This study focuses on the impact of corporate culture on the relationship between efficient technology transfer and a firm’s business performance, emphasizing a firm’s productivity and innovation capacity. Exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and structural equation modelling (SEM) multi-group analysis are used to analyze structured survey data from 223 Japanese manufacturing subsidiaries in Vietnam. The results indicate that efficient technology transfer has a 40 per cent positive effect on a firm’s productivity and a 29 per cent positive effect on its innovation capacity. Corporate culture produces significant differences in the effects of efficient technology transfer on business performance. The higher value the company places on learning, encourages staff to participate in decision making and accepts risk, the higher the success of a firm’s business performance with the efficiently transferred technology.
Purpose
– The purpose of this paper is to quantitatively evaluate which of the elements of five management practice constructs – management commitment, quality practice, team-based work, training, and sharing and understanding – can significantly lessen the adverse impact of cultural differences on efficient technology transfer.
Design/methodology/approach
– Exploratory factor analysis, confirmatory factor analysis, and structural equation modeling multigroup analysis are used to analyze structured survey data from 223 Japanese manufacturing subsidiaries in Vietnam.
Findings
– The following are the primary factors that moderate the adverse impact of cultural difference on efficient technology transfer: employees’ understanding of quality; top managements’ communication of clear goals and procedures for technology transfer; the nature of the collaborative teamwork and frequent communication about technical issues among Japanese experts and Vietnamese staff; sending of key Vietnamese technical staff to Japan for technological seminars and on-the-job training while providing them with the appropriate materials and guidelines.
Practical implications
– Although cultural diversity’s impact on technology transfer may never be problem-free, Japanese and Vietnamese managers should be aware of the effects of differing cultural values and use the appropriate interfaces to minimize cultural problems, maintain a cooperative environment, and transform cultural values into business value.
Originality/value
– Cross-cultural technology transfer research, from the knowledge-based perspective, has produced interesting findings but has not yet identified which managerial elements effectively reduce the adverse impact of cultural difference on efficient technology transfer. This study addresses that shortcoming through the organizational learning perspective.
This study investigates the management similarities, management compatibilities, and practical approaches synergizing the intercultural potential to facilitate efficient technology transfer. It utilizes Hofstede's cultural dimensions, with Abo's theoretical management system and Adler's intercultural synergy framework, to conduct qualitative data collection through in-depth interviews, focus groups, and observations on at 13 Japanese manufacturing subsidiaries in Vietnam. The study finds that five essential factors occurring in technology transfer-frequent interaction, training, team-based work, quality practice, and managerial commitment-can properly integrate the similarities and complementary potential of Vietnamese and Japanese management practice. This study proposes a working framework focusing on directions of determining each culture's combinable management perspectives, ways of synergizing them, and the possibilities for intercultural synergies to promote technology transfer performance in culturally different contexts. It is suggested that hybrid managerial practices represent not only convergent management styles but also intellectual strategies for exploiting home and host advantages in efficient technology transfer, thus creating the critical foundation of an organizational culture.
This study aims to explore the positive manners of dealing with cultural differences to efficiently implement technology transfer for Japanese subsidiaries in Vietnam. Based on Hofstede’s cultural dimensions theory, the study, which employed qualitative data collection approaches, including in-depth interviews, focus group discussions, and observations, was conducted at thirteen Japanese manufacturing subsidiaries in Vietnam. The data were further analyzed using Adler’s framework on intercultural interaction synergy. The results were: (1) Differences between Vietnamese and Japanese management existing in implementing technology transfer are traced back to each national culture fundamental, mainly lie on dimensions of Collectivism and Power Distance; and (2) strategic activities directly convincing Vietnamese staff behaviors and addressing the mindset of Japanese and Vietnamese staff were taken to minimize the above differences. This study proposes the working framework towards hybrid corporate culture that flexibly incorporates local practices while maintaining core Japanese management. It can help achieve efficiently technology transfer performance for Japanese firms doing business in developing countries, especially Vietnam.
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