International Technology Transfer Performance: The Case of Organizations Located in Angolan Provinces
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Master Thesis in Innovation and Technological Entrepreneurship 2015/2016 International Technology Transfer Performance: The Case of Organizations Located in Angolan Provinces Carina Trino Supervisor: Aurora A.C. Teixeira June 2016
i Bio Carina Alexandra Praça Trino was born on 15 of July 1985, in Lisbon. She started her academic education in Polytechnic Institute of Braganza (IPB – Instituto Politécnico de Bragança) with a bachelor in Chemical and Biological Engineering. Afterwards she attended the Bachelor of Chemical and Environmental Technology and the Master in Chemical and Materials Technology in Tallinn University of Technology, Estonia within the Erasmus program. She graduated in 2009. In order to add more competences, she obtained the Hazard Analysis and Critical Control Point certificate (HAACP) and the Pedagogical aptitude certificate (CAP). Nonetheless, she continue the link with IPB as a member of the Chemistry Engineering Core during the promotion of the first National Encounter/Debate of Chemical Engineering Students in Portugal. Regarding to professional experience, Carina started to work in 2009 in the Innovation Center of Trás-os-Montes and Alto Douro (CITMAD), where she was responsible by the CITMAD office in Braganza, supporting the implementation of new business in the region, specially addressing the execution of business plans and applications to European community funds. Presently, she is working in Medidata.Net, a software company based in Porto with projects in Portugal, Angola and Cabo Verde. In this context, from 2010 until 2014, she was an international consultant in Angola being involved in the implementation of several projects. Carina was in direct contact with the national and local entities from different regions (e.g., Luanda, Cabinda, Lunda-Sul, Benguela and Lobito), with the responsibility to modernize the administrative services.
ii Acknowledgements Firstly I would like to express my sincere gratitude to my advisor, Professor Aurora Teixeira for the continuous support of my Dissertation, for her patience, motivation and immense knowledge. Her guidance helped me in all time and incented me to widen my research from different perspectives. I could not have imagined having a better advisor and mentor for this study. Besides my advisor, I would like to thank Medidata.Net for allowing the execution of this dissertation, for the support and also, by the access to all information needed. I am grateful by the human vision within this company, without their precious contribution it would not be possible to write this research. I am thankful to all my colleagues and friends who provided expertise and information. Last but not least, I would like to thank the amazing people in my life, to my mother and sister for making me what I am today and to my astonishing husband. I am forever indebted for the unceasing encouragement and attention through this venture.
iii Abstract With the current lack of growth in major part of the globe, finding new basis of growth has become a global policy priority. One of the faster ways to achieve competitive advance is through the movement of technological knowledge among firms and sectors, imitating what is already created in more developed countries. However, to ensure the success of the transfer it is necessary to understand the barriers of the adopter country to new technologies and/or knowledge, especially in the case of countries with sharp regional differences. While the literature has mainly focused on international technology transfer (ITT) across the national borders of developed countries, less attention has been paid to the role of moderate developed countries in fostering innovation and transmission of knowledge into less developed and developing countries. Moreover, extant studies often analyse the transference of technology between countries, most notably those from the OECD, with relevant data availability, given the easiness to treat and compare data. Much less attention has been paid to the diffusion of technology between countries with very distinct technological capabilities and geographically far apart. This paper fills this gap by addressing the determinants of international technology transfer of the adopter country’s organizations at a regional level. Based in depth analysis of a technological transfer project from Portugal to different regions of Angola, focused on thirty (30) organizations located in eight (8) provinces and resorting to panel data econometric estimations, we demonstrate that the performance in the process of international technology transfer is significantly dependent on the organizational features, such as the size, the public servants characteristics, distribution of hierarchical levels and the percentage of investment allocated to province. The literacy level of the regions where organizations are located emerged as a significant promotor of successful ITT. Keywords: International Technology Transfer; Developing Countries; Regional Development JEL-Codes: O33; O19; R11.
iv Resumo A atual falta de crescimento económico visível na maior parte do mundo fez com que encontrar novas bases de desenvolvimento se tornasse uma prioridade da política global. Uma das formas mais céleres para alcançar vantagem competitiva é através da transferência do conhecimento tecnológico entre empresas e/ou sectores, adotando tecnologias proveniente de países mais desenvolvidos. No entanto, para garantir o sucesso da transferência é necessário entender as barreiras do país adotante às novas tecnologias e/ou conhecimento, particularmente no caso de países com diferenças regionais acentuadas. A literatura incide principalmente na transferência de tecnologia internacional (TTI) entre países contíguos ou vizinhos, desta forma tem sido dado menor realce ao papel dos países moderadamente desenvolvidos na promoção da inovação e na transmissão do conhecimento. Por outro lado a maioria dos estudos existentes, analisam a transferência de tecnologia entre países, nomeadamente da OCDE devido à facilidade de acesso a informação relevante e tratamento de dados. Por conseguinte, a transferência de tecnologia entre países com capacidades tecnológicas muito distintas e geograficamente distantes não é alvo recorrente de estudo. Esta dissertação pretende preencher essa lacuna, abordando os factores que influenciam a transferência de tecnologia de um país moderadamente inovador (Portugal) para organizações públicas em distintas regiões de um país em desenvolvimento (Angola). Com base numa análise detalhada de um caso de estudo de transferência tecnológica de para várias províncias de Angola envolvendo trinta (30) organizações situadas em oito (8) províncias, e recorrendo a dados em painel e estimativas econométricas, demonstramos que o desempenho no processo da transferência de tecnologia internacional depende, essencialmente de características da organização, tais como o seu tamanho, o capital humano, a distribuição dos níveis hierárquicos e à percentagem de investimento alocado às diferentes regiões. O nível de literacia das regiões onde as organizações estão localizadas emergiu como um importante factor de sucesso da ITT. Palavras-Chave: Transferência de Tecnologia Internacional; Países em Desenvolvimento; Desenvolvimento Regional. JEL-Codes: O33; O19; R11.
v Index of contents Bio .................................................................................................................................................................. i Acknowledgements ...................................................................................................................................... ii Abstract ....................................................................................................................................................... iii Resumo ........................................................................................................................................................ iv Index of Tables ........................................................................................................................................... vi Index of Figures ......................................................................................................................................... vii 1. Introduction ............................................................................................................................................. 1 2. Literature Review on International Technology Transfer .................................................................. 4 2.1. Defining International Technology Transfer ..................................................................................... 4 2.2. Factors that influence ITT ................................................................................................................. 6 2.3. TT at the regional level in less developed countries .......................................................................... 8 2.4. Main gap of the literature ................................................................................................................ 10 3. Methodology .......................................................................................................................................... 12 3.1. Justification of the method of analysis ............................................................................................. 12 3.2. Data gathering procedures and construction of data set ................................................................ 14 3.2.1. Detailing the procedures ........................................................................................................... 14 3.2.2. ITT performance index ............................................................................................................. 16 3.2.3. Province’s characteristics ......................................................................................................... 17 3.2.4. Organization’s characteristics .................................................................................................. 18 3.3. The econometric approach and specification .................................................................................. 19 4. Empirical Results .................................................................................................................................. 21 4.1. The institutional context of the international technology transfer: the drive for administrative decentralization ...................................................................................................................................... 21 4.2. A descriptive account of the ITT process ......................................................................................... 22 4.2.1. The SIIGAT Project ................................................................................................................. 22 4.2.2. Description of the technology .................................................................................................. 25 4.2.3. The transferor: developer of the technology ............................................................................ 27 4.2.4. The transferee: provinces of Angola ........................................................................................ 28 4.3. Assessing the performance of ITT at the regional level ................................................................... 28 4.3.1. Estimating the ITT performance index ..................................................................................... 28 4.3.2. Estimation results: a panel data analysis .................................................................................. 30 5. Conclusion .............................................................................................................................................. 33 5.1. Main results, contribution and implications for science ................................................................. 33 5.2. Limitations and paths for future research ....................................................................................... 36 References .................................................................................................................................................. 38 Appendix .................................................................................................................................................... 51
vi Index of Tables Table 1: Interviews performed ........................................................................................ 13 Table 2: Summary of the variables, unit of analysis and data gathering methods of the study of SIIGAT project ................................................................................... 15 Table 3: Components of the performance index ............................................................. 16 Table 4: Province's characteristics .................................................................................. 17 Table 5: Organizational characteristics ........................................................................... 18 Table 6: Results of the ITT Performance Index for the whole set of organizations (average values) ................................................................................................ 29 Table 7: Results of econometric analysis - OLS and panel estimations ......................... 31 Table 8: Definitions of Technology Transfer ................................................................. 51
vii Index of Figures Figure 1: Determinants barriers of International Technology Transfer projects .............. 8 Figure 2: Epistemological position of the research ......................................................... 14 Figure 3: Drivers of intergovernmental reform ............................................................... 21 Figure 4: The vision of the SIIGAT Project ................................................................... 23 Figure 5: Methodological approach of SIIGAT Project ................................................. 24 Figure 6: Number of organizations, by province which had implemented the SIIGAT Project ............................................................................................................. 25 Figure 7: Connections between module applications that constitute SIGMA ................ 26 Figure 8: Summary of variables identified in this dissertation as impacting on ITT Performance .................................................................................................... 34
1 1. Introduction With the existing lack of growth in the major part of the globe, finding new sources of growth has become a global policy priority (OECD, 2013). Innovation and entrepreneurship are considered the way out of the economic impasse and promoters of global competitiveness and job creation – as well an important mechanism to foster sustainable growth (OECD, 2013; OECD, 2015a). Innovation presupposes the creation and diffusion of new processes, methods and ultimately products that will translate in economic value (Glass and Saggi, 1998, WBG, 2015; OECD, 2015a). Indeed, most of the existing studies identify development with the creation of new jobs, foundation of new business and productivity growth (OECD, 2015a). Moreover, empirical data confirms that innovative economies are the most productive, resilient, and most adaptive to change and capable to holding higher living standards (OECD, 2013; OECD, 2015a). However, not all countries or regions innovate in the same degree, the ability to innovate depends on countless factors but ultimately relies on the participation of citizens in innovative processes and, the cultural and social barriers as the degree of sophistication of demand and the readiness to accept and recognize the potential of science and technology (Cozza et al. 2011; OECD, 2015a). Therefore, it is normal that firms in developed countries, with high education and training, are better able to innovate, especially regarding technological creations (Constantini and Liberati, 2014). With globalisation, distances and borders have largely diminished and the competition between firms has become international, and not just within borders – companies must evolve and establish multinational networks to grant competitive advantage (Coelho, Ferreira and Veiga, 2011). The intense competition that characterises globalisation forces firms to acquire essential competencies, such as new technologies and intangible assets even when they do not have the ability to produce themselves, therefore the only solution is to obtain the technology from someone else (Coelho et al., 2011). The literature refers this process - when a firm/sector/entity acquires technology from another one usually more developed, as technology transfer or in cases which other countries are involved, International Technology Transfer (ITT). It is reductive to say that the technology transfer for itself would grant productivity, but we can say that plays a key role, since, some studies argue (e.g., Keller, 2009;
8 Figure 1: Determinants barriers of International Technology Transfer projects Source: Adapted from Johnson et al. (1997) and Berg and Lin (2001) 2.3. TT at the regional level in less developed countries Regions are vital and crucial for the long sustainability planning of growth or productivity (Wheeler, 2009). From the perspective of innovation theory, regions, branches and sectors are often as analytical categories for selection environments, however they may fuel integration and innovation in different dimensions (Cooke et al., 2002). In this perspective the diffusion of technology is critical for the sectoral and regional growth patterns (Caspaldi and Sapio, 2008; OECD, 2012), but does not happen at the same pace in every region (OECD, 2012) and productivity growth is not homogenous across countries or regions (Cozza, Argilés, Piva and Baptista, 2012). The disproportionate innovative efforts by the public and especially by the private sector in regions reinforce the “technology gap” between regions enhancing “cohesion gap” (Landabaso, 1997). Cohesion gap between regions are regional disparities resulted of differences in productivity and competitiveness aggravated by distinct innovation efforts in regional structures of production (Landabaso, 1997). Transferor Transferee International experience of the transferor International experience of the transferee Codification of the technology Trialability of the technology Appropriate technology Complexity of the technology Technology Transfer Regional level Cultural characteristics Personal characteristics Structural characteristics Organizational characteristics Social characteristics Maturity of the technology National level Political characteristics Economic characteristics
9 Technological innovation is probably the most important coefficient to overcame this cohesion gap and to create regional competitive advantage, however to understand this at a level as specific as regional it is necessary to understand the innovation process, including its diffusion across and within regions (Landabaso, 1997; Argilés, 2012). Thereby, less developed regions are often seen as an obstacle on national performance instead than as potential asset to be exploited. For the latter, and in order to overcome the TT barriers in different regions it is required a place-based approach and not the solution of “one-size-fitsall” technology. In short, it is necessary to understand the innovation process in regions (Landabaso, 1997; OECD, 2012). One of the most frequently identified barrier is the difference of human capital between regions (OECD, 2012; Cozza et al., 2011). Cozza et al. (2011, 2012) studied the transatlantic gap on productivity between US and Europe considered that R&D investments are a crucial part to explain the productivity of the different regions of EU. They concluded that patterns of the different geographical and economy characteristics of the regions are the some of the main causes by the gap on R&D and productivity, not just between US and EU but also regarding EU regions (Cozza et al., 2012). Other factors such as the expansion of intraregional trade and regional markets could boost incentives for domestic production, allowing job creation to the growing working age population, helping countries and regions, namely from the sub-Saharan Africa, to benefit from ITT (IMF, 2015). Even though there are certain level of conditions required to join global value chains (WTO, 2014), they can be overcame quickly through knowledge and technology transfer from other countries, occurring mainly by foreign direct investments - FDI (IMF, 2015). Despite the growth in trade flows seen in recent years, sub-Saharan Africa trade is bellow its potential and regions have a great potential to be integrated into global value chains (GVCs) which can help foster structural transformation, exports diversification and the absorption of technology and knowledge from abroad (IMF, 2015). This is especially important for countries with relatively small domestic markets and regional economic communities such as Africa that did not made much progress in reducing
10 barriers to trade, suffering from incompatibility of rules, the lack of implementation rules and high tariffs (OECD, 2015b; IMF, 2015). 2.4. Main gap of the literature International technology transfer (ITT) has become subject of study to scholars only in recent years (Acharya and Keller, 2009). It is considered that this interest is related to its contribution on the productivity of countries, which data proved that often exceeds the effect of domestic R&D (Acharya and Keller, 2009). However, lietrature pay less attention on ITT development development pespective, and focused on how it may affect standard economic performances (Constantini, 2014), as for example the issue of the high asymmetry in global patterns of TT and the different impact of TT according with the countries and regions involved (Acharya and Keller, 2009). According to Berg and Lin (2001), a successful impact of TT, especially in developing countries relies on the selection of a more mature and developed technology combined with a transferor with similar culture and relatively inexperienced. The literature, however, is not clear about the role of similar countries in ITT, disregarding the individual stage of country’s development, in a way that many of the early studies were restricted to explaine ITT between developing countries and developed countries (Johnson et al., 1997). Many studies emphasized only the political, economic and cultural differences between the transferor and the trasnferee (Johnson et al., 1997), overlooking a regional or more micro view. In conclusion, information and assessment about ITT projects in developing countries is on great demand (Banerjee and Iyer, 2015). Literature is filled with TT models, influencing factors, governing processes and analysis of contractual arrangements yet the study of sector-wide and regional differences has remained an unexplored area (Banerjee and Iyer, 2015). The heterogeneity of regions within developing countries deserves a deeper analysis involving different regions and organizations (Bernard et al., 2003; Melitz, 2002; Kasahara and Rodrigues, 2008; Banerjee and Iyer, 2015Indeed, the potential for innovation and technology absorption in a specific region is influenced or even determined by the dynamic relationship between the political rules, the economic variables, organization and knowledge degree (Cooke and Leydesdorff, 2006). Acharya
11 and Keller (2009) proposed that more effort is required to disengage the complexity between informal and formal channels of TT. In the present study we aim at filling this gap. We describe of the case of the adaptation and implementation of a Portuguese technology in Angola. Specifically, we seek to understand the barriers and key factors of success of this ITT process.
12 3. Methodology 3.1. Justification of the method of analysis The preparation of a research project is a work in process not fully predictable. To adopt a methodology means choosing a path, a global journey – however the route, often requires being reinvented every step – so it is needed not only rules but also creativity and imagination (Yin, 2011). The goal of the present dissertation is to answer the following question: “Which are the critical factors that influence ITT from Portugal to the different organizations located in the provinces of Angola?”. Therefore, the overall purpose of this dissertation is to analyze the key factors to success of ITT at a regional level, using the evidence of SIIGAT - Sistema Integrado de Informação e Gestão de Administração do Território –, that is, the Integrated Information and Territory Management System.project. Specifically, we undertake an explanatory research since the objective is to discover which factors are crucial for ITT regarding a practical/real project with no control over behavioral events (Yin, 2015). The exploratory research methods are quite spacious and versatile used to generate clarification about a real situation allowing the data collection to be flexible (Yin, 2011). According to Yin (2015) it is possible to use four different types of internal information on a case study: documents, statistics, personal interviews and direct observation - all of them were used in this study. The interviews allow expanding the vision of the researcher (direct observation) about the perception of the environment in each public organism and enabled the construction of a performance index to this study. In total were performed 15 direct interviews which were treated inductively and focused in the process and its meaning (Yin, 2011). Regarding the treatment of data we use a mixed strategy combining statistical (descriptive and inferential) and content analysis, that is, quantitative and qualitative analyses. The qualitative research can be defined in a broader sense, as a methodology that generate data from the direct observation of the study of people, places or mere
13 processes from which the researcher aims to establish a straight interaction to understand the activity under study (Godoy, 1995). Table 1: Interviews performed Name of the interviewee Function in the project Purpose of the interview Date of the interview Length of the interview Andreia Brandão Consultant Performance Index 05/04/2016 00:15 Andreia Silva Consultant Performance Index 04/04/2016 00:10 Daniel Oliveira Consultant Performance Index 05/04/2016 00:10 Gustavo Diogo Consultant Performance Index 11/04/2016 00:10 José Carlos Marques Consultant Performance Index 04/04/2016 00:15 Manuela Pinheiro Director of Project Performance Index 05/04/2016 00:10 Orlando Soares Consultant Performance Index 05/04/2016 00:10 Pedro Ferraz Consultant Performance Index 04/04/2016 00:15 Raquel Coelho Consultant Performance Index 04/04/2016 00:15 Renata Cunha Consultant Performance Index 05/04/2016 00:20 Ricardo Ramos Consultant Performance Index 06/04/2016 00:10 Rui Figueiredo Consultant Performance Index 05/04/2016 00:10 Sofia Vale Consultant Performance Index 04/04/2016 00:20 Marcos Lopes Consultant Performance Index 04/04/2016 00:10 Mánuel Gonçalves Consultant Performance Index 07/04/2016 00:10 Source: Own elaboration. By applying a qualitative approach in the present study it is possible to value the relationship between the researcher and the object of study, including the situational constrains that influenced the research (Denzin and Lincoln, 2000). However, this type of studies are often criticized due to the lack of rigor, resulted by the acceptance by the researcher of misleading or biased evidences that influence the meaning of the findings and conclusions (Yin, 2015, Serapioni, 2002). So, although this study has a predominant qualitative nature a mixed approach would be more reliable and complete (Bergin and Stokes, 2006). The quantitative research aims to explain, predict and control phenomena, concentrating in padrons and laws through the quantification of measures and objective procedures (Almeida and Freire, 2003). The fundamental characteristics of the quantitative method are oriented for the cause of the phenomenon with no concerning about the subjectivity and also, the use of controlled methods (statistics). Although, the most crucial characteristic regarding this approach is the objectivity by distancing itself from the data (insider perspective), since it is oriented for the results it is possible to replicate and generalize the conclusions in opposite with the qualitative method (Serapioni, 2002).
14 The possibility of generalization, even leading to a departure from singularity (characteristic usually given to case studies) allows knowledge to be valuable and useful in a wider variety of situations (Serapioni, 2002; Yin, 2015). Figure 1 summarizes the aspects of quantitative and qualitative approaches considered in the methodological procedures of the present research. Figure 2: Epistemological position of the research Source: Adapted from Morais and Neves (2007) 3.2. Data gathering procedures and construction of data set 3.2.1. Detailing the procedures In the construction of the data set it was used various methods of data collection and analysis, since it is often useful, if not necessary, to use different techniques in the same investigation (Morais and Neves, 2007). To collect the relevant data we use two main instruments: the interview survey and the documentary analysis. Regarding the documentary analysis, a set of information about the Project (by internal sources) were collected and further examined (materials), as primary source regarding the organizational level (Yin, 2011). Nonetheless, data news, annual reports, financial data and national statistics were gathered to fulfil the province/regional aspect of the analysis. Interviews and observation Survey aspects Methodological procedures Qualitative approach Quantitative approach Rationalist Data search and reports Statistical procedures Naturalist Interpretative analysis of content Methodologi cal guidance Data collection Data processing Methodological guidance
15 It was crucial to standardized data definitions and collections procedures to assure consistent presentation of data. Furthermore, considering that each case study varies in its design and must be customized, it was important to regroup the variables of the study to organize the information (Yin, 2011). The data was grouped in three major categories: ITT performance Index; Province’s characteristics; Organization’s characteristics. Table 2 summarises the variables, unit of analysis and data gathering methods of the study pursued in the present dissertation. Recall that we aimed at assessing the performance of public organizations located in Angolan provinces in implementing/absorbing the technological transfer associated with the SIIGAT project whose transferor was a Portuguese company. The process of ITT occurred over the period 2011 to 2014. Table 2: Summary of the variables, unit of analysis and data gathering methods of the study of SIIGAT project Group of variables Description Unit of analysis Years of reference Data gathering method/ source of the data Performance Public organizations* Province’s characteristics Population Size Number of inhabitants ln 2014 INE (2016b) Literacy People over 15 years of age who knows to read and write percentage 2014 INE (2016b) Economic dynamics Firms in activity Number of firms per 1000 inhabitants ln 2014 INE (2016a) Unemployment rate Labour force that is not employed percentage 2014 INE (2016b) Infrastructure People with access to water and electricity percentage 2014 INE (2016a) Public expenditure Total public expenditure devoted to education EUR 2014 Finance Ministry (2014) Organization’s charateristics Size Number of employees ln 2012-2014 Internal sources Employees traits Age Employees’ average age ln 2012-2014 Internal sources Gender Total males employees percentage 2012-2014 Internal sources Education Employees with college degrees percentage 2012-2014 Internal sources Hierarchy Top Headers Employees who are chiefs percentage 2012-2014 Internal sources Senior Technicians Employees who are senior technicians percentage 2012-2014 Internal sources Budget Total public expenditure devoted to investment EUR 2014 Finance Ministry (2014) Note: It includes National Ministries, Provincial governments and Municipal administrations.
16 The next sections detail the construction of the key variables. 3.2.2. ITT performance index To measure the impact of the technology transfer on the attitude of public servants of the selected organizations and productivity , we compute a “Performance Index”. This index was calculated considering 4 items (see Table 3) - Autonomy in routine tasks; Enforcement quality in routine tasks; Fast delivery data; and Ability to parametrize the software – relative to which the 15 interviewees (i.e., the 15 consultants involved in the ITT project) attributed a score in 7 points a Likert scale. This information was gathered by direct interviews to the consultants of the project (15 interviews) and included the inside vision of the author of the present dissertation (who was also a consultant). Table 3: Components of the performance index Group of Variables Variable Description Year of reference Score Impact of technology on productivity of the organization Autonomy in routine tasks Consultants’ perception regarding the amount of routine tasks independently developed by public servants in the respective services 2014 7 points Likert scale (1=Poor;7=Excellent) Enforcement quality in routine tasks Consultants’ perception regarding the quality of routine tasks independently developed by the public servants in the respective services 7 points Likert scale (1=Poor;7=Excellent) Fast delivery data Consultants’ perception regarding the time spent on routine tasks after and previously to the software installation 7 points Likert scale (1=Poor;7=Excellent) Assessment of the attitude of public servants regarding the technology Ability to parametrize the software Consultants’ perception regarding the ability by public servants to parametrize the software in specific data of the organization 7 points Likert scale (1=Poor;7=Excellent) Source: Internal sources. The analysis focused on the perception of each consultant regarding the absorption of the technology transferred by the public servants employed in the 30 Angolan public organizations (the population of this study), including National Ministries, Provincial governments and Municipal administrations. Despite the existence of numerous customizable reports that allow the analysis and the control of SIIGAT project, involving milestones systematically segmented into chronological tasks/activities previously determined, it was not possible to arrive at any conclusion concerning the effective performance of the technology transfer by the transferee. Projects are extremely dynamic and depend on group dynamics, interactions and communications which are almost impossible to anticipate (Akinyokun, Angaye
17 and Ubaru, 2009; Ayarkwa, Baiden and Osei-Asibey, 2013; Dadzie, Dadzie and Winston, 2012) . The performing index is thus a simple average of the components of Table 3. It assumes values between 1 and 7, being 1 the lower/poor performance and 7 the best/excellent performance, according to the consultant’s perception of performance of the ITT. 3.2.3. Province’s characteristics Given that organizations operate in distinct regional contexts, the provinces, it was necessary to control for potential idiosyncrasies of those regions. In fact, albeit the legislation is equal for all the national institutions, the regions of Angola are extremely unequal, endowed with different production structure, population, location, geography characteristics, and economic capacity (Instituto Nacional de Estatísticas [INE], 2016b). Therefore, in order to properly account, for the impact of ITT at the organizational level, it is relevant to control for the characteristics of province where these organizations are located, most notably, their population, economic dynamics, infrastructure conditions and public expenditure devoted to the province. Table 4 presents the information organized by groups. Table 4: Province's characteristics Group of Variables Variable Description Year Calculation Formula Province characteristics Population Size Number of inhabitants (in ln) 2014 log ( ܵݑ݉ ݂ ݈݈ܽ ݅݊ ℎ ܾܽ݅ݐܽ݊ݐݏ ) Literacy People over 15 years of age who knows to read and write (in percentage) 2014 Economic dynamics Firms in activity Number of firms per 1000 inhabitants (in ln) 2011 Unemployment rate Labour force that is not employed (in percentage) 2014 Infrastructure Access to water and electricity network People with access to water and electricity (in percentage) 2014 Public expenditures Education Total public expenditure devoted to education (in percentage) 2014 Source: INE (2016a); INE (2016b); Finance Ministry (2014). ܮ݅ݐ݁ݎܽݐ݁ ݈݁݁ ܶݐ݈ܽ ݂ ݅݊ ℎ ܾܽ݅ݐܽ݊ݐݏ x 100 ܰ º ݂ ݂݅ݎ݉ݏ ܶݐ݈ܽ ݂ ݅݊ ℎ ܾܽ݅ݐܽ݊ݐݏ ݔ 1000 ܷ݈݊݁݉ݕ݁݁݀ ݈݁݁ ܶݐ݈ܽ ݂ ݅݊ ℎ ܾܽ݅ݐܽ݊ݐݏ ݔ 100 ݈ܲ݁݁ ݓ݅ݐ ℎ ݓܽݐ݁ݎ ܽ݊݀ ݈݁݁ܿݐݎ݅ܿ݅ݐݕ ܶݐ݈ܽ ݂ ݅݊ ℎ ܾܽ݅ݐܽ݊ݐݏ ݔ 100 ܶݐ݈ܽ ݁ݔ݁݊݀݅ݐݑݎ݁ ݐ ݁݀ݑܿܽݐ݅݊ ܶݐ݈ܽ ݑܾ݈݅ܿ ݁ݔ݁݊݀݅ݐݑݎ݁ ݔ 100
24 modular system installed in the local and regional authorities. The purpose was to monitor the capacity of action in the municipalities and to provide diverse information all organizations of the State Central Administration in the field of Territorial Administration. The implementation of the SIIGAT project extends well beyond the mere technological sphere. It encompasses the training and education of human capytal of the organs involved, as well as the organization of services, adoption of methodologies, procedures and information circuits that promote the efficient use of the system and the quality of information provided to the core of the project for the production management of aggregate indicators at the national level. Thus, the SIIGAT approach involves 3 key areas (see Figure 5): Technology, Consulting and Organization. Figure 5: Methodological approach of SIIGAT Project Source: Internal references, Medidata.Net. The implementation of the SIIGAT project was phased in accordance with the organizational and functional capacity of existing public services and with the priorities of the organizations involved. The project implementation teams were constituted by experienced people and with knowledge based very multifaceted (different backgrounds and nationalities) - composed of technical experts in specific areas such as Management, Accounting, Finance, Management Team, Human Resources, Information Technology, Organization, Document Archive and Heritage, between others. The mobility of the consultants of the project depends on the areas of training that will be initiated in the organizations and the "know-how" needed for the success of the global project. Consulting OrganizationTechnology
25 The SIIGAT project was aimed to be implemented in the 18 Angolan provinces, namely in state organs of type A (organizations with high development) and in some cases B (organizations with moderate development). By March 2014, there were 61 State organs analyzed and with the requirements for implementation of this technological project. However, about half (31) had by that date effectively implemented the technology (see Figure 6). Geographically, the implementation of the technology is presented is presented, also at the national level and at date of March 2014 in the following figure: Figure 6: Number of organizations, by province which had implemented the SIIGAT Project Source: Internal references. 4.2.2. Description of the technology3 The SIIGAT (Sistema Integrado de Informação e Gestão de Administração do Território) Project involved the implementation of a technological platform called SIGMA - Integrated Municipal and Local Government Management. In its initial phase, the development of the SIGMA software was on Data Base Management Systems (DBMS) UNIFY with relational characteristics, however it was not sufficient to prevent the widespread use of programming in C. Therefore, INESC TEC developed a new tool named SAGA - Generation System and Application Management, which allowed to accelerate the development, reduce the amount of 3 This chapter includes internal references provided by Medidata.NET.
26 programming code and transport the applications SIGMA to other DBMS (Bouça et al., 1995). This system is suitable to work with databases in multi-user environment in various usage positions, preventing the repetition of tasks and data. The end user manipulates essentially views, while the application programmer’s work consists in drawing views, and specifying attributes and additional codes (rules and controls) through system views. The programming and end-use environments are integrated, which is extremely versatile and suited for applications to support municipal management in areas such as: Accounting; Human Resources; Patrimony; Document Management Document Archive; Public Construction Works; and Business Intelligence System (BIS). The core applications can joint with others by third parties. As such the applications can run separately or integrated sharing the data available - see Figure 7. The Accounting and Human Resources Management modules are usually the first to be installed and implemented in new agencies, being considered the most important for the organizations. BIS was also considered as one of the core applications in this project, especially for the executives use, supporting the decision-making and providing the synthesized information in a simple and efficient way – normally through graphs and user-defined criteria intersection of all information by classifications, stored in a multidimensional and hierarchical structure. The BIS application combined with Accounting and Human Resources Management enabled the analysis of consolidated data. Figure 7: Connections between module applications that constitute SIGMA Source: Internal source by Medidata.Net. Accounting Document Management Human Resources Management Document Archive BIS Patrimony Public Construction
27 The SIGMA applications run on multi-post (more than one computer simultaneous) in SQL environment using Database Management Systems Relational but could also run in single-station – the access to control mechanisms ensured the necessary privacy or confidentiality of the information. 4.2.3. The transferor: developer of the technology4 In 1986, CCRDN (Comissão de Coordenação e Desenvolvimento Regional do Norte), the Development Steering Committee of the North region of Portugal, and INESC TEC (Instituto de Engenharia de Sistemas e Computadores, Tecnologia e Ciência),–the Systems and Computer, Technology and Science Engineering Institute agreed on the terms for a collaboration to develop a Computing System for the local municipalities of Portugal (Bouça, Faria, Leitão and Moreira, 1995). This system aimed at overcoming the lack of organization and consistent solutions for the municipal management. By that time a group of municipalities of Alto Tâmega (North of Portugal) accepted the challenge proposed by CCRDN and INESC TEC to implement the system, permitting in this way to assess the technology proposed in terms of administrative rationalization and management decision support. The Municipal Computing Project (Projecto de Informatização Municipal - PIM) was born in 1986 and revolutionized the public administration in Portugal (Bouça et al., 1995). The software developed, SIGMA, involved a set of integrated applications to support municipal management.5 The growing need of the local public authorities, made SIGMA grow being currently used in the majority of the municipalities in Portugal. In October 1989 the company Medidata, Engineering and Systems, SA was founded in an university environment to improve and continue SIGMA’s development. Medidata, SA evolved and, in the late 90’s managed to held the brand SIGMA, originally developed by INESC TEC. The company grew due to the “Boom” of Internet and the awareness by the municipalities of the growing need of modernization. In 2000, Medidata. NET was born as a subsidiary of Medidata, SA to focus on areas such as workflow, document management, intranet and internet. 4 This section includes internal references/information provided by Medidata.NET. 5 SIGMA is the package with the largest number of applications in Portuguese authorities or municipalities, including key applications for the back-office namely POCAL, Urban Planning, Rates and Licensing Applications, totalling over than thirty applications. Therefore, Medidata provides distinct products for three different ranges, the management and local government, geographic and internet information.
28 SIGMA applications are currently in use in three countries: Portugal, Angola and Cabo Verde. Due to the versatility of the applications it can be re-programmed to fulfil different necessities and cover different legislative frameworks. The fact that these countries share a common language (being part of CPLP – Community of Portuguese Language Countries). The SIIGAT was the first project object of international transference and involved the implementation of SIGMA platform in all the regions of Angola. 4.2.4. The transferee: provinces of Angola The project SIIGAT failed to have the expected projection at the level of Angolan provinces due mainly to budgetary constraints caused by the oil crisis which had a huge impact on the Angolan economy. Thus, the project was only effectively implemented in 8 Angolan provinces, the transferees: Luanda; Benguela; Cabinda; Bié; South-Cuanza; South-Lunda; NorthLunda; Cuando-Cubango. 4.3. Assessing the performance of ITT at the regional level 4.3.1. Estimating the ITT performance index The value of ICT projects lie on their ability to assist the public administrations in finding solutions to their problems. Additionally, the success of this type of projects relies not in the end itself but on the means to an end (for example, quality of service delivery) (Gichoya, 2005). Therefore, the group of variables included in the computation of the ITT Performance Index addressed the impact of the technology on productivity and the assessment of the attitude of public servants. As referred in the methodological section, the ITT performance index is an average of 4 items - Autonomy in routine tasks; Enforcement quality in routine tasks; Fast delivery data; Ability to parametrize the software -, which encompass the perception of the 15 consultants involved in the implementation of the SIIGAT project at the level of Angolan provinces. This indicator was computed for each of the 30 organizations in study. Table 6 presents the overall average. It conveys that ITT, globally considered, was not particularly successful – 3.46 out of 7.
29 Table 6: Results of the ITT Performance Index for the whole set of organizations (average values) Group of Variables Variable Description Average per variable More developed provinces Less developed provinces Standard deviation per variable Performance Index Impact of technology on productivity of the organization Autonomy in routine tasks Consultants perception regarding the amount of routine tasks developed independently by the public servants on the respective services 4.02 5.00 3.00 0.99 Enforceme nt quality in routine tasks Consultants perception regarding the quality of routine tasks developed independently by the public servants on the respective services 3.79 4.69 3.00 1.04 Fast delivery data Consultants perception regarding the time spent on routine tasks after and previously the software installation 3.62 2.00 1.33 1.33 Assessment of the attitude of public servants regarding the technology Ability to parametrize the software Consultants perception regarding the parametrization of the software on specific data of the organization by the public servants on the respective services 2.40 4.33 2.50 0.71 Global 3.460 3.93 2.98 1,24 Source: Internal sources. We further found that organizations located in higher-developed regions perform better than organizations in lower-developed regions. The differences of the estimates are sharper for the item “Fast deliver data”, where organizations in more-developed regions present averages of five and six points and organizations in less-developed regions two or three points. The item “Assessment of the attitude of public servants regarding the technology” presents the most similar averages between more and less develop regions/provinces. This item largely contributes to the global average of the performance index, since it received the lowest evaluation. This factor consists on the perceived capability of public servants in the organizations to parameterize or to change parameterization of specific data of the software that enabled the technological platform to behave within the specific criterion of the organization – for example, changes to the initial budget entered in the computer platform. The assessment of the attitude is related to the willingness to work the software entirely, instead of abdicate the tasks of parameterization because they are considered more complex.
30 In contrast, the “Autonomy to perform routine tasks” is the item which received the highest rating. This sort of tasks involved routine and daily activities such as enter data or remove statistical maps, thus being the most clear and easy to transmit in an ITT. The item “Enforcement quality in routine tasks” is rated below the autonomy item, since quality of performance is much harder to acquire, being a direct result of practice and autonomy (Parasuraman et al., 1998). The remaining item, “Fast delivery data”, it is directly dependent on the autonomy of routine tasks, since it is only achieved after the continuous processing of data in the computer platform, the score of this variable is below than the autonomy and, even of that of the quality variable. 4.3.2. Estimation results: a panel data analysis In order to make a comprehensive assessment of the determinants of ITT performance, we resorted to multivariate econometric models, the OLS and the panel data. The panel regression is the preferable specification for this study. In terms of goodness of fit, the models are reasonable as evidenced by the F and Wald tests (reject the null hypothesis that the explanatory variables are jointly not significant to capture the variation of the dependent variable) and the value of R2 (60%, in the panel data specification). The RE panel model shows that the factors influencing ITT performance are mainly variables that characterize the organization in comparison with provincial characteristics. In spite of the diffusion of technology does not happen at the same pace in every region (OECD, 2012; Cozza et al., 2012), our results convey that, with the exception of region’s literacy level, the regional characteristics are not relevant (failed to evidence statistical significance for the standard levels) for ITT performance. The estimated results for the selected sample show that some characteristics regarding the organization positively influence ITT performance, namely the organization’s size, collaborators’ average age, education and organization’s investment. Only gender and the number of senior technicians in total collaborators failed to emerge as statistically significant. It was surprisingly that the impact of senior technicians in organizations, although positive, was not statically significant. But the number of top headers (in total
31 collaborators) is statiscally significant with negative influence. This seems to indicate that the decentralization of authority and responsibility, resulting from a decrease of the number of head leaders, increases the efficiency of ITT. This might be related to a better division of tasks and functions in which public servants become more active and aware of their obligations. Table 7: Results of econometric analysis - OLS and panel estimations Group of Variables Variable Proxy Model I Model II OLS RE effects panel model Province characteristics Population Size Number of inhabitants (in ln) 0.421 (0.250) 0.421 (0.231) Literacy People over 15 years of age who knows to read and write (in percentage) 2.850 (0.117) 2.850* (0.097) Economic dynamics Firms in activity Number of firms per 1000 inhabitants (in ln) -0.117 (0.263) -0.117 (0.245) Unemployment rate Labour force that is not employed (in percentage) -2.068 (0.251) -2.068 (0.232) Infrastructure Access to water and electricity network People with access to water and electricity (in percentage) -1.221 (0.233) -1.221 (0.214) Public expenditures Education Total public expenditure devoted to education (in percentage) -2.878 (0.182) -2.878 (0.162) Organizations characteristics Size Size Number of employees (in ln) 0.167*** (0.007) 0.167*** (0.002) Employees traits Age Employees’ average age (in ln) 0.881** (0.043) 0.881** (0.027) Gender Total males employees (in percentage) 0.125 (0.227) 0.125 (0.207) Education Employees with college degrees (in percentage) 1.235** (0.013) 1.235*** (0.005) Hierarchy Top Headers Employees who are chiefs (in percentage) -2.049** (0.014) -2.049*** (0.005) Senior Technicians Employees who are senior technicians (in percentage) 0.681 (0.326) 0.681 (0.310) Budget Investment Budget devoted to investment (in percentage) 0.491** (0.016) 0.491*** (0.006) Constant -8.516 (0.145) -8.516 (0.125) Number of observations 30 30 Goodness of fit F-stat (p-value)/Wald Chi2 (pvalue) 5.040 (0.002) 53.29 (0.000) Adjusted R-square 0.652 0.525 Hausman p-valuea - 1.010 (0.995) Legend: *,** and *** represents significance at the 10%, 5% and 1% significance level, respectively. Source: Own computations with Econometric Software – Stata 13.1. The average age of employees in an organization emerged as statically significant. Specifically, all the remaining factors being held constant, organizations with more
32 senior public servants have, on average, better ITT performance and, thus, higher probability of success in TT. The age of the public servants in the organizations is related to maturity and experience to perform daily tasks. Such result was surprisingly as it was contray to the perception of the project consultants (who had the idea that the older the public servants the worse was the adaptation to new technology). The highly positive and significant effect of public servants’ education, regardless of the position on the hierarchy, was not surprising and confirms studies performed in other parts of the world (see, for instance, Dollar and Kraay, 2005; Sadr and Farahani, 2012; OECD, 2015a). According to the econometric estimations, investment by the organizations tend to increase the success of international technology transfer. This result is in accordance with several studies performed in developed and developing countries indicating that the efficient allocation of public expenditures in education and health promotes human capital development, economic growth and, decreases the poverty burden (Schultz, 1961; Swaroop, 1996; Barro and Lee, 1997; Psacharopoulos and Patrinos, 2002; Bynoe, Craigwell and Lowe, 2009; Mello and Pisu, 2009).
33 5. Conclusion 5.1. Main results, contribution and implications for science This study contributes to the growing literature on the ITT performance at a regional level. It was hypothesized that not only national characteristics but also regional and organizational characteristics influenced the success of ITT. The 2015 corruption perception index shows that Angola remains with high public sector corruption, which also fuels inequality and exploitation between the organizations (Transparency International, 2015). It is also considered one of the hardest countries to do business due to the political uncertainty. Despite these factors, the European Intelligence Unit considers Luanda, Angola’s capital, as one of the 29 African cities with interest to business (The Economist, 2015). Moreover, Angola remains the first non-EU destination for Portuguese foreign direct investments (WBG, 2015; AICEP; 2016). The present study confirms the perspective that is necessary to have critical forecasting and business information about a specific region for a successful international technology transference (ITT) and internationalization (Keller, 1996; Judge and Ryman, 2001; Cozza et al., 2011; Argilés, 2012). As a first cut in this matter, this study corroborates that both human capital and technological information are required for ITT, and subsequent continuous growth in less developed countries (Keller, 1996; Argilés, 2012). Aiming at assessing the main determinants for ITT success, we resorted to exploratory analysis and multivariate econometric estimations. We showed that there were clearly ITT performance differentials across Angolan regions. Such result is in line with some earlier studies by Keller (1996), Landabaso (1997), Cozza et al. (2011), and Argilés (2012). Most of the variables related to organizations’ structure were statistically significant, unlike the ones respecting provinces’ characteristics. We demonstrated that in order to fulfil an ITT project successfully the transferor must improve the capacity to address the particular contextual characteristics of the target organization and/or department. With exclusion of literacy levels, the characteristics of the ITT recipient regions do not influence ITT performance. Nevertheless, we should not forget the influence of the macro-dimensions over the organisations (see Figure 8).
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