Technology Transfer and Management of Small and Medium Scale Enterprises (SMEs) with Special Reference to Rubber Industry in Sri Lanka

Abstract

Sri Lanka was basically an agro-based economy at the time of independence. Due to 500 years of Western colonization and the recent economic liberalization, Sri Lankan economy became inclined towards the import-substituted and export-oriented enterprises. To meet the current global situation, there is a need to strengthen the level of technological capability of those enterprises, especially the SMEs. Technology is often considered as a determinant factor of the SMEs' competitiveness and sustainability under present globalization situation. According to the research, new technologies will not only lead to fundamental changes in their level of technological capability, but also lead to the formation of new SMEs and change the profile of existing ones rather than enhancing their overall level of technological capability. This study was designed to analyze the level of technological capability in SMEs together with the strategy, process and management of technology transfer in Sri Lanka. As a local resource based industry, the rubber industrial sub sector is identified as one of thrust areas to develop SMEs in Sri Lanka. Further, the technology transfer and its dependence on the technological factors and, social and economic issues are to be considered. The model of technology transfer and development for SMEs in Sri Lanka was well supported by the findings showing a regression relationship from the questionnaire survey covering 30 SMEs in the rubber industrial sub sector. A national policy framework for adopting and developing an appropriate technology for ensuring technology management is the major issue addressed in this study. It revealed that there is a necessity to enhance the level of technological capability as well as the management and commercialization of technology for SMEs and organizations through proper guidance and assistance.