L I B R A R Y 
D I V E R S I T Y OF MORATUWA. S R I LANK > 
MORATUWA 
I N T E R N A T I O N A L T E C H N O L O G Y T R A N S F E R 
O F A G R I C U L T U R A L M A C H I N E R Y F O R 
P A D D Y C U L T I V A T I O N : 
A S T U D Y O N J A P A N E S E F O O D P R O D U C T I O N 
G R A N T 
This Dissertation was submitted to the Department of Management of 
Technology of the University of Moratuwa in partial fulfillment of the 
requirement for the Degree of Master of Business Administration. 
By 
T.C.E.D. Fernando 
Supervised by 
Dr. H. S. C. Perera 
University of Moratuwa 
lllllllllllll 
100832 
Department of Management of Technology 
University of Moratuwa 
December 2009 
DECLARTION 
I certify that this dissertation does not incorporate any material previously submitted 
for any academic, commercial or any other purpose to the best of my knowledge and 
certify that it does nbt contain any material previously published, written, or orally 
communicated by another person except where due reference is made in the text. 
I also hereby give consent for my dissertation, if accepted, to be made available for 
photocopying and for interlibrary loans, and for the title and summary to be made 
available to outside organization. 
Signature Date 
Supervisor: 
Dr. H. S. C. Perera 
Date 
ABSTRACT 
This study attempts to analyze the success and failures of international technology 
transfer projects of Ministry of Agriculture. An international technology transfer 
concepts, supporting factors and how transfer is taking place has been reviewed 
comprehensively. 
An international technology transfer projects implemented in the past have not been 
very successful due to selection of inappropriate technology, selection of incorrect 
technology supplier and lack of commitment by the transferee. 
The author of this dissertation uses a combined conceptual model, which is a 
combination of the concepts of technology capability enhancement, polytrophic 
components of technology, stage- gate model and seven factors, and a model of 
technology diffusion to analyze the success and failures of the projects in detail and 
found that the application is successful. 
The transferor's dominant role in grant aid projects has prevented the opportunities of 
transferee to enhance the technological capabilities upto the required level. On the 
other hand, transferee has performed a very poor role in the acquisition process of the 
technology. Other main contributory factors for not reaching the required level had 
been lack of knowledge and capabilities in modern technologies, and low level of 
commitment and poor performance of the transferee. Inadequate technology transfer 
has made this situation further serious, as transferee is a dependent on the transferor 
for various components and they are very costly. 
It was also noted that the transferor is selling technologies belonging to other 
companies and acting as a "technology broker" rather than playing the role of 
committed transferor. Therefore, identification of a transferor, whose motivation and 
role in the foreign assisted international technology transfer projects, is much more 
important than simply making use of the funds offered. 
Present guidelines and regulations enforced for the procurement of goods and services 
do not focus on the technological aspects to guide for successful technological 
transfer. As such, National Procurement Agency, which is currently under the 
President, needs to prepare a "comprehensive check list" for the evaluation and 
ii 
selection of technology suppliers and a "Steering Committee" to implement 
international technology transfer projects. This steering committee is in addition to the 
technical evaluation committee and the tender board. This concept would bring more 
successful and justifiable results for the investment. 
Any successful TT project does not necessarily produce effective knowledge transfer, 
unless it is effectively disseminate to stake holders, as they are independent processes. 
The data of Sri Lanka Integrated Survey confirms that by 1999-2000, only about 13% 
of agricultural households received technical assistance from a government extension 
agent, and landless and marginal farmers appeared even more handicapped in 
accessing extension services. 
The conceptual model of technology transfer has three broad categories surrounding 
the core technology. Needs assessment is the first step in determining the needs and 
requirements of a new or modified technology to be transferred. Secondly, the 
implementation process elements are vehicles that facilitate technology transfer and is 
noted that many international technology transfers fail at the implementation stage. 
The diffusion process is the final stage where individuals or groups of people decide 
whether or not to adopt and use the new technology. In most developing nations, 
given their traditional and cultural orientations, the role of the government and 
opinion leaders is paramount to successful diffusion of any new technology. 
It is concluded that the linkages and interactions between technology developers, 
implementation process, and diffusion activity plan, mere producing an effective 
transfer of new technologies to grass root levels. Dissemination is a collaborative 
activity, which involves set of actors, activities, organizations and institutions. The 
end users are varied in terms of their age, gender, ethnicity, education level, income 
level, and farming activity, hence diffusion of knowledge is very critical. 
Therefore, technologies which are very close to the end users needs and wants are 
quickly diffused. Agricultural extension is a systematic process which transferring 
knowledge from researches to farmers on numerous matters. 
iii 
ACKNOWLEDGEMENT 
I would like to express my sincere gratitude towards those few who have provided 
continuous guidance in carrying out this research study successfully. 
First and foremost, I would like to sincerely thank my supervisor Dr. Chandana 
Perera, Head of the Department, Management of Technology, University of 
Moratuwa, who has been a consistent source of encouragement and support 
throughout this research project. 
My thanks and appreciation also goes to the panel of lecturers of the programme, 
especially the lecturers and support staff attached to Department of Management of 
Technology for their dedication and great assistance in numerous ways. 
A debt of gratitude to Managing Director of my company, M/s Agro Consolidated 
(Pvt) Ltd, whose cooperation and enthusiasm shown towards my study was a very 
encouraging factor. My expression of thanks is incomplete without mentioning the 
employees of my company who have supported me, in number of ways during my 
course of study. 
Many thanks to the respondents of various organizations and institutions who 
participated voluntarily in my survey and interviews, during my data collection. 
My thanks also goes to Mrs. Kanthi Tennekoon, whose generous assistance and 
support in translating the questionnaire into our native language and for final proof 
reading. 
Finally, this thesis could not have been accomplished without the love, care and 
encouragement of my wife Prashanthi Fernando and my two children, who sacrificed 
their time, throughout pursuing my ambition to acquire this prestigious degree. 
iv 
TABLE OF CONTENTS 
f Description Page No 
* Declaration i 
Abstract ii 
Acknowledgment iv 
Table of Content v 
List of Tables ix 
••4 
List of Figures xi 
List of Abbreviation xii 
Chapter 1: INTRODUCTION 1 
1.0 Background 2 
1.1 Present Problems 2 
^ 1.2 Objectives of the Study 5 
/ 1.3 Importance / Benefits of the Study 5 
1.4 Brief Methodology 6 
1.4.1 Literature Review 6 
1.4.2 Research Design 6 
1.4.3 Data Collection 7 
1.4.4 Data Analysis Method 8 
1.5 Main Findings 9 
Chapter 2: LITERATURE REVIEW ON INTERNATIONAL 
TECHNOLOGY TRANSFER 10 
2.0 Introduction 11 
2.1 Introduction to Technology 11 
2.2 Technology Transfer 12 
2.3 Technology Components 13 
2.3.1 Polytrophic Components of Technology 15 
2.3.2 Product Components of Technology 18 
• v 
2.4 Technological Capabilities and Building 19 
2.4.1 Technological capabilities and Assessment 20 
^ 2.5 International Technology Transfer 25 
2.5.1 Important Factors in ITT 27 
2.5.2 Appropriate Technology 27 
2.6 Technology Transfer Process 29 
2.6.1 Technology Transfer Models 29 
„ 2.7 Other Relevant Factors Influencing the International 
Technology Transfer 40 
2.7.1 Seven Factors Model 41 
2.8 Technology Transfer Mechanism 43 
2.9 Barriers to Technology Transfer 44 
* 2.10 Diffusion of Technology for Farmers 45 
2.10.1 Needs Assessment 47 
m 
2.10.2 Implementation 49 
2.10.3 Diffusion 49 
2.10.4 Agricultural Extension 50 
2.11 Sri Lankan Experience in International Technology Transfer 53 
2.12 Conclusion 54 
Chapter 3: RESEARCH DESIGN AND METHODOLOGY 57 
3.0 Introduction 58 
3.1 Combined Conceptual Method 58 
3.1.1 Successfulness of ITT Projects 59 
3.1.2 Information Dissemination 59 
3.1.3 Conceptual Framework for Analysis of the ITT 
Project 61 
3.2 Sample of the Study 63 
vi 
3.2.1 Qualitative Data Collection 64 
3.2.2 Quantitative Data Collection Method 64 
3.3 Limitations 65 
3.4 Data Analysis Method 66 
3.4.1 Assessment of Technological Components 66 
3.4.2 Technological Capability Enhancement 69 
* 3.4.3 Analyzing all Relevant Factors 70 
3.4.4 Evaluating Elements in Seven Factors Model 71 
3.4.5 Analyzing the ITT Process 72 
3.4.6 Evaluating the Diffusion of Agriculture Technology 72 
3.4.7 Discussions with Experts 73 
3.5 Conclusion 74 
Chapter 4: RESEARCH FINDINGS & ANALYSIS 75 
4.0 Introduction 76 
4.1 Data Analysis 76 
4.2 Assessment 76 
4.2.1 Assessment of the Transferred Technology 
Components 76 
4.2.2 Assessment of Technological Capabilities 81 
4.2.3 Analysis of the Technology Transfer Using 
Seven Factors Model 83 
4.2.4 Assessment using Stage-Gate Model 89 
4.2.5 Assessment of Information Diffusion 93 
4.3 Conclusions 97 
' vii 
Chapters: CONCLUSIONS &RECOMMEDATIONS 100 
5.0 Introduction 101 
^ 5.1 Summary of the Analysis 101 
5.2 Discussions 102 
5.3 Conclusions 109 
5.4 Mechanism for Technology Diffusion 113 
1
 5.5 Recommendations of the Diffusion Process 119 
5.6 Implication of the Study 119 
5.7 Limitations of the Study 120 
5.8 Direction of Future Research 121 
5.9 Summary 121 
References 122 
Appendices 127 
a Appendix 
1 Questionnaire 128 
2 Supplementary Data Analysis Tables 144 
3 List of Experts and their Designations 157 
viii 
LIST OF TABLES 
Number Description Page 
Table 1.1 World Rice Yield, Highest National Rice Yield and 
Lowest National Rice Yield 3 
Table 1.2 Agricultural Tractors and Harvesters/Threshers in 
Use per 1000 ha of Land 4 
Table 2.1 Review of ITT Process Described by Researcher 39 
Table 2.2 Access to Technical Assistance from extension 
Agencies 52 
Table 2.3 Access to Technical Assistance from extension 
Agencies by Source and Province 53 
, Table 3.1 Criteria Assigned to Rank Technology Components 66 
Table 3.2 Assessment of Transferred Techno ware 67 
Table 3.3 Assessment of Transferred Humanware 67 
Table 3.4 Assessment of Transferred Inforware 69 
Table 3.5 Weightage Assigned to Rank the Capability 
Development 69 
Table 3.6 Technology Capability Assessment 70 
Table 3.7 Weightage Assigned for Seven Factors Model 71 
' Table 3.8 Various Elements for Seven Factors Model 71 
Table 3.9 Weightage Assigned for Diffusion of Agriculture 
Technology 73 
Table 3.10 Various Elements for Diffusion of Technology 73 
Table 4.1 RII & Mean values of Transferred Technology 
Components 77 
Table 4.2 RII & Mean values of Technoware 78 
Table 4.3 RII & Mean values of Humanware 79 ix 
Table 4.4 RII & Mean values of Inforware 80 
Table 4.5 RII & Mean values of Capability Assessment 81 
Table 4.6 RII & Mean values for Seven Factors Model 84 
Table 4.7 RII & Mean values for Diffusion of Technology 94 
Table 5.1 Summary of the Analysis 101 
Table 5.2 Summary of RII & Mean values of Transferred 
Technology Components 102 
Table 5.3 RII & Mean values of Technoware 104 
Table 5.4 RII & Mean values of Humanware 105 
Table 5.5 RII & Mean values of Inforware 105 
Table 5.6 RII & Mean values of Capability Assessment 106 
Table 5.7 RII & Mean values for Seven Factors Model 107 
Table 5.8 RII & Mean values for Diffusion of Technology 108 
LIST OF FIGURES 
Number Description Page 
Figure 2.1 Basic Model of Technology 12 
Figure 2.2 Basic Model of Technology Transfer 13 
Figure 2.3 Comprehensive Model of Technology Transfer 14 
Figure 2.4 Schematic Representations of the Components of 
Process Technology 15 
Figure 2.5 Comprehensive Model of Technology Transfer 19 
Figure 2.6 Comprehensive Model of Technology Transfer 1 24 
Figure 2.7 Comprehensive Model of Technology Transfer 2 24 
Figure 2.8 Stage-Gate Model 31 
Figure 2.9 Basic Model for Capability Gap 40 
Figure 2.10 Seven Factors Model 43 
Figure 2.11 Model of Technology Diffusion 46 
Figure 3.1 Combined Conceptual Model 60 
Figure 3.2 Combined Conceptual Model for analyzing ITT 62 
Figure 4.1 Statuses of Technology Components 78 
Figure 4.2 RU and Mean Values of Capability Assessment 82 
Figure 4.3 RU and Mean Values for Seven Factors Model 84 
Figure 4.4 Summarized Results of ITT 99 
xi 
LIST OF ABBREVIATIONS 
CATB Cabinet Appointed Tender Board 
COM Cabinet of Ministers 
CVD Core Value Determinant 
FDI Foreign Direct Investment 
ITT International Technology Transfer 
LM Line Ministry 
MOF Ministry of Finance and Planning 
MTB Ministry Appointed Tender Board 
NPA National Procurement Agency 
SC Steering Committee 
TEC Technical Evaluation Committee 
TB Tender Board 
TT Technology Transfer 
TTSC Technology Transfer Steering Committee 
MOA Ministry of Agriculture 
DOAD Department of Agrarian Development 
DOA Department of Agriculture 
BOO Built Operate & Own 
R&D Research & Development 
JV Joint Venture 
SLR Sri Lanka Railways 
MBA Master of Business Administration 
FAO Food and Agriculture Organization 
SLIS Sri Lanka Integrated Survey 
CDPLC Colombo Dockyard PLC 
IPR 
RII 
TSI 
tai 
toi 
tmi 
t 
ha 
IT 
ICT 
UNCTC 
UNCTD 
NGO 
CV 
xiii 
Intellectual Property Rights 
Relative Importance Index 
Technoware Specific inforware 
Technoware attributable inforware 
Technoware operation inforware 
Technoware maintence inforware 
Ton 
Hectare 
Information Technology 
Information and Communication Technology 
United Nations Council for Trade & Commerce 
United Nations Conference on Trade and Development 
Non Government Organization 
Coefficient of Variation