IT and Technological Transfer in Romanian Companies

1. IT and Technological Transfer in Romanian Companies AlinaAndreica, PhD Faculty of European Studies, Babes-Bolyai University, Cluj-Napoca, Romania e-mail: alina@euro.ubbcluj.ro

2. Topics • IT Implementations and Technological Transfer • Principles for Increasing Competitiveness by IT and Technological Transfer • Case Study for Romanian Companies – Questionnaire Results • Conclusions • References

3. IT Implementations and Technological Transfer • IT levels • Infrastructure • Basic software • Dedicated software • Integrating IT strategies in management strategies • Target oriented approach for infrastructure & software implementations • User role in software implementation – rigorous specifications • Implementation of technological transfer mainly in production & distribution • electronic means – e-commerce • The global economy impacts on development countries and newly integrated EU members

4. Principles for Increasing Competitiveness by IT and Technological Transfer • Efficient IT implementations - goal & target oriented, adaptation to company characteristics and resources • Hardware – resources & connectivity • Software • ERP • Dedicated strategies in management systems on the company’s target field • Company web site – site for • promotion - e-marketing • e-commerce • Efficient principles for web site implementation • Proficient Structure: mission, about, services, contact • Easy access / navigation • Visual expressivity – company identity • Contact • fast downloading / access

5. Case Study for Romanian Companies – Questionnaire Results • Questionnaire designed by our research team in order to: • evaluate the impact of foreign direct investments in the region • to collect both qualitative and quantitative data • 40 items • The sample - 134 companies from the manufacturing sector out of 320 that fit • the selection criteria: 15-36 NACE code, >250 employees; >50% contribution to the social capital; for the period 2000-2005

6. Case Study for Romanian Companies – Questionnaire Results • investment impact on productivity • 93% from the sample companies declared increased productivity compared to the investment time • 7% declared no noticeable productivity changes • We discuss the following 3 items related to IT and technological transfer • investment impact on productivity • factors that impact on productivity • investment priorities (for 2005)

7. Case Study for Romanian Companies – Questionnaire Results • The most important factors that impact on productivity are considered to be: • company restructuring • implementing new technologies / equipments • improving labour conditions • We comparatively represent the rating of these factors, on a 4 item scale ( 1 - the most important and 4 – the least important)

8. Questionnaire Results – factors that impact on productivity • The implementation of new technologies and equipments is considered to be the most important factor by the majority of the sample group – 75% from the companies that answered affirmatively to the question regarding investment impact on productivity (and 68.6% from the whole sample group)

9. Questionnaire Results – investment impact on productivity • Rate 1 - the importance of technological transfer in company development & management awareness of its impact and advantages in increasing companies’ competitiveness • Rate 2 - labour conditions • the result sustains the role of investments in this field, as a consistent factor that ensures competitiveness • Rate 3 - company restructuring and improving labour conditions • Fairly equal percentages of subjects ~ 25% • Rate 4 – other factors • Specific: training and qualification programs, proficient management, production development and market research

10. Questionnaire Results - investment priorities (2005) • The following factors were evaluated as investment priorities (for 2005): production infrastructure, distribution (services) infrastructure, ICT (Information and Communication Technologies) , human resources and promotion

11. Questionnaire Results - investment priorities (2005) • 32% of the companies in our sample point towards production infrastructure • This rating is consistent to the previous results obtained from the item and reveal companies’ strategies in long term development • ICT and human resources - 21% • the role of ICT in company development and management awareness in its competitiveness advantages • Promotion follows with 14% • The marketing factor complements production, distribution infrastructure and ICT • Distribution infrastructure – 12 % • we may say that this hierarchy reveals the maturity in development strategies that might be noticed in our company sample group • Large companies based on FDI in the region are aware of the importance of integrating IT & technological transfer in their development strategies • FDI contributes to creating a competitive & mature business environment in the new EU member states

12. Conclusions • IT implementation levels & technological transfer • Principles for Increasing Competitiveness by IT and Technological Transfer • Results of a Romanian case study – based on a questionnaire • investment impact on productivity • factors that impact on productivity • Investment priorities (2005)

13. Conclusions • Questionnaire Results • Most of our subjects 93 % – state that the investment increased company productivity • Most of our subjects – 75% - consider that their company’s productivity mainly increased on behalf of technological transfer and new equipments; labour conditions and company restructuring are rated on the next places • Regarding investment priorities (for 2005) - 32% of the companies in our sample point towards production infrastructure, ICT (Information and Communication Technologies) and human resources closely follow with 21%,promotion rates with 14% and distribution infrastructure – 12%

14. Interpretations • the importance of technological transfer in company development & management awareness of its impact and advantages in increasing companies’ competitiveness • the strong role of investments in human resources, as a consistent factor that ensures competitiveness • The top rating of production infrastructure reveal companies’ strategies in long term development • the similar rating of ICT to human resources – an important factor for company development, strongly reveals the assessed role of ICT in company development and management awareness in its competitiveness advantages • this hierarchy shows maturity in development strategies that might be noticed in our company sample group

15. Conclusions • Interpretations • the importance of technological transfer in company development & management awareness of its impact and advantages in increasing companies’ competitiveness • the role of investments in this field, as a consistent factor that ensures competitiveness • The top rating of production infrastructure is consistent to the results obtained from the previous item and reveal companies’ strategies in long term development. ICT • the similar rating of ICT to human resources – an important factor for companies’ profits, strongly reveals the assessed role of ICT in company development and management awareness in its competitiveness advantages • this hierarchy reveals the maturity in development strategies that might be noticed in our company sample group

16. Conclusions • FDI has already put into place a good business environment – in development stage – in the area • Large companies based on FDI in the region are aware of the importance of integrating IT & technological transfer in their development strategies • FDI contributes to creating a competitive & mature business environment in the newly integrated EU member states