The Moderating Effects of the Cultural Similarity in the Path of Technology Transfer between the Parent Firm and the Foreign Subsidiary

This study was conducted to find out a path characteristic centered around the moderating effects of organizational culture similarity in the process of technology transfer to foreign subsidiary. This study has its research purpose to offer practical implication to related corporations by analyzing path characteristic of technology transfer performance of MNEs to advance foreign market. For the purpose, this research sets four potential variations such as organizational culture similarity, disseminative capacity of the parent firm, absorptive capacity of the subsidiary and transfer performance. After verifying overall validity of measurement 17 items, this research conducted hypotheses test through path analysis using partial least square (PLS). There were 173 samples and this study proposed total 9 hypotheses including moderating effects of the organizational culture similarity between the HQ and the foreign subsidiary. The result of analysis has shown that for the effect of organizational culture similarity on disseminative capacity, coefficient value is statistically significant. The organizational culture similarity has shown positive effect on the absorptive capacity. But the relationship between the organizational culture similarity and the transfer performance did not have statistically significant. In the result of hypotheses about the relationship between the disseminative capacity, the absorptive capacity and the transfer performance, both of them show the statistically significant. In addition, the hypothesis between the absorptive capacity and the transfer performance has shown a statistically significant result. For the hypotheses about moderating effects of the organizational culture similarity, only the path coefficient value of it between the disseminative capacity and the transfer performance has shown significant result. Thus, only the moderating effect of the organizational culture similarity is selected and the others are dismissed. The result of this study based on the dynamic view of culture centered around organizational culture similarity has implication as theoretically it verified moderating effects of organizational culture similarity. These resultss offer theoretical discussions to future studies centered around organizational culture in the dynamic view of culture