Examining the appropriateness and effectiveness of technology transfer in China

Purpose – This paper seeks to address the appropriateness and effectiveness of technology transfer based on the extant literature reviews and the structured survey data in Jiangsu, Henan and Xinjiang, China. Design/methodology/approach – Structured survey followed by a correlation analysis with the CORREL function in Excel. Findings – This paper describes a structured survey undertaken in Jiangsu Province, Henan Province and Xinjiang Autonomous Region, PRC, which examines a particular aspect of technology transfer within Sino‐foreign joint ventures. The findings suggested important implications for the relationship between technology transfer and economic development. Moreover, the identification of the peculiarities of both technology transfer and knowledge transfer has led to the thorough examination of appropriateness and effectiveness of technology transfer. This study is thought‐provoking in establishing the blockage of tacit knowledge transfer and suggests means by which tacit knowledge transfer could be improved. In addition, it also leads the way for the introduction of systematic processes that could be specifically incorporated into World Bank projects that involve international technology transfer as a major feature. Originality/value – This paper addresses the appropriateness and effectiveness of technology transfer. The study identifies that, without knowledge transfer, technology transfer does not take place, as knowledge is the key to control technology as a whole. Hence, knowledge transfer is crucial in the process of technology transfer. Furthermore, the study identifies that technology transfer is not obtainable if there is too big a gap in terms of economic development between transferor and transferee. This has important implications for the economists in addressing economic problems both at macro and micro levels and the government policy‐makers in addressing the existing deficiencies in the process of technology transfer and assisting in development of more appropriate arrangements for the transfer of management knowledge.