Effect of Organizational Competency on Technology Transfer Effectiveness in Iranian Firms

Today, firms increasingly rely on technology transfer (TT) to establish competitive postures in the global marketplace. Therefore, pinpointing the factors affecting technology assimilation is of great importance for technology transfer success. One of the most important factors associated with technology transfer success is the organizational competence of firms receiving imported technologies. Organizational competence encompasses the consistency and alignment between the new technology and the firm’s organizational structure, organizational culture and organizational resources. This article examines the role of the aforementioned organizational factors on technology transfer effectiveness in Iranian firms. To do so, we first identify the variables that measure organizational competence and the variables that measure TT effectiveness in Iranian firms. Then we test the effect of organizational competence on TT effectiveness in these firms. The findings of this research show that organizational competency significantly influence TT effectiveness in Iranian firms. An organizational structure providing lower control levels, lower hierarchy levels, multifunctional teams, and higher emphasis on individual rewards is found to influence TT effectiveness positively. An organizational culture providing high degree of trust, lower degree of uncertainty avoidance, and high degree of discipline is also found to positively influence TT effectiveness in Iranian firms.