A Study on Knowledge and Technology

Transfer in International Joint Ventures

with Multiple Implications: Insights
from Sino-Saudi Joint Ventures in Oil
and Petrochemical Industries

Abstract
In the ultra-competitive context, if companies are trying to survive and prosper,
they must perform quickly to establish their own competitive advantage and continue
to undermine the advantages of competitors. This requires that it must continue to
1

seek a source of competitive advantage. Using knowledge and technology resources

becomes the key of multinational obtaining a sustainable competitive advantage. As
one of the most popular and fastest ways for international expansion, international
joint ventures (IJV) have become an important channel for multinational companies to
invest overseas. One important reason is that the IJV parent company and joint
ventures subsidiary shall more effectively transfer, develop and make use of
knowledge and technology than the external market. Knowledge transfer and
acquisition approach could improve their efficiency and performance of the joint
ventures, which will become the key of IJV to win in the increasingly fierce
competition. In addition, the process of economic globalization and the rapid
development of modern information technology, network technology have provided
favorable conditions for knowledge metastasis between the parent company and joint
ventures subsidiary. Therefore, in recent years, researches on how to transfer
knowledge and the antecedents of knowledge transfer and outcomes between different
joint ventures, have become a hot issue among relevant scholars and practitioners of
common concern.
This research is dedicated to discover the technology transfer in Sino-Saudi joint
ventures (SSJVs) in oil and petrochemical industries located in both China and Saudi
Arabia. The research shall focus in the quality and quantity of technology transfer,
especially tacit knowledge transfer between two sides, including between partners of
SSJVs, as well as between employees within the SSJVs from two sides. Interviews
and questionnaires shall be used to collect data from employees and managements
from both partners as well as the SSJVs. Discussions on Sino-Saudi joint ventures are
to be made with two major implications. The first is a special Sino-Saudi partnership,
which carries strategic, geopolitical and even military considerations, which is far
beyond the pure economic concern. The second is the culture differences between
partners, which may create gap to the technology transfer, or enhance the transfer, on
different occasions. The culture difference also impacts partners behavior and their
perception to each other, and hence generates different effects on mutual trust, which
is an essential element of corporate relationship quality, and in turn the transfer of
technology.
Keywords: Knowledge and Technology Transfer Sino-Saudi Joint Ventures
Partnership Relationship; Oil and Petrochemical Industries; Regression Analysis

Table of Contents

Table of Contents.................................................................................III
Abstract............................................................................................IV
1. Introduction....................................................................................1
1.1 Background............................................................................1
1.1.1 Economic Background of This Research.........................1
2

1.1.2 Academic Background of The Research.........................2

1.1.3 The Background of Partnership Relation between SinoSaudi.......................................................................................3
1.2 Gaps of Previous Studies........................................................3
1.3 Objectives...............................................................................4
1.4 Significance and Conclusions.................................................5
1.4.1 Expected Findings..........................................................6
1.4.2 Significances...................................................................6
1.4.3 Innovative Ideas/Knowledge Bridging............................7
2. Literature Review...........................................................................8
2.1 Terms Definitions and Concepts.............................................9
2.1.1 The Definitions of Joint Ventures....................................9
2.1.2 Knowledge and Technology Definition.........................11
2.1.3 Knowledge and Technology Transfer............................12
2.2 Theory Basis........................................................................14
2.2.1 Monopolistic Advantage Theory..................................14
2.2.2 International Product Life Cycle Theory.......................15
2.2.3 The Research on Enterprise Technology Accumulation 16
2.2.4 Organizational Learning Theory...................................17
2.3 Enterprise (JV) Knowledge and Technology Transfer
Framework and Model................................................................18
2.3.1 Simonins Knowledge and Technology Transfer Model
Fuzziness in Strategic Alliance..............................................18
2.3.2 Isobes Cross-border Knowledge Transfer and
Performance Models..............................................................20
2.3.3 Almedia & Grants Knowledge transfer means............21
2.3.4 Szulanski Knowledge Transfer Viscosity Model............21
2.3.5 Cummings of R & N Technology Transfer Model...........22
2.3.6 The Two-stage Model of Knowledge Transfer...............22
3. Methodology................................................................................22
3.1 Questionnaire Design and Data Collection...........................27
3.1.1 Questionnaire Design...................................................27
3.1.2 Questionnaire...............................................................28
3.1.3 Questionnaire Distribution and Recycling....................28
3.2 Variable Measurement and Hypothesis................................29
3.2.1 The Dependent Variable Measuring.............................29
3.2.2 Definitions and Measurement Independent Variable. . .30
3.2.3 Moderating...................................................................33
4. Empirical Findings and Analysis...................................................40
4.1 Descriptive Analysis.............................................................43
4.2 Validity Analysis....................................................................46
4.2.1 The Overall Validity Analysis........................................47
4.2.2 Validity Analysis for Sub-scales....................................50
4.3 Reliability Analysis................................................................57
4.4 Pearson Correlation Analysis................................................58
4.5 Multicollinearity Test.............................................................61
4.6 Regression analysis..............................................................62
4 .6.1 Sample Size Description.............................................62
4.6.2 Causality Testing..........................................................63
3

4.6.3 Moderator Variable Testing..........................................67

4.6.4 U-shaped Relationship Testing.....................................70
5. Analysis and Discussions.............................................................71
5.1 Findings..................................................................................72
5.2 Research Limitations............................................................77
5.3 Prospects for Future Research..............................................78
References.......................................................................................79
Appendix:Charts
and
Tables
from
Primary
Research..................................................81

Chapter 1: Introduction
Based on the insufficient of existing research, from the perspective of the parent
company and the joint ventures, this study will shed light on the following frame and
thinking1: factors affecting knowledge and technology transfer - regulatory role of
partnership relation - joint ventures transfer performance, the dissertation will
combine knowledge transfer body research, know-know characteristics(including
knowledge transfer and knowledge receiver side), SSJV partnership between subjects,
the different types of transfer knowledge into an unified framework. In the following,
the dissertation will make a comprehensive utilization of monopolistic advantage
theory, internalization theory, organizational learning theory as well as the species
transfer model, and combine the mechanism of the joint ventures knowledge transfer
process, implementation mechanism and coordination mechanism to guide the joint
ventures performance. In addition, the author will also conduct a large scale survey
for the joint ventures in China and Saudi Arabia by means of Eview software to
perform descriptive statistics, correlation analysis and multiple regression analysis for
data. Finally, the dissertation is based on an empirical perspective to verify the
characteristics of the body of knowledge transfer, knowledge transfer partnership
relation to the mechanism of the body of knowledge transfer / acquisition, and verify
the impact of the knowledge transfer/acquisition on joint ventures transfer
performance.

1.1 Background
1.1.1 Economic Background of this Research
In the past two decades, an impressive event of world economic development is
the era of knowledge economy. Knowledge-based economy is a new economic form
as the world enters a new era of information dissemination speed, global business
competition, rapid development of high technology. Knowledge economy makes
multinational joint ventures accounted inherent advantage in this competition.
In the view of the interior theory and technology accumulation theory, the
acquisition, transfer and utilization of knowledge in the enterprise are more efficient
than the market mechanism, which constitutes a major part of the global study of
multinational corporations. From the perspective of business competition, global
learning has become a key competitive advantage of cross-border joint ventures in a
dynamic environment. Global learning capabilities are include diffusion of innovation
and knowledge transfer in a global scale (Bartlett & Ghoshal, 1998). With the advent
of the knowledge economy and emerging markets, joint ventures subsidiary has
undergone significant changes in the multinational system. Dmining (1998) believes
that there is a big difference between joint ventures with the parent company in the
geographical distance and cultural distance, and thus the formation of the country
particularly vulnerable to the proprietary nature of knowledge. This enterprise
1
Teece,D.J.1977,Technology transfer by multinational firms: The resource
costs of transferring technological know-how. Economic Journal,87(346):242261.

2
knowledge based on the local market, management practices, and business
environment, will help enterprises improve local commitment, reduce operational
uncertainty and enhance economic efficiency (Kuemmeref, et.al, 1999).

1.1.2 Academic Background of the Research

Multinational joint ventures play important roles in guiding and distributing to
global FDI flows, but it is also the carrier of global knowledge transfer. In the course
of business, multinational joint ventures promote technology transfer behavior,
movement of persons, cooperative R & D, management model and the concept of
subtle penetration by the way of the contract market, the emergence of the knowledge
of external knowledge spillover effects, from the home country to the joint ventures
countries2. At the same time, Resource-Based View of Penrose (1959) and "Tacit
knowledge" concept of Polanyi (1962) further broaden people's horizons. Knowledge,
as a resource, can bring benefits for the enterprise. Clear specialization and rigid
internal organizational boundaries in the traditional organizational structure hinders
the knowledge transfer between the various departments (Erikc, 2000). In Hymcr
(1960) theory of dominance, imperfections in the final product market multinationals
are the source of competitive advantage. The technology, management experience,
know-how are one of the important advantages of its original constitution. These
benefits extend knowledge necessarily mean that the cross-border transfer of
knowledge. In Bakrly & Cassno (1976) theory of internalization, knowledge becomes
an intermediate product. Knowledge transfer from research firm tacit knowledge is
the main microscopic point of view of knowledge management research. With indepth knowledge of organizational learning and innovation theory, many methods of
organizational learning and knowledge transfer occur cross-integration. In addition to
the knowledge of the characteristics, the characteristics of the sender and receiver of
knowledge, organizational mechanisms are gradually incorporated into the scope of
knowledge transfer among research.

1.1.3 The Background of Partnership Relation between Sino-Saudi

People's Republic of China and Saudi Arabia established diplomatic relations on
July 21, 19903. The diplomatic relations between the two countries has remained
peaceful and friendly state, which has created a model of friendly cooperation in two
different social systems, beliefs, cultural traditions. With the formation of a global
strategic adjustment and germinal new global order will become an important factor
that connects Beijing and Riyadh. China is Saudi Arabia's largest oil buyer.
Meanwhile, Saudi Arabia is Chinese biggest oil supplier. With the global economic
growth, this trend will continue. China-Basic trade and investment relations between
the Saudi strategy will become deeper, particularly in the energy and trade
cooperation, project contracting, labor cooperation and investment and other fields.
As the Chinese Foreign Minister Wang Yi (2013) said: China and Saudi Arabia are
2
Van Wijk,R J,.Jansen,J.P,and Lyles,M.A.2008,Inter-and Intra-Organizational
knowledge transfer:A meta-analytic review and assessment of its antecedents
and consequences.Journal of Management Studies,45(4)830-853.
3
Xinhuanet:. Saudi Arabia and Chinese Leaders Exchange Congratulatory
Messages on the 20th anniversary of establishment of diplomatic relations
Web.21
July,2010.http://news.xinhuanet.com/politics/201007/21/c_13408769.htm.

3
all-round strategic partnership4. The two countries has grown from the original simple
commodity trade relations to cooperate with each other investment, project
contracting and labor and other fields. Project contracting and labor cooperation
between the two countries are progressing smoothly. Engineering contracting projects
in China in the areas of Saudi Arabia signed communications, roads, oil services and
drilling. In import and export, China is the first Saudi strategic trading partner, trade
exchange between the two countries amounted to $ 76 billion5.

1.2 Gaps of Previous Studies

With respect to emerging Sino-Saudi partnership in economic, strategic and
geopolitical aspects, researchers concentrate on public information about macro
events, including large government contracts, state visits, bilateral trading volume and
giant joint ventures firms. There is little analysis for the details of various cooperation
and their interior microstructures. It is mainly because of the cooperation lacks
sufficient media coverage, and is not considered a broad topic in the academic society.
On the other hand, because the academic society oversees the microeconomic factors
in the cooperation, plus the lack of first hand research data, the information and
technology elements are not paid enough attention. Additionally, the interpersonal
relationship between individuals from two societies is outside the scope of existing
researches. Till now, the role of individual interactions in Sino-Saudi partnership
context is yet to be discovered.
There are numerous researches that document technology transfer under various
circumstances, which will be listed in the next section. The majority of these
researches are dedicated in discovering the relationship between successions of
unidirectional technology transfer and certain singular factor, utilizing statistical
analysis6. The unidirectional transfer usually comes from a MNC partner in developed
world to a domestic partner in a developing world. The technology is usually explicit
knowledge, especially production technologies. There is rarely a relationship similar
to Sino-Saudis mutual learning process, in which neither partner is from western
world, both sides are expected to exchange information, especially the implicit.
Furthermore, historical researches on culture effect for technology transfer usually
concentrate on transfers cultural openness. While in Sino-Saudi joint ventures case,
both sides are eastern styled and its implication is worth to be further explored.

1.3 Objectives
The purpose of this study is to make up part of the defects of the above knowledge
transfer in multinational corporations. In the context of differentiated organizations
network , the dissertation will feature the integration of knowledge, enterprise
systems, organizational culture, motivation and organizational characteristics of the
4
Xinhuanet: Wang Yi (Chinese Foreign Minister): China and Saudi Arabia
are
all-round
strategic
partnership
relation.
Web.26
Dec,2013.http://www.fmprc.gov.cn/mfa_chn/zyxw_602251/t1112158.shtml.
5
Cankao News:Saudi Arabia entrepreneurs believe Saudi Arabia trade will
exceed
$
120
billion
in
five
years
.
Web.13
Mar,2014.
http://finance.cankaoxiaoxi.com/2014/0313/360197.shtml.
6
Root F.1988,Some taxonomies of international cooperative
agreements.In:Farok J.contractor and Peter Lorange,(Editors),Cooperative
strategies in international business. Lexington, Massaehusetts: Lexington
Books:31-54.

4
recipient's knowledge, knowledge transfer partnership relationship into a unified
framework for both sides in the research, mainly constructing regression models,
using reliability analysis, validity analysis, descriptive analysis, correlation analysis
and regression analysis to conduct statistical analysis SSJV of survey data, and
discuss the various factors that influence the degree of joint ventures knowledge
transfer performance. At the same time, in order to partially offset the impact factors
of the defect, the dissertation will be based on knowledge transfer mechanism of the
model, focusing on the regulatory role of partnership relation on SSJV knowledge and
technology transfer. Specifically, the dissertation will be based on the theoretical basis
of the model have been studied from the characteristics of knowledge transfer side,
characteristics and knowledge transfer knowledge recipient partnership relation
between the two sides to build a model of the integration of the joint ventures factors
of knowledge transfer to find the results.
In our proposed study, all above factors would be considered jointly to fill in a gap
in Sino-Saudi study, which would provide details of microstructure in Sino-Saudi
collaboration within JV environment. The primary research objective is to develop
in-depth analysis in Sino-Saudi joint ventures, especially effects of their technology
transfer and factors related to it. Two very important elements that affect the quantity
and quality of the transfer is the Sino-Saudi special partnership concern, as well as the
trust building between partners and cultures. Here the culture contains two layers of
meanings. The first is the actual cultural difference that serves as blockage to
communication trust building and technology transfer. The second is the difference in
business culture, which causes adverse effect in trust. The research will fill the gap of
analysis in SSJV technology transfers and culture difference analysis.
Therefore, the dissertation is intended to address how the providers knowledge
and technology transfer willingness and ability, the recipient's knowledge and
technology willingness and ability to learn and partnership relation of both sides
impact knowledge transfer/acquisition7. Prior to solve these problems, this research
needs SSJV knowledge transfer mechanism analysis. In other words, in a SSJV, the
reasons of the transfer of knowledge and knowledge acquisition behavior between
parent and SSJV, namely what is the motivation of knowledge transfer (Knowledge
Transfer Mechanism), how to achieve knowledge transfer (knowledge transfer
process mechanism), the effect of knowledge transfer (knowledge transfer
implementation mechanism), which requires the coordination mechanism analysis of
knowledge transfer. Therefore, this topic intends to address three specific questions8:
Factors of SSJV knowledge transfer, including the generation factors, process
factors, achieving factors and coordination factors.
How parent transfer willingness and ability, joint ventures transfer willingness
and ability to learn, Sino-Saudi partnership relation, transfer situation, knowledge and
technology transfer characteristics affect knowledge transfer performance?
7
Simonin,B.L.1999 b, Transfer of marketing know-how in international
strategic alliances: An empirical investigation of the role and antecedents of
knowledge ambiguity. Journal of International Business. Studies,30(3):463490.
8
Petrash, G.1996, Doo's Journal to a know]edge value management culture. European
Management Journal. 14(4):365,373.

5
How to obtain the relationship between the joint ventures between the
knowledge of its performance?

1.4 Significance and Conclusions

In the proposed study, various factors, especially Sino-Saudi partnership
arrangement, and cultural and trust factors, would be used to interpret the successions
of technology transfer. The research will provide details of micro-structure in SinoSaudi collaboration within JV environment. Policymakers will benefit from the
research so that better upper structure design could be made to enhance the
performance of SSJV, and for the bitterness of future SSJV. Operational managements
could utilize the research outcomes to enhance their policies in dealing with the other
party, as well as mutual trust building in the SSJV, to facilitate the technology transfer,
as well as to maximize both partys utility.
The research candidate was natural citizen of Saudi Arabia and starts East Asia
studies in the early stage of life, and gained in-depth understanding of both counties.
The candidate also holds a Masters degree from reputable International institution,
gained rich knowledge in finance/business area, and mastered standard research skills.

1.4.1 Expected Findings

The research will provide details of micro-structure in Sino-Saudi collaboration
within JV environment. It will find the mutual trust level between partner and staffs
from each side, and it will also has the impact of remote cultural differences, and will
generalize all of these and dip in their effects in technology transfer in the SSIV.

1.4.2 Significance
The dissertation is based on the existing research results, considering the various
dimensions of performance, trying to fully reflect the impact of the knowledge
transfer on SSJV from the perspective of general and specific, long-term and shortterm, subjective and objective.
theoretical significance. The dissertation will firstly make a theoretical
contribution about international joint ventures knowledge transfer, such as the type of
knowledge division, the knowledge transfer antecedents and outcomes review, a joint
ventures of performance and so on. Secondly, the dissertation will analyze and discuss
the mechanism of SSJV knowledge transfer, which is conducive to reveal the black
box and knowledge transfer to better promote the relevant theories of knowledge
transfer9. Again, The dissertation will construct models and the empirical results will
better fit the realities of complex, which reveals the relationship between the various
factors relevant organizations, such as the knowledge context, and help promote the
further development and improvement of inter-firm knowledge transfer, and provide
guidance for the practice of knowledge management theory. Finally, China and Saudi
Arabia are the emerging economies. Based on the perspective of developing countries
and emerging economies, the dissertation uses this "localization" research to enrich
and develop the theory of international joint ventures knowledge management. On the
9
Szulanski,G 1996,Exploring internal stickiness: impediments to the
transfer of best practice within the firm . Strategic Management Journal
(Winter Special Issue),(17):27-44.

6
one hand, the dissertation will verify the universal applicability of international joint
ventures findings; on the other hand, it shows SSJV uniqueness, which would also lay
the foundation for further knowledge management research for international joint
ventures10.
the practical significance. In recent years, China and Saudi Arabia have quickly
established a mutual trust and a solid strategic partnership. There are sharp increase of
mutual investment between China and Saudi Arabia. SSJV have been established in
the oil and energy industries. Therefore, how SSJV actively respond to the knowledge
transfer of the parent company's ability to learn and enhance their competitiveness,
and has become a very important research topic. Meanwhile, quantities of SSJV
motivation were to get localized knowledge11. As the main square of the local supply
of knowledge - the parent company is playing an increasingly critical role in the joint
ventures process of knowledge transfer. Currently, the premise of the implementation
of "multinational globalization" and "multinational localization" dual strategy, local
market knowledge of the Chinese parent company plays an indelible role for the
development of joint ventures, which makes SSJV strategy not only to consider the
advanced technology and management know-how from Saudi parent companies,
while also considering how to obtain local parent company of Chinese market
knowledge. Therefore, the dissertation hopes to study knowledge transfer to the joint
ventures subsidiary, to provide practical guidance for joint ventures in the
internationalization process to implement effective knowledge transfer strategies.
SSJV. Several stakeholders of SSJV will benefit from the research. At the first
place, policymakers, who are the initiators of SSJV, may grab the insights from the
research so that it could better upper structure design, which could enhance the overall
performance of all SSJVs. Also, better trust will promote bilateral relationship.
Partners and operational managements of existing SSJV could utilize the research
outcomes to enhance their policies in dealing with the other party, as well as mutual
trust building in the SSJV to promote the trust between partners and within the firm,
to facilitate the technology transfer, as well as to maximize both partys utility12. Floor
management and general staff of SSJV could gain some knowledge from the research
to help them build better relationship with coworkers from a different culture, and
promote the technology transfer at a floor level.

1.4.3 Innovative Ideas/Knowledge Bridging

This study is unique from all previous studies, and creates innovation in several
aspects, and discusses intensively in introduction part. First of all, it provides
information from all level of SSJV, in comparison, previous researches only focuses
in top level decision makings.
Secondly, according to literature review, there are rare researches dedicated to
10
Hyun, S. and Makhija, M. 2009, The effect of domestic uncertainty on
the real options value of international investments, Journal of international
Business Studies, Vol. 40, No. 3 (Apr., 2009), pp. 405-420.
11
Kogut, B.1988, Joint Ventures: Theoretical and Empirical Perspectives.
Strategic management journals.
12
Isobe:T. Makino, S. and Montgomery,D.B.1998,Cross-Border knowledge transfer and
performance in emerging economic regions: The case of Japanese international joint
ventures in China. Research Paper.

7
knowledge transfer in SSJV, and this research is probably the first that provides
adequate attention in SSJV, backed up with extensive field data.
Thirdly, its focus in researching technology transfer is different. Previous
researches made attempt to quantify the quality of technology transfers, and use
statistical tolls, usually regressions to detect relationship between quality of
technology transfer and individual factors. This research focus in trust and culture
shocks, which is more difficult to apply quantitative methods.
Finally, this research makes efforts in discovering cultural differences
consequences in mutual trust building, between China and Arabia cultures, but with
the focus of business operation. Previous researches in China-Arabia culture research
focus in religions, arts and philosophy.

Chapter 2: Literature Review

2.1 Terms Definitions and Concepts
2.1.1 The Definitions of Joint Ventures
Joint ventures mean enterprise or partnership, which is formed by two or more
individuals / companies or organizations. At least one parent company is out of the
purpose of sustainable development and the creation of a new individual to expand
their business (Young & Bradfard, 1977). The parent company is committed to
providing resources for a new business entity, and shares ownership and profits of the
business entity. Owners can legally manage the business entity and the risk of the
operation (Root, 1988). Joint ventures are strategic alliances, which is the formation
of strategic objectives (Harrigan, 1985). Therefore, the joint venture is an independent
business entity. Both sides of joint ventures tend to share operations, risks, controls,
and profits, in order to achieve certain strategic objectives. A joint venture consists of
two or more firms that are combined to share profits, technology, knowledge, and
risks after negotiating financial and legal terms (Joseph, et al, 1985). As part of a
strategic plan, joint ventures enter the new market, exchange knowledge, and take
advantage of economies of different scales (Hennart, 1988). Through joint ventures,
companies are able to enter a maximum number of markets with the least amount of
investment. Furthermore, doing joint ventures not only lead to a decrease in total
investment costs, but also provides access an option for firms to expand in a foreign
or risky market.(Kogut, 1991). In IJVs firms have different values, goals, cultures,
and management structures (Wallace, 2004). Jointed firms have common objectives
or mutual goals, and these objectives is supposed to serve the needs of the firms in a
proportionate manner to avoid short-term success of the joint ventures (Wallace,
2004).
International or domestic joint ventures provide the firms a valuable growth
option, because jointed firms are able to limit its downside losses to an initial, limited
commitment, as well as to position itself to expand. (Tony. et al, 2008) Several studies
showed that JV could lead to positive impact; for instance, Fusfeld (1958) finds that
out of 70 joint ventures in the Iron and Steel industry, 53 are supplied with
agreements. Another study has been conducted by Stuckeys (1983), he examined 64
joint ventures in aluminum and bauxite industry in US, and found that most joint
ventures achieving optimal scale economics. The study also showed that most of
7

8
firms were seeking to expansion and market power (Stuckeys, 1983) Many other
theoretical and empirical works have been done to show that international joint
ventures could lead joint companies to make large profits and perform better
(Harrigan, 1985).
Joint ventures are less risky to undertake where products have the long-term
potential to remain differentiated, but conflicts could arise among partners concerning
control of the basis for differentiation, access to markets, and product presentation 13.
Joint ventures are too inflexible if the basis for competitive advantage changes
frequently unless partners agree that their affiliations must be temporary in nature.
Differences in the use of cooperative strategies to serve customer needs are most
pronounced when comparing customer and industrial businesses (Harrigan, 1988).
In Sino-Saudi cooperation case, the explicit motivation for Saudi side is the
Chinese market access, while for China the primary benefit is the consistency of input
supply. Saudi partners committed capital can be viewed as deposit to guarantee the
input supply, usually oil and raw petrochemical materials. Regarding the technology
transfer, there are a number of previous researches in factors that determine the
success and failure of inter-firm technology transfer within International joint
ventures, including organizational distance (Simonin, 1999a, 1999b), cultural distance
(Lyles and Salk, 1996; Mowery et al., 1996; Choi and Lee, 1997; Inkpen, 1998a,
1998b, Liu and Vince, 1999), organizational context (Kogut and Zander, 1993; Zander
and Kogut, 1995), knowledge connection (Inkpen, 2000), organizational structure
(Inkpen and Beamish, 1997), ownership type (Kogut, 1988; Mowery et al., 1996),
ownership equity (Pak and Park, 2004), relationship openness (Hamel, 1991; Inkpen,
2000), partners attachment (Inkpen and Beamish, 1997), inter-partner trust (Baughn et
al., 1997; Morrison and Mezentseff, 1997; Love and Gunasekaran, 1999, Inkpen,
2000), empathy (Buckley et al., 2002), relationship quality and strength (Szulanski,
1996; Lin, 2005), relational openness (Wathne et al., 1996), relational capital (Kale et
al., 2000), informal relationship (Clarke et al., 1998), articulated goals and
management commitment (Choi and Lee, 1997; Morrison and Mezentseff, 1997), and
legal, political and technical differences (Marcotte and Niosi, 2000). Other important
factors include collaborative know-how, learning capacity and alliance duration
(Simonin, 1999a), collaborative experience and firm size (Simonin, 1999b),
organizational culture, firm size, alliance form, and competitive regime (Simonin,
2004), age of JV (Mohr and Sengupta, 2002), alliance origin and alliance experience
(Yin and Bao, 2006), age of JV (Tsang et al., 2004), and environmental challenge
(Hau and Evangelista, 2007). All references are intermediated references from Wahab,
et al, 2011. Majority of these studies utilize data from other developing countries,
which are usually transferred, while a corporate from developed country as the
technology transfer. And previous research usually concludes the success of
technology transfer as Yes and NO and many factors are actually dummy
variables. In our research, the success would be measured quantitatively, and factors,
which are sourced from previous studies, that may contributed to the transfer, will
also be examined.

2.1.2 Knowledge and Technology Definition

13
Ernst, D., Kim, L. 2002, Global production networks, knowledge diffusion, and local
capability formation, Research Policy, 31: 1417-1429.

9
Knowledge and technology is seen as an important intangible corporate or called
intellectual capital, which is different from the current machinery, land, equipment,
cash and other tangible assets in the financial statements. Intellectual capital includes
human capital, structural capital and customer capital (Petrash, 1996). These are
intangible, which can not be seen from the financial statements, but it determines the
company's future potential and competitive advantage (Edvinson.and Malone, 1997).
UNIDO believes that technology is the sum of knowledge, experience and skills for
enterprises aiming at manufacturing one or more products(Darr and Kurtzbery,2000).
Different understandings for knowledge is often combined with the classification of
knowledge. Some conclusions can be drawn from the current literature that the
standard classifications of knowledge for scholars include the following aspects: the
role of knowledge and technology, the degree of difficulty obtainment and transfer of
knowledge, knowledge of the attached carrier. Many scholars may also refer to two or
more dimensions when compartmentalizing knowledge and technology. For instance,
the classification of knowledge and technology of Hedlund (1994) is a combination of
two dimensions: the difficulty degree of acquisition or transfer of knowledge as well
as the attached carrier of knowledge.
Based on the division types of difficulty degree dimension of knowledge
acquisition or transfer, the scholars tend to use the knowledge classification of tacit
knowledge (Polanyi, 1966). This classification is based on two dimensions of explicit
and implicit knowledge to be divided. Explicit knowledge refers to knowledge that
can be expressed by a written language, graphs, mathematical formulas, etc. It is
usually in the form of the appearance of the product, documentation, manuals,
databases, consensus, training tools and computer programs; and tacit knowledge
refers to the height personal, and practice-related knowledge, which is highly
contextualized, and difficult to be formalized and communicated (Nonaka, 1994).
Tacit knowledge usually exist in the form of intuition, personal experience, technical
know-how, team's understanding, insight and subjective hunch and so on. Nonaka and
Takeuchi (1995) points out that a key challenge for organizations is to transfer tacit
knowledge into explicit knowledge. Those highly covert and highly personal
knowledge shows its value only in the situation, when it is converted into explicit
knowledge that the other members of the organization shall share 14. However, such
transfer process will expose the risks that knowledge and technology has a great
possibility to be imitated by other organizations. Zander and Kogut (1995) discuss the
trade-off between risk knowledge transfer to be imitated and needs to share
knowledge and technology.
In the review of this dissertation, the above definition of knowledge and
technology is basically to summarize the role or function. The researcher can
summarize that knowledge and technology is a complex and comprehensive status
combining information, capital, resources, capabilities, flow properties and so on. The
meaning of knowledge and technology has laid the foundation for the researcher a
proper understanding of knowledge. Because the study object is SSIVs knowledge
and technology transfer, so the definition of knowledge and technology in this
research is to acquire and accumulate during the process of interaction between SinoSaudi parent company and joint ventures, which can directly individual or organize to
related decision-making and problem solving, and it is a dynamic combination of
14
Hair, J. F, Anderson, R. E. Tatham, R. L.,Black,W.C.1998, Multivariate data
analysis(5th). New Jersey: Prentice-Hall Inc. Prentice-Hall Inc.

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complex including factors of brochures, manuals, processes, skills, know-how and
experience, involving both explicit knowledge and tacit knowledge, both knowledge
management, technical knowledge, and the development of a joint venture1516.

2.1.3 Knowledge and Technology Transfer

The generation and transfer of knowledge and technology is a very significant
source for joint ventures to obtain a sustainable competitive advantage. Teece (1977)
proposes that knowledge and technology transfer could help international enterprises
have accumulated valuable knowledge and promote the diffusion of technology, in
order to narrow the technology gap between regions. Since then, the research on
knowledge and technology transfer has quickly attracted many scholars and
practitioners. From the perspective of the micro, systematic modern technology is
mainly reflected in the research and development of new technology, as well as the
dependence on personnel, equipment, financial support, and many other factors.
Systemic lupus of modern technology determines the increasingly complex of
international technology transfer process, showing a significant diversification
characteristic. First of all, the systemic lupus of modern technology makes the new
technology difficult to split, as well as difficult to adaptively transform. This
objectively requires that the introduction side of knowledge and technology must
consider all aspects of equipment, software, and human resources in the introduction
of new technologies to ensure the introduction of digestion and absorption technology.
Cutler (1989) defined knowledge and technology transfer as a process between
two or more participants (individuals or organizations), in which one party acquire
knowledge and technology from the other party. Knowledge transfer shall occur
between the organizers of interactive, patent publications, publications, assets and
services transactions. O'Dell and Grayson (1998) believe that knowledge transfer is a
process cycle. Organizations often put the focus on the creation, validation, internal
knowledge gathering the most appropriate organization17. These activities will allow
organizations have the knowledge to understand, and the knowledge is located. But to
understand the best practices and knowledge of business is not sufficient to ensure the
transfer of knowledge, so it needs follow-up activities, such as sharing, adapting and
using these best knowledge and new scenarios and even create new knowledge. Such
knowledge transfer can really play a role.
According to the boundaries of knowledge transfer, the transfer of knowledge and
technology can be divided into intra-organizational knowledge transfer and interorganizational knowledge transfer (Darr And Kurtzbery, 2000), where intraorganizational knowledge transfer means of knowledge transfer activities in different
departments and units within the organization. The inter-organizational knowledge
transfer refers to the different knowledge transfer enterprises and countries, including
15
Cummings, J N. 2004,Work groups, structural diversity, and knowledge sharing in a
global organization.Management Science,50(3):352-364.
16
Darr.E.D, and Kurtzbery,T.R.2000,An investigation of partner similarity dimensions on
knowledge transfer. Organizational Behavior and Human Decision Processes,82(l):28-44.
17
Anh, .P. T,, Baughn, C. C. Hang, N. T. and Neupert,K.E.2006,Knowledge acquisition
from foreign parents in international joint ventures: An empirical study in Vietnam.
International Business Review, 15(5):463-487.

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strategic alliances, joint ventures, virtual enterprises and other forms of business
organization. Although intra-organizational knowledge transfer and interorganizational knowledge transfer are different, for example, compared with the interorganizational knowledge transfer, the relationship between the strength and
confidence is more conducive to the promotion of intra-organizational knowledge
transfer (van Wijk et al., 2008). However, Easterb-Smith et al, (2008) believes that
intra-organizational knowledge transfer and inter-organizational knowledge transfer
potentially relevant relationships. Inter-organizational knowledge transfer related to
exploitative innovation, exploitative learning and realized absorptive capacity. The
inter-organizational knowledge transfer may be related to exploratory innovation,
exploratory learning and potential absorptive capacity (Harryson et al, 2008;.
Holmqvist, 2003; van Wijk et al, 2008).
Knowledge and technology transfer is a process of communication, interaction
and circulation between the two transfer sides based on the ability and willingness to
teaching and learning, the integration of different sources of knowledge, changes in
the stock of knowledge and basic knowledge of the recipient, so that the recipient of
knowledge could acquire knowledge to solve problems and enhance their
performance and competitiveness. This study focuses on Sino-Saudis parent
company transfer knowledge and technology into the subsidiary joint ventures, which
means across companies and countries borders, and being inter-organizational
knowledge transfer.

2.2 Theory Basis

2.2.1 Monopolistic Advantage Theory
Monopolistic advantage theory was originated in the P.h.D. dissertation of Hymer
(1960). The analysis focuses on the micro-enterprise level. Afterword Nunnally
(1978), Caves (1982) and so on improve this theory, and used the unique advantages
of international joint ventures in the home country to explain the motivation of
transnational production. Multinational joint ventures companies use the imperfect
characteristics of the final product to the market to acquire a monopoly in the home
country. When the market expansion in the home country reaches a critical point, the
international joint ventures naturally shift existing domestic dominance or unique
advantage into foreign, and acquire the monopoly position and profits similar to the
home country of the final product market in the host country. The end result is the
formation of the open international market competition and collusive oligopoly
network. Szulanski (1996) concludes that the international joint ventures unique
advantages include: (1) technical advantages. That knowledge of the elements is
related to technology, information, know-how, and other intangible assets. Economies
scale mainly refers to the international activities of the joint venture's non-production
economies of scale, such as the focus of R & D, sales networks; (2) financial and
monetary advantages. That strong capital base and capacity of global funding,
allocation of funds, to obtain excess returns in advantage of the use of the exchange
rate differences; (3) organizational management capabilities. International joint
ventures headquarters have extensive experience in management, appropriate
organizational structure and well-functioning management system, which can
generates sufficient advantage during foreign expansion18. These are the advantages in
18
Bentler, P.M. 1989, EQS structural equations program manual .Los Angeles, CA:
BMDP Statistical Software, Inc.

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technology and organizational knowledge management capability. The global use of
these elements necessarily requires knowledge transfer across borders. It also should
be noted that the advantages of economies of scale focused research and development
is also related to the global transfer of knowledge and technology. Mowery et al,
(l996) develops the unique assets theory. He believes that the advantages are derived
from the unique assets of multinational complementary assets in the home country
and the host country, in which includes understanding and utilization of national
environmental differences, the use and improvement of input factors, correct grasp the
market demand. The knowledge and technology are formed and accumulated during
long-term operation of multinational companies in the home country or other
countries. The knowledge and technology transfer is an extension of these advantages.
Differentiated Network Research of Ghoshal and Bartlett (1988) confirm that the flow
and contain of knowledge and technology transfer in multinational tremendous have
changed in the past 20 years. With the enhancement of the status of emerging market
countries in the global marketplace, knowledge, technical elements of layout changes,
and as a result the strategic position and R & D functions have enhanced in some
subsidiaries, and even become multinational global network "Center of Excellence"
(Mooer, 2001). Technical these subsidiaries, management experience began to flow
headquarters and other branches of the company, which makes knowledge transfer
complicated.

2.2.2 International Product Life Cycle Theory

Vernon (1966) firstly proposed the International Product Life Cycle Theory. Its
starting point is the study of the species composition of trade and the flow for the
product problems. Transformation process of international trade in goods is in
accordance with the following order of sequence: labor-intensive - technology /
capital-intensive - knowledge-intensive. According to this theory, a technology
development phase of new products generally have three stages: a new product,
maturity, standardization stage. The new product is a knowledge-intensive product. Its
production and consumption often appear in a few developed countries, in which
science and technology advantage is more obvious. In the second phase, when
technology is mature, products transfer from knowledge-intensive into technology /
capital intensive. Production elements are machinery, equipment and skilled labor
skills19. So these countries rich with capital and skilled labor are beginning to have a
comparative advantage, and gradually replace the country's invention to become a
major producer and exporter. By the third stage, the product technology has been
designed into the machine and production line; production process has standardized;
operation becomes the first of simple; knowledge and technology can be easily
transferred. National technology and knowledge-intensive, and capital-intensive
countries have turned to countries with rich labor resources. From the perspective of
the evolution of international product life cycle, there are two distinct stages of
knowledge transfer: the knowledge transfer from the few knowledge-intensive
countries to capital-intensive technology countries, as well as from capital and
technology-intensive countries to labor-intensive metastatic countries. The first stage
of the knowledge transfer is based on the unique technology, patents, production
license, the market demand for the development, management experience. The second
stage is based on the production transferred to embedded wiring knowledge transfer.
19
Dutton,J., and Thomas,A.1985,Relating technological change and learning by doing.
In Richard D. Rosenbloom (ed.),Research on technological innovation, management, and
Policy. Greenwich, CT:JAI Press,2:187 224.

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Then Vernon (1974) uses international product life cycle theory to explain the
direct investment of multinational companies. Product life cycle stages of evolution
choice of investment location format a multinational phenomenon that has leadingedge technology investments to both developed and developing countries in order to
invest. Knowledge transfer in multinational corporations also gone through a similar
process with knowledge transfer. From this perspective, international product life
cycle theory is not only able to connect to international trade and direct investment,
but also to explain the contents of multinational internal knowledge transfer and flow
to some extent.
2.2.3 The Research on Enterprise Technology Accumulation
The Research of Athinson and Stiglitz (1969) on Enterprise Technology
Accumulation is to illustrate the competitiveness of enterprises, the relationship
between organizational change and technology development path. After the
improvement of Nelson and Winter (1982), Jenkins (1987), Cantwell (1998),
Enterprise Technology Accumulation researches were evolved roughly into two
branches. The first branch illustrates the interaction between companies and external
knowledge accumulated technology environment. The second shows the pathdependent branch of internal technology development. This study focuses on the
second branch.20Accumulated technology means that enterprise technology
development is a gradual process. Innovation and application of knowledge need to
constantly adjust and improve internal management and according to changes in the
external environment. And innovation and application of knowledge also has a
continuous interaction. Positive organizational learning and knowledge transfer will
drive breakthrough enterprise knowledge development. Nelson and Winter (1982),
Cantwell (1998) believe that companies localized technological change is the used
product of technological evolution and learning experience. For this reason, although
some companies have a similar level of technological development, the actual
technical development of each enterprise is different route. So technology enterprise
development process has obvious characteristics of path dependence. This view
implicitly illustrate that effective knowledge transfer should take place inside the
enterprise instead of between the enterprises. Companies ,which rely on their own
path of technological development for the history and reality of learning among
enterprises became another obstacle. Cantwell (1998), Pavit (1987) consider the
internationalization of production technology strengthened competition among
multinational corporations. Multinational global expansion is to acquire new
knowledge to increase the accumulation of internal technical requirements of the
enterprise. And innovation and cross-border transfer of knowledge has led to the
growth of international production companies. According to the point of view of
technology accumulation research, if the investment is industry innovation center
location, companies can get research facilitation, which makes it able to extend their
technology innovation to a whole new aspect. Multinational companies own favorable
natural conditions. It relies on organizational networks around the world and become
a global learning and knowledge transfer of the organizers, which has accelerated the
pace of their own technology accumulation.
20
Ernst, D., Kim, L. 2002, Global production networks, knowledge
diffusion, and local capability formation, Research Policy, 31: 1417-1429.

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2.2.4 Organizational Learning Theory

Organizational learning theory research on knowledge transfer within the
organization focuses on creating new knowledge, and is based on the cognitive
perspective to understand the form of knowledge transfer from individuals, groups to
organize. Organizational learning theory pay less attention to organizational
situational factors, but generally does not involve the transfer of specific methods and
transfer mechanisms (Nunnally and Bernstein, 1994). Due to the increase of R & D
investment scale, shorter product life cycles, and increasing economic of scale,
companies tend to be more obvious motivation for the global market to make up for
the early spending21. Meanwhile global production has greatly increased production of
a single plant, achieve economies of scale, and then get a learning effect, which also
contributed to the division of labor and specialization of multinational companies
worldwide. Therefore, the joint venture's internal knowledge transfer among different
plants has become a necessity.
Porter (1985) proved that the reason why the joint ventures tend to expand global
production system and market position is in order to achieve economies of scale and
learning effects, and enhance their competitiveness through the diffusion of learning
effects in the company system. Enright (1995) thinks that the expansion of the global
market share in the joint ventures would strengthen their environmental sensitivity
and ability to learn. Bettenhasen and Murnighan (1985) consider an important result
of international production is the intangible assets and multinational learning process
"production." Transfer of knowledge between organizations are involved in the wider,
which includes both the study of the transfer cost, for instance, Teece (1977) considers
inter-organizational knowledge transfer costs will reduce with the increase in the
transfer of experience; and there are technology transfer speed of research such Wicks
et al, (1999) ,who thinks that more obvious learning pressures
is faced by
multinational companies, so the research on knowledge transfer of multinational
organizations has attracted more people's attention. Pouder and John (1996) find that
this type of multinational companies, which provide support for a subsidiary of the
border about the integration of activities and sharing of resources, tend to have more
innovation. Mowery et al, (1996) found that informal relationships between
subsidiaries could strengthen communication, which is a key to achieving knowledge
transfer. Kim(1998) constructed a model, in which the case of knowledge flow
between subsidiaries may illustrate the type and position of their respective. In their
study, organizational situational factors that affect multinational organizations
knowledge flows are mainly task, the structural characteristics of the organization,
organizational culture and rules.
To fully understand the internal knowledge transfer, researchers bound to examine
the impact of a variety of tissues situational factors, such as the transfer of corporate
governance, organizational structure, corporate culture, daily management,
organizational rules and practices, such as on knowledge. Dutton and Thomas (1985)
believe that there are a variety of mixed forms of enterprise and the market, which are
influenced by the bureaucratic weight and price decisions, such as corporate or
business alliances with self, joint ventures, mergers and acquisitions, alliances, and
other means of forming a virtual network and form a different model of corporate
21
Hedlund, G.1994, A mode of knowledge management and the N-form corporation.
Strategic Management Journal 15 (52):73-90.

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governance. Hubers (1991) study shows that through strategic alliances, mergers and
acquisitions, joint ventures and other forms between the participating companies can
be significant knowledge transfer. Crafts and Venables (2001) explicitly states that
unrelated companies would also generate knowledge transfer through the
dissemination intermediaries and imitation. Just knowledge transfer between
unrelated companies is not within the scope of this study.

2.3 Enterprise (JV) Knowledge and Technology Transfer

Framework and Model
There are relatively few studies on knowledge and technology transfer system
model, the following lists some of the more representative model.

2.3.1 Simonins Knowledge and Technology Transfer Model

Fuzziness in Strategic Alliance
Simonin (1999a, 1999b, 2004) examined the role of the casually ambiguity
characteristics of knowledge among international strategic alliance partners during the
process of knowledge transfer. In 1999, Simonin outset that knowledge casually
ambiguity implicit antecedents include specificity, complexity of knowledge, previous
experience, to protect sexual partners, cultural distance and organizational distance.
These factors affect the fuzziness of knowledge, and thus have an impact on
technology and knowledge transfer (as shown in Figure 2-1).
Recessive
Specificity
Complexity
Experience

Partner
protection

Fuzziness

Knowledge and
technology
transfer

Moderating Effects
Collaboration trick
Learning ability
Alliance age

Cultural gap

Organizational
distance
Figure 2-1: Simonins Knowledge and Technology Transfer Model
Reference: Simonin (1999a)

The empirical results show that the tacit knowledge, previous experience, complexity,
and organizational culture gap affect technology and knowledge transfer with the
intermediary effect of knowledge ambiguity. Significant relationship between these
variables are subject to regulatory role by the variable level of know-how, business
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collaboration, learning ability, age and other alliances. Then in the same year, he
pointed out that knowledge specific properties (implicit, specificity and complexity),
strategic partner specific properties including the recipient's previous experience,
provider protection and business partners distance party (including cultural and
organizational distance away), which will have an impact during the process of
knowledge transfer. The empirical results show that tacit knowledge is the most
important factor, which can determine the transfer ability of knowledge. Cultural
distance, specificity, previous experiences are influenced by respectively enterprise
collaboration experience level, alliances and firm size variables such as age. Simonin
(2004) increased these two factors of learning intentions, learning ability into the
model, as well as the former tacit knowledge and its two antecedents (protective
recessive and partners), which build and empirically test the basic model of
organizational learning, and deepen understanding for obstruction and promote
learning organization mechanism. The empirical results show that the learning
intention (as a driving force to promote knowledge transfer) and fuzzy knowledge (as
an impediment) are the most important determinant of knowledge transfer. Also,
protective and learning partners are regulated by the enterprise itself in the form of
structural learning culture, enterprise scale and alliances.

2.3.2 Isobes Cross-border Knowledge Transfer and Performance

Models
Isobe et al. (1998) noted that the factors that affect knowledge transfer include
strategic importance, the control degree of the parent company and the availability of
complement assets. The results of the performance of knowledge transfer on the
performance of the joint ventures. They stressed that in order to evaluate the
effectiveness of knowledge transfer, the researchers need to adopt knowledge values
and knowledge transfer to measure the speed of knowledge transfer, which is more
scientific and reasonable. They regarded it as a study of the mediating variables.
Model constructed is referring to Figure 2-2.

JV Performance
--Employee
retention
--Perception
of
economic
performance
--Overall
Figure 2-2: Cross-border Knowledge Transfer and Performance Models
Reference: Isobe et al. (1998)

--Strategic
importance
--Control
--Complementary
assets

Knowledge
Transfer
--Knowledge Value
--Transfer Speed

They concentrated study of the Sino-Japanese joint ventures located in China, and
collected more than 220 questionnaires. Through data analysis, the empirical results
show that the strategic importance of investment had a significant positive correlation
with the value of knowledge transfer, knowledge transfer speed (t = 7.26 and t =
3.34), which is in line with the original hypothesis. The control degree of Japanese
parent company has a significant positive correlation with the knowledge value (t =
1.77), which is also in line with the original hypothesis; but there is a significant
negative correlation with metastasis rate (t = -3.49), which is not consistent with the
null hypothesis. In the local market, the availability of complement assets shows a
negative correlation with the speed of knowledge transfer (t = -3.63), and no
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significant effect for the value of the knowledge (t = 1.07). These two results are not
in line with the initial hypothesis. In addition, the study also verifies that the three
exogenous variables (strategic importance, control and the availability of complement
assets) have a direct or indirect influence for the outcome variables22 23.

2.3.3 Almedia & Grants Knowledge transfer means

Almedia & Grant (1998) are based on tacit knowledge to explore specific ways of
organizing knowledge transfer, and respectively to be included in the three categories
of interpersonal communication, communication and embedded coding metastasis.
Interpersonal communication method covers the personnel transfer, e-mail, teamwork,
telephone, video conferences, training seminars (courses), special knowledge transfer
team (community of interests, community affairs). Coding spread including EDI, fax,
text report or manual. Embedded transfer include products, equipment, rules,
procedures and processes, such as production orders (Buckley and Carter, 1999).
Transfer method depends on the following factors: the type of knowledge transfer, the
intended use of the transfer of knowledge, transfer of knowledge of the organization
of the target company.

2.3.4 Szulanski Knowledge Transfer Viscosity Model

Szulanski (1996) regards the difficulty degree of the JV knowledge transfer as the
dependent variable to explore the barriers to knowledge transfer. In the empirical
study, the type of knowledge is embedded in behavior, practices, tasks, rules, social
networks knowledge. He hampers knowledge transfer metaphor for knowledge sticky,
which means the flow of bad meaning. To this end, he proposed a viscous model of
knowledge transfer, and analyzes the sources of internal impediments.
Tackiness Source
Knowledge:
Fuzzy
application
conditions
Knowledge provider: lack of
motivation
Lack of reliability
Knowledge recipient: lack of
motivation
Lack of absorptive capacity
Lack of retention
Context:organizational
interferencecorporations and industrial
22
Jenkins, R.1987, Transnational
transformation in Latin America. London: Macmillan.

Tackiness
Results:transfer
difficulties
Process: Start
Carried out
Gain
Integrate

23
Kumar S, Seth A. 1998, The Design of Coordination and Control Mechanisms for
Managing Joint Venture Parent Relationships. Strategic Management Journal, 19, 579-599.

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Figure 2-3: Szulanski Knowledge Transfer Viscosity Model
Reference: Szulanski (1996), pp35.

2.3.5 Cummings of R & N Technology Transfer Model

Cummings (2004) systematically studied the process of corporate R & D
departments transferring knowledge into other department. He divided all the factors
into the following sections: knowledge context, the difference between the company,
the recipient characteristics and transfer mechanisms. His studies have shown that the
transfer mechanism can interact with knowledge of the characteristics, receiver
characteristics, and regulatory role for the success of knowledge transfer. But his
research focused on R & D department of technology transfer, which is difficult to be
extended to embedded behaviors, tasks, knowledge of complex networks and tacit
knowledge.

2.3.6 The Two-stage Model of Knowledge Transfer

Singapore Professor Wang et al (2004) are based on 62 companies empirical
research, and propose a two-stage model for multinational parent company transfer
the knowledge to Chinese subsidiary factors, which is shown in Figure 2-4.

Knowledge
transfer
capability
--Knowledge base
--Employees Ability

Knowledge
Transfer
willingness
--The importance of
Chinese subsidiary
--Type of ownership
--Enterprise
Relationship

Learning ability
--The quality of staff
--Frequency
of
training
Chinese
subsidiaries
acquire
knowledge

Multination
al
corporation
s
knowledge

Learning
intentions
--Employee
learning intentions
--Frequency

Figure 2-4: The Two-stage Model of Knowledge Transfer

Reference: Wang, Tong and Koh (2004)

Among them, in the first phase, the factors that affect the knowledge and
technology transfer to multinational subsidiaries include knowledge transfer capacity
and knowledge transfer willingness to multinational companies. Knowledge transfer
capability means that the parent company owns the parent firm-specific knowledge,
and the ability to convey knowledge to be absorbed and internalized by its
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subsidiaries in some forms. This ability depends on the knowledge base of the parent
company and the ability of expatriates. They believe that knowledge transfer is a
necessary condition for the ability of the parent company of knowledge transfer.
Transfer willingness of the parent company decided the degree of the knowledge
contribution, which is affected by the type of ownership of and the importance of its
subsidiaries.24 In the specific case of joint ventures, the transfer willingness will also
be affected by the partnership. In the second phase, the factors that affect the Chinese
subsidiary to acquire knowledge include Chinese subsidiaries learning ability and
learning intentions. The factors affect the ability to learn includes staff qualifications
and training frequency. The learning intentions sought to influence corporate behavior
learning. Learning intentions are influenced by employee learning intentions and
reward learning. In both phases, the combined effect of all these factors determined
the effectiveness of knowledge transfer between parent and subsidiary companies.

Chapter 3: Methodology

Table 1 Variables List

First-level variables
a. Company characteristics

Second-level variables
1. Parent Companys
(PCTW)

Transfer

Willingness

2. Parent Companys Transfer Capacity (PCTC)

3. SSIV 's Willingness to Learn(JVWL)
4. SS JV 's Ability to Learn(IVAL)
b. Moderator variable
5.Partnership Relation(PR)
c. Transfer situation
6. Geographical Distance(GD)
7. Knowledge and Technology Gap(KTG)
8. Institutional Differences(ID)
d. Knowledge and technology 9. Tacit Knowledge and Technology(TKT)
transfer characteristics
10. Simple Embedding(SE)
11. Relationship Embedding (RE)
e. Transfer mechanisms
12.Primary Transfer Mechanism(PTM)
13. Senior Transfer Mechanism(STM)
14. Informal Groups and Communication(IGC)
f. Dependent variable
15. Transfer Performance(TP)
Hypothesis List
H1a: There is a positive correlation between knowledge and technology transfer

24
O'Dell, C.and Grayson,C.J.1998,If only we knew what we know: Identification and
transfer of internal best practices. California Management Review.40 (3):154-174.

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H1b:
H1c:
H1d:
H2:

H3a:
H3b:
H3c:
H4a:
H4b:
H4c:
H5a:
H5b:
H5c:
H6a:
H6b:
H7a:
H7b:

performance and Parent Companys Transfer Willingness.

There is a positive correlation between knowledge and technology transfer
performance and the parent companys knowledge and technology transfer
ability.
There is a positive correlation between knowledge and technology transfer
performance and SSIV 's Willingness to Learn
There is a positive correlation between knowledge and technology transfer
performance and SS JV 's Ability to Learn
The "partnership" relationship in official level reflected may enhance the
technology transfer between Sino-Saudi partners. (In SSJV a higher degree of
cognitive trust can be found, while non-cognitive trust is yet to be determined,
because non-cognitive trust roots on in-depth mutual understanding on each
other. Efforts will be made detect the level of non-cognitive trust in SSJV.)
"Knowledge and technology transfer performance is inversely proportional to
geography distance ".
Knowledge and technology gap shows an U-shaped relationship with
"knowledge and technology transfer performance".
There is a positive correlation between "Knowledge and technology transfer
performance" and institutional differences .
There is a positive correlation between "Knowledge and technology transfer
performance" and tacit knowledge and technology .
Simple embedded knowledge will reduce its tacit knowledge, so as to enhance
technology transfer performance.
The relationship embedding knowledge will increase its tacitness, thus
reducing knowledge and technology transfer in performance.
SSJVs knowledge transfer success is positively affected by the primary
transfer mechanism.
SSJVs knowledge transfer success is positively affected by Senior Transfer
Mechanism.
SSJVs knowledge transfer success is positively affected by informal groups
and communication.
"Partnership" relationship will adjust the negative correlation between tacit
knowledge and knowledge technology transfer performance.
"Partnership" relationship will adjust the negative correlation between
knowledge embeddedness and knowledge technology transfer
performance.
The size of SSJV has a positive correlation with "Knowledge and technology
transfer performance"
The age of SSJV has a positive correlation with "Knowledge and technology
transfer performance"

We will use both quantitative and qualitative approaches. Interviews about policy
making processes with relative higher management shall be taken to collect
qualitative information. Questionnaires that include marking system would be used to
collect quantitative information.
Interviewees are managers and engineers from SSJV in China (Beijing, Tianjin,
Shanghai, and Fujian) and Saudi Arabia (Yumbu , Jobail, and Dahran). The secondary
data source will come from published articles, business journals, and related studies.
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For the part Joint Ventures and technology transfer as well as H1/2, both qualitative
and quantitative information are to be utilized. Interviews shall be used to collect
comments and grading. Because of the limited number of SSJVs, which may not
generate a enough pool of 30 companies, we treat individual employee response as
one case and hopefully form one sample which is large enough. All variables are to be
tested for significance. The employees own characteristics will also be analyzed and
documented25.
For the part Roots and status-quo of Sino-Saudi Partnership and H3, majority
documentary information from contracts, government publications, and hopefully
higher management or bureaucrats will be interview to provided first-hand
information. This would help to discover the explicit technology. Some quantitative
information would also be collected from the questionnaire to determine employee
attitude towards policy and their daily operation.
A comparative study is proposed against one Saudi-Third Country JV and one
Sino-Third Country JV to discuss their difference in policies of technology transfer.
This study basically compares the transfer of explicit technology. For the part
Culture and Trust Effects and H4/5/6, both qualitative and quantitative information
are to be utilized. We mainly obtain opinion from employees to grab information on
corporate trust and culture barriers. Some inquiries may be made to each partner
company to clarify their perception to each other in a time-series manner since the
incorporation of JV. Regarding H4, for the sake of fairness, an inquiry on whether the
Saudi partner is individualist is also made, although it is not the current concern26.

3.1 Questionnaire Design and Data Collection

3.1.1 Questionnaire Design
Referring scholar (Nahaplet and Ghoshal, 1998) study, the overall design of the
questionnaire in this study experienced the following stages: First of all, the
dissertation has referenced number of related literature and theoretical research results
at home and abroad, and to find relevant scales measured variable, especially mature
scales, which are based on the preliminary design of the questionnaire. The author has
accessed and organized important reference literature about domestic and foreignrelated knowledge and technology transfer willingness, transfer ability, willingness to
learn, learning ability, relationship quality, knowledge transfer / acquisition and
performance, combined with the unique characteristics of SSJV to choose and modify
the questionnaire, which shall form the preliminary measurements questions of each
variable27. This advantage of the existing scale exist in that they generally have high
reliability and validity. And in general, if the variable table is used repeatedly in the
literature, acceptance of these variables tables will be relatively high. Then, the
author used small-scale discussions and interviews with experts to form the initial
questionnaire. Preliminary design of the questionnaire was first reported and
discussed among individual members of the academic team, as well as doctoral
25
Simonin,B.L.1997The importance of developing collaborative know-how: An
empirical test of the learning organization. Academy of Management Journal,40(5):11501174.

26
Young R.G & BradfardS.J. 1977Joint ventures: Planning and action.
New York. Arthur D. Little.
27
Wicks, A.C ,Berman, S.L,Jones, T.M. 1999,The structure of optimal trust: moral and
strategic implications . Academy of Management Review, 24: 99-116.

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students around. This is conducive to extensively consult the suggestions of relevant
researchers and team members about the questionnaire and to amend and improve the
questionnaire in accordance with these views and suggestions. Secondly, the
researcher in-depth studied the Sino-Saudi joint ventures, active the role of students
and instructors connections, selected several SSJV relevant personnel to interview.
According to interviews with experienced personnel, the researcher will do some
modify and supplement of the relevant provisions. According to interviews with
personnel experience and relevant literature, the researcher amended and supple the
relevant provisions to further determine the appropriate questions of the
questionnaire, eliminated the semantic confusion and ambiguity of expression,
formatted the initial questions of this questionnaire. in the following, the researcher
took advantage of small sample pre-survey to modify the title entry to the
questionnaire, language statements, questions of order, analyzed the results of the
analysis, removed unnecessary items title. Before the formal issuance of large-scale
questionnaire, this paper conducted a small-scale pilot testing. In this study, the use of
pre-tested managers SSJV, could determine which of the questions in the
questionnaire should be kept, and which of the questions should be deleted. In the preinvestigation process, what should be noted is that the pre-investigation should be
taken from the official test object groups, which should be representative. Test
methods and formal testing methods are the same 28. the last step, the researcher has
performed a final formal survey questionnaire.

3.1.2 Questionnaire
Relevant variables in the survey questionnaire mainly related to SSJVs basic
situation of enterprises, knowledge transfer effectiveness, impact factors and so on. In
the survey, the dissertation firstly investigated SSJVs initial time, firm size, industry,
respondents duties and grade the actual situation. On the topic of SSJV knowledge
transfer affecting factors and knowledge transfer performance, the measurement
variables, in addition to a small amount of fill in the blank and multiple choice
questions, this study takes 5 Likert Scale Agree, in order to increase the amount of
variation of variables and improve discrimination variables. With the principles of 5
Likert Scale Agree, the questionnaire defines the represented meaning of 1-5 scores:
1-5 scores indicate a gradual turn from completely opposed to totally agree, in which
1 represents totally opposed; 3 represents no opinion; 5 represents full agreement. In
addition, 1-5 scores also indicated a progressive degree turn from very small to very
large, in which 1 represents a very small extent; 3 represents general; 5 represents a
very large extent. Since the variables in this study are difficult to measure, so the main
way to measure variable is the subjective perception. The reason why to make use of
this measurement exists in the following aspects: individual measuring questions
could generally measure only a narrow concept. Measuring complex phenomenon and
research typically requires a plurality of measurement questions of design. Therefore,
the dissertation has designed quantities of topic item questionnaire to measure more
than one independent variable, dependent variable and moderator variable, in order to
improve the reliability and validity. The questionnaires about basic information of
SSJV tend to use the enclosed form of multiple-choice questions for the size, industry,
enterprise, set up other projects in order to grasp the basic information SSJV. On the
basis of the last chapter of the conceptual model, the basic contents of this
28
Williamson,0.E.1991,Comparative economic organization: The analysis of discrete
structural alternativesAdministrative Science Quarterly,36(2):269-296.

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questionnaire include: (1) basic information about SSJV. It should be noted that, it is
wise for the researcher to make full use of the basic questions of information, because
sometimes a problem is capable of measuring a variable; (2) the affecting factors of
knowledge and technology transfer from the parent company to the joint ventures; (3)
moderator variable of knowledge transfer / knowledge acquisition; (4) SSJV transfer
performance29.

3.1.3 Questionnaire Distribution and Recycling

The object of study is SSJV, whose data simply can not get from public. Therefore,
this study adopted the questionnaire to collect data. Questionnaire study objects are
SSJVs, which are located both in China or Saudi equity joint ventures. At least two
parent companies set up an independent company jointly. And the equity of the parent
company in the joint ventures parties is at least 25% and no more than 75% 30. About
Sino-Saudi joint ventures selection, due to the knowledge and technology transfer
path of joint ventures involving more strategic level knowledge of factors, the
dissertation select those joint ventures, in which the researchers can understand
knowledge transfer process from Sino-Saudi parent enterprises to subsidiaries and
joint ventures, as well as the antecedents and outcomes. Data collected from the
questionnaire is the key to subsequent empirical research, which will directly
determine the validity and reliability of the research data and to determine the
accuracy of scientific and research results. In the data collection process, this study
used the following ways of payment of the questionnaire and data recovery, such as email, web, fax, and mail and other methods. As much as possible in order to expand
the sample size, in addition to taking e-mail, web, fax, and so on to send the
questionnaires and collect the data, the study also took a snowballing questionnaire
survey, which is to sent questionnaires to related businesses, as well as invite the
senior managers of enterprise to send the questionnaire to other senior managers of
joint ventures for the data collection31.

3.2 Variable Measurement and Hypothesis

Independent variables are involved in this study include enterprise features
(transfer willingness of the parent company, the transfer ability of the parent company,
the joint venture's willingness to learn, learning ability), knowledge transfer situation
(geographical distance, knowledge and technology gaps, institutional differences),
knowledge characteristics (tacit knowledge, simplicity embedding, relationship
embedding ); the manipulated variable ( the partnership relation between China and
Saudi), the mediating variables (primary transfer mechanisms, senior transfer
mechanisms and informal groups and communication) the dependent variable (SSJVs
knowledge and technology transfer performance) and control variables (SSJVs size,
age). In this study, the subject has come from all kinds of variables or some relatively
mature scales, or a combination of the actual needs, to amend the relevant scale, or
according to the results of field interviews.
29
Polanyi,M.1966,The tacit dimension. Garden City, NY: Doubleday.
30
Mowery, D.C., Oxley, J.E., Silverman, B.S. 1996, Strategic alliances and
inter firm knowledge transfer. Strategic Management Journal, 17:77-91.
31
Lundvall, B. A. 1988, Innovation as an interactive process: from user-producer
interaction to the national system of innovation, in technical change and economic theory,
GD et al (eds.). London: Pinter.

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3.2.1 The Dependent Variable Measuring

In this dissertation, the researcher takes knowledge and technology transfer
performance as the dependent variable. How to choose the observed variables is a
troublesome thing. Prior to this, Suzatnski (1996) has used "difficult knowledge
transfer" as the dependent variable, whose internal organization observed variable is
the "best behavior" and hinder time during the transfer process. Cummnigs and Teng
(2003) used the "knowledge transfer success" as the dependent variable, and selected
the recipient's right, pride, effort, etc., as observed variables. When Winter (1995) was
in the measurement task of embedded knowledge and technology transfer
performance, the thought of this type of knowledge and practices, rules, network of
relationships being complex came to his head, which are difficult to distinguish, and
choose organization new rule or the daily running smoothly degree as the dependent
variable. In the research of the concept of enterprise knowledge absorptive capacity,
Zahra (2002) recommends using the "learning capacity building" and "organizational
learning environment improvement" to evaluate knowledge transfer performance.
Nonaka (1994) suggested the use of the degree of smooth knowledge transfer to
measure knowledge transfer performance. This dissertation argues that knowledge
and technology transfer performance evaluation is a comprehensive index system,
which should be a comprehensive account of the role of the results from the recipient,
the transfer process, and coordinate relations. According to the evolutionary stage
venture differentiated networks, most joint ventures are still in a relatively subsidiary
knowledge inflow stage. The perspective of knowledge received is relatively easy to
measure knowledge transfer performance. Combined with cultural characteristics of
China and Saudi Arabia, the questionnaire chose Nonaka (1994) knowledge transfer
patency, Cummings (2004)" ownership ", Zahra (2002)" learning "and" knowledge
transfer atmosphere "as the dependent variable, which are measured at three levels of
the results, the effect of the process and mechanism of the process of knowledge
transfer operation.

3.2.2 Definitions and Measurement Independent Variable

Based on the conceptual model of this study, a total of independent variables
include firm characteristics (the parent company of knowledge transfer and joint
willingness and ability to transfer four dimensions), knowledge transfer situation
(geographical distance, knowledge and technology gaps, institutional differences),
knowledge characteristics (tacit knowledge will, simplicity embedded relationships
embedded). Therefore, in the conceptual model of the present study, the researcher
defined and measured nine independent variables.
company properties
(1) Knowledge and technology transfer willingness of the parent company
Wang et al. (2004) point out that knowledge and technology transfer willingness of
the parent company refers to the degree of the parent company willing to transfer
knowledge to the joint ventures subsidiaries. Rogerr and Yushan (2003) point out that
transfer willingness of knowledge source refers to the source of knowledge in the
process of knowledge sources company transferring knowledge to the recipient
enterprise, and to what extent companies are willing to share self-knowledge. About
the measurement of knowledge transfer willingness, Jacky et al, (2009) are based on
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the judgment whether knowledge transfer party put sufficient manpower, equipment,
funds and time in the process of knowledge transfer (Cronbaeh's is 0.883). Ernst and
Kim (2002) make use of the three questions (promotion of knowledge and work
experience, active and constructive improvement plan, work experience or lessons) to
measure knowledge transfer willingness (Cronbaeh's is 0.870). Duan et al, (2010)
measure the knowledge transfer willingness of the international flagship interest from
companies to share knowledge sender knowledge of the extent and the degree of
confidence in the importance of the recipient (cronbach's is 0.833). This study will
mainly reference and draw these scholars research. In the study on the basis of SSJV,
knowledge transfer willingness of this study refers to that the tendency of the parent
company is willing to provide information to the joint ventures subsidiary, which
namely the extent to which the parent is willing to share knowledge to its joint
ventures subsidiary (Wang et al, 2004).This study is based on actual interviews and
pre-research situation, combined with the actual situation of knowledge transfer SSJV
to modify and improve some measure indicators, obtained the measurement terms of
knowledge transfer willingness. Based on this, this study presents the following
hypothesis:
H1a: there is a positive correlation between knowledge and technology transfer
performance and parent companys transfer willingness.
(2) Knowledge and technology transfer ability of the parent company
Pedersen et al (2003) combined with the transfer ability to of participants'
satisfaction, provided an incomplete measure of the way for the originator, which may
indicate that the transfer of knowledge transfer side can be measure by research.
Martin and Salomon (2003b) define knowledge and technology transfer ability as
originators source transfer capacity( STC). Park (2011) measured the knowledge and
technology transfer ability to of multinationals from the provider's internal capacity
and sharing intentions. Among them, the provider's internal capabilities include
relevant knowledge (including a title entry) and previous collaborative experience
(including two theme items, Cronbach's a was 0.887). Share intended includes open
communication between parent company and joint ventures (including two theme
items, Cronbach "s a was 0.707), the parent companys active management (including
five key questions, Cronbach's a was 0.722), assignment of experts transfer (including
three key questions, Cronbach's a was 0.967) as well as training providers (including
two title items, Cronbach's a was 0.870). On the base of the above documents, the
actual interviews and pre-research situation, combined with the actual situation of
SSJV, the dissertation topic is related to modify and add items to get a parent
companys knowledge transfer capacity scale. Transfer ability of the parent company
in this study refers to the providers timeliness and properly explain and impart
knowledge to the recipient (Wang et al, 2004). Based on this, the dissertation
proposes the following hypothesis:
H1b: there is a positive correlation between knowledge and technology transfer
performance and the parent companys knowledge and technology transfer ability.
(3) SSJVs willingness to learn

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Chini (2004) proposed that willingness to learn is on behalf of the recipient of the
extent of the recipient wants to learn skills and knowledge from the other party, which
is an important factor that affects knowledge transfer. In the context of the joint
ventures, willingness to learn (Daghfous, 2004) represents the learning selfdetermination, dosire and will of an organization from its partners or collaboration
environment, which reflects the specific skills to internalize the wishes (Pucik, 1988;
Hamel, 1991: Simonin, 2004). About Measurement of learning willingness, Szulanski
(1996,2000) believes that receive motivation is driven by the pressure and the desire
to profit. Therefore, he uses the pressure and the desire to profit as measure indicators
in related research, which includes a total of 14 problem items (Cronbach's is 0.93).
Giblert and Gordey-Haye (1996) measures the willingness to learn of the joint
ventures from the manpower, material funding and time (Cronbach's a is 0.893). This
study suggests that knowledge transfer is a learning process for SSJV. The willingness
degree of SSJV access to knowledge and technology from providers reflects the
willingness to learn. This study is to measure the willingness to learn from SSJV
interest in learning, learning motivation, and mental invention. Based on the above
willingness to learn, as defined in this article, degree of willingness to learning of
SSJV refers to knowledge and technology that the SSJV will get all kinds of from the
parent company. Based on this, the dissertation proposes the following hypothesis:
H1c: there is a positive correlation between knowledge and technology transfer
performance and SSIV 's willingness to Learn
(4) SSJVs ability to learn
About learning ability of joint ventures connotation, Hedlund (1994) pointed out
that learning ability means that the absorption capacity for the parent company about
the provider's knowledge and skills, and parent resources support and incentives
support. This can be seen, the connotation of learning ability includes the recipient's
knowledge base (including previous experience and knowledge of the joint ventures
expatriates), absorptive capacity, training frequency. About measurement of learning
ability, many scholars use the absorptive capacity (Cohen and Levinthal, 1990;
Hamel, 1991; Mowery et al, 1996; Szulanski, 1996; Zahra and George, 2002;
Minbaeva, 2007). In these studies, some use factors absorptive capacity; others use
part of the absorptive capacity. Szulanski (1996) apply 9 questions to measure
whether the receiver lack of absorptive capacity (Cronbach's was 0.83), with 6
question items to measure whether the receiver lack of retention capacity (Cronbach's,
a was 0.77). Based on this, according to the actual interview situation, combined with
the need for SSJV, SSJVs learning ability in this dissertation is defined as that on the
basis of certain knowledge, the ability of SSJV to identify, evaluate and modify, and
be absorbed by the parent company's knowledge and technology, and transformed into
valuable knowledge, which can enhance the ability of employees. Based on this, the
dissertation proposes the following hypothesis:
H1d: There is a positive correlation between knowledge and technology transfer
performance and SS JV 's ability to learn

3.2.3 Moderating
Roots and status-quo of Sino-Saudi Partnership Relation
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Huber (1991) pointed out that the relationship was one important way to gain
knowledge of the organization. The close relationship between providers and
recipients of knowledge is the basis of knowledge transfer (Minbaeva, 2007). With
increasing frequency and communication of interaction between partners, relationship
strength also will be inviting (Hansen, 1999). Due to tacit knowledge and embedding
rules, the knowledge network requires more human interaction and coordination.
Knowledge transfer between the two sides is bound to affect coordination,
maintenance costs thereby affecting knowledge transfer(Suzlanski,l996). When
diplomatic relationship was reestablish between China and Saudi Arabia in 1990,
bilateral trade was as thin as US$ 296 million, in which energy sector had very
insignificant role. (Sfakianakis, 2012) According to a 2009 agreement concluded
between Aramco and Sinopec, this figure is poised to reach 1.5 million barrels by
2014, effectively making China Saudi Arabias most important energy customer for
the near future. (Bloomberg, 2012) Furthermore, Chinese energy import dependency
is projected to increase to 72%, when parity to United States shall be reached. (IEA,
2007). This appetite is the pinpoint of Chinese value as a primary partner to Saudi
Arabia. In further context, it is under doubt that United States, although remained the
worlds biggest consumer of oil with the Kingdom supplying nearly 14 percent of its
overall imports, is arguably reaching a demand cap for further consumption of Saudi
oil for multiple reasons. (EIA, 2011) Beside, China is also a potential military
hardware supplier to Saudi Arabia, though CSS-2 deal in 1980s may be deemed as a
failure. Saudi may still regard China as a supplementary supplier, and provide the
quality of Chinese hardware in progress. In Chinese point of view, Saudi Arabia not
only supplies a large portion of its energy imports, but also its largest market in
Middle East as well as Muslim world since 2008. The Chinese export to Saudi Arabia
is mainly textile, as well infrastructure construction services. Existing researches are
basically made on macroeconomic, strategic and even political affairs and trends.
They attempted to summarize an overall Sino-Saudi relationship from a series of
events, for example, a joint venture is considered to enhance the partnership. Instead
of their generalized approach, we will test if the mouth-and tongue partnership
impacts micro-level affairs, like the trust-building process in joint-venture activities,
and finally, technology transfer.
Trust, the belief that an exchange partner would not act in self-interest at another's
expense (Uzzi, 1997: 43), is important in alliances and joint ventures because no
contract can cover all the variations and conditions that can occur. Trust allows access
to resources and a willingness to work things out through mutual problem solving
(Uzzi, 1997). It signifies a commitment by the partners not to take advantage of the
other party's weaknesses (Steensma and Lyles, 2000). Lane et al. (2006) suggest: 'trust
functions as an ongoing social control mechanism and risk reduction device. It
influences both the extent of knowledge exchanged in IJVs and the efficiency with
which it is exchanged' (2001: 1141). Trust leads to a shared understanding between
the parent firm and the IJV managers (Dyer and Nobeoka, 2000). Furthermore, the
success of IJVs may depend on their adaptability in local cultures, especially their
abilities to build a high level of trust with local partners (Buckley et al., 2007). Trust
is intentional acceptance of vulnerability based on positive expectations of intentions
or behaviors of another (Rousseau et al. 1998). Trust may be developed gradually
over time in an IJV (Madhok, 2006), but can be very fragile and easily damaged by
inappropriate or opportunistic behaviors. The trust can be spitted into cogitative and
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non-cogitative; both are with importance in transferring technologies, while the noncogitative is essential in transferring implicit technology. The business culture
attribute can be separated into collectivists, which utilizes predictability,
internationalism process and transference process and individualists, which utilizes
calculative process and capability process. It is usually assumed both Chinese and
Saudi companies are within collectivist scope. Fan, Anantatmula and Nixox (2012)
have documented a case that in a reputable SSJV, the Chinese partner has
demonstrated opportunistic behavior, by artificially inflating the professional labor
cost levied from the SSJV, which cause the loss of trust from the Saudi partner. The
Saudi partner has exercised collective trust assessment by refusing further cooperation
in various expansions. However, when the JV contract reaches to its end, the Saudi
partner requests the extension of the cooperative relationship, and their mutual trust
was rebuilt. Fan et al. (2005) argued that the Saudi partner has experienced the
learning curve and transformed themselves from collectivist to individualists,
therefore after careful consideration, they rebuild their trust on belief of Chinese
partners capability in operation and marketing, instead of good will.
We would make inquiries to detect if any opportunistic behavior had even been
observed. The observation would be made from both sides, because due to cultural
differences, partner may possess different definition opportunistic behavior. If any
opportunistic behavior is found, we would examine the other partners reaction on this
behavior, and if a collectivist-to-individualist transformation had even been found.
Partners in a JV with remote cultures may fall into a suspect chain, both sides may
doubt each others honesty, and worried its opportunistic behavior with or without
evidences; on the other hand, they are also worried to look dishonest in the eye of
the other party. The non-cognitive trust requires partners to trust the other side in
blindness, which requires a very long history of cooperation. In SSJV a higher
degree of cognitive trust can be found, while non-cognitive trust is yet to be
determined, because non-cognitive trust roots on in-depth mutual understanding on
each other. Efforts will be made detect the level of non-cognitive trust in SSJV. Based
on this, the dissertation proposes the following hypothesis:
H2: The partnership relationship in official level reflected may enhance the
technology transfer between Sino-Saudi partners.
knowledge and technology transfer situation factors
Subscale of situation factors are reflected in the three latent variables of
"geographical distance", "knowledge gap", "institutional differences."
(1) geographical distance
From the perspective of sociology, Nunnally and Bernstein (1994) point out that
face to face contact in the same location will help create a good atmosphere for
interpersonal communication, which helps to further foster mutual trust, openness,
interactive relationship. This will definitely increase the exchange and communication
of employees. Poretr (1990) has proved that geographical proximity is a necessary
condition for the enterprise to "face to face" learn. Dutton and Thomas (1985) found
that face to face talks is better than the telephone exchange, the exchange of internal
documents, workbooks guidance to transfer more critical knowledge. In any case, in
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contrast to the geographical proximity, geographical distance is always far more likely
to cause communication barriers for multinational system personnel. Thus the
"geographical distance" is used to reflect this difficulty. Geringer and Hebert (1989)
found that when the two organizations are separated from each other by location, the
slower the transfer of technical knowledge is embedded between them, which is
caused by geographical distance, and language and cultural differences. Because of
geographical distance between the two sides of knowledge transfer may cause
different types of language system, or distinct subculture, which will add to the
uncertainty for knowledge transfer. The modern multinational enterprise networks are
often throughout the world. Due to the geographic distance constraints, different
means of knowledge transfer that aid should come up with different results. So in the
questionnaire, geographical distance is enumerated to measure the "geographical
distance" variable. Based on this, the dissertation makes the following hypothesis:
H3a: Knowledge and technology transfer performance is inversely proportional to
geography distance
(2) knowledge and technology Gap
Knowledge gap is the difference between China and Saudi Arabia in the
accumulation of knowledge levels. SSJV in different levels of economic
development , different skill levels, different departments or affiliated companies
often present knowledge gap, which is one aspect of the internal situation of
multinational diversity. Reasons for knowledge gaps can be a good measure of both
the knowledge gap (Osterloh and Frey, 2000). First of all, the knowledge and
technology gap is the cause of China and Saudi Arabia's skill level or their
accumulated technology stocks. Furthermore knowledge gap can also be reflected by
comparing knowledge control processes. Due to the company's "path dependence"
feature in the process of knowledge accumulation, even with the same level of
technology, knowledge processing program or technology development process in
different enterprises are significantly different, which thus forms the different means
and methods of knowledge accumulation. When multinational companies look for
strategic alliance partners worldwide, some path characteristics in an enterprise
knowledge transfer will encounter the problem of "path is not compatible with" in
another enterprise, which causes the dilemma that could not recognize, process,
integrate new knowledge. About this theory, Nelsno & Winier (1982) also have a
special discussion in their economic evolution theory. They believe that a similar
structure of knowledge and knowledge handlers are favorable conditions for the
formation of knowledge transfer. So the dissertation lists "technology development
process" or "Manage History" into the questionnaire. At the same time, if the
knowledge gap is too small, the level of knowledge of the structure and technical
knowledge between potential providers and recipients are almost identical, which
would not have the necessary knowledge transfer. So too the knowledge gap will play
a negative role in knowledge transfer (Pouder and St John, 1996; Badaraceo, 1991;
Crafts and Venables, 2001). Based on the above view, the dissertation makes the
following hypotheses about the knowledge gap:
H3b: Knowledge and technology gap shows an U-shaped relationship with
"knowledge and technology transfer performance
(3) Institutional Differences
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Institutional differences reflect the comparative of knowledge transfer of both
countries in political, economic, cultural, and legal. Kosotva (1999) considers
institutional differences among different countries are more conducive to analyze the
multinational investment behavior and knowledge transfer behavior. National
institutional differences are an objective reality. Enterprises have been running in
different institutional system, its behavior will inevitably differ because the system
requires the country. Knowledge Transfer multinationals are also affected by
institutional difference, and had to make modifications to the institutional
environment in response to new types of knowledge transfer, transfer methods.
Institutional comparison is to compare specific internal systems, norms and
organizational culture of knowledge transfer between the two sides enterprises or
departments (Davenport, and Prusak, 1997). As Kostova said, enterprise system and
the act itself can embody the specific requirements of the country, the industry.
Enterprise system and the behavior comparison of both sides of the knowledge
transfer can become a simplified way to judge the difference between the two
countries system. So questionnaire also measures the knowledge transfer both sides of
the difference in internal systems, codes of conduct or organizational culture. It can be
seen, in the process of knowledge transfer in the enterprise, enterprise system culture,
as factors of knowledge transfer, can promote enterprise knowledge transfer. It
consists of a firm knowledge transfer internal control environment, together with
other factors. The formation of this environment plays an active role both in the
enterprise knowledge transfer activities carried out, or the specific transfer process
management and control, which will continuously improve corporate knowledge
transfer effect. The individual is always in a certain cultural atmosphere. If what
enterprises provide the individual is an environment, in which companies are
encouraged to take responsibility, to provide the necessary time for new ideas, and
allow creative mistakes. Then for the individual, he would be easier to accept new
knowledge. Foundation of knowledge transfer is comprised of learning practices,
capabilities and skills. They are also the basis for the formation of an individual to
retain knowledge and nurture knowledge. Based on the above analysis, we propose
the following hypothesis:
H3c: There is a positive correlation between "Knowledge and technology transfer
performance" and institutional difference
characteristics of knowledge and technology
(1) Tacit Knowledge
Some knowledge, such as information, has the characteristics of public goods.
Furthermore some knowledge, such as management know-how, experience,
equipment operation skills, tacit knowledge of these learning knowledge
accumulation and transfer will not be as simple as the discovery and dissemination of
information. Non-coding nature of tacit knowledge makes it difficult for people to
learn in the textbook learning. So tacit knowledge often requires learners taking a long
time to slowly appreciate, which is difficult to achieve such knowledge to be
transferred in the near time (Enright,,1995;Hansen,1999:Dhanarajet.al,2004). Kougt
& Znade (1993) compared tacit knowledge and explicit knowledge, and found the
characteristics of clear knowledge is that we can use words, language, symbols to
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codes, and spread through newspapers, books, CDs, sounds, images and other media.
For the perspective of this tacit knowledge into a joint venture properties, due to the
global expansion of multinational corporations make subsidiaries and cooperative
networks penetrated into every corner of the world, country proprietary knowledge of
subsidiaries and local industrial clusters often make the host of industrial policy,
consumer characteristics, local enterprise networks are intertwined, Thus an increase
is in complexity. The parent companies and the subsidiaries may be respectively in
different countries, different languages and cultures, which makes it difficult to
express knowledge and understanding. Even if a clear knowledge exists in similar
problems. Based on this, the dissertation proposing the following hypothesis:
H4a: There is a positive correlation between "Knowledge and technology transfer
performance" and tacit knowledge and technology
(2) simple embedding
Simple embedding refers to the knowledge and technology that is embedded into a
carrier or "personnel - tools" Embed based. Engstrom (1990) described in detail the
case of knowledge embedded personnel. He cited the critical knowledge on the
consulting industry is a typical kind of knowledge. Kim (1998) also confirms that the
knowledge of management consulting industry and legal service industry have
significant personnel embedded features. But Lane and Lubatkin (1998) consider a
simple personnel transfer, which can not fully realize knowledge transfer, but also
need to create a similar working environment and conditions, or that the transferred
staff could adjust their own knowledge structure under the new environment. On
SSJV, the embedded tools in knowledge transfer can occur within the department of
the same organization, between different organizations and enterprises constitute the
alliance relationship (Bettenhasen and Murnighan, 1985). However, due to the
proprietary nature of technology and the path of their own technology-dependent,
knowledge transfer of the mother company system in multinational with obvious
hierarchical relations is easier than among different enterprises, which thus forms
Enterprise Knowledge Development path dependence (Mytelka and Farinelli, 2000).
So when there are similar practices, groups or familiar knowledge of the rules
contained in the organization, which means that the homogeneity of the organization,
knowledge transfer is more likely to occur. Based on this, we propose the following
hypothesis:
H4b: Simple embedded knowledge will reduce its tacit knowledge, so as to
enhance technology transfer performance.
(3) Relationship Embed
This dissertation presents a concept of "relationship embedded" from the
perspective of knowledge embedded in the of network characteristics , namely
knowledge is not only embedded in a carrier in most cases, but at the same time
embedded in the associated network. Relationship embedded refers to the knowledge
embedded in the "people - tools - practice" and its corresponding coordinate the
relationship between the network, or "practice" in a complex network of relationships.
Reagans and McEvily (2003) prove that due to the knowledge embedded in the
program and structure, knowledge transfer would be difficult to achieve the intended
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purpose only rely on personnel or equipment, technology transfer flow without
corresponding network model. Kogut & Znader (1992) also believe multinational
companies hire local personnel in the host country who master technology, which
does not mean they could definitely improve the technical level of its subsidiaries
unless they possess the home country model creation or transferring technical
organization supporting the environment. Because multinational staff mobility is not
as easy as at home country. Advanced equipment, management, organizational rules
transferred by knowledge and technology will be resisted by cultural conflict or
implementation difficulties. Relations embedded knowledge is mainly personnel,
tools and complex practices embedded integrated with appropriate interpersonal
networks, which is often difficult to distinguish coding and teach. So this will increase
the tacit nature of knowledge. Based on the above analysis, the dissertation makes the
following hypothesis:
H4c: The relationship embedding knowledge will increase its tacitness, thus
reducing knowledge and technology transfer in performance.

mediating variables - transfer mechanisms

(1) Primary Transfer Mechanism
Transfer mechanism is the collectively of means, tools, forms, methods used
during knowledge transfer, which is a necessary anchor of successful knowledge
transfer (Wicks, et al, 1999). JV knowledge transfer means is varied, which usually
includes products and production line transfer, cross-training, job rotation employees,
joint R & D, joint production, output in the form of management and other strategic
alliances (Zaheer and Mosakowski, 1997).Common production and technology
transfer means of multinational attribute to external experts usage, internal consulting,
international training managers and workers, video production sites, e-mail, working
visits, collaboration and production company guidance manuals (Yakhlef,
2007;Zander, 1991). What can see is that the primary transfer mechanism is clear,
expressed, and encoded knowledge; and the senior transfer mechanism is tacit and
difficult to express, and embedded and practice staff knowledge. Due to the difference
of SSJV have clarity and tacit knowledge. Specialty primary mechanism is to transfer
clear knowledge, through specific means. This knowledge can easily be transferred
efficiently by text message, parts or equipment, product lines, patent transfer. So the
dissertation makes the following hypothesis:
H5a: SSJVs knowledge transfer success is positively affected by the primary
transfer mechanism.
(2) Senior Transfer Mechanism
Polanyi (1962), Nelson & Winter (1982) affirm the role of tacit knowledge,
practices, rules on corporate governance is more significant than explicit knowledge.
Therefore transferring tacit knowledge should become an important medium for the
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multinational corporation to enhance or maintain a global competitive advantage. In
addition to the transfer of a dedicated staff, senior transfer mechanism also includes a
higher degree of project teams, management, collaboration and strategic alliances.
The ways promote knowledge attached to the usual research investigate, business
dealings work coordination, which can migrate tacit transfer. Nonaka (1994) believes
that companies must create an extensive collaborative environment to promote the
mutual conversion between tacit knowledge and explicit knowledge, knowledge
courier from individuals, groups, organizations until the network, which is a necessary
condition to promote organizational learning. Therefore, the dissertation makes the
following hypothesis:
H5b: SSJVs knowledge transfer success is positively affected by Senior Transfer
Mechanism
(3)Informal groups and communication
Informal groups and communication is emotional communication within the
organization, which can meet the requirements of organizational members to develop
personal interests and get emotional ownership. Guan (2005) believes management
science is based on the non-rational perspective to research informal groups, which
can not reflect whole picture of organizational activities affecting informal groups.
From the perspective of "rational" economic man about the organization of informal
groups, it plays a role in the distribution of different degrees of organizational power
game, the formation of the unspoken rules, organizational interest redistribution,
system construction and implementation, but also become a force to contend with the
organizing authority to some extent. Ingrm (2004) thinks that in tacit knowledge
transfer, informal transfer effect is usually better than the formal transfer means the
organization set. SSJV operate respectively in China and Saudi Arabia cultural
environment. Its employees are also mostly Chinese, Saudi Arabia or other countries.
These joint ventures will inevitably be influenced by the context of their own culture
and country, special joint ventures or alliances. So we can conclude that knowledge
transfer multinationals are also affected informal group activities. Thus the
dissertation makes the following hypothesis:
H5c: SSJVs knowledge transfer success is positively affected by informal groups
and communication.
regulatory role of partnership relation
From the perspective of psychology, intimate and lasting relationship of
knowledge transfer can be attributed to both sides final mutual recognition, which is
mainly reflected in the values, organizational culture, social status, management
methods and so on. Mutual recognition can produce admiration and learning
motivation, which accelerates the transfer of knowledge (Berdrow and Lane, 2003). In
the research of international joint ventures, knowledge transfer, Carlsson (1996) found
that the closer the social status and relationship of joint venture partners, the more
smoothly the knowledge transfer. Thus identity is crucial that constitute knowledge
transfer of relationship distance between the two sides. Therefore, the dissertation
considers that the closer the relationship between the enterprise, the more favorable
3
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the tacit knowledge transfer, which thereby enhance knowledge transfer effect.
Similarly, relationship knowledge embedded and organizational situational factors are
similar. When knowledge is embedded into the organization members, according to
Almeida & Kogut (1999) empirical analysis, if the recipient is more familiar with this
practice, or the presence of relatively similar practices among enterprises, knowledge
transfer will be easier. Based on the above analysis, the dissertation proposes the
following hypothesis:
H5a: "Partnership" relationship will adjust the negative correlation between tacit
knowledge and knowledge technology transfer performance.
H5b: Partnership" relationship will adjust the negative correlation between
knowledge embeddedness and knowledge technology transfer performance.
control variables
Empirical research about knowledge transfer selects a variety of factors as control
variables, such as co-age (Simonin, 1999), knowledge of similarity (Lane & Lubatkin,
1998), the business background (Teeee, et al, 1997), the absorption capacity (Lane &
Lubatkin, 1998 ), firm size (Simoni, 1999), collaborative experience (Simonia, 1997)
and so on. This study integrates the majority of the control variables into the above
independent variables, for instance, collaborative experience, business background
have been integrated into the knowledge transfer situation; absorptive capacity has
been integrated into the corporate property. The influence of firm size and duration of
cooperation have not reflected in this paper study. Related researches indicate that in
the knowledge transfer process, there are many factors that affect the performance of
the recipient's knowledge. Control variables in this study include the size of the joint
ventures, the joint ventures age. Therefore, the dissertation makes the following
hypothesis.
H7a: The size of SSJV has a positive correlation with "Knowledge and technology
transfer performance"
Schulz, (2001), Tsang (2002) are generally accepted that the bigger the size of the
organization, the more hinder the organizational learning. But it will facilitate the
processing of information. Tyre (1991) also put firm size as a control variable; he
found the scale for collaboration experience significant influence. Thus, according to
previous studies, the dissertation selects JV size as control variables. The total
investment in the joint ventures as the basis, the dissertation respectively divides the
SSJV, whose total investment of <0.5 billion, 0.5 billion <total investment of <1
billion,> 1 billion as small, medium and large industrial enterprises, and accordingly
makes dummy treatment for more categorical variables, and assigns 1,2,3. SSJV age
refers to the length of time the Saudi Arabia parent companies and the Chinese parent
companies to set up joint ventures, which will affect the learning ability and
competitive advantage (Lane & Lubatkin, 1998; Zahra et al, 2000.). In addition, there
is a big difference for different periods of the joint ventures in JV motivation,
organizational structure, knowledge base, the absorption capacity. Therefore, the
dissertation chooses joint age as a control variable, and uses joint ventures to measure
continuous years. Therefore, the dissertation makes the following hypothesis.
H7b: The age of SSJV has a positive correlation with "Knowledge and technology
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transfer performance".

Chapter 4: Empirical Findings and Analysis

Last chapter has analyzed the influencing factors of SSJVs knowledge and
technology transfer and built measured variable, the effectiveness results of the
theoretical model, the corresponding research hypotheses, and described the research
design, data collection and research methods. This chapter will be on the basis of the
last chapter, make a quantitative description and analysis for the data which were
gained through questionnaires and interviews with focus using STATA 12.0 statistical
software to verify the research hypotheses that were proposed in last chapters. The
main contents of this chapter predominantly include the following: the descriptive
analysis, the validity analysis and reliability analysis, regression analysis and related
research hypothesis testing and results32.

4.1 Descriptive Analysis

The questionnaire survey has been conducted for a total of four months, which
issued a number of 190 questionnaires and recovered 150 copies, with the recovery of
78.9%. Among them, the quantity of valid questionnaires is 105, which involves 37
Sino-Saudi joint ventures study sample. The main content of the questionnaires cover
the establishment age, distribution of respondents, the total investment of distribution,
industry distribution, job category in the SSJV. As shown in Table 4-14-3. What
could be seen from these tables are that the sample distribution joint ventures focused
on the energy industry and infrastructure. The establishment age and the total
investment (scale) show a roughly normal distribution. Due to the requirements of the
questionnaire respondents in corporate are senior management, in which there are 32
copies of the questionnaire are filled by the senior managers of the parent company
(accounting for 30.48%), and 73 samples are filled by managers of SSJV (accounting
for 69.52%). Respondents working ages are basically a normal distribution, which
largely makes sure the accuracy authenticity and reliability of the questionnaire study.
Table 4- 1: SSJVs business location, age, total investment and industrial distribution.
Item
(%)

Category

Number of questionnaires (enterprises)

Business location Beijing

Tianjin
Liaoning
Shanghai
Jilin
Zhejiang
Hebei
Fujian
Guangdong
Yumbu
Dahran

Proportion

12 (5)
11.42(13.53)
9 (3)
8.508.10
8(3)
7.628.10
6(3)
5.748.10
5(2)
4.785.41
4(1)
3.862.70
4(1)
3.812.70
3(1)
2.822.70
3(1)
2.822.70
156
14.2916.22
133
12.388.10

32
Kogut, B.1988, Joint Ventures: Theoretical and Empirical Perspectives. Strategic
management journals.

3
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6
Dammam
72
6.85(8.10)
Rabig
62
5.748.10
Riyadh
62
5.748.10
Jeddah
31
2.822.70
Jazan
11
0.952.70
In total
10537
100100
............................................................................................................................
..................................
Age (years)
1-3
6017
57.14(45.95)
4-6
3113
29.52(62.16)
7-10
11 6
10.47(16.22)
>10
31
2.86(2.70)
In total
10537
100100
............................................................................................................................
..................................
Total investment ($) <0.5 billion
29(13)
27.62(35.14)
0.5-10 billion
70(19)
66.67(51.35)
>10 billion
6(5)
5.71(13.51)
In total
10537
100100
............................................................................................................................
..................................
Industry
Energy
58(18)
55.23(67.56)
Engineering Contraction 16(7)
15.24(18.91)
Infrastructure
11(3)
10.48(8.11)
Chemicals, pharmaceutical 5(2)
4.76(5.41)
Mining
4 (2)
3.80(5.41)
Traditional manufacturing 3(1)
2.86(2.70)
ICT Industry
2(1)
1.90(2.70)
Financial Industry
2(1)
1.90(2.70)
Other
4(2)
3.80(5.41)
Total
10537
100100
Table 4-2: Respondents Rank Positions and Career Content
Item
(%)

Category

Number of questionnaires (enterprises)

Proportion

Post grades
Company senior managers
36(13)
34.29(35.13)
JV senior managers
269
24.76(24.32)
JV Middle managers
32(12)
30.48(32.43)
JV Basic manager
11(3)
10.48(8.11)
............................................................................................................................
..................................
Departments
Management department
22(8)
20.95(21.62)
Technical department
217
20.00(18.92)
Production department
206
19.05(16.22)
Sales department
207
19.05(18.92)
HR Department
226
20.95(16.22)
Table 4-3 Differences in Network Knowledge Transfer Case
Item
(%)
Frequency

Category
lots of

Number of questionnaires (enterprises)

11(3)

10.46(8.11)

3
6

Proportion

3
7
Fairly
25(8)
23.81(21.62)
General
32(11)
30.48(29.73)
Less
26(11)
24.76(29.73)
Scarcely
11(4)
10.46(8.11)
............................................................................................................................
................................
Usage
Innovation
10(3)
9.52(8.11)
Improvement
42(18)
40.00(21.62)
Purely introduction
33(10)
31.43(27.03)
Other
20(6)
19.05(16.22)

As the Table 4-3 shows, the proportion of knowledge and technology

improvement (40%) from the Sino-Saudi parent company is relatively high, and the
proportion of technology improvement is fairly low (9.52%). These findings confirm
the opinions of Ghoshal and Bartlett (1988) about the strategic position diversity and
global learning of the member enterprise in international joint ventures differentiation
network.
Table 4-4: Descriptive Statistics for Each Variable

PCTW

N
125

Minimum
6

Maximum
18

Mean
12.36

Std.
Deviation
3.06

PCTC

125

16

11.85

2.46

IVWL

125

17

13.01

4.32

JVAL

125

18

12.86

3.82

PR
GD
KTG
ID
TKT
SE
RE
PTM
STM
IGC
TP

125
125
125
125
125
125
125
125
125
125
125

9
6
5
4
4
5
4
3
6
2
11

25
15
14
13
15
16
17
14
14
7
38

17.98
10.14
8.47
6.76
9.58
11.49
10.56
7.09
8.36
4.23
21.38

5.16
2.43
1.89
2.08
4.29
3.56
4.75
1.86
2.79
1.06
7.93

4.2 Validity Analysis

Reliability and validity analysis of the scale is usually related to the reliability,
validity, accuracy, consistency and stability of the measurement, which involves to the
reasonable design of the questionnaire, as well a scientific questions data. Only if the
empirical research has meet the requirements of reliability and validity, shall be the
result reliable, accurate and effective. So before performing empirical analysis for
questionnaire data, the researcher should conduct the validity and reliability test of the
scale in order to ensure the quality of the measurement.
Validity refers to the degree of measurement tools to properly measure the correct
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variables. Validity is generally divided into face validity, content validity, criterionrelated validity and construct validity. Due to this questionnaires are directly
measured, and each variable does not exist in the standard of measurement, so it is
difficult to discuss the criterion-related validity. Therefore, this study focus on only
face validity, content validity and construct validity. The dissertation is out of an
objective and impartial manner during the questionnaire design process, thus ensuring
face validity. Content validity is designed to measure the extent of suitable content.
Since this research is based on the theory for the support, the design and use of
questionnaires mostly derived from the relative maturity and existing literature. And
before the final confirmation questionnaire, the author had consulted thoroughly
scholars and invite joint ventures managers in related fields to discuss the revised
questionnaire. Therefore, the questionnaire should be quite content validity. Construct
validity refers to the use of the measurement results in some theoretical concepts or
qualities to verify and measure the extent of the theoretical constructs. Construct
validity is one of the most important measurement validity index, which is usually
used factor analysis to construct validity measurement33.
In general, most of the empirical studies use Bartlett's Test of Sphericity and KMO
(Kaiser-Meyer-Olkin) to test whether the data is suitable for factor analysis. The
come-out result of KMO is the arithmetic difference between all the variables simple
squared partial correlation coefficient and the square and the correlation coefficient. It
shall examine that the current sample size of factor analysis is adequate. Generally,
when KMO is greater than 0.9, it is very suitable for factor analysis; when the KMO
is between 0.8 and 0.9, it is considered good; when the KMO is between 0.6 and 0.8,
it is considered to be tolerant; when KMO value is between 0.5 and 0.6, it is
considered to be reluctant; when KMO is less than 0.5, it is considered to be
unacceptable. If Bartlett's Test of Sphericity is less than the significance level of
0.001, then it rejects the null hypothesis. Thus the correlation matrix can be viewed as
composed of different matrix composition, which is suitable for factor analysis. In this
study, the author will use principal component analysis in the factor analysis to extract
the common factor; factor extraction criteria eigenvalues greater than 1, and the
largest variance factor rotation method. When the sample is greater than or equal to 50
and questions of load factor greater than 0.50, it is considered to be very important
(Hair et al, 1998). In order to ensure a significant factor, the study of the critical value
of 0.50 as questions of load factor. In the present study, when KMO is greater than
0.7, Bartlett's Test of Sphericity of X2 statistic significant statistical sense. And when
the load factor of each question items are greater than 0.50, the sample data can go
through the factor analysis (Hair et al., 1998). According to this standard, then the
dissertation samples will conduct variables KMO measure and Bartlett's Test of
Sphericity.

4.2.1 The Overall Validity Analysis

Due to the large number of variables, which are concentrated in a questionnaire,
the data may lead to a common measurement bias. Therefore the dissertation should
firstly check whether there are the problem. Because the questionnaire measure is the
standard uniform scale, so the use of the correlation coefficient is more appropriate to
33
Jenkins,R.1987,Transnational corporations and industrial transformation in Latin
America. London:Macmillan.

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9
solve the main ingredient. After using STATA12.0 factor analysis module to run the
sample data, the dissertation has obtained the total variance explained in Table 4 -5.

Table 4-5 Bartlett's Test of Sphericity and KMO Test for Allover Variables

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity Approx. Chi-Square
df
Sig.

0.830
333.608
15
0.000

As Table 4-5 shows, the measurement value of KMO in the sample is 0.83, which
is much higher than the minimum standard of 0.5. Meanwhile the value of Bartlett's
Test of Sphericity is less than 0.001. Refusing correlation coefficient matrix is the
identity matrix of the null hypothesis, which also supports the factor analysis.
Table 4-6: Rotated Component Matrix of Overall Variables
Total Variance Explained
Initial Eigenvalues
Rotation Sums of Squared Loadings
Component
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Total
3.290
2.499
1.789
1.615
1.232
1.024
.880
.682
.610
.514
.386
.206
.173
.100
3.216

% of Variance
21.936
16.658
11.924
10.768
8.212
6.828
5.868
4.547
4.066
3.425
2.575
1.373
1.154
.668
2.215

Cumulative %
21.936
38.594
50.517
61.286
69.497
76.325
82.193
86.740
90.806
94.231
96.805
98.178
99.332
100.000
100.000

Total
3.151
2.255
1.813
1.475
1.460
1.295

% of Variance
21.007
15.034
12.085
9.835
9.733
8.632

Cumulative %
21.007
36.041
48.126
57.961
67.694
76.325

Extraction Method: Principal Component Analysis.

There are 6 component, whose eigenvalues are greater than 1, which explains the
76.3% of the total variance. The proportion of the first component variance explained
is 21.0%, which shows there are no common measurement bias. According to the
principle of the characteristic roots being greater than 1, the dissertation uses varimax
orthogonal rotation to extract factors, and obtains 6 components. According to the
load factors of the evaluation criteria, the dissertation rounded the value that is lower
than 0.45, as shown in Table 4-7.

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0
Table 4-7: Rotated Component Matrix of Overall Variables

Rotated Component Matrixa

Component
1
2
PCs Transfer-0.625
willingness
PCs
transfer0.682
capacity
SSJVt's
0.736
willingness to
learn
SSJVs ability to0.656
learn
Partnership
0.765
Relation
Geographical
distance
Knowledge and
technology gap
Institutional
differences
tacit knowledge
and technology
Simple
embedding
Relationship
embedding
Primary transfer
mechanism
Senior transfer
mechanism
Informal groups
and
communication
Successful
transfer
Extraction
Method:
Principal
Component
Analysis.
Rotation
Method:
Varimax with
Kaiser
Normalization.

-0.728
0.817
-0.752
0.638
0.725
0.712
0.779
0.810
0.705
0.790

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1
a. Rotation converged in 7 iterations.

Table 4-7 shows that the questionnaire variables related statements can be found,
the first component is almost related with all the company characteristics and
partnership relation, of which PC's transfer willingness, PC's transfer capacity, SSJVs
ability to learn and partnership relation are quite obvious. The questionnaires use
business contacts, partnerships, communication and so on. The partnership relation
still represents organizational activities. The second component is obviously the factor
of knowledge transfer scenarios. The third component is knowledge and technology
characteristics. The remaining three components mainly reflect the meaning of a
variable, which can use this variable to identify and name the three factors. Overall,
the analysis of these factors can be seen that generally the overall design of the
questionnaire is reasonable.

4.2.2 Validity Analysis for Sub-scales

4.2.2.1 Company Characteristics Sub-scale
Due to SSJV involve two parent companies in China and Saudi Arabia, therefore
in order to be consistent with the reality, this dissertation will combine the
characteristics and properties of Chinese and Saudi parent company as well as SSJV
factor analysis. First of all, the dissertation will examine the correlation between
variables.
Table 4-8 Bartlett's Test of Sphericity and KMO Test34

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling0.759
Adequacy.
Bartlett's
Test
ofApprox. Chi-Square
280.349
Sphericity
df
16
Sig.
0.000
According to the sample data the measurement value of KMO for company
characteristics is 0.759, which can be suitable for factor analysis. In the meanwhile,
the value of Bartlett's Test of Sphericity is less than 0.001, which rejects the null
hypothesis and also support factors. The dissertation took the advantage of principal
component analysis to conduct exploratory factor analysis, in accordance with the
characteristics of more than one root principles and varimax orthogonal rotation to
extract factors, and finally obtained four-factor structure. Each loading factor is shown
in Table 4-9.
Table 4-9 Rotated Component Matrix for Company Characteristics

Rotated Component Matrixa

Component
1
2
34

The variable is the company characteristics.

4
1

4
2
Q1
0.612
Q2
0.755
Q3
0.726
Q4
0.637
Q5
0.726
Q6
0.685
Q7
0.777
Q8
-0.695
Q9
Q10
Q11
Q12
Q13
Q14
Q15
Q16
The proportion of variance explained18.63 17.85
(%)
The proportion of the total variance62.49
explained(%)
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 4 iterations.

0.638
0.682
0.529
-0.736

12.26

0.797
-0.645
-.0562
0.702
13.75

As can be seen from Table 4- 9, the four components have explained 62.49% of
total variance, which is described that in this research framework, the four variables in
the company characteristics have a strong reasonable logic. Observing factor loading
matrix is ideal. The minimum loading factor is 0.529; and the largest is 0.797, which
are bigger than 0.5. Variable structure of each survey question and indicators are
basically the same, which can shrink each survey question for the corresponding
factor in accordance with the pre-designed. This part of the questionnaire design
vector is quite reasonable.

4.2.2.2 Partnership Relation Sub-scale

This dissertation will initially examine the correlation between variables.
According to the data in Table 4-10, the value of KMO measurement sample between
Chinese parent company and Saudi joint ventures is 0.706, which is suitable to
operate the factor analysis. From the perspective of Bartlett's Test of Sphericity, its
value is smaller than 0.001, which rejects the null hypothesis of zero correlation
matrix being a unit matrix, and also supports for factor analysis.
Table -4-10 Bartlett's Test of Sphericity and KMO Test35

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure
Adequacy.
35

of

Sampling0.706

Note: The variable is partnership relation.

4
2

4
3
Bartlett's
Sphericity

Test

ofApprox. Chi-Square
df
Sig.

213.20
13
0.000

Then, according to the principle of the characteristic roots and orthogonal rotation
is greater than the maximum variance method, this dissertation will use principal
component analysis to extract factors, and ultimately selected three-factor structure.
Questionnaire structure and the variables are essentially consistent, which explains
that, in the constructed model of this study, the index of the partnership relation
between Sino-Saudi parent companies and joint ventures have construct validity. After
discarding the value that is lower than 0.45, the loading factors are as shown in Table
4-11.
Table 4-11 Rotated Component Matrix for Partnership Relation

Rotated Component Matrixa

Component
1
Q17
-0.138
Q18
0.193
Q19
0.573
Q20
0.861
Q21
0.921
Q22
0.655
The proportion of the total63.85
variance explained (%)
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 4 iterations.
The only one component explains 63.85% of the total variance in line with the
requirements of observed loading factors, which proves that the construct validity
sub-scales of partnership relation are fairly reasonable. This part of the questionnaire
design complies with the theoretical framework in the entire thesis requirement.
4.2.2.3 Knowledge and Technology Transfer Situation Subscale
KMO value for knowledge and technology transfer situation sub-scale is 0.874(>
0.7), the statistical value of X of Bartlett's Test of Sphericity significant probability is
0.000, which is less than 0.001, i.e. under the significance level 0.001, with a
statistically significant, and it is theoretically suitable for factor analysis, as seen in
Table 4-12.
Table 4-12 Bartlett's Test of Sphericity and KMO Test36

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.874
36

Note:The variable is the knowledge and technology transfer situation

4
3

4
4
Bartlett's Test of Sphericity Approx. Chi-Square
df
Sig.

349.52
25
0.000

Then, according to the principle that the characteristic roots and orthogonal
rotation shall be greater than the maximum variance method, the dissertation will use
principal component analysis to extract factors, and ultimately obtained three-factor
structure. After discarding the values that are smaller than 0.45, the loading factors are
as shown in Table 4-13.
Table 4-13 Rotated Component Matrix for Transfer Situation

Rotated Component Matrixa

Component
1
2
3
Q23
0.830
0.635
Q24
0.896
Q25
0.780
Q26
0.912
Q27
0.536 0.861
Q28
0.760
Q29
0.722
Q30
0.835
Q31
0.792
The proportion of variance explained (%) 26.83 23.35 21.43
The proportion of the total variance71.61
explained (%)
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.
Three factors could explain 71.61% of the total variance in line with the
requirements of observed loading factors, which proves that the construct validity
sub-scales of knowledge and technology transfer situation is considerably reasonable.
The questionnaires in this part are designed to comply with the theoretical framework
of the entire thesis requirement.
4.2.2.4 Knowledge and Technology Characteristics Sub-scale
According to the data in Table 4-14, KMO is 0.812, which could be suitable to
conduct the factor analysis. From the perspective of Bartlett's Test of Sphericity, its
value is smaller than 0.001, which rejects the null hypothesis of zero correlation
matrix being a unit matrix, and also supports the factor analysis.
Table 4-14 Bartlett's Test of Sphericity and KMO Test37

KMO and Bartlett's Test

37 Note: The variable is knowledge and technology characteristics

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5
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity Approx. Chi-Square
df
Sig.

0.812
352.20
24
0.000

Then, the principal component analysis result is the three-factor structure. After
discarding the value lower than 0.45, the loading factors are as shown in Table 4-15.
Table 4-15 Rotated Component Matrix for Knowledge and Technology Characteristics

Rotated Component Matrixa

Component
1
2
3
Q32
0.750
Q33
0.876
Q34
0.764
Q35
0.871
Q36
0.715
Q37
0.654 0.812
Q38
0.736
Q39
0.821
Q40
0.702
Q41
0.708
Q42
0.613
The proportion of variance explained (%)
19.91 24.15 22.23
The proportion of the total variance66.25
explained(%)
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.
Three factors explain 66.25% of the total variance in line with the requirements of
observed loading factor, which proves that the construct validity sub-scales of
knowledge and technology characteristics are more reasonable. This part of the
questionnaire design complies with the theoretical framework of the entire thesis
requirement.
4.2.2.5 Transfer Mechanisms Situation Sub-scale
According to the data in Table 4-16, KMO is 0.812, which could be suitable to
conduct the factor analysis. From the perspective of Bartlett's Test of Sphericity, its
value is smaller than 0.001, which rejects the null hypothesis of zero correlation
matrix being a unit matrix, and also supports the factor analysis.
Table 4-16 Bartlett's Test of Sphericity and KMO Test38

KMO and Bartlett's Test

38 Note:The variable is Transfer mechanisms

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Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
0.706
Bartlett's Test of Sphericity Approx. Chi-Square
163.20
df
15
Sig.
0.000
The principal component analysis result is the three-factor structure. After
discarding the value lower than 0.45, the loading factors are as shown in Table 4-16.
Table 4-17 Rotated Component Matrix for Transfer Mechanisms

Rotated Component Matrixa

Component
1
2
0.656
0.712
0.764
0.725
0.769
0.736

Q43
Q44
Q45
Q46
Q47
Q48
Q49
Q50
The proportion of variance explained (%)
20.36 17.52
The proportion of the total variance.55.85
explained(%)
Extraction Method: Principal Component
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.

0.752
0.821
17.97

Three factors explain 55.85% of the total variance in line with the requirements of
observed loading factor, which proves that the construct validity sub-scales of transfer
mechanisms are reasonable. This part of the questionnaire design complies with the
theoretical framework of the entire thesis requirement.

4.3 Reliability Analysis

Reliability refers to the individual questionnaire to measure the credibility of the
variables, which can be used to determine the consistency or stability results. Three
measurement methods, test-retest reliability, split-half reliability and Chrnobach's
reliability are widely used by academics for questionnaire reliability analysis.
Considering the advantages and disadvantages of these three methods, the general
scope for the sample size and the implementation of second recycled questionnaires
difficulty, the dissertation chooses Chrnobach's reliability. According to Nunnallys

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(1978) standard, > 0.9 represents extremely good reliability; 0.7 < <.0.9 represents
high reliability; 0.35 < <0.7 represents medium reliability; <0.35 represents a
lower reliability. In terms of social science research, as long as > 0.6, it shall
consider that the reliability test can accept. The dissertation will take full advantage of
STATA12.0 for Chrnobach's test in the samples recovery. Sub-scales value of the
independent variables, dependent variable, moderator variable and mediator variables
are shown in Table 4-18.
Table 4-18: Questionnaire Chrnobach's Reliability Test39

Sub-scale categories
Company
Characteristics

Manipulated variable
Transfer situation
knowledge and technology
characteristics
Transfer mechanisms
Dependent variable

Constitution
1
2
3
4
5
6
7
8
9
10
11

Standardized
Chrnobach's
0.63
0.69
0.53
0.73
0.72
0.85
0.81
0.79
0.61
0.72
0.74

Quantity
of
questionnaire
4
4
4
4
6
3
3
3
3
3
3

12
13
14
15

0.60
0.82
0.71
0.86

3
3
2
8

The Chrnobach's reliability of SSJVs willingness to learn is only 0.31, which

does not reach the eligibility criteria as low reliability. Therefore, the dissertation will
abandon the variable of SSJVs willingness to learn in the following subsequent
regression model. Comparing the analysis of all the variables in the reliability lag, the
dissertation draw a conclusion that the low reliability variables almost belong to the
following first-level variables of knowledge and technology characteristics, company
characteristics and so on, which are the subjectivity type. While in the process of
designing the questionnaire, the authors refer to the practice of the major references
and experienced scholars, who try to make the subject statements straightforward and
understandable and succinct. Respondents remain holding strong personal subjective
judgment on such questionnaires. And apparently the difficulty in accurately judging
that kind of subjective questionnaires is greater than geographical distance,
institutional differences, and the transfer mechanism variables.

4.4 Pearson Correlation Analysis

Pearson correlation analysis is a kind of statistical methods, which tend to
research the relationship between things, as well as measure the contact degree of
variables, reveal the changes in the specific form and regularity. Pearson correlation
39

Note: SSJV willingness to learn is deleted due to the value less than 0.6

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coefficient only reflects the degree of linear correlation among variables, and could
not explain the non-linear relationship. In other words, although the correlation
coefficient can measure the degree of linear correlation of variables, it cannot
establish a causal relationship between variables, neither can explain what it is close
to a straight line specific. Before running the regression analysis, the dissertation will
perform the first of all the relevant variables. Through correlation analysis, the
dissertation shall initially determine the reasonableness of hypotheses and models. In
this study, STATA12.0 is to be used to conduct Pearson correlation analysis to test the
dimension of the variables, and the analysis results are shown in Table 4-19.

Table 4-19 Pearson Correlation Analysis

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According to Williamson (1991) classification criteria, the value of correlation

coefficients> 0.7 is highly correlated; the value of correlation coefficient between 0.4
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to 0.7 is moderately related; the value of correlation coefficient <0.4 is associated
with a low degree. The value of correlation coefficient in the Table 4-19 among all
variables range from 0.002 to 0.668 with the situation of moderate and low correlation
of the data showing roughly half and half.
In addition, the value of knowledge and technology transfer performance is no
significant relationship with tacit knowledge and technology, SSJVs willingness to
learn and primary transfer mechanism. It has a significant correlation with other 11
independent variables. But it is contrary to the geographical distance (r = 0.318) with
the assumption direction and impact direction. Because the dissertation has not yet
made any further analysis, and therefore could not sum up a conclusion for this
phenomenon. But the fact that the majority of the dependent variable and the
independent variables show significant correlation relationship has indicated that this
models and the assumptions are reasonable.
Geographical distance tends to significantly associated with knowledge and
technology gap (r = 0.204), institutional distance (r = 0.472). This is consistent with
common sense. But geographical distance shows the opposite resistance with
partnership relation direction and assumptions.
Primary transfer mechanism and senior transfer mechanisms show significant
correlation (r = 0.364). The correlation between senior transfer and informal transfer
is relatively significant (r = 0.245). But the primary transfer and informal metastasis
are not significant (r = 0.030), which may indicate that the rationality of the
assumption above in this dissertation that primary transfer mechanisms and informal
transfer mechanisms have a positive effect for senior transfer mechanisms.
Partnership relation as well as the primary transfer mechanism (r = 0.411), senior
transfer mechanism (r = 0.385), informal transfer mechanisms (r = 0.369) are
significantly positively correlated, which reflects that these variables exist the synergy
in the process of SSJVs knowledge and technology transfer, but also indicates the
possibility of multicollinearity.
Informal groups with senior transfer (r = 0.225) are significantly positively
correlated worthy of further study. Taking into account the definition of high-level
transfer that is based on the formal organization of human interaction, the positive
correlation between the two is generally described in the process of SSJV knowledge
and technology transfer , and formal and informal organizational activities presents a
mutually reinforcing relationship.
The relationship among tacit knowledge and technology and simple embedding (r
= 0.024) and relational embedding (r = 0.018), and between simple embedding and
relationship embedding (r = 0.056) correlation coefficient are not significant, which
describes that the divided basis for these three variables is reasonable, and these three
variables should be interpreted as independent variables in the analysis framework.
In addition to being associated with the partnership relation outside (r = 0.217),
SSJVs willingness to learn and other variables are no significant correlation, which is
independent of the other variables and helps to complete and clear analysis for its
role. However, according to the results of the reliability and validity analysis, SSJVs
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willingness to learn will be removed in a future analysis, which is regrettable.
Correlations between the remaining variables are of little practical significance, the
dissertation will no longer individually analyze them.

4.5 Multicollinearity Test

Multicollinearity between variables can be disruptive for linear regression analysis
and structural analysis, which influence the accurate calculation of the coefficient.
Once the dissertation cannot correct significant multicollinearity, then the regression
analysis shall not proceed, as well as exist the difficulties caused by the structural
equation model of fit test. When conducting Pearson correlation analysis, the author
founds that some variables are not completely independent, but there is a significant
correlation between the degree of moderate or low. So this time, the dissertation is
necessary to do multicollinearity diagnostics to determine whether there is
multicollinearity between variables and severity, and whether multicollinearity need
to be amended in accordance with the theoretical logic and knowledge transfer model
hypothesis40. The dissertation take knowledge and technology transfer performance as
the response variable; other variables as explanatory variables, the dissertation will be
made using STATA12.0 to conduct the multicollinearity test for the sample data, and
select the three indicators of Tolerance, Variance Inflation Factor (VIF) and Condition
Index to be listed in Table 4-20.

Table 4-20: Multicollinearity Diagnostics

Explanatory correlation degree
Variables
1
2
3
4
5
6
7
8
9
10
11
12

0.109
0.269*
0.008
0.175
0.486**
0.340**
-0.085
0.508**
-0.612t
0.117
- 0.036
0.296*

0.965
0.854
0.893
0.706
0.906
0.526
0.803
0.720
0.801
0.626
0.759
0.459

Tolerance
1.025
1.156
1.146
1.243
1.569
1.463
1.741
1.005
1.201
1.659
1.269
1.036

VIF

Condition Index

6.259
7.947
5.415
8.163
9.263
8.067
7.260
9.369
7.236
10.039
6.216
3.259

40
Hu, Yang. 1995, The international transfer-ability of the firm's advantage. California
Management Review, 37: 73-87.

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2
13
14

0.328**
0.120

0.620
0.753

1.000
1.159

5.236
2.258

According to Hus (1995) perception, the closer to 1 of Tolerance and VIF, the
weaker the multicollinearity. When VIF is more than 10, it indicates that there is
significant multicollinearity among the explanatory variables and the remaining
variables. And this multicollinearity might unduly influence the least squares
estimation. What can learn from Table 4- 20 is that the value of each variables in VIF
are less than 10, which illustrates that the present research variables in the model have
no significant multicollinearity. According to Plotkins (1994) standard, when
Condition Index is less than 10, multicollinearity is not obvious; when a Condition
Index is between 10 and 30, there is multicollinearity with moderate intensity; when it
is greater than 30, there are significant multicollinearity. Multicollinearity diagnosis
shows that there are 4 variables with the pathological index of less than 10, and the
remaining are between 10 to 30, by virtue of the standard to judge, which can be
considered moderate multicollinearity between certain variables. Multicollinearity
diagnostic display has six variables Condition Index is less than 10, and the rest are
from 10 to 30. By virtue of the standard, it is considered that there is ulticollinearity
with moderate intensity among certain variables.

4.6 Regression analysis

4 .6.1 Sample Size Description
On the one hand, what requires to make special note is that because the study on
SSJV knowledge and technology transfer is rather particular, so that there are
quantities of obstructions and difficulties in the process of data collection. This is due
to the following several reasons: above all, the SSJVs instability is high. Due to
various factors, the original joint ventures may become changed through equityowned enterprises (Anh, et al, 2006). Secondly, in the early days some SSJV signed a
confidentiality agreement, which means that any party may disclose corporate
information to the outside world. Thirdly, from a macro perspective, since the
introduction of People's Republic of China Foreign Equity Joint Ventures Law, 30
years have witnessed a large number of joint ventures foundation. In this process,
parts of them which have been set up in the earlier time has already disintegrated,
liquidated or terminated41. Lundvall (1988) studies show that no matter what kinds of
measurement methods: the results-oriented or procedure-oriented measurement
methods, the lowest rate of JV instability is 28.5%; and the highest is up to 68%.
Therefore, for the above reasons, the number of the valid samples recover only 115
parts. On the other hand, for the requirement of the samples number, Bentler (1989)
recommends that the number of the samples should be as at least 5 times as the
variables. Hair, et al (1998) also points out that if the researcher want to run
regression analyzes in empirical research, the samples size should be as at least five
times as the number of model variables. The number of variables of regression model
41
Hyun, S. and Makhija, M. 2009, The effect of domestic uncertainty on the real options
value of international investments, Journal of international Business Studies, Vol. 40, No. 3
(Apr., 2009), pp. 405-420Published.

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in this study are involved for 16, including 9 independent variables (due to one
independent variable has been removed in the reliability test), 3 intermediate
variables, 1 manipulated variable, 1 dependent variable and 2 control variables. So
long as the sample size has reached 80, the dissertation shall carry out the regression
analysis. Effective sample size in this study is 115, so to meet the basic requirements
of the regression analysis.

4.6.2 Causality Testing

(1) Multiple Regression Model
Multiple regression analysis refers to establishing the regression equation to
predict the dependent variable in the regression analysis based on the optimal
combination of multiple independent variables. Multiple regression analysis model
built for this dissertation is as followed:

Y= 0 +1 Xsize +2 Xyear + 3X3 +4X4++n Xn+ (1)

The form of a matrix is: Y=X+
(2)
Where, Y represents SSIV's knowledge transfer performance; Xsize and Xyear
represent company size and age; X3, X4 Xn represent each variable.
(2) Heteroskedasticity Test
Heteroskedasticity refers to that, with the change of the independent variables,
there is a significant variance change of independent variable, which is supposed to be
on longer characterized with constant variance (Ernst and Kim, 2002). If there is
heteroskedasticity, the estimator does not have the validity of the parameters, and
variables significant test would be meaningless, as well as the forecasting model
would fail. To analyze and determine whether residuals scatter plot shows a state of
disorder, this dissertation presents the esiduals scatter plot. If the answers are
affirmatory, it indicates that there is no heteroskedasticity regression model. Scatter
plot is shown in Figure 4-1.
Figure 4-1 Scatter Plot for JV Performance

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As can be seen from Figure 4-1, the esiduals scatter plot JV performance is
disordered state, which reached the standard that the regression model does not exist
heteroscedasticity. Therefore, the heteroskedasticity test results indicate the regression
model including heteroskedasticity problem does not exist the independent variable
and performance.
3

Multiple regression analysis

According to the construction of theoretical analysis and modeling, the paper
operations regression analysis for each variable and knowledge and technology
transfer performance, analyze and compare the impact of each independent variable
on the dependent variable.
Table 4-21 Regression Results for Overall Variables

Coefficients t-Stat
Control variables
Xsize
0.369
0.785
Xage
0.034
3.028

Sig

R2

0.001
0.759
0.15 0.19

Independent variable
X1
0.217
2.039
0.060
X2
0.234
1.243
0.051
X3
0.052
0.325
0.125
X4
0.263
4.283
0.043
X5
-0.396
5.210 0.020
X6
0.418
3.280
0.102
X7
-0.447
5.025 0.030
X8
-0.586
2.789 0.001
X9
0.169
1.726 0.130
X10
- 0.486
4.168 0.001
X11
0.118
7.558 0.003
X12
0.217
2.362 0.175
X13
0.274
4.263 0.015
0.688
0.757

Ad. R2

3.152*

22.397**

According to the results of Table 4-21, in the multiple regression equation,

the independent variable of R2 is 0.688; Ad. R2 is 0.757; and F (22.397) test is
significant, which indicates that independent variables could explain 68.8% of the
knowledge and technology transfer performance. The regression equation has a high
Goodness of Fit, which shall objectively and effectively describe the various variables
of the contribution and impact on SSJVs knowledge and technology transfer
performance.
The coefficient value of SSJVs age and size Xsize Xage are respectively
0.034 and 0.369; the value of Sig are respectively 0.759> 0.1 and 0.001 <0.01, which
indicates that SSJVs size is significantly positive impact on SSJVs knowledge and
technology transfer performance. That corresponds H7a. The SSJVs age has no
significant effect on its knowledge and technology transfer performance, which is
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against H7b.
The standard regression coefficient of PC's transfer willingness, PC's transfer
capacity, SSJVs ability to learn X1 X2 X3 are respectively 0.217, 0.234 and
0.052; Sig are 0.060 P<0.1 , 0.051 P<0.1 and 0.125(P>0.1). The two
variables of PC's transfer willingness and PC's transfer capacity have significantly
positive impact on SSJVs knowledge and technology performance at 0.1 significance
level, which is consistent with Hla, H1b. The variable of SSJVs ability to learn has no
significant impact on SSJVs knowledge and technology performance, which means
H1d is not supported.
The standardized regression coefficient of partnership relation X4 on
knowledge and technology transfer performance is 0.263; Sig value is 0.043 (P
<0.05), which implies that the independent variable of partnership relation has a close
relationship with the dependent variable of knowledge and technology transfer
performance at 0.05 significant level. Sino-Saudi partnership relation contribute to
enhancing SSJVs knowledge and technology transfer performance, which verifies the
H2.
The standardized regression coefficient of geographical distance and
institutional differences on knowledge and technology transfer performance X5
X7 are -0.396 and -0.447, respectively; Sig values are 0.020 and 0.030 (P <0.05),
which implies that the variables of geographical distance and institutional differences
have a significant negative impact on the dependent variable of knowledge and
technology transfer performance at 0.05 in the significant level. The greater the SinoSaudi geographical distance and institutional differences, the worse the SSJVs
knowledge and technology transfer performance, which verifies the H3a and H3c.
The standardized regression coefficient of tacit knowledge and technology,
simple embedding, relationship embedding (X8, X9, X10) on knowledge and technology
transfer performance are individually -0.586, 0.169, - 0.486; Sig values are 0.001 (P
<0.01), 0.130 (P> 0.1), 0.001 (P <0.01), which implies the variables of tacit
knowledge and technology, relationship embedding significant have negative impact
on the dependent variable of knowledge and technology transfer performance at 0.01
at the significant level. This shows the tacit knowledge and technology, relation
embedding are closely related with SSJVs knowledge and technology transfer
performance. The more tacit knowledge and technology and relations embedded are,
the harder the knowledge and technology transfer; otherwise the easier. H4a and H4c
are proved. Simple embedding has no significant relationship with dependent
variable, which opposite on H4b.
The standardized regression coefficient of primary transfer mechanism,senior
transfer mechanism,informal groups and communication(X11, X12, X13) on knowledge
and technology transfer performance are individually 0.118 ,0.217,0.274; Sig values
are 0.003(P <0.01), 0.175 (P> 0.1), 0.015 (P <0.05), which implies the variables of
primary transfer mechanism, informal groups and communication have positive
impact on the dependent variable of knowledge and technology transfer performance
at 0.01 and 0.05 significant level. This shows primary transfer mechanism, informal
groups and communication are closely related with SSJVs knowledge and technology
transfer performance. H5a and H5c are proved. Senior transfer mechanism has no
significant relationship with dependent variable, which opposite on H5b.
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4.6.3 Moderator Variable Testing

1

Multiple Regression Model

This dissertation argues the hypothesis that Sino-Saudi partnership relation will
have regulatory role for the relationship among tacit knowledge and technology,
embeddedness of knowledge and technology, knowledge and technology transfer
performance, and ultimately produce a positive impact for SSJV knowledge transfer
performance. To test this manipulated variable effect of the partnership relation, the
dissertation is based on the introduction of cross-variable regression in order to verify
that. Therefore, the dissertation has constructed the following model:
Y= 0 +1 Xsize +2 Xyear +3X3 +4X4+5X3X4+

(3)

In the model, X1 X2 are newly constructed cross-variable. If the standard multiple

regression coefficients of these variables are significant, which proves that the
existence of cross-variable has influence and effect on the relationship between the
dependent variables and the original independent variables. Multiple regression
results with the introduction of cross-variable are as shown in Table 4-22:
(2) Heteroskedasticity Test
Scatter plot is shown in Figure 4-2.

Figure 4-2 Scatter Plot for Moderator Variable

As can be seen from Figure 4-3, the esiduals scatter plot for moderator
variable is disordered state, which reached the standard that the regression model does
not exist heteroscedasticity. Therefore, the heteroskedasticity test results indicate the
regression model including heteroskedasticity problem does not exist the independent
variable and performance.
(3)Multiple Regression Analysis
Table 4-22 Regression Results for Moderator Variable42

Variable

Coefficient

t-Stat Sig

R2 Ad. R2

42
X1 and X2 respectively represent tacit knowledge and technology,
partnership relation.

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Control variables
Xsize
0.269
Xage
0.043

2.671 0.115
1.126 0.124
0.22 0.30

4.531*

Independent variable
X1
0.217*
3.426 0.060
X2
0.234*
2.856 0.051
0.239 0.327 4.824
Cross-variable
X1X2
0.682***
4.036 0.007
0.502 0.647 9.263**
As shown in Table 4-22, before the introduction of the cross-variable of X1X2, the
independent variables can explain 23.9% of the variation in the dependent variable.
After the introduction of cross-variable, the independent variables could significantly
explain 50.2% of the variation in the dependent variable, which shows that the
introduction of cross-variable has effectively improved the relations between the
independent variables and the dependent variable. H6a has been proved.
Table 4-23 Regression Results for Moderator Variable

Variable

Coefficients t-Stat

Sig

R2 Ad. R2

Control variables
Xsize
0.358*
Xage
0.126

2.263 0.086
1.267 0.124
0.351 0.427 4.605*
Independent variable
X1
0.364**
3.036 0.042
**
X2
0.234
4.250 0.035
0.260 0.293 4.902
Cross-variable
X1X2
0.705***
6.528 0.001
0.560 0.652 9.596**
As shown in Table 4-23, before the introduction of the cross-variable of X1X2, the
independent variables can explain 26.0% of the variation in the dependent variable.
After the introduction of cross-variable, the independent variables could significantly
explain 56.0% of the variation in the dependent variable, which shows that the
introduction of cross-variable has effectively improved the relationship between the
independent variables and the dependent variable. H6b has been proved.

4.6.4 U-shaped Relationship Testing

(1) Multiple Regression Model
The dissertation will apply scatter plots and the introduction of the quadratic term
of the independent variable to perform regression analysis, which shall verify the
inverted U-shaped relationship between knowledge and technology gap and
knowledge and technology transfer performance. Based on a multiple regression
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model section, the dissertation builds the quadratic terms of knowledge and
technology gap, and brings to regression equation. If the standard regression
coefficient of the quadratic term of is positive, then the quadratic term shows Ushaped relationship with the dependent variable. If the coefficient is negative, then the
quadratic term tends to have an inverted U-shaped relationship with dependent
variable. Therefore, the dissertation has constructed the following model:
Y= 0 +1 Xsize +2 Xyear +3X32+
(4)
(2) Heteroskedasticity Test
Figure

4-3

Scatter

Plot

for

Knowledge

and

Technology

Gap

Figure 4-3 Scatter Plot for Knowledge and Technology Gap

As can be seen from Figure 4-3, the esiduals scatter plot for knowledge and
technology gap is disordered state, which reached the standard that the regression
model does not exist heteroscedasticity. Therefore, the results heteroskedasticity test
results indicate the regression model including heteroskedasticity problem does not
exist the independent variable and performance. According to the regression results
of the above, the results are shown in Table 5-8.
Table 4-24 Regression Results for Moderator Variable for Knowledge and Technology
Gap43

Variable

Coefficients t-Stat

Control variables
Xsize
0.028* 3.260
Xage
0.326 2.059
Quadratic Term
X32
-0.296

Sig

0.086
0.124
0.085

3.741
0.112
0.384 0.396

R2 Ad. R2

4.605*
4.239*

It is shown in Table 4-24 is that the standard regression coefficient of the quadratic
43
X1 and X2 respectively represent embeddedness of knowledge and
technology

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term regression equation is -0.296; Sig value is 0.112, which declares that the
quadratic term is not significant at the relevant level, and shall not confirm that there
is a linear relationship between knowledge and technology gap and the square of
knowledge and technology transfer performance. But from the perspective of the
rationality of construction multiple regression equation, the independent variables of
the quadratic term can explain 38.4% the dependent variables of knowledge and
technology gap, which illustrates that there is a significant effect of the quadratic
terms of knowledge and technology gap on the explanation on knowledge and
technology transfer performance. But it could not confirm the existence of an inverted
U-shaped relationship. Therefore, H2b is not going to be proved.

Chapter 5: Analysis and Discussion

5.1 Findings
H1a:
H1b:
H1c:
H1d:
H2:

H3a:
H3b:
H3c:
H4a:
H4b:
H4c:

Table 5-1 Findings

There is a positive correlation between knowledge and
technology transfer performance and Parent
Companys Transfer Willingness.
There is a positive correlation between knowledge and
technology transfer performance and the parent
companys knowledge and technology transfer ability.
There is a positive correlation between knowledge and
technology transfer performance and SSIV 's
Willingness to Learn.
There is a positive correlation between knowledge and
technology transfer performance and SS JV 's Ability
to Learn
The "partnership" relationship in official level reflected
may enhance the technology transfer between SinoSaudi partners. (In SSJV a higher degree of cognitive
trust can be found, while non-cognitive trust is yet to be
determined, because non-cognitive trust roots on indepth mutual understanding on each other. Efforts will
be made detect the level of non-cognitive trust in
SSJV.)
"Knowledge and technology transfer performance is
inversely proportional to geography distance ".
Knowledge and technology gap shows an U-shaped
relationship with "knowledge and technology transfer
performance".
There is a positive correlation between "Knowledge and
technology transfer performance" and institutional
differences .
There is a positive correlation between "Knowledge and
technology transfer performance" and tacit knowledge
and technology .
Simple embedded knowledge will reduce its tacit
knowledge, so as to enhance technology transfer
performance.
The relationship embedding knowledge will increase its

5
9

Support the original hypothesis

Support the original hypothesis
Against the original hypothesis
Against the original hypothesis
Support the original hypothesis

Support the original hypothesis

Against the original hypothesis
Support the original hypothesis
Support the original hypothesis
Against the original hypothesis
Support the original hypothesis

6
0
H5a:
H5b:
H5c:
H6a:
H6b:
H7a:
H7b:

tacitness, thus reducing knowledge and technology

transfer in performance.
SSJVs knowledge transfer success is positively affected
by the primary transfer mechanism.
SSJVs knowledge transfer success is positively affected
by Senior Transfer Mechanism.
SSJVs knowledge transfer success is positively affected
by informal groups and communication.
"Partnership" relationship will adjust the negative
correlation between tacit knowledge and knowledge
technology transfer performance.
"Partnership" relationship will adjust the negative
correlation between knowledge embeddedness and
knowledge technology transfer performance.
The size of SSJV has a positive correlation with
"Knowledge and technology transfer performance"
The age of SSJV has a positive correlation with
"Knowledge and technology transfer performance"

Support the original hypothesis

Against the original hypothesis
Support the original hypothesis
Support the original hypothesis
Support the original hypothesis
Support the original hypothesis
Against the original hypothesis

Companies characteristics are involved H1a, H1b, H1c, H1d, which mainly test
the relationship between transfer willingness and capability and transfer performance
of parent company, as well as learning willingness and capability . The regression
coefficients of parent companys transfer Willingness is 0.217 P<0.1 . The
regression coefficients of parent companys knowledge and technology transfer ability
is 0.234 P<0.1). The regression coefficients of SSIV 's ability to learn is
0.052(P>0.1). The final result can confirm H1a, H1b, which proves that the transfer
capability of the parent company will have a significant impact on knowledge transfer
performance. The reason is that Chinese and Saudi Arabia's parent company have
more solid foundation of knowledge, rich experience in joint ventures, which holds
the advantage in dealing with government relations, and local suppliers bargaining
channels and skills. About transfer willingness and transfer performance of the parent
company, the dissertation has drawn the same conclusion with the hypothesis.
Employees of the parent company shall sincerely share knowledge with employees of
the joint ventures subsidiary, and be willing to take the risk of knowledge sharing.
H1c and H1d mainly test the relationship between SSJVs willingness and ability to
learn and knowledge transfer performance. It should be noted that the relationship
between SSJV willingness to learn and transfer performance is not statistically
significant, which does not comply with H1c. The possible reason for this is that the
willingness of the parent company of the knowledge transfer is not high. In addition,
SSJVs ability to learn and transfer performance has a significant positive correlation.
That means that the stronger learning ability SSJV is, the greater the knowledge
transfer performance will be, which confirms H1d. Absorptive capacity is path
dependent, which build on existing knowledge base.
About the partnership relation and the knowledge transfer performance, this
study concludes that: the regression coefficients of partnership relation is 0.263 (P
<0.05). The partnership relation between China and Saudi Arabia are positive, which
also shows that the "partnership" relationship in official level may enhance the
technology transfer between Sino-Saudi partners and support H2. In SSJV a higher
degree of cognitive trust can be found, while non-cognitive trust is yet to be
determined, because non-cognitive trust roots on in-depth mutual understanding on
each other. Efforts will be made to detect the level of non-cognitive trust in SSJV. The
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1
close partnership relation between China and Saudi Arabia will form a high degree of
interaction, communication and trust. In many cases, new knowledge is generated by
knowledge elision and creative friction. When relationship quality (or trust) reaches a
high level, the needs of the monitoring partners will be reduced;conflict will reduce;
and highly inter-organizational relationships of trust may run smoothly. It may reduce
the number of transaction costs and enhance the knowledge transfer performance.
Situational factors are knowledge and technology gap, institutional difference,
geography distance. The dissertation demonstrates the multi-level relationship
between these three variables with the partnership relation, as well as the relationship
between the four factors and the transfer performance. The empirical results show that
H3a, H3c, H3d are proved; H3b not proved. This paper argues that the increasing
geographical distance will lead to the increase of the relationship distance and
institutional differences. Geographical distance measures location, language and
cultural differences. This shows that with the increasing geographical distance, the
parent companies and SSJVs tend to establishing more business contacts and lasting
relationships, more attention communication, which can facilitate the transfer
performance. But SSJV culture and language system will hinder the transfer
performance. In addition, we assume that there is inverted "U" shaped relationship
between knowledge gaps and transfer performance. Too much or too little knowledge
and technology gap are not conducive to knowledge transfer. However, the results do
not show such a result . The reason may be only one: when the knowledge gap is too
large, the parent company shall recognize the urgency of the absorption of knowledge;
when the gap is very small, the parent companies and SSJVs have more common
language, so the absorption capacity, ability and knowledge of the value of the
application is also more obvious.
Knowledge characteristics and knowledge transfer performance. This section
covers H4a, H4b, H4c, which mainly observe how the characteristics of knowledge
(tacitness and embeddedness) affects knowledge transfer performance. The empirical
results will have a significant impact on embedded knowledge transfer performance.
That companies can adjust and control these two indicators to enhance the knowledge
transfer effect. This study is divided into tacit knowledge characteristics, simplicity
embedding and embedding relationship. The empirical results show that there is a
negative correlation between "knowledge and technology transfer performance" and
"tacit knowledge and technology, which supports the H4a. Non-coding nature of tacit
knowledge caused it difficult for people to learn, so usually tacit knowledge learners
need to take a long time, which has a negative impact for the transfer performance. In
general, the simple embedding means more personal type of knowledge, products,
parts, production line, operating procedures, institutional arrangements, etc. clearly
the simple embedding has the characteristics of simple knowledge, so a simple
embedded tacit knowledge will reduce complexity, which shall enhance the transfer
performance. However, this does not support H4b. The possible reason is that there is
a large institutional staff in SSJV and cultural gap with restrictions. The simple
embedded knowledge results have confirmed the positive effect, which is not easilyto
be imitated, difficult to transfer properties. The relationship coordination knowledge
or collective knowledge has some difficulties to identify and to express hard-coded
features, thus the relationship will increase the embedding of tacit knowledge, which
supports the H4c.

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This study on the role of knowledge transfer mechanisms are as following:
whatever the case, the primary transfer and informal transfer have almost all
significant direct effect. First of all, the regression coefficient of the primary transfer
mechanism is 0.118 (p <0.05), which conforms H5a. As knowledge of multinational
companies have clear and tacit points, the primary mechanism for the transfer of
expertise is the clear knowledge, through the application of certain specific
instruments. This knowledge can easily be transferred by text message, equipment,
product lines and other forms of high efficiency. Secondly, the regression coefficient
of informal transfer is 0.274 (p <0.01), which conforms H5c. Due to the basis of
informal groups having common interests, feelings or interests, group members
homogeneity of values shall enhance the cohesion of informal groups. No matter what
types of known transfer knowledge, informal groups have deep a impact on the
transfer of knowledge, coordination and cooperation. And, the regression coefficient
of senior transfer is 0.217 (P> 0.1), which does not support H5b. High transfer
mechanism is mainly interpersonal, which requires higher degree of relationship
coordination and information exchange, including work seminars, job rotation, crossfunctional teams, cooperative R & D and so on. Due to lack of tolerance of
organizational culture, the relationship between coordination and information
exchange will not be smooth, which allows advanced transfer to achieve its proper
role.
This paper argues that partnership relation will have its effect on the relationship
among the ambiguity of knowledge, knowledge embeddedness and knowledge
transfer effect. According to the results, before the introduction of the cross-variable,
the independent variables can explain 23.9% of the variation in the dependent variable
after the introduction of cross-variable. The independent variables could significantly
explain 50.2% of the variation in the dependent variable, which shows that the
introduction of cross-variable has effectively improved the relations between the
independent variables and the dependent variable. H6a has been proved.
Both sides of interpersonal relationships are the important manifestation of distance.
Frequently accessed enterprises have a positive effect on strengthening mutual
interpersonal, and enhance knowledge transfer. Tacit knowledge is the main source of
fuzziness of knowledge. The personal and informal interactions will help the transfer
of tacit knowledge.
Similarly, embedded and partnership relation of knowledge has a similar
relationship. Before the introduction of the cross-variable of X1X2, the independent
variables can explain 26.0% of the variation in the dependent variable. After the
introduction of cross-variable, the variables independent could significantly explain
56.0% of the variation in the dependent variable, which shows that the introduction of
cross-variable has effectively improved the relationship between the independent
variables and the dependent variable. H6b has been proved. When knowledge is
embedded into the organizational members, according to Almeida & Kogut (1999)
empirical analysis, members of the organization of tacit knowledge are high. The
recipient should also provide similar working conditions for members of the
organization. When knowledge is embedded into the task and the recipient is more
familiar with this practice, knowledge transfer will be easier.
In the discussion of control variables, the SSJV size significantly affecting
SSJV transfer performance. This is consistent with Dhanaraj et al, (2004) study. The
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3
standardized regression coefficient is 0.369 (p <0.001), which supports H7a. This is
because the bigger the size of the joint ventures (total investment) is, the more it has
the ability to create knowledge (Minbaeva et al., 2003) or may have a more diverse
knowledge resources to promote the absorption of new knowledge (Cohenand
Levinthal, 1990). And small businesses may lack the ability to create or purchase
knowledge. Therefore, the size and performance of the enterprise have a significant
positive correlation. About the relationship between SSJV age and transfer
performance, research results show that the joint venture age does not show a
significant correlation with the transfer efficiency. Its coefficient is 0.034 (P> 0.1),
which does not support H7b. This may be because the early SSJV enterprises are
small, which restricted their ability to transfer and performance; investment scale and
corporate power of recent joint ventures are strong, and so as the transfer ability.

5.2 Research Limitations

After the induction and summary of the full research, it must be noted that,
although the dissertation completed basic idea of the proposed theory, obtained some
important and meaningful conclusions, yet due to the constraints of the author's
knowledge structure, research conditions and research capabilities and other objective
factors, there are still many shortcomings about Sino-Saudi joint ventures knowledge
transfer process in the empirical study, which needs improving and deepening in
future research. Limitations of this study include the following:
With respect to the sample and sampling issues. First of all, the small
number of samples. Sample sampling randomness is not enough. Although the author
has spent a lot of time and energy on distributing and collecting questionnaires, the
number of valid questionnaires is still relatively small. There are differences between
knowledge transfer and acquisition, which has been affected by the joint ventures
antecedents of knowledge transfer. But due to small number of samples, more
variables make barely satisfactory grouping return results. Therefore, the joint
ventures age is as a control variable to analyze. Further, since the small sample size,
the sample is not enough random sampling. Due to the special nature of the study, the
number of companies which are willing to participate in research is relatively small.
On the variables in the model issues. First of all, in this study, some of the
variables, such as the effectiveness of the joint ventures, tacit knowledge have been
mostly based on some documents, combined interviews of information, self-designed
questionnaire. Reliability and validity of the scale need to be further examined.
Secondly, the factors of knowledge transfer in this study are composed of eight
factors, which do not take into account other factors that may affect more knowledge
transfer, such as knowledge transfer channels factor.
This may cause the presence of omitted variables OLS estimator errors, which
affects the accuracy of the estimated value of the variable coefficients. In addition, the
dissertation needs to further explore the curve relationship between the knowledge
transfer and its effect factor. Thirdly, this study did not consider the impact of other
intermediate variables on the effectiveness of knowledge transfer.

5.3 Prospects for Future Research

Although the present study explores the relationship between SSJV knowledge
transfer antecedents and knowledge transfer, SSJV knowledge transfer performance,
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4
yet there is still space in in-depth studies. The author suggests that future research
should focus on the following aspects:
Increasing the sample size, improving the randomness of the sampling and data
collection should be from multi-channel. In future studies, researchers should spend
more time and effort on taking a more effective manner and ways in the wider region
to gather more questionnaires, taking a more random sampling method to increase the
sample size, allowing the sample to have better representation.
Repeating measuring the reliability and validity of the scale, depth-exploring the
relationship between the antecedents of knowledge transfer and knowledge transfer
and enriching research models. Firstly, in reality, knowledge transfer will also be
affected by many other factors. Therefore, future researchers should research more
and more cases or empirical researches to explore the different factors that affect the
parent companies and joint ventures between in order to compensate for the lack of
this study. In addition, the relationship between antecedents of knowledge transfer and
knowledge transfer may be curvilinear. For example, with the increase in the number
of relationships, at the same time, to maintain these relationships may affect the
quality of inter-organizational knowledge transfer. Therefore, future research should
focus on whether the antecedents of knowledge transfer and knowledge transfer curve
relationship exist. In addition, the main conceptual model of this study analyzed the
influence of independent variables on intermediate variables, intermediate variables
influence on the dependent variable, the lack of mediating variables and analyze the
role of the manipulated variable. Future researches may consider mediating roles or
regulations, in order to enrich the content of the model to enhance the applicability
and explanatory models.
In order to tease out the effect of model variables of time, in-depth case studies
and longitudinal data researches in the triangular relationship of the joint venture are
necessary. If researchers can get the JV continuous observational data, and
dynamically explore the antecedents of knowledge transfer, knowledge transfer
mechanism of IJV performance and empirical results will be better, and more able to
reflect the dynamic process of knowledge transfer in joint ventures. This study hopes
to promote the transfer of research knowledge of the joint ventures.
Expanding the scope of the study. This study only considers the relationship
between knowledge transfer venture in Chinese parent companies and the foreign
parent companies. In fact, JV is involved in a bigger, broader network. This network
is composed by suppliers, distributors, and other public agencies and other partners.
Similarly, the multinational parent company and the parent company are also involved
in local businesses, subsidiaries and partners worldwide. Therefore, future studies
consider both sides Network (knowledge networks and knowledge sender recipient
network) of the parent company, as the source of knowledge transfer network of
multinational companies, as well as the transfer of knowledge and so on enterprise
groups.

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5

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Appendix: Charts and Tables from Primary Research

Figures
Recessive

Specificity

Complexity

Experience

Partner
protection

Cultural gap

Fuzziness

Knowledge and
technology
transfer

Moderating Effects
Collaboration trick
Learning ability
Alliance age

Organizational
distance
Figure 2-1:Simonins Knowledge and Technology Transfer Model Fuzziness in Strategic
Alliance
Reference: Simonin (1999a)

JV Performance
--Employee
retention
--Perception
of
economic
performance
Tackiness Source
--Overall
Knowledge:
Figure 2-2: Cross-border Knowledge Transfer
and Performance Models Fuzzy
application conditions
Reference:Isobe et al. (1998)
Knowledge provider: lack of
motivation
Lack of reliability
Tackiness
Knowledge recipient: lack of
Results:transfer
motivation
difficulties
Lack of absorptive capacity
Process: Start
Lack of retention
Carried out
Context:organizational
Gain
interference
Integrate
Strained relations
6

--Strategic
importance
--Control
--Complementary
assets

Knowledge
Transfer
--Knowledge Value
--Transfer Speed

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9

Figure 2-3: Szulanski Knowledge Transfer Viscosity Model

Reference: Szulanski (1996), pp35.

Knowledge
transfer
capability
--Knowledge base
--Employees Ability

Knowledge
Transfer
willingness
--The importance of
Chinese subsidiary
--Type of ownership
--Enterprise
Relationship

Learning ability
--The quality of staff
--Frequency
of
training
Chinese
subsidiaries
acquire
knowledge

Multination
al
corporation
s
knowledge

Learning
intentions
--Employee
learning intentions
--Frequency

Figure 2-4: The Two-stage Model of Knowledge Transfer

Reference: Wang, Tong and Koh (2004)

Figure 4-1 Scatter Plot for JV Performance

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Figure 4-2 Scatter Plot for Moderator Variable

Figure 4-3 Scatter Plot for Knowledge and Technology Gap

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Tables
Table 1-1 VariableS List

First-level variables
a. Company characteristics

Second-level variables
1. Parent Companys Transfer Willingness (PCTW)
2. Parent Companys Transfer Capacity (PCTC)
3. SSIV 's Willingness to Learn(JVWL)

b. Moderator variable

4. SS JV 's Ability to Learn(IVAL)

5.Partnership Relation(PR)

c. Transfer situation

6. Geographical Distance(GD)
7. Knowledge and Technology Gap(KTG)

8. Institutional Differences(ID)
d. Knowledge and technology 9. Tacit Knowledge and Technology(TKT)
transfer characteristics
10. Simple Embedding(SE)
11. Relationship Embedding (RE)
e. Transfer mechanisms

12.Primary Transfer Mechanism(PTM)

13. Senior Transfer Mechanism(STM)
14. Informal Groups and Communication(IGC)

f. Dependent variable

15. Transfer Performance(TP)

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2
Table 1-2 Hypothesis List

H1a:

There is a positive correlation between knowledge and technology transfer

performance and Parent Companys Transfer Willingness.

H1b:

There is a positive correlation between knowledge and technology transfer

performance and the parent companys knowledge and technology transfer
ability.

H1c:

There is a positive correlation between knowledge and technology transfer

performance and SSIV 's Willingness to Learn

H1d:

There is a positive correlation between knowledge and technology transfer

performance and SS JV 's Ability to Learn
The "partnership" relationship in official level reflected may enhance the
technology transfer between Sino-Saudi partners. (In SSJV a higher degree
of cognitive trust can be found, while non-cognitive trust is yet to be
determined, because non-cognitive trust roots on in-depth mutual
understanding on each other. Efforts will be made detect the level of noncognitive trust in SSJV.)
"Knowledge and technology transfer performance is inversely proportional
to geography distance ".
Knowledge and technology gap shows an U-shaped relationship with
"knowledge and technology transfer performance".
There is a positive correlation between "Knowledge and technology transfer
performance" and institutional differences .
There is a positive correlation between "Knowledge and technology transfer
performance" and tacit knowledge and technology .

H2:

H3a:
H3b:
H3c:
H4a:
H4b:

Simple embedded knowledge will reduce its tacit knowledge, so as to

enhance technology transfer performance.

H4c:

The relationship embedding knowledge will increase its tacitness, thus

reducing knowledge and technology transfer in performance.

H5a:

SSJVs knowledge transfer success is positively affected by the primary

transfer mechanism.

H5b:

SSJVs knowledge transfer success is positively affected by Senior Transfer

Mechanism.

H5c:

SSJVs knowledge transfer success is positively affected by informal groups

and communication.

H6a:

"Partnership" relationship will adjust the negative correlation between tacit

knowledge and knowledge technology transfer performance.

H6b:

"Partnership" relationship will adjust the negative correlation between

knowledge embeddedness and knowledge technology transfer
7
2

7
3
performance.
H7a:
H7b:

The size of SSJV has a positive correlation with "Knowledge and

technology transfer performance"
The age of SSJV has a positive correlation with "Knowledge and technology
transfer performance"

Table 4- 1: SSJVs business location, age, total investment and industrial distribution.
Item
(%)

Category

Number of questionnaires (enterprises)

Proportion

Business location Beijing

12 (5)
11.42(13.53)
Tianjin
9 (3)
8.508.10
Liaoning
8(3)
7.628.10
Shanghai
6(3)
5.748.10
Jilin
5(2)
4.785.41
Zhejiang
4(1)
3.862.70
Hebei
4(1)
3.812.70
Fujian
3(1)
2.822.70
Guangdong
3(1)
2.822.70
Yanbu
156
14.2916.22
Dahran
133
12.388.10
Dammam
72
6.85(8.10)
Rabig
62
5.748.10
Riyadh
62
5.748.10
Jeddah
31
2.822.70
Jazan
11
0.952.70
In total
10537
100100
............................................................................................................................
..................................
Age (years)
1-3
6017
57.14(45.95)
4-6
3113
29.52(62.16)
7-10
11 6
10.47(16.22)
>10
31
2.86(2.70)
In total
10537
100100
............................................................................................................................
..................................
Total investment ($) <0.5 billion
29(13)
27.62(35.14)
0.5-10 billion
70(19)
66.67(51.35)
>10 billion
6(5)
5.71(13.51)
In total
10537
100100
............................................................................................................................
..................................
Industry
Energy
58(18)
55.23(67.56)
Engineering Contraction 16(7)
15.24(18.91)
Infrastructure
11(3)
10.48(8.11)
Chemicals, pharmaceutical 5(2)
4.76(5.41)
Mining
4 (2)
3.80(5.41)
Traditional manufacturing 3(1)
2.86(2.70)
ICT Industry
2(1)
1.90(2.70)
Financial Industry
2(1)
1.90(2.70)
Other
4(2)
3.80(5.41)
Total
10537
100100

7
3

7
4
Table 4-2: Respondents Rank Positions and Career Content
Item
(%)

Category

Number of questionnaires (enterprises)

Proportion

Post grades
Company senior managers
36(13)
34.29(35.13)
JV senior managers
269
24.76(24.32)
JV Middle managers
32(12)
30.48(32.43)
JV Basic manager
11(3)
10.48(8.11)
............................................................................................................................
..................................
Departments
Management department
22(8)
20.95(21.62)
Technical department
217
20.00(18.92)
Production department
206
19.05(16.22)
Sales department
207
19.05(18.92)
HR Department
226
20.95(16.22)
Table 4-3 Differences in Network Knowledge Transfer Case
Item
(%)

Category

Number of questionnaires (enterprises)

Proportion

Frequency

lots of
11(3)
10.46(8.11)
Fairly
25(8)
23.81(21.62)
General
32(11)
30.48(29.73)
Less
26(11)
24.76(29.73)
Scarcely
11(4)
10.46(8.11)
............................................................................................................................
................................
Usage
Innovation
10(3)
9.52(8.11)
Improvement
42(18)
40.00(21.62)
Purely introduction
33(10)
31.43(27.03)
Other
20(6)
19.05(16.22)

Table 4-4: Descriptive Statistics for Each Variable

PCTW

N
125

Minimum
6

Maximum
18

Mean
12.36

Std.
Deviation
3.06

PCTC

125

16

11.85

2.46

IVWL

125

17

13.01

4.32

JVAL

125

18

12.86

3.82

PR
GD
KTG
ID
TKT
SE

125
125
125
125
125
125

9
6
5
4
4
5

25
15
14
13
15
16

17.98
10.14
8.47
6.76
9.58
11.49

5.16
2.43
1.89
2.08
4.29
3.56

7
4

7
5
RE
PTM
STM
IGC
TP

125
125
125
125
125

4
3
6
2
11

17
14
14
7
38

10.56
7.09
8.36
4.23
21.38

4.75
1.86
2.79
1.06
7.93

Table 4-5 Bartlett's Test of Sphericity and KMO Test for Allover Variables

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling0.830
Adequacy.
Bartlett's
Test
ofApprox. Chi-Square
333.608
Sphericity
df
15
Sig.
0.000
Table 4-6: Rotated Component Matrix of Overall Variables

Total Variance Explained

Initial Eigenvalues
Component
Total
% of Variance Cumulative %
1
3.290
21.936
21.936
2
2.499
16.658
38.594
3
1.789
11.924
50.517
4
1.615
10.768
61.286
5
1.232
8.212
69.497
6
1.024
6.828
76.325
7
.880
5.868
82.193
8
.682
4.547
86.740
9
.610
4.066
90.806
10
.514
3.425
94.231
11
.386
2.575
96.805
12
.206
1.373
98.178
13
.173
1.154
99.332
14
.100
.668
100.000
15
3.216
2.215
100.000
Extraction Method: Principal Component Analysis.

Rotation Sums of Squared Loadings

Total
% of Variance Cumulative %
3.151
21.007
21.007
2.255
15.034
36.041
1.813
12.085
48.126
1.475
9.835
57.961
1.460
9.733
67.694
1.295
8.632
76.325

Table 4-7: Rotated Component Matrix of Overall Variables

Rotated Component Matrixa

PCs Transfer willingness

Component
1
2
-0.625

PCs transfer capacity

0.682

7
5

7
6
SSJVt's willingness to learn
SSJVs ability to learn
Partnership Relation
Geographical distance
Knowledge and technology gap
Institutional differences
tacit knowledge and technology
Simple embedding

0.736
0.656
0.765
-0.728
0.817
-0.752
0.638
0.725

Relationship embedding

0.712

Primary transfer mechanism

Senior transfer mechanism
Informal groups and communication
Successful transfer
Extraction
Method:
Principal
Component Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 7 iterations.

0.779
0.810
0.705
0.790

Table 4-8 Bartlett's Test of Sphericity and KMO Test44

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity
Approx. Chi-Square
df
Sig.

0.759
280.349
16
0.000

Table 4-9 Rotated Component Matrix for Company Characteristics

Rotated Component Matrixa

Component
1
2
Q1
0.612
Q2
0.755
Q3
0.726
Q4
0.637
Q5
0.726
Q6
0.685
Q7
0.777

44

The variable is the company characteristics

7
6

7
7
Q8
-0.695
Q9
0.638
Q10
0.682
Q11
0.529
Q12
-0.736
Q13
0.797
Q14
-0.645
Q15
-.0562
Q16
0.702
The
18.63
17.85
12.26
13.75
proportion of
variance
explained
(%)
The
62.49
proportion of
the
total
variance
explained(%)
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 4 iterations.
Table -4-10 Bartlett's Test of Sphericity and KMO Test45

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity Approx. Chi-Square
df
Sig.

0.706
213.20
13
0.000

Table 4-11 Rotated Component Matrix for Partnership Relation

Rotated Component Matrixa

Component
1
-0.138
0.193
0.573
0.861
0.921

Q17
Q18
Q19
Q20
Q21
45

Note: The variable is partnership relation

7
7

7
8
Q22
0.655
The proportion of the total variance63.85
explained (%)
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 4 iterations.
Table 4-12 Bartlett's Test of Sphericity and KMO Test46

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling0.874
Adequacy.
Bartlett's
Test
ofApprox. Chi-Square
349.52
Sphericity
df
25
Sig.
0.000
Table 4-13 Rotated Component Matrix for Transfer Situation

Rotated Component Matrixa

Component
1
2
0.830
0.896
0.780
0.912
0.536 0.861
0.760

Q23
Q24
Q25
Q26
Q27
Q28
Q29
Q30
Q31
The proportion of variance explained26.83 23.35
(%)
The proportion of the total variance71.61
explained (%)
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.

3
0.635

0.722
0.835
0.792
21.43

Table 4-14 Bartlett's Test of Sphericity and KMO Test47

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity Approx. Chi-Square
df

46

0.812
352.20
24

Note:The variable is the knowledge and technology transfer situation

47 Note: The variable is knowledge and technology characteristics

7
8

7
9
Sig.

0.000

Table 4-15 Rotated Component Matrix for Knowledge and Technology Characteristics

Rotated Component Matrixa

Component
1
2
0.750
0.876
0.764
0.871
0.715
0.654 0.812
0.736

Q32
Q33
Q34
Q35
Q36
Q37
Q38
Q39
Q40
Q41
Q42
The proportion of variance explained (%)
19.91 24.15
The proportion of the total variance66.25
explained(%)
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.

0.821
0.702
0.708
0.613
22.23

Table 4-16 Bartlett's Test of Sphericity and KMO Test48

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity Approx. Chi-Square
df
Sig.

0.706
163.20
15
0.000

Table 4-17 Rotated Component Matrix for Transfer Mechanisms

Rotated Component Matrixa

Component
1
2
3
0.656
0.712
0.764
0.725

Q43
Q44
Q45
Q46

48 Note:The variable is Transfer mechanisms

7
9

8
0
Q47
Q48
Q49
Q50
The proportion of variance explained (%)
20.36
The proportion of the total variance.55.85
explained(%)
Extraction Method: Principal Component
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.

0.769
0.736
0.752
0.821
17.52 17.97

a. Rotation converged in 5 iterations.

Table 4-18: Questionnaire Chrnobach's Reliability Test49

Sub-scale
categories
Company
Characteristics

Standardized
Chrnobach's
0.63
0.69
0.53
0.73
0.72

Quantity
questionnaire
4
4
4
4
6

6
7
8
knowledge and 9
technology
10
characteristics 11

0.85
0.81
0.79
0.61
0.72
0.74

3
3
3
3
3
3

Transfer
mechanisms

0.60
0.82
0.71
0.86

3
3
2
8

Manipulated
variable
Transfer
situation

Dependent
variable
49

Constitution
1
2
3
4
5

12
13
14
15

Note: SSJV willingness to learn is deleted due to the value less than 0.6

8
0

of

8
1
Table 4-19 Pearson Correlation Analysis

8
1

8
2
Table 4-20: Multicollinearity Diagnostics
Explanatory correlation degree
Variables
1
2
3
4
5
6
7
8
9
10
11
12
13
14

0.109
0.269*
0.008
0.175
0.486**
0.340**
-0.085
0.508**
-0.612t
0.117
- 0.036
0.296*
0.328**
0.120

0.965
0.854
0.893
0.706
0.906
0.526
0.803
0.720
0.801
0.626
0.759
0.459
0.620
0.753

Tolerance
1.025
1.156
1.146
1.243
1.569
1.463
1.741
1.005
1.201
1.659
1.269
1.036
1.000
1.159

VIF

Condition Index

6.259
7.947
5.415
8.163
9.263
8.067
7.260
9.369
7.236
10.039
6.216
3.259
5.236
2.258

Table 4-21 Regression Results for Overall Variables

Coefficients t-Stat
Control variables
Xsize
0.369
0.785
Xage
0.034
3.028

Sig

R2

0.001
0.759
0.15 0.19

Independent variable
X1
0.217
2.039
0.060
X2
0.234
1.243
0.051
X3
0.052
0.325
0.125
X4
0.263
4.283
0.043
X5
-0.396
5.210 0.020
X6
0.418
3.280
0.102
X7
-0.447
5.025 0.030
X8
-0.586
2.789 0.001
X9
0.169
1.726 0.130
X10
- 0.486
4.168 0.001
X11
0.118
7.558 0.003
X12
0.217
2.362 0.175
X13
0.274
4.263 0.015
0.688
0.757

Ad. R2

3.152*

22.397**

Table 4-22 Regression Results for Moderator Variable50

50
X1 and X2 respectively represent tacit knowledge and technology,
partnership relation.

8
2

8
3
Variable

Coefficient

Control variables
Xsize
0.269
Xage
0.043

t-Stat Sig

2.671 0.115
1.126 0.124
0.22 0.30

R2 Ad. R2

4.531*

Independent variable
X1
0.217*
3.426 0.060
*
X2
0.234
2.856 0.051
0.239 0.327 4.824
Cross-variable
X1X2
0.682***
4.036 0.007
0.502 0.647 9.263**
Table 4-23 Regression Results for Moderator Variable

Variable

Coefficients t-Stat

Sig

R2 Ad. R2

Control variables
Xsize
0.358*
Xage
0.126

2.263 0.086
1.267 0.124
0.351 0.427 4.605*
Independent variable
X1
0.364**
3.036 0.042
X2
0.234**
4.250 0.035
0.260 0.293 4.902
Cross-variable
X1X2
0.705***
6.528 0.001
0.560 0.652 9.596**

Table 4-24 Regression Results for Moderator Variable for Knowledge and Technology
Gap51

Variable

Coefficients t-Stat

Control variables
Xsize
0.028* 3.260
Xage
0.326 2.059
Quadratic Term
X32
-0.296

Sig

0.086
0.124
0.085

3.741
0.112
0.384 0.396

R2 Ad. R2

4.605*
4.239*

51
X1 and X2 respectively represent embeddedness of knowledge and
technology

8
3

8
4
Table 5-1 Findings

H1a:

There is a positive correlation between Support the original hypothesis

knowledge
and
technology
transfer
performance and Parent Companys Transfer
Willingness.

H1b:

There is a positive correlation between Support the original hypothesis

knowledge
and
technology
transfer
performance and the parent companys
knowledge and technology transfer ability.

H1c:

There is a positive correlation between Against the original hypothesis

knowledge
and
technology
transfer
performance and SSIV 's Willingness to
Learn

H1d:

There is a positive correlation between

knowledge
and
technology
transfer
performance and SS JV 's Ability to Learn
The "partnership" relationship in official level
reflected may enhance the technology transfer
between Sino-Saudi partners. (In SSJV a higher
degree of cognitive trust can be found, while
non-cognitive trust is yet to be determined,
because non-cognitive trust roots on in-depth
mutual understanding on each other. Efforts will
be made detect the level of non-cognitive trust in
SSJV.)
"Knowledge
and
technology
transfer
performance is inversely proportional to
geography distance ".
Knowledge and technology gap shows an Ushaped relationship with "knowledge and
technology transfer performance".

H2:

H3a:
H3b:

H3c:
H4a:

Against the original hypothesis

Support the original hypothesis

Support the original hypothesis

Against the original hypothesis

There is a positive correlation between Support the original hypothesis

"Knowledge
and
technology
transfer
performance" and institutional differences .
There is a positive correlation between Support the original hypothesis
"Knowledge
and
technology
transfer
performance" and tacit knowledge and
technology .

H4b:

Simple embedded knowledge will reduce its Against the original hypothesis
tacit knowledge, so as to enhance technology
transfer performance.

H4c:

The relationship embedding knowledge will Support the original hypothesis

increase its tacitness, thus reducing knowledge
8
4

8
5
and technology transfer in performance.
H5a:

SSJVs knowledge transfer success is positively Support the original hypothesis

affected by the primary transfer mechanism.

H5b:

SSJVs knowledge transfer success is positively Against the original hypothesis

affected by Senior Transfer Mechanism.

H5c:

SSJVs knowledge transfer success is positively Support the original hypothesis

affected by informal groups and communication.

H6a:

"Partnership" relationship will adjust the Support the original hypothesis

negative correlation between tacit knowledge
and
knowledge
technology
transfer
performance.

H6b:

"Partnership" relationship will adjust the Support the original hypothesis

negative correlation between knowledge
embeddedness and knowledge technology
transfer performance.

H7a:

The size of SSJV has a positive correlation with Support the original hypothesis
"Knowledge
and
technology
transfer
performance"
The age of SSJV has a positive correlation with Against the original hypothesis
"Knowledge
and
technology
transfer
performance"

H7b:

8
5