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Lampert Fellowships in Public Affairs
Technology transfers and their effect on human capital Ameetosri Basu Colgate Class of 2014 Sponsored By:
Navine Murshid Assistant Professor Department of Political Science
Technology transfers and their effect on human capital
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I. INTRODUCTION ................................................................................... 3
a) Human capital and developing countries ............................................................ 3
b) Technology transfer ............................................................................................. 4
II. LITERATURE REVIEW ........................................................................... 6
III. WHY ARE TECHNOLOGICAL TRANSFERS IMPORTANT TO THE
DEVELOPMENT OF HUMAN CAPITAL? ....................................................... 8
IV. QUALITATIVE SURVEY AND ANALYSIS ................................................ 12
a) General description of the sample population interviewed ............................. 12
b) Description of the joint ventures ....................................................................... 12
c) Nature of the training imparted ........................................................................ 13
d) Survey method ................................................................................................... 13
e) Analysis of the presented questionnaire and its results ................................... 14
(1) Leadership skills .................................................................................................................... 14
(2) Entrepreneurship skills .......................................................................................................... 16 (a) Supervisor assessment ...................................................................................................................... 16 (b) Creation of new enterprises .............................................................................................................. 18
(3) Technical skills and knowledge .............................................................................................. 19 (a) New machinery .................................................................................................................................. 19 (b) New software .................................................................................................................................... 20
(4) Changes to company organisation ........................................................................................ 22 (a) Company culture ............................................................................................................................... 22 (b) Hiring policy ....................................................................................................................................... 23 (c) Greater investment and emphasis on public relations ...................................................................... 23
V. DISCUSSION OF RESULTS ................................................................... 24
a) Administration of the survey ............................................................................. 24
b) Relationship between employees and firms ..................................................... 24
VI. CONCLUSION ..................................................................................... 26
VII. WORKS CITED .................................................................................... 28
VIII. APPENDIX ................................................................................... 31
Technology transfers and their effect on human capital
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I. Introduction
How effective are technology transfers in the form of collaborations with foreign firms
in facilitating human capital development? The study analyses the apparent success of
technology transfers (in the form of skill transfers) in stimulating the growth of human
capital by looking at the changes occurring in worker productivity and firm culture of
textile firms that have recently formed joint ventures with foreign companies. The
findings of this research present the “true potential” of technology transfers from a
human capital perspective.
a) Human capital and developing countries
In the context of labour economics, human capital can be thought of as the set of
marketable skills of workers in which a variety of investments are made, such as training
and education. It “corresponds to any stock of knowledge or characteristics the worker
has (either innate or acquired) that contributes to his or her productivity.” (Acemoglu
and Autor, 2011). Developing countries such as India are usually dominated by labour-
surplus conditions, and this excess labour is an important resource that can be
developed into human capital.
Like all forms of capital, human capital needs investment for development. According to
the Romer model of endogenous growth, economic growth arises from investment in
human capital.1 This investment mainly takes the form of health and education.
However, developing nations face resource constraints that restrict them from making
1 Romer, Paul M., Human Capital and Growth: Theory and Evidence (November 1989). NBER Working
Paper No. w3173.
Technology transfers and their effect on human capital
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adequate investment in these sectors, and as such, the potential of this human resource
remains mostly untapped and undeveloped. However, technology transfer from
industrialised countries may be a way to import skills and knowledge from developed
nations to developing ones and accumulate human capital.
b) Technology transfer
In the field of growth economics, both standard neoclassical growth theory and recent
endogenous growth theory explain the income difference between developing and
developed countries as being partly due to differences in technology between rich and
poor countries. Neoclassical theory (the Solow-Swan model) considers technology not
only generally available but also universally applicable: therefore technological
differences are explained as gaps in the endowments of objects, such as factories,
roads, machinery et cetera. In contrast, endogenous growth theory postulates that gaps
in the endowment of ideas and the limited capacity of developing countries to absorb
new knowledge are the main reasons for the income gap. It also implies that the
interaction between technology and skills with a view to reducing the idea gap is the
most effective method for growth.
How is this interaction between technology and skills put into effect? One method is
technology transfer. Technology transfer is defined as the process of sharing of skills,
knowledge, technologies, and methods of manufacturing from a developed country to a
lesser-developed one. Through technology transfer, ideas and skills could be shared
between countries, thus increasing the stock of ideas in the receiving country and
Technology transfers and their effect on human capital
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reducing the idea gap. This paper performs a qualitative assessment of the effectiveness
of technology transfer in increasing the skill level of textile industry workers in India.
Technology transfers and their effect on human capital
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II. Literature review
The existing literature on the impact of technology transfers in developing countries
concentrates mainly on large-scale indicators such as employment, income distribution,
economic growth and development. Berman and Machin (2000) study the impact of
technology transfers on the composition of labour markets, while Djankov and
Hoekman (1998) study its impact on TFP (Total Factor Productivity2) growth. Hu,
Jefferson and Jinchang (2003) concentrate on how technology transfers are
complemented by intra-firm research and development. Gemmell and Kneller (2002)
analyse the post-war growth experience of developing countries as affected by shocks in
the form of technology transfers. The most comprehensive analysis directly linking
technology transfer to skill development is by Miyamoto (2003), but it concentrates on
imports of technology and the accompanying training spillovers rather than direct skill
sharing.
A more focused approach is taken by Mottaleb and Sonobe (2011) in their in-depth
analysis of the rapid growth of the Bangladeshi garment industry. It explores the process
of continuous learning started by the initial infusion of knowledge by the technology
transfer from South Korea in the 1970s, and provides evidence (at least for a particular
industry) that technology transfer leads to rapid and continuous growth and
development. What is missing from this review of the academic literature is the impact
2 Total Factor Productivity (TFP) is the portion of output not explained by the amount of inputs used in
production. As such, its level is determined by how efficiently and intensely the inputs are utilized in production.
Technology transfers and their effect on human capital
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that technology transfer has on long-term human capital development: the issue this
project attempts to analyse.
Technology transfers and their effect on human capital
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III. Why are technological transfers important to the development
of human capital?
In general, firms in both underdeveloped and developing countries do not invest enough
in training of employees (Batra and Tan, 2002). This, coupled with the fact that this
training is relatively unequally distributed among employees may be a hindrance to
progress, especially when developing countries are trying to catch up with the skill level
of the developed economies. Enterprise training is one of the most important sources of
skills acquisition; studies have shown that enterprise training raises labour productivity
substantially, especially in small to medium sized firms (World Bank, 2007).
Why do firms under-invest in training? There are varying reasons specific to each
industry and economic environment, but the most common are (Batra, 2003):
training is not affordable because of limited resources;
training is costly because of high labour turnover;
the firm lacks knowledge about training techniques and organisation;
the firm used a mature technology, so learning-by-doing is sufficient3;
informal training is adequate;
skilled workers are readily hired from other firms; and
the firm is sceptical about the benefits of training.
3 For firms already using mature technologies, there is little scope for improvement of pre-existing
techniques; therefore, workers can become more proficient by learning by doing or through informal training (Batra, 2003).
Technology transfers and their effect on human capital
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The problem of limited resources is the most widespread one, according to the WBES
(World Business Enterprise Survey). This is most often likely to be the case due to the
credit constraints faced by many enterprises in developing countries. While the
numbers of training grants and subsidy schemes available in developing countries are
increasing with time and awareness, not all firms or industries are eligible for training
subsidies and credit availability may thus be very limited. Small and medium-sized
enterprises (SMEs) are more likely to face this type of training constraints, because they
are the ones who are less likely to have access to the credit market.
However, the existing literature shows that multinational corporations train more than
domestic firms (Miyamoto and Todo, 2003). The reasons for this are:
MNCs are less likely to face credit constraints since they usually have wide
access to foreign capital.
MNCs are more likely to gain information on techniques and organisation of
training since their range of information is global.
They can also reduce the probability of labour turnovers4 by providing attractive
compensation packages to keep the employees after the training provision.
The comparison indicates that collaboration with a multinational foreign firm may be a
way for domestic firms to invest in training and development of human capital. Training
development activities conducted by the foreign firm are important since they bring in
4 Labour turnover is the ratio of the number of employees that leave a company through attrition,
dismissal, or resignation during a period to the number of employees on payroll during the same period.
Technology transfers and their effect on human capital
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advanced skills and technologies to which domestic firms otherwise have no access. One
important channel through which this technology may transfer from the foreign firm to
the domestic firm is the training spillover. Training spillovers may occur through four
routes:
Vertical linkages: Vertical linkages happen when the foreign firms train or
provide technical support to domestic firms that supply them with intermediate
goods (backward linkages), or to buyers of their own products (forward
linkages).
Horizontal linkages: Horizontal linkages occur when domestic firms in the same
industry gain skills through industry or region-wide skills development
institutions that are supported by foreign firms.
Labour turnovers: Labour turnover occurs when workers trained by foreign firms
or managers transfer their knowledge to other firms when switching employers.
Labour spin-offs: Labour spin-offs happen when an employee of a foreign firm
starts up a new firm based on the know-how gained from previous experience.
In this particular study, horizontal linkages are the primary area of focus, specifically in
the form of joint ventures. A joint venture is a business arrangements in which parties
agree to develop, for a finite time, a new entity and new assets by contributing equity.
They exercise control over the enterprise and consequently share revenues, expenses
and assets. The horizontal linkage formed by a joint venture between a firm from an
industrialised economy and a company in a developing country can lead to technology
Technology transfers and their effect on human capital
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transfer in the form of sharing of concrete assets as well as impartment of skills. The skill
sharing in particular could have a positive impact on the development of human capital
because of skill accumulation.
This paper utilises a qualitative survey of three Indian textile firms with a history of
recent foreign collaboration to investigate the claim that collaboration with a
multinational foreign firm may be a way for domestic firms to invest in training and
development of human capital. The total number of employees in the firms surveyed
was 110, distributed across several departments and functions. Additional information
was obtained by individual interviews of people employed in an administrative capacity
within the firm.
Technology transfers and their effect on human capital
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IV. Qualitative survey and analysis
a) General description of the sample population interviewed
Although stratified sampling was attempted in the survey population, it was not feasible
since only certain departments received training after the foreign collaboration or joint
venture. Employees surveyed were generally production managers, human resources
employees and machine operators working at three different Indian textile firms,
referred to as Firm 1, Firm 2 and Firm 3 to ensure anonymity. Apart from machine
operators, who had generally completed high school and received vocational training,
the highest level of education earned by the participants of the survey was generally a
Master of Business Administration (MBA) or a Bachelor of Technology (B. Tech).5 The
gender composition of the surveyed population was 74% male and 26% female.
b) Description of the joint ventures
Firm 1 is a 50:50 joint venture of a major Indian textile company and an Italian
textile manufacturing firm. Firm 1 is currently the one of the largest
manufacturer and exporter of bathrobes in India. The plants surveyed were
located in Vapi, Gujarat and Anjar, Gujarat.
Firm 2 is a 50:50 joint venture of an Indian garments firm with another Italian
textile company. It produces cotton shirting and bottom weight fabrics. The
plant surveyed was located in Kolhapur, Maharashtra.
5 A number of studies have addressed the issue of whether educated employees are more likely to receive
enterprise training. Since productivity gains of training activities among educated workers are expected to be higher, firms with a higher proportion of educated workforce are more likely to provide training.
Technology transfers and their effect on human capital
13
Firm 3 is a 50:50 joint venture between a Coimbatore-based textile
manufacturer and an American garments firm. It produces intimate wear and is
mostly export-oriented. The plant surveyed was located in Ozahiyur, Tamil Nadu.
c) Nature of the training imparted
Training as a result of the foreign collaboration was focused on two specific directions:
increasing managerial effectiveness and improving worker productivity. Managerial
training was imparted to human resources employees and production managers while
machine operators were given basic training to improve productivity. The two pathways
affected the human capital to different extents, as will be shown in the results of the
survey.
d) Survey method
The questionnaire used is included in the appendix. The response options were
originally five: strongly agree, agree, neutral, disagree and strongly disagree. However,
in the case of one firm, information was collected from a survey conducted immediately
after the training by the human resources department of the company itself. This survey
did not include ‘neutral’ as a response option. Therefore, in order to preserve
uniformity, the response was omitted while administering the rest of the surveys as
well.
Technology transfers and their effect on human capital
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e) Analysis of the presented questionnaire and its results
(1) Leadership skills
Leadership skill training was imparted to production managers specifically and human
resources employees in some cases. Further interviews clarified that human resources
employees were present during the training in an observer capacity so that the training
could be replicated at a later time. A modified Kirkpatrick model was used to analyse the
effectiveness of the training, with inputs from both trainees and training supervisor.
Survey results (all numbers in percentages):
Trainee response:
Question Strongly
agree
Agree Disagree Strongly
disagree
The training met my expectations. 61 30 8 1
I will be able to apply the knowledge
learned.
59 28 10 3
The training objectives for each topic
were identified and followed.
72 23 3 2
The content was organized and easy to
follow.
75 18 2 5
The materials distributed were
pertinent and useful.
83 11 4 2
Technology transfers and their effect on human capital
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Table 1.1
Supervisor response:
Question Strongly agree Agree Disagree Strongly
disagre
e
The trainees put their learning
into effect when back on the job.
62 24 9 5
The relevant skills and knowledge
were used.
64 21 13 2
There was noticeable and
measurable change in the activity
and performance of the trainees
when back in their roles.
77 13 6 4
The change in behaviour and new
level of knowledge was sustained.
80 15 3 2
The trainee would be able to
transfer their learning to another
person.
65 26 8 1
Table 1.2
The results of the survey show an overwhelmingly positive response to leadership skill
training. Leadership skills are transferable and underpin technical capability, as well as
Technology transfers and their effect on human capital
16
the capacity to learn, adapt, think independently and cope with technical
advancements. Leadership capability is also linked to empowerment within the
organisation, which is discussed separately. According to Edvinsson6, leadership skills
play a key role in the development of human capital; therefore the training was
effective for the purposes of this study.
(2) Entrepreneurship skills
According to Jones and Jayawarna7, human capital is a powerful predictor of a person’s
propensity to establish a new venture. Conversely, entrepreneurship skills can be taken
as an indicator of human capital development. To measure this, a two-way approach
was conducted, as described below.
(a) Supervisor assessment
Supervisors were asked to assess the employees directly under them, comparing skill
level before and after the foreign collaboration. This assessment may be taken as a
general indicator of the change in entrepreneurial skill level. However, it is merely a
conjecture that this change was affected by the collaboration; there is no evidence to
directly link one to the other, since no training was given that encompassed
entrepreneurial skills.
Survey results (all numbers in percentages):
6 Leif Edvinsson, Developing intellectual capital at Skandia, Long Range Planning, Volume 30, Issue 3, June 1997, Pages 366-373, ISSN 0024-6301, 10.1016/S0024-6301(97)90248-X. 7 Jones O and Jayawarna D (2011) Entrepreneurial Potential: The Role of Human Capital. 34th Annual
Conference. ISBE, Sheffield pp 1-18
Technology transfers and their effect on human capital
17
Question Strongly agree Agree Disagree Strongly
disagree
Employees demonstrated greater
management skills, such as
teamwork, relationship
development etc. after interaction
with foreign trainers.
42 55 2 1
Employees demonstrated greater
communication skills after
interaction with foreign trainers.
24 44 30 2
Employees demonstrated greater
knowledge of in-firm opportunities,
such as promotions and lateral
transfers after interaction with
foreign trainers.
35 39 23 3
Employees demonstrated greater
risk assessment skills after
interaction with foreign trainers.
33 27 28 12
Table 2.1
Technology transfers and their effect on human capital
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The questions asked present a general approximation of entrepreneurial skill within a
firm environment and therefore should not be taken as a positive indicator of change in
skill level. However, averaging the responses seems to indicate that around 75% of
supervisors thought that there had been a positive change in entrepreneurial skill level
after interaction with trainers from the foreign firm, which may be taken as an
indication that there was a positive development of human capital.
Average response to improvement in entrepreneurial skill after interaction
(b) Creation of new enterprises
Another indicator of rise in entrepreneur skill is the actual creation of new enterprises.
An anecdote from William Easterly’s The Elusive Quest For Growth8 would serve to
illustrate the case. In 1979, Daewoo of Korea set up a joint venture with a Bangladeshi
textile firm (Desh Garments) and began to train 130 workers in modern technology and
8 Easterly, William H., The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics. Boston: MIT, 2002. 146-49. Print.
Technology transfers and their effect on human capital
19
administration. Within ten years, 115 out of the 130 Korean-trained workers had started
their own garment firms. Although interviews with human resources directors indicated
that a minimal number of former employees were now self-employed, this particular
project was not able to unearth conclusive evidence that training by foreign firms
produced new entrepreneurs.
(3) Technical skills and knowledge
(a) New machinery
In all the firms surveyed, the foreign collaboration resulted in the purchase of new
machinery and the hiring of new employees, as well as the training of old employees.
The major part of the technical training was received by machine operators and in some
cases, engineers. Production managers were asked to complete an assessment
regarding productivity and efficiency as a result of the technical training.
Survey results (all numbers in percentages):
Question Strongly
agree
Agree Disagree Strongly
disagree
The individual productivity of old
employees increased after training.
65 15 11 9
The overall productivity of the plant
increased after training.
81 13 5 1
The individual efficiency of old employees 69 9 15 7
Technology transfers and their effect on human capital
20
increased after training.
The overall efficiency of the plant
increased after training.
84 12 4 0
The quality of manufactured products has
increased.
85 15 0 0
Table 3.1
The results indicate that the new machinery purchased and the associated technical
training significantly increased productivity and efficiency as well as the quality of the
garments produced. It is also interesting to note that that the amount of positive
responses was greater for overall efficiency and productivity than individual. Also, since
technical skills and training are strongly industry-specific and not transferable, it is
debatable whether the training received by factory workers contributed to their human
capital potential.
(b) New software
The foreign collaboration also resulted in the introduction of new office software in
every case. In most cases, this took the form of installing the latest SAP9 modules in the
various departments, usually the SAP ECC 6.0. The SAP ECC 6.010 is an enterprise-wide
information system designed to coordinate all the resources, information, and activities
needed to complete business processes. The implementation of the software was
9 Stands for Systems, Applications and Products in Data Processing.
10 Stands for Enterprise Core Component. It was earlier named the SAP R/3 module.
Technology transfers and their effect on human capital
21
accompanied by training to properly use the software. This training, unlike the others
mentioned so far, was department-specific as each SAP module is tailored to fit the
processes of each department (for example, Materials Management and Production
Planning have different modules). Interviews with human resources managers clarified
that knowledge of SAP modules was not necessarily industry-specific, and could be
counted as a transferable skill. Therefore this technical knowledge can be considered to
encourage labour mobility and accumulation of human capital.11 To assess the
effectiveness of the new software, employees were asked whether they felt that the
new software was more efficient than the one they had previously been using.
Survey results (all results in percentages):
Module Strongly
agree
Agree Disagree Strongly
disagree
Financials and Controlling (FICO) 68 25 3 4
Human Resources (HR) 73 20 6 1
Materials Management (MM) 84 12 4 0
Sales and Distribution (SD) 76 23 1 0
Production and Planning (PP) 85 9 3 3
Plant Maintenance (PM) 65 29 5 1
Table 3.2
11
Eriksson, Göran. "Human Capital Investments and Labor Mobility." Journal of Labour Economics 9.3 (1993): 236-54. JSTOR. The University of Chicago Press. Web.
Technology transfers and their effect on human capital
22
(4) Changes to company organisation
The foreign collaboration also resulted in several changes in company organisation.
These are documented in this section.
(a) Company culture
Company culture is the shared values and practices of the company's employees. In two
out of the three firms surveyed, employees reported that company culture had become
more democratic as opposed to a previously top-down hierarchy. Employees reported
that managers and supervisors were more accessible and showed enthusiasm towards
implementing ideas and projects suggested by juniors as compared to before the
collaboration took place. Several other changes occurred to the general culture of the
company, as documented by the survey below. All numbers are in percentages.
Question Strongly agree Agree Disagree Strongly
disagree
The adaptability of the organisation
(i.e. its capacity to adjust to a changed
environment as a result of the joint
venture) increased.
71 18 10 1
The organisation stepped up efforts to
learn and develop the competencies
of its personnel.
63 17 12 8
Technology transfers and their effect on human capital
23
The organisation developed a more
teamwork oriented approach after
the joint venture.
66 21 13 0
The amount of trust in the company
culture increased after the joint
venture.
59 29 7 5
Table 4.1
(b) Hiring policy
Hiring policy change was difficult to document, since the firms did not allow questions
regarding equal opportunity hiring practices to be answered by employees. However, in
interviews, hiring personnel reported that policy had remained relatively unchanged
and equal opportunity practices had always been followed. Interviews also revealed that
new job titles and positions had been established to adjust to the changed work
environment as a result of the joint venture, although details were not forthcoming.
(c) Greater investment and emphasis on public relations
All three firms reported that the public relations department had been re-organised
drastically following the collaboration. Special emphasis was placed on customer
relations as well as media presence, and there were major increases in the number of
people hired in the department. The internet was given greater importance as a
medium of communication as well as advertisement.
Technology transfers and their effect on human capital
24
V. Discussion of results
Even though the survey results indicate a general positive trend in the impact that the
joint ventures had on the employees and culture of the firms, there may be a few biases
that are left unaccounted for by the nature of the study, which are discussed in this
section.
a) Administration of the survey
Although all surveys were administered anonymously, in the case of one firm, data was
obtained from an evaluation that had already been performed after the completion of
training. This may have affected the results through a reporting bias since the survey
was conducted by the firm itself and not by an impartial third party. This may have led
to a preponderance of positive responses which did not reflect the true impact of the
training.
b) Relationship between employees and firms
The relationship between employees and their employers could also affect the response
quality of the survey. Two of the firms were located in Gujarat, a state that does not
have a good history of labour unionisation and encouraging employer-employee
relations; this may have affected the study by either a preponderance of positive
opinions (in case a negative opinion expressed may result in dismissal) or negative
opinions (as a form of protest against the firm). However, the overwhelming majority of
positive opinions suggests the former. However, Tamil Nadu, where Firm 3 was located,
labour has a greater degree of unionisation and bargaining power. Tamil Nadu also
Technology transfers and their effect on human capital
25
encourages initiatives to develop employer-employee relations, so the results obtained
from Firm 3 may be more credible.
Even though the presence of certain biases (as mentioned in this section) which pushed
the trend to a more positive one is possible, it is more likely that due to the low level of
investment in human capital by purely domestic firms, the training initiatives conducted
had a significant positive effect on the human resources of the firms. A more
generalised study, which subverts any influence that firms may have on survey results
could make a stronger case in favour of the positive impact of technology transfer on
human capital. One way this could be done is by personal interviews or surveys of
employees by an unbiased third party which would guarantee anonymity and not report
results to the respective firms. Also, a study that involves a greater number of firms with
more geographical spread may be able to indicate a more substantive trend.
Technology transfers and their effect on human capital
26
VI. Conclusion
Although it is presumptuous to conclude from a qualitative survey of only three firms
that technological transfer definitively leads to development of human capital, there are
indications that show that the collaborations with foreign firms had a positive impact on
the efficiency and productivity of employees. The survey results also show that both
supervisors and the employees themselves perceived the accompanying training as
increasing their skill level and ability.
There is also some evidence to show that the joint ventures led to increase in
organisational capital. The intellectual capital of a firm consists of human capital,
organisational capital and consumer capital, which complement each other and
together comprise the intangible assets of the firm. Organisational capital represents
procedures, technologies, management systems, technical and software support,
organisational structure and organisational culture. An encouraging and supportive
work environment and culture is necessary for the development of human capital, and a
change to a more democratic work climate (as documented in the survey) was
conducive to the realisation of the full innovative potential of the human resources
available to the firm in the form of labour.
The results of this study therefore imply that technology transfers are a good resource
for cultivating human capital in developing countries. The policy implications arising
therefore would be to pursue an open economy that encourages foreign investment in
industries and collaborations with domestic firms. In the era of globalisation, the idea
Technology transfers and their effect on human capital
27
gap and well as the skill differential between the developing and the developed need to
decrease, and technology transfer seems a very attractive option to achieve this
minimisation.
Technology transfers and their effect on human capital
28
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29
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Romer, Paul. "Human Capital and Growth: Theory and Evidence." Social Science
Research Network. National Bureau of Economic Research. Web. 24 Aug. 2012.
<http://papers.ssrn.com/sol3/papers.cfm?abstract_id=227284>.
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VIII. Appendix
Questionnaire given to ordinary employees:
(Response options: strongly agree, agree, disagree, and strongly disagree)
1. The training met my expectations.
2. I will be able to apply the knowledge learned.
3. The training objectives for each topic were identified and followed.
4. The content was organized and easy to follow.
5. The materials distributed were pertinent and useful.
6. The new software implemented after the foreign collaboration is more effective
than the one previously used.
7. The adaptability of the organisation (i.e. its capacity to adjust to a changed
environment as a result of the joint venture) increased.
8. The organisation stepped up efforts to learn and develop the competencies of its
personnel.
9. The organisation developed a more teamwork oriented approach after the joint
venture.
10. The amount of trust in the company culture increased after the joint venture.
Technology transfers and their effect on human capital
32
Questionnaire given to supervisors and managers:
(Response options: strongly agree, agree, disagree, and strongly disagree)
1. The trainees put their learning into effect when back on the job.
2. The relevant skills and knowledge were used.
3. There was noticeable and measurable change in the activity and performance of
the trainees when back in their roles.
4. The change in behaviour and new level of knowledge was sustained.
5. The trainee would be able to transfer their learning to another person.
6. Employees demonstrated greater management skills, such as teamwork,
relationship development etc. after interaction with foreign trainers.
7. Employees demonstrated greater communication skills after interaction with
foreign trainers.
8. Employees demonstrated greater knowledge of in-firm opportunities, such as
promotions and lateral transfers after interaction with foreign trainers.
9. Employees demonstrated greater risk assessment skills after interaction with
foreign trainers.
10. The individual productivity of old employees increased after training.
11. The overall productivity of the plant increased after training.
12. The individual efficiency of old employees increased after training.
13. The overall efficiency of the plant increased after training.
14. The quality of manufactured products has increased after the foreign
collaboration.
Technology transfers and their effect on human capital
33
15. The new software implemented after the foreign collaboration is more effective
than the one previously used.
16. The adaptability of the organisation (i.e. its capacity to adjust to a changed
environment as a result of the joint venture) increased.
17. The organisation stepped up efforts to learn and develop the competencies of its
personnel.
18. The organisation developed a more teamwork oriented approach after the joint
venture.
19. The amount of trust in the company culture increased after the joint venture.