TT project 2) The number TT project undertaken 3) Ownerhip 4) eource factor 5) The TT programme 6) Technology a Knowledge 1) Technological output 2) eource (input) -Cumulative expenditure -Cumulative marketing expenditure 3) intenitie 4) Marketing intenitie

4 2.3 Schoenecker and Swanon Technological Capabilitie Manufacturing Indutry The model by Schoenecker and Swanon (2002) preent indicator firm technological capabilitie for pharmaceutical, electronic, and chemical indutrie at United State America. The data were collected from databae. They examined the relationhip between variou indicator firm technological capabilitie between firm performance. In thi model, they focued on five (5) important variable: patent, budget, patent citation core, new product and financial performance. Patent could be meaured by number company patent over the period The budget i the average annual reearch budget. Patent citation core i the relative frequency that a firm patent cited in other patent within 7 year (i.e., ). The new product i the meaured by the number new product on and financial performance i meaured baed index contructed from ix different financial meaure. In pharmaceutical indutry, intenity i ignificantly correlated with ale growth and operating prit margin. It may be poible that higher intenity reulted in more and better product and improved pritability. Better pritability may provide the firm with greater reource to expend. The model look imple but i difficult to implement in mot contruction firm due to the unavailability department and patent product in mot contruction companie and indutry. 2.4 Abu-Bakar Technological Capabilitie Contruction Indutry Abu-Bakar (2004) propoe a theoretical model aborptive capacity and technological capabilitie for effectivene TT in project. The data were gathered from 42 Malayian contruction companie by mean quetionnaire to examine the relationhip between independent and ub-variable. The independent variable are financial, capacity, and capability. The ub-variable however, conit experience in TT project; the number TT project undertaken; ownerhip; reource; TT programme and technology a knowledge. Thi model i comprehenive in nature, but one the weaknee thi model i that the variable are not focu baed on production performance and technology utiliation a Smook and van Egmond (2001) model in contruction indutry and failed to focu on meauring technological capabilitie. 2.5 utta Technological Capabilitie Manufacturing Indutry The model developed by utta et al. (2005) preent a framework for manufacturing indutry. With databae and content analyi data from manufacturer indutry in United State America, they illutrated the theory and meaurement firm capabilitie in the emiconductor and computer equipment indutrie. The ample conit 64 publicly traded firm. For each firm in the tudy, they collected information pertaining to the reource available to domain activity, and the output from the databae within They identified four important variable which include: technological output, reource (cumulative expenditure and cumulative marketing expenditure), intenitie and marketing intenitie. In their tudy, the limitation their approach, a well a it applicability, the model i not confined to any ingle level analyi. The capabilitie project level are the other level functional domain activity () that could be conidered. The trength thi model i that it i comprehenive and yet imple to undertand. Given the above, mot the model, are treing on meauring the technological capabilitie TT project. Notwithtanding, the common focu on technological capabilitie for firm: the reult the tudie are depended upon the perpective each individual indutry. In all the tudie, the technological capabilitie model developed by Smook and van Egmond (2001) eem to provide complete meaurement technological capabilitie in TT project particularly in contruction indutry. With the exception the model developed by Abu-Bakar, the model developed by utta et al. (2005), Schoenecker and Swanon (2002) and Kumar et al. (1999) on the other hand, are comprehenive and yet imple to undertand. A detailed analyi howed that thoe variable emerged from thee model i applicable for the contruction indutry. Hence, thee model could be ued a a guideline, in developing a propoe framework for meauring technological capabilitie in TT project for contruction organiation. 3. Propoed eearch Framework Figure 1 propoe a framework for meauring technological capabilitie TT project in contruction organiation. Thi ha been developed baed on integrating the variou form literature earch and undertanding the information gathered by Kumar et al. (1999); Smook Van Egmond, (2001); Schoenecker Swanon, (2002); Abu-Bakar, (2004); and utta et al. (2005). Among other, the model developed by Smook van Egmond (2001) are inclined to contruction indutry and the mot uitable in meauring level technological capabilitie in TT project. 214

5 Figure 1. Propoe framework for meauring level technological capabilitie in TT project Source: Smook and van Egmond (2001) Fundamentally, the propoed framework for meauring technological capabilitie in TT project tart with the undertanding three main component: production performance, technology utiliation and firm capabilitie. To meaure the production performance, the critical variable included are contruction cot (percentage difference etimated cot/actual cot), contruction time (time/contruction cot), product quality (number defect at handover), afety (number accident), productivity (output/input), pritability (net prit margin and return on invetment) and client atifaction (meeting the client requirement). In addition to production performance, technology utiliation i another important component to be meaured. Two main variable that are included in thi component are force and organiation management. To meaure the force, the number and kind could be conidered (management preional, killed technical taff and killed worker). Meanwhile organiation management variable i meaured by type procedure or policy management employed in the company. Both thee variable could help companie to increae knowledge and kill the employee. The outcome production performance and technology utiliation would influence the meaurement on the firm capability in the form and equipment, reearch input and development output. To meaure the and equipment, the number and kind imported equipment could be aked. eearch input i meaured by number TT project that the company had contructed, followed by, development output i meaured baed on the availability capability in the company. Knowledge, kill and could be tranferred and hared among employee and extenive intra-organiational communication i likely to contribute to employee technological capabilitie. According to Bigg et al. (1995), technological capabilitie are the information and kill, technical, managerial and intitutional thoe allow productive enterprie to utilie equipment and technology efficiently. They added acquiring equipment and operating intruction, patent, deign or blueprint doe not enure that the technology will be properly ued. Element technology emended in a proce or equipment are accompanied by additional tacit element, which the recipient mut learn a well. Taking into conideration the above, the framework for meauring technological capabilitie in contruction organiation compriing production performance, technology utiliation and firm capabilitie which are trongly upported by contruction cot, contruction time, product quality, afety, productivity, pritability, client atifaction, force, organiation management, equipment, development input and reearch output. The impact TT on organiational capability however, could be meaured via the level technological capabilitie the companie/firm baed on the propoed framework. Conidering the above framework technological capabilitie in TT project, together with the propoed variable (i.e, production performance, technology utiliation, and firm capabilitie), cae tudie were undertaken in ix (6) Category contruction companie among ix Human eource ficer. A document analyi wa ued for cro checking the information obtained prior final concluion. 4. eearch Methodology The Cae Studie by mean emi-tructured interview wa undertaken within a period 4 month (from 215

6 ecember 2010-March 2011) with Human eource Management ficer from the ix (6) Category G7 contractor companie (A, B, C,, E and F) in Malayia. A total ix organiation (currently engaged in overea project) were involved repreenting 100% repone rate. The cae tudy reearch method ued to collect the data (qualitative reearch technique) aim to addre the reearch quetion how and why in order to develop a framework TT in mega contruction project in Malayia. The face-to-face interview were deigned to gain a feedback in trengthening the undertanding technological capabilitie in TT from the H repondent own experience. The interview were recorded and trancribed verbatim for conceptual content analyi. The interview were conducted on an appointment bai. Each interview eion tarted f with phrae appreciation to the interviewee, brief peronal introduction, followed by an explanation on the objective the interview and the relationhip with the overall reearch being undertaken. Aurance data confidentially were given and thu permiion wa granted for the converation to be recorded. In undertaking thi tak, every effort wa made to minimie the threat to validity and reliability the data that can occur in qualitative cae reearch (Takim, 2005). The information obtained wa cro-checked with company information only from the annual report due to the confidentiality. 4.1 Background epondent Table 2 preent ome detail the repondent experience involved in the cae tudie. The number repondent involved in thi cae tudy wa ix Human eource ficer. A total 3 repondent (50%, 3 out 6) had experience between 10 to 20 year; 33% (2 out 6) them had 1 to 10 year working experience and followed by 17% (1 out 6) the repondent had more than 20 year working experience. Baed on the deignation and work experience the repondent, it i enible to infer that the majority the repondent have a ound knowledge in Human eource practice their repective companie. The longer the experience the repondent in contruction company the greater their undertanding employee outcome and influence. Table 2. Prile repondent and their experience epondent Company Interview epondent Experience Admin Executive Company A 1 9 Manager Company B 1 10 Group Head H and Admin Company C 1 27 Senior Manager Company 1 20 Executive Company E 1 6 Senior Manager Company F eult Meauring Level Technological Capabilitie in TT Project To identify the level technological capabilitie the companie, the tudy attempt to develop a framework technological capabilitie in TT in contruction organiation baed on the experience learned from Indoneia, Japan Netherland, United State America and Malayia. It highlighted three remarkable point: production performance, technology utiliation and firm capability. 5.1 Production Performance A mentioned by Company B, The level technological capabilitie my organiation i rated a good. A a technical peron, TT i an opportunity to learn a new technology. For contractor, the key factor are time and cot, meaning to ay to reduce time taken to complete the project and ubequently reduce the cot. If we can horten the time, we can reduce the overhead. There i no need to employ o many people and pay them for 5 year. Therefore when the duration i le, we can ave on contruction cot (Company B-H). The tatement above eem to match the reult illutrated on Table 3. The level technological capabilitie can be meaured baed on reducing contruction time and cot. Once the aborptive capacity i captured, ubequently will improve technological capabilitie in term time and cot reduction a TT project. Cro examination with other quetion that were aked during the interview indicated that contruction time and cot could be reduced when the level technological capabilitie are enhanced. 216

7 Table 3. eult the production performance in technological capabilitie in contruction organiation (company A, B, C,, E and F) Level Technological Capabilitie Company A Company B Company C Company Company E Company F Production Performance Inc. ec. Inc. ec. Inc. ec. Inc. ec. Inc. ec. Inc. ec. -Contruction Cot -Contruction time -Product quality - defect -Safety on contruction ite - accident -Productivity -Pritability -Client Satifaction Moreover, Company C tated that: In my opinion the level technological capabilitie thi company depend on the capability the employee. However for the company to train it worker in order to reach a high level capability, they need to pend more money. In other word, it need to have a budget for training (Company C-H). Meanwhile, according to Company A, After TT, ye to a certain extent, definitely the level technological capabilitie i improved. The defect will be reduced. We mut upgrade our quality and that i where guarantee come in. For intance, at KLIA, there i a deign guarantee 5 year. In the cae a collape or other, the client will be protected (Company A-H). Once again a indicated by Company A: We want to enure that the project can be delivered on time while the quality i not compromied. There mut be no complaint from the client. We mut maintain our track record. We are not a one cent company (Company A-H). The tatement above confirmed that contruction time and cot are vital in development technological capabilitie in contruction indutry (Wei, 1995; Smook and van Egmond, 2001). However, according to Wei (1995) although TT can be generally aumed that the technology importer could ave time and cot the contruction by importing advanced technology abroad in the long run, but that i not alway the cae. To a certain extent, depite high cot involved in TT project, the quality i incomparable. The tructure technological capabilitie ha four dimenion namely technology aet (equipment, information ytem, tware, peronnel knowledge and know-how); organiational integration for technology aet: the external network technology and innovation knowledge; technology trategy (Xiaoqing and Qingrui, 2002). The knowledge in the production performance i motly codified knowledge which i embedded into equipment, drawing, and procedure production management. Therefore, mot knowledge acquired from external ource i codified knowledge, and the bet way acquiring thoe i equipment importing (Xiaoqing and Qingrui, 2002). Thu, the ytematic way technology importing in contruction organiation could improve product quality. egarding client atifaction, Company C aerted that: Contruction i not the ame a Factory (manufacturing). After intallation, we hand it over to the client and the client will be atified. After receiving our payment, our client will be atified. I dare not ay that our performance i excellent but o far, there have not been report complaint (Company F-H). The tatement above how that client atifaction i inevitable in meauring the level technological capabilitie in TT project. According to van Egmond and Vrie (2008), technology need are een a a client requirement and atifaction for product and ervice the contruction market. Thi requirement and atifaction determine the range proce technologie that could be applied to produce the preferred product and ervice. Client requirement and atifaction could be viewed through the project objective, expectation, need and wihe. In term productivity and pritability, Company E indicated that: 217

8 Technologie may help to improve level productivity. In term level productivity and pritability my company, it can be rated a good and employee capabilitie are improved from time to time. At the ame time, the work ethic have improved too. The improvement in thee factor have reflect on the overall performance the company. If you ak me about accident and number fatality in TT project, orry I cannot reveal becaue it i too confidential (Company E-H). Productivity a company i meaured by employee turnover. The higher the employee turnover the company may indicate that the level productivity i reduced. Hence, technological capabilitie the firm could be eroded due to the high level employee turnover the company. Thi i related to work ethic a mentioned by Company E above. In addition, afety at work i a complex phenomenon in the contruction indutry. Accident could occur either due to lack knowledge or training, a lack uperviion or a lack mean to carry out the tak afely, carelene, and abolute irreponibility (Sawacha et al. 1999). In thi repect, lack technological capabilitie in handling project could reult increae number accident in TT project. A tudy conducted by Sawacha et al. (1999) reckon even factor influence afety in contruction. Thee are: hitorical, economical, pychological, procedural, technological capabilitie, organiational and environmental iue. Hence, it prove that productivity, pritability and afety at ite could be ued to meaure the level technological capabilitie in TT project and in line with the opinion Smook and van Egmond, (2001). 5.2 Technology Utiliation Technological capabilitie are meaured baed on: workforce and organiation management. Baed on the reult illutrated in Table 4, all the Companie (A to F) are having appropriate number management preional, killed and unkilled technical taff and killed and unkilled worker on ite. Labour workforce i defined a the on-ite workforce employed by contractor, and deemed to include all level from enior management (killed and unkilled) to operative. With the increaing complexity modern contruction project, demand for efficient and competent manager in the indutry grow. Table 4. eult the technology utiliation in technological capabilitie in contruction organiation (company A, B, C,, E and F) Level Technological Capabilitie Technology Utilization Company A Company B Company C Company Company E Company F ued ued 218 ued ued ued -Labour force -Organiation and Management A mentioned by Company A: I could ay that the level technological capabilitie my employee in TT project (uch a when we undertake project in Saudi Arabia) are improved ince I employed many killed project manager and engineer, local and abroad. Expert employee are able to captured high level new information and technique contruction quickly. (Company A-H) The tatement implie that technology utiliation could be meaured baed on appropriate number management preional, killed and unkilled technical taff and killed and unkilled workforce. In addition, Company C aerted that: We do not have a pecific management model in undertaking any project including overea project. We do project baed on company aim, objective, and miion. We welcome good management model but to a certain extent it i difficult to implement (Company C-H). The tatement clearly implie that mot Mega companie do not apply any pecific management model in implementing TT project. 5.3 Firm Capabilitie Table 5 preent the reult firm capabilitie in technological capabilitie in Company A, B, C,, E and F. Firm capabilitie are meaured baed on:, reearch input and development output a uggeted by Smook ued

9 Van Egmond (2001). A in indicated by Company E, In thi project we don t have o much new technologie. But, we have tunneling work which require the buying new machine. After a hort period training, our taff can operate the machine tunneling work. We uually purchae our equipment from abroad; therefore training for uing thi equipment i learned comprehenively for a period between 1-3 month. Then, thing are totally left to u. The involvement foreigner i motly on the management level, wherea for the operational level, it will be handled by our local employee. (Company E-H). The above tatement implie that purchaing new equipment in TT project could help the tranfer technological capabilitie from abroad into local organiation which i in line with the idea Ofori (1994). According to him importing new equipment by organiation could involve technological change occurred in that organiation and ultimately ha a greater influence on the company performance. Table 5. eult the firm capabilitie in technological capabilitie in contruction organiation (company A, B, C,, E and F) *Level Technologica l Capabilitie Firm Capabilitie *Inc. Company A Company B Company C Company Company E Company F In c Inc. -Tool -eearch Input -evelopmen t output Under the reearch input and development output (), Company A indicated that: In the lat 5 year, due to the global economic fluctuation, it i quite difficult to utain local and overea project. Neverthele, we are fortunate to ecure one or two Mega project abroad through E-tendering (i.e., in Saudi Arabia and Qatar) (Company A-H) The tatement above how that it i difficult for Companie to ecure overea project in the lat 5 year. ue to it difficulty could affect the proce utaining TT in local contruction project. Thi corroborate by Ofori (1994) tating that TT i an affordable hort-cut to the development local technological capabilitie and improve economic efficiency, hence without utaining continuou imported project could jeopardie further development technological capabilitie in Malayian contruction indutry. Once again Company A emphaied: Normally, many contruction companie are not allocating a pecial unit in-houe eearch evelopment ( ) compared to manufacturing indutrie. To a certain extent contractor are not oblige to have a in-houe becaue project are on-f and proce may take a longer time and higher cot (Company A-H) Thi may ugget that and buying reult work are not a preference among contractor company. Although i not a preference, it doe not mean technology cannot be tranferred into organiation. It i part the contraint in TT project but not a evere cae (Akhavan et al. 2008). Once again it i oberved that by uing the variable/rubric for meauring the level technological capabilitie in TT project could reveal coherent reult. Noticeably, all the anwer given by the repondent hown that knowledge, killed and have been tranferred via TT project into organiation. In lieu to that the level technological capabilitie the employee can be inferred through increaed in production performance, technology utiliation and firm capabilitie the companie. Among the ix companie, the level technological capabilitie Company B, F are more excel in term the organiation capabilitie a illutrated in Table 3, 4 and Concluion The finding revealed that, the propoed framework for meauring the level technological capabilitie in TT project are production performance (i.e., contruction cot, time, product quality, afety, productivity, pritability, and client atifaction); technology utiliation (i.e., force and organiation management); Inc. Inc. Inc. 219

10 and firm capability (i.e., equipment, reearch input and development output). In concluion, a an organiation, a company ha to change it internal tructure and formulate new pertinent trategie to face external challenge. Undertanding the employee capability and capacity will help to identify the need, requirement, and the level technological capabilitie the company. A well developed company can defeat many the internal and external barrier or obtacle to technology acquiition and utiliation in TT proce. A company with the experience in TT project will be familiar with the proce TT. The company that ha dealing with a number TT project (having more experience) will perform better than thoe companie with le experience. To ucceed in a TT proce, it i pertinent for employer to engage a more killed and qualified employee to obtain a high ucce rate in the level aborptive capacity and technological capabilitie the contruction organiation. From the propoed framework, it can deduce that the level technological capabilitie in TT project could be meaured. A detailed analyi in thi tudy how that thoe variable/rubric emerged from thi framework i appropriate for the Malayian contruction indutry. The reearch attempt to invetigate Technology Tranfer (TT) and development technological capabilitie in Malayian Contruction Indutry which reinforce the iue meauring the level aborptive capacity and level technological capabilitie in TT project. The outcome the tudy could provide an inight in Malayian contruction project development and will hopefully provide valuable guideline, epecially to public or private ector in Malayia with regard to TT. The reearch preented in thi paper i part an ongoing Ph reearch at Faculty Architecture, Planning and Surveying, UiTM to develop a framework technology tranfer (TT) and meauring level technological capabilitie in Malayian contruction indutry. The reult the tudy could provide an inight into the Malayian contruction project development and provide valuable guideline, epecially to the public or private ector in Malayia. Acknowledgement The author would like to thank Univeriti Tun Huein Onn Malayia for upporting the reearch under the Short Term eearch Grant for the provided data in proceed thi reearch. eference Abu-Bakar, A. H. (2004). Factor Affecting Technology Tranfer to Indigenou Contruction Companie in eveloping Countrie in the Period : The Malayian Experience. (octoral iertation, Univerity College London). Akhavan, A. N., Bagheri, A., Jabbari, N. (2008). An empirical tudying barrier for technology tranfer: The cae Iran. Proceeding the 2008 IEEE ICMIT, pp Bell, M. (1987). The acquiition imported technology for indutrial development: Problem trategie and management in Arab region. Baghdad: ESCWA, United Nation Univerity. Bigg, T., Shah, M., Srivatava, P. (1995). Technological capabilitie and learning in African enterprie. PE Working Paper AFT288, World Bank, egional Program on Enterprie evelopment, Wahington, C. Cuumano, M. A., Elenkov,. (1994). Linking international technology tranfer with trategy and management: a literature commentary. eearch Policy, 23, utta, S., Naraimhan, O., ajiv, S. (2005). Conceptualizing and meauring capabilitie: Methodology and empirical application. Strategic Management Journal, 26(3), Fichman,. G., Kemerer, C. F. (1997). Object technology and reue: leon from early adopter. IEEE Computer Society, 30(10), Ghang, Z. (2010). From Tranferred Technology to Technological Capability: A Framework for Examining the Acquiition Technological Capability by Chinee Enterprie. etrieved May, 2010, from Kumar, V., Kunar, U., Peraud. A. (1999). Building technological capability through importing technology: the cae Indoneian manufacturing indutry. Journal technology tranfer, 24(1), Minbaeva,., Pederen, T., Björkman, I., Fey, C. F., Park., H. J. (2003). MNC knowledge tranfer, ubidiary 220

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