Plain Language Summary

Technology transfer (TT) remains a persistent challenge for industrial SMEs in developing economies, where limited resources and weak institutional environments constrain performance. This study examines the effectiveness of TT on the performance of industrial SMEs in Laos, using Barry Bozeman’s Contingent Effectiveness Model as its theoretical foundation. It extends this framework to a developing-country context and explores how contextual contingencies shape TT outcomes. A sample of 160 enterprises was analyzed through Structural Equation Modeling (SEM) to test proposed hypotheses and was validated in AMOS for model fit, while Fuzzy-Set Qualitative Comparative Analysis (fsQCA) was used to identify configurational outcomes. Methodologically, the study introduces a hybrid analytical approach that integrates SEM and fsQCA to capture both linear and non-linear causal patterns. The SEM results indicate that transfer providers, mechanisms, resource availability, and the external demand environment significantly influence firm performance, while recipient absorptive capacity does not show a statistically significant effect. The fsQCA results further reveal six sufficient configurations linked to high performance and two configurations associated with low performance outcomes. Theoretically, this study advances TT research by clarifying the boundary conditions under which traditional TT drivers operate. Practically, it provides insights for policymakers and development stakeholders in the China–Laos Economic Corridor (CLEC) by identifying key conditions such as provider capability, resource sufficiency, and contextual demand that should be prioritized to enhance TT effectiveness and promote sustainable SME growth.

JEL Classification: O32, O33, L25, L26, F63, R11

Technology Transfer and SME Performance in the CLEC

This study looks at how well technology transfer (TT) works to improve the performance of small and medium-sized industrial businesses (SMEs) in Laos. It uses a well-known model (Bozeman’s Contingent Effectiveness Model) to guide the research. Data from 160 companies were analyzed using two methods: Structural Equation Modeling (SEM) and Fuzzy-Set Qualitative Comparative Analysis (fsQCA). The SEM results showed that support from transfer providers, good transfer methods, available resources, and strong market demand help improve firm performance. However, a company’s own ability to absorb new knowledge (absorptive capacity) did not have a significant effect. The fsQCA method found six different combinations of factors that lead to high performance and two that lead to low performance. Overall, this research helps us better understand how technology transfer affects SMEs, especially in cross-border regions like the China–Laos Economic Corridor. It also gives practical advice to policymakers and development leaders about which conditions to focus on for supporting SME growth.

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The Effectiveness of Technology Transfer Within the China–Laos Economic Corridor on Industrial SME Performance: A Configurational Approach