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Technology Transfer In Context With Saudi Arabian Small Medium

3834 words - 16 pages

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 ...view middle of the document...

Such mechanisms are aimed to leverage technology transfer; therefore, we must take a look at domestic as well as foreign arrangements and instruments to facilitate the process. The globalization either paves the way or hinders technology transfer. In recent years, the globalization phenomenon has created many changes on economic, social, technological, cultural and political scenes. The International Monetary Fund has defined economic globalization as “the increasing integration of economies around the world, particularly through trade and financial flows which the result of human innovation and technological progress”[1]. These economical changes affect large and small enterprises, which are driven by focusing on liberalization of markets for goods, services, and capital in the world’s major market economies, as well as, in the developing countries, including Saudi Arabia. After the accession of Saudi Arabia to the World Trade Organization (WTO), as the 149th member in December 11, 2005, new rules and responsibilities have been established by the multilateral trading system. In addition, regional economic integration agreements have created new requirements for managing and adapting these changes. Since Saudi Arabia has opened its market to foreign investors, it has increased the competitive pressures on large firms and small and medium enterprises (SMEs), in particular. Therefore, SMEs have to adapt and respond to these changed conditions and to meet consumer preferences in the marketplace by improving the productivity and competitiveness to overcome the challenges posed by globalization, by enhancing technology transfer, and by fostering investment in SMEs.


International Management Review

Vol. 7 No. 1 2011

The objective of this study is to empirically identify barriers that face SMEs in the process of transferring various types of technologies in Saudi Arabia. These barriers include workforce skills, management capabilities, industrial infrastructure capabilities, legal and regulatory conditions, financial access, economic conditions, technological levels, costs and risks, marketing capabilities, and information resources. Furthermore, it will examine the perceived impact of SMEs for the Saudi Arabian accession to the WTO.

Literature Review
Extensive surveys carried out by the Council of Saudi Chambers of Commerce and Industry (CSCCI) and the United Nations Industrial Development Organization (UNIDO) documented the main concerns of businessmen: lack of finance and capital, dependence on a foreign workforce, access to technology, limited marketing skills, bureaucratic regulation procedures and legal policies, and limited information on possible markets and clients (Robert Looney, 2004). Mitsuo Otsuki (2002) has identified the major problems facing SMEs in Saudi Arabia, which are the lack of funds, lack of skilled human resources, lack of management skills, lack of marketing skills, lack of modern technology, cost problems...

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