Evaluating the Role of Joint Venture for Technology Transfer in Petrochemicals Industry at Jubail, KSA

Abstract

In the petrochemical's sector, where the market evolves incessantly around new processes and functions, companies are forced to be continuously innovative by acquiring or developing technologies. This is a crucial element in the competitive strategy of any enterprise. The ongoing integration between the Saudi market and the international market liberalizes and enhances the competitive pressure within companies, in particular joint ventures and alliances. As well as, it increases technological development needs. This study was conducted to evaluate the role of Joint Venture for technology transfer in petrochemicals at Jubail Industrial City, Saudi Arabia. A questionnaire was developed to collect the necessary data from joint-ventures companies. Seventeenth companies completed and returned the questionnaire. The obtained data were analyzed using SPSS package. The results indicate that several Technologies including product, process, marketing, organizational, strategic, and systematic have been successfully transferred to the Petrochemical industry in Saudi Arabia. The majority of these technologies have been transferred mainly through joint venture companies. Joint venture companies consider and control many internal and external aspects to assure a successful technology transfer. Association with suitable partner, commitment of the top management, education and training, flexible organizational culture, intra-organization coordination and use of information and communication technology are essential ingredients of any technology transfer process. Also, the results show that patents play a main role in increasing profits for the joint venture companies. Language is considered as the major factor in creating a gap toward success in Joint Venture

Keywords

• Product technology transfer, process technology transfer, strategic technology transfer, marketing technology transfer, top management, education and training, flexible organizational culture and barriers to technology transfer

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