The impact of cultural differences on technology transfer

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.