Technology Transfer in Context with Saudi Arabian Small-Medium

In: Business and Management

Submitted By Falanazi
Words 3810
Pages 16
International Management Review

Vol. 7 No. 1 2011

Technology Transfer in Context with Saudi Arabian Small-Medium Enterprises
Walid Omar Awad Merdah
Transmission Network Integration, Mobily, Riyadh, Saudi Arabia

Muhammad Asad Sadi
College of Industrial Management King Fahd University of Petroleum & Minerals Dhahran, Saudi Arabia
[Abstract] Technology transfer brings scientific advances to small and medium enterprises (SMEs). It

enables them to be innovative and efficient. The objective of this study is to investigate empirically the key barriers that SMEs face when transferring technology in Saudi Arabia. Both descriptive and hypothesis testing have been used for data analysis. This study shows that SMEs in Saudi Arabia face lack of workforce skills, management capabilities, and effective legal and regulatory procedures. More than 56% predicted that the accession to WTO will have a positive impact on their businesses. Furthermore, 41% found licensing is the most preferred type of partnership agreement by SMEs to transfer technology. The study also found that most Saudi SMEs do not know fully the importance of franchising.
[Keywords] technology transfer; small-medium enterprises; key barriers

Introduction
Technology transfer involves the acquisition and absorption of technology in order to introduce innovativeness and efficiency to gain competitive advantages. There are several channels through which technologies may be transferred, such as foreign direct investments (FDI), merger, acquisition, licensing, franchising and joint venture agreements. This includes hard and soft technologies associated with the transfer of machinery and capital equipment, production process, management systems, services, and knowledge. However, technology transfer does not necessarily have to occur between developed and developing countries. It may occur among countries…...

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