Level of Absorptive Capacity among Contractors in Technology Transfer Project: Electrical Train Service (ETS), Malaysia

In a global competitive environment, technical changes are rapid, volatile and very complex. Nowadays, technology is labelled as a weapon towards organization for performance and productivity, which made absorptive capacity (ACAP) an important aspect. Absorptive capacity refers to an organization’s ability to recognize, capture, assimilate, transform and exploit the new technology within the organization. In order, to allow technology transfer to be successful, the organization is required to have a strong ACAP. However, a previous study has outlined that the level of ACAP in the construction industry is relatively low and this has made the technology transfer process in the industry very challenging. Thus, this research aims to explore the ACAP level and technology transfer activities in a construction project. The objectives of this paper are to identify the factors that enhance ACAP in the technology transfer process, to measure the level of ACAP in the technology transfer process and to identify a suitable suggestion in order to improve ACAP in the technology transfer process. 35 contractors from the electric double track (ETS) project, in Segamat have been involved, with a 35% of respond rate. The contractors from the ETS project have been chosen as the project is known as a mega project and has involved various foreign technology and experts, which allow technology transfer to happen actively. Questionnaires are used as the research instrument and descriptive data analysis is conducted using the Statistical Package for the Social Sciences (SPSS) version 25. The findings show that the organizational factors contribute a significant influence towards ACAP in the technology transfer process. The ACAP level that is experienced by the respondents contribute towards good work performance, while the communication and skills aspect are to increase the level of ACAP in the technology transfer process. Based on the findings of this study, the organizations, contractors, academics, and others need to alert and view one of these issue as an important problem and to establish further cooperation in maintaining the level of absorptive capacity of new technology in the process of technology transfer in order to achieve optimal levels over a period of time.