The role of strategic technology alliances (STA) towards organizational performance in manufacturing industry: The perspective of developing countries

Abstract

Purpose: This research investigates strategic technology alliances (STA) in Malaysian manufacturing firms and the impact on organizational performance. The outcomes of this paper shed light on the underpinning theories under Resource Based View (RBV) and Organizational Learning (OL) as an antecedent for the successful implementation of strategic technology alliances in the manufacturing industry. At the end of the paper provides a model that describing the success factor of strategic technology alliances en route to improve organizational performance and remain competitive. Design/methodology/Approach: Research conducted through survey design by collecting questionnaires from 335. Malaysian manufacturers. The empirical analysis performed by using structural equation modeling (SEM) to represent the findings as this statistical method is more robust compared to others. Findings: The empirical analysis show that absorptive capacity,type of alliance and strategic technology alliance has positive relationship towards improving organizational performance in terms of market share,profit,sales level and manufacturing capabilities. However,in the other coin,resource base availability is insignificant towards organizational performance. Furthermore,technology transfer also only partially mediates STA and organizational performance. Despite the onset of successful alliance formation and resultant technology transfer,firms still need to invest in developing their resources,employee skills,production methods and industrial processes in order to sustain their competitiveness in the global economy. Originality/value: Many organization embrace technology transfer as part of the strategic weapons to maintain business sustainability. However,there is lack of empirical evidence profiling the antecedent on how organization could success in becoming the developers of their own technology. Therefore,this research attempts to provide a model as guidance to managers in developing country as a key to success in forming technology alliances with foreign countries.