Abstract
One of the major concerns in managing an international technology transfer (TT) is the potential communication difficulty that could arise because of the cultural difference between the technology provider and the technology receiver. However, the role that cultural difference plays in a TT project is not clearly discussed in the literature. This study provides empirical evidence suggesting that cultural difference might not only impose barriers for technical communication but also have an interaction effect with the nature of technology. We also find that international experience of the two companies in a TT project have different impacts on the performance of the project. In order to have a successful TT project, transferees in developing countries should choose a more mature and codified technology, and a relatively inexperienced transferor with a similar culture.