Connectivity in the technology transfer process among local ASEAN firms

This study investigates the mediating role of human factors in absorbing externally available information into product innovations of firms in four Southeast Asian countries. This absorption process consists of two sub-processes, namely the acquisition process from which outside information is employed to the firm's innovative capacity and the transformation process in which innovative capacity creates innovation. This study attempts to identify human elements essential to indigenous innovative capacity building. As such elements may help the absorption process, this study focused on personnel with experience of working with multinational enterprises (MNEs) and indigenous employees of the firm. As for the transforming capability, organizational learning process, including quality control (QC) and cross-functional teams are examined. The analysis indicates that MNEs have the largest impact as external linkages and for the connectivity with external linkages such as MNEs and public organizations and universities, the best mediators are top management and factory managers who have working experience with MNEs, whereas indigenous employees such as local engineers, managers, and line leaders are the best mediators for connectivity with locals.