Embedded technology transfer from an institution and culture nexus perspective: Experiences from the Mombasa-Nairobi Standard-Gauge Railway

doi:10.1007/s11442-021-1865-5

Abstract

Abstract:

Modern railway projects, characterized by “natural monopoly”, large investment, and far-reaching influences, are highly dependent on the institutional and cultural environments in China. The countries along the Belt and Road are characterized by weak institutions, unstable politics, and poor technology foundations, which are largely different from China. These factors are severe obstacles to international technology transfer. By summarizing the experiences from the Mombasa-Nairobi Standard-Gauge Railway (SGR) project, this study proposes a framework for embedded technology transfer with a technology-institution-culture nexus. The results indicate that technology localization, including technology standards, management mode, and industrial chain, should be realized in the process of technology transfer. Then, the host government ought to overhaul its institutional and policy framework to support the infrastructure projects. Moreover, the cultural conflicts between the transferor and transferee should be taken seriously. This experience could provide references for other international infrastructure technology transfers.

Key words: technology transfer, infrastructure, localization, institution improvement, cultural integration

WANG Jiaoe, DU Fangye, WU Mingquan, LIU Weidong. Embedded technology transfer from an institution and culture nexus perspective: Experiences from the Mombasa-Nairobi Standard-Gauge Railway[J].Journal of Geographical Sciences, 2021, 31(5): 681-698.

Figures/Tables 8

Figure 1

Figure 2

Figure 3

Figure 4

Figure 5

Table 1

Table 2

Figure 6

References 33

[1]	Adero N, Aligula E, 2012. Challenges facing transport infrastructure in the East African Community. In: Research Networking and Regional Development Policy-Making in the East African Community (EAC), Publisher: Africa Research and Resource Forum (ARRF).
[2]	Agarwal S, Ramaswami S N, 1992. Choice of foreign market entry mode: Impact of ownership, location and internalization factors. Journal of International Business Studies, 23(1):1-27. doi: https://doi.org/10.1057/palgrave.jibs.8490257. doi: 10.1057/palgrave.jibs.8490257
[3]	Alfaro L, Chanda A, Kalemli-Ozcan S et al., 2003. FDI and economic growth: The role of local financial markets. SSRN Electronic Journal, 64(1):89-112. doi: https://doi.org/10.1016/S0022-1996(03)00081-3.
[4]	Buckley P J, Cross A R, Tan H, 2008. Historic and emergent trends in Chinese outward direct investment. Management International Review, 48(6):715-748. doi: 10.1007/s11575-008-0104-y. doi: 10.1007/s11575-008-0104-y
[5]	Carol N, John R, Theodore T et al., 2015. Technology transfers, foreign investment, and productivity spillovers. European Economic Review, 76:168-187. doi: https://doi.org/10.1016/j.euroecorev.2015.02.005. doi: 10.1016/j.euroecorev.2015.02.005
[6]	Chege S M, Wang D, Suntu S L et al., 2019. Influence of technology transfer on performance and sustainability of standard gauge railway in developing countries. Technology in Society, 56:79-92. doi: 10.1016/j.techsoc.2018.09.007. doi: 10.1016/j.techsoc.2018.09.007
[7]	Cochrane A, Ward K, 2012. Researching the geographies of policy mobility: Confronting the methodological challenges. Environment and Planning A, 44(1):5-12. doi: https://doi.org/10.1068/a44176. doi: 10.1068/a44176
[8]	Derakhshani S, 1983. Factors affecting success in international transfers of technology: A synthesis and a test of a new contingency model. The Developing Economies, 21:27-45.
[9]	Glass A J, Saggi K, 1998. International technology transfer and the technology gap. Journal of Development Economics, 55(2):369-398. doi: https://doi.org/10.1016/S0304-3878(98)00041-8. doi: 10.1016/S0304-3878(98)00041-8
[10]	Hadi S E, Teresa R, 2003. Institutions, infrastructure, and economic growth. Journal of Development Economics, 70(2):443-477. doi: https://doi.org/10.1016/S0304-3878(02)00105-0. doi: 10.1016/S0304-3878(02)00105-0
[11]	Hezron M O, Pauline W K, 2016. Role of foreign direct investment on technology transfer and economic growth in Kenya: A case of the energy sector. Journal of Innovation and Entrepreneurship, 5:31. doi: 10.1186/s13731-016-0059-3. doi: 10.1186/s13731-016-0059-3
[12]	Ito S, 1986. Modifying imported technology by local engineers: Hypothesis and case study of India. The Developing Economies, 24(4):334-348. doi: 10.1111/j.1746-1049.1986.tb00091.x. doi: 10.1111/j.1746-1049.1986.tb00091.x
[13]	Jiao J J, Wang J E, Jin F J et al., 2016. Understanding relationship between accessibility and economic growth: A case study from China (1990-2010). Chinese Geographical Science, 26:803-816. doi: 10.1007/s11769-016-0831-0. doi: 10.1007/s11769-016-0831-0
[14]	Joskow P L, 1998. Regulatory priorities for reforming infrastructure sectors in developing countries. Annual World Bank Conference on Development Economics, Washington, DC, 191-223.
[15]	Kacungira N, 2017. Will Kenya get value for money from its new railway? British Broadcasting Corporation News. https://www.bbc.com/news/world-africa-40171095.
[16]	Keller R T, Chinta R, 1990. International technology transfer: Strategies for success. Academy of Management Executive, 4:33-43. doi: https://doi.org/10.5465/ame.1990.4274793.
[17]	Kirkpatrick C, Parker D, Zhang Y F, 2006. Foreign direct investment in infrastructure in developing countries: Does regulation make a difference? Transnational Corporations, 15(1):144-171. doi: 10.22004/ag.econ.30703.
[18]	Kogut B, Singh H, 1988. The effect of national culture on the choice of entry mode. Journal of International Business Studies, 19(3):411-432. doi: https://doi.org/10.1057/palgrave.jibs.8490394. doi: 10.1057/palgrave.jibs.8490394
[19]	Lin X H, 2012. Research on technology transfer and spillover effect of foreign direct investment. Journal of Yangtze Yniversity (Social Sciences), 35(3):40-42. doi: 10.3969/j.issn.1673-1395.2012.03.019.
[20]	Liu W D, Yao Q H, 2020. Theorizing the construction of the Belt and Road Initiative: Based on institutional and cultural perspectives. Acta Geographica Sinica, 75(6):1134-1146. doi: 10.11821/dlxb202006003.(in Chinese)
[21]	Madu C N, 1989. Transferring technology to developing countries, critical factors for success. Long Range Plan, 22(4):115-24. doi: https://doi.org/10.1016/0024-6301(89)90089-7. doi: 10.1016/0024-6301(89)90089-7
[22]	McCann E, Ward K, 2012. Policy assemblages, mobilities and mutations: Toward a multidisciplinary conversation. Political Studies Review, 10(3):325-332. doi: 10.1111/j.1478-9302.2012.00276. doi: 10.1111/j.1478-9302.2012.00276.x
[23]	Palich E L, Gomez-Mejia R L, 1999. A theory of global strategy and firm efficiencies: Considering the effects of cultural diversity. Journal of Management, 25(4):587-606. doi: https://doi.org/10.1177/014920639902500406. doi: 10.1177/014920639902500406
[24]	Peck J, 2011. Geographies of policy: From transfer-diffusion to mobility-mutation. Progress in Human Geography, 35(6):1-21. doi: https://doi.org/10.1177/0309132510394010.
[25]	Ramamurtia R, Doh P J. 2004. Rethinking foreign infrastructure investment in developing countries. Journal of World Business, 39(2):151-167. doi: 10.1016/j.jwb.2003.08.010. doi: 10.1016/j.jwb.2003.08.010
[26]	Regalsky M A, 1989. Foreign capital, local interests and railway development in Argentina: French investments in railways, 1900-1914. Journal of Latin American Studies, 21(3):425-452. doi: https://doi.org/10.1017/S0022216X00018502. doi: 10.1017/S0022216X00018502
[27]	Steenhuis H J, 2000. International technology transfer, Building theory from a multiple case-study in the aircraft industry[D]. Enschede: Faculty of Technology and Management, University of Twente, The Netherlands.
[28]	Thurner W T, Zaichenko S, 2016. Sectoral differences in technology transfer. International Journal of Innovation Management, 20(2):1650020. doi: https://doi.org/10.1142/S1363919616500201. doi: 10.1142/S1363919616500201
[29]	UNDP, 2013. Human Development Report 2013. The Rise of the South: Human Progress in a Diverse World. New York. http://hdr.undp.org/en/content/human-development-report-2013.
[30]	Vernon R, 1971. Sovereignty at Bay: The Multinational Spread of U.S. Enterprises. New York: Basic Books.
[31]	Wang J E, Jin F J, Mo H H, Wang F H, 2009. Spatiotemporal evolution of China’s railway network in the 20th century: An accessibility approach. Transportation Research Part A, 43:765-778. doi: https://doi.org/10.1016/j.tra.2009.07.003.
[32]	Wissenbach U, Wang Y, 2017. African politics meets Chinese engineers: The Chinese-built Standard Gauge Railway Project in Kenya and East Africa. Working Paper: China Africa Research Initiative, School of Advanced International Studies, Johns Hopkins University, Washington, DC. http://www.sais-cari.org/publicationshttp://www.sais-cari.org/publications.
[33]	Zhang Y H, Zhang A M, Wang J E, 2020. Exploring the roles of high-speed train, air and coach services in the spread of COVID-19 in China. Transport Policy, 94:34-42. doi: https://doi.org/10.1016/j.tranpol.2020.05.012. doi: 10.1016/j.tranpol.2020.05.012

Year	Vegetation coverage	0-0.2	0.2-0.4	0.4-0.6	0.6-0.8	0.8-1
2013	Area (km²)	188.99	451.59	984.24	1239.48	1866.54
2013	Proportion (%)	4.00	9.54	20.55	26.20	39.45
2017	Area (km²)	43.08	552.34	2062.18	1710.84	353.41
2017	Proportion (%)	0.91	11.70	43.67	36.23	7.48

Year	Type	Forest	Grass	Cropland	Other
2013	Area (km²)	118.45	2230.69	1822.21	57.32
2013	Proportion (%)	2.50	47.17	38.54	11.79
2017	Area (km²)	346.89	2775.22	1439.39	167.87
2017	Proportion (%)	7.33	58.68	30.44	3.55