Analysis of Barriers Affecting Technology Transfer in SMES in Cutting Tool Industries

Abstract

Small and Medium Scale Enterprises (SMEs) in Punjab play a vital role in contributing to the growth of economic activities and also as an important part of the nation’s economy. Technology is often considered as a determinant of the competitiveness of a SMEs and the technology lag can be regarded as one of the major constraints to the development of a competitive and sustainable SMEs sector in any region. In most of the SMEs, productivity and competitiveness cannot be enhanced without technology up-gradation through Technology Transfer and modernization In this research, an attempt has been made to analyze the barriers which affect Technology Transfer (TT) in the Cutting Tool manufacturing Small and Medium Scale Enterprises (SMEs) in Patiala (Punjab) and to gauge the significance of each barrier so as to establish enablers to ensure smooth transition of technology from source to sink. To realize the objective a set of barriers was identified that led to the failure of the process of Technology Transfer in SMEs in Cutting Tool Industry. Questions were formulated on the basis of these barriers and a structured questionnaire was developed. Response data related to these barriers was collected through the structured questionnaire. These responses were critically analyzed using statistical tools to establish a relation amongst barriers leading to obstructing a smooth transfer of technology in SMEs. The results of the study reveal that in the cutting tool industry in the region of Patiala, Punjab, out of a total of six barriers considered, Strategic Focus, Financial Aspect, Information and Communication Technology, Government Support, Technology Acquisition and Intra-Organizational Conflicts are the barriers that principally determine the efficient transfer of technology.