Modeling the international technology transfer process in construction projects: evidence from Thailand

Abstract

Many developing and newly industrialized countries lack the technical and management capabilities to undertake large and/or complex infrastructure projects. In an effort to more rapidly develop their infrastructure, economies and living standards, many have embarked on a series of international Technology Transfer (TT) initiatives within the construction and other industries. However, these initiatives have not immediately translated into enhanced capabilities and competitiveness within host country firms, resulting in a sustained reliance on foreign firms. In an attempt to improve rates of TT in developing countries, this article proposes a conceptual model for international TT that accommodates the numerous factors believed to impact on the processes effectiveness and derived outcomes. Utilizing the results from a questionnaire survey of 162 industry professionals from Thailand, an international TT model including the significant factors which impact on the TT process and the degree of value added from it, was formulated through exploratory and confirmatory factor analysis. Moreover, the significance of direct and indirect interrelationships between model factors was determined through structural equation modeling. This model included four process enablers, namely, government influence, transferee characteristics, transferor characteristics and relationship building, and one outcome factor named TT value added. Building relationships (i.e. trust, understanding and communication) between the transferor and transferee was determined to be the key predictor of TT-induced value creation for the host construction sector.