Today, firms depend on technology transfer to establish competitive advantage in the global market place. Since the failure rates in TT projects are surprisingly high, special attention should be given to the identification of factors leading to ineffectiveness of TT projects and factors facilitating TT effectiveness. One of the most important factors affecting TT success is the organization’s competence in dealing with the newly transferred technologies. Every organization must somehow modify its structure, resources and culture to adapt the new technologies. In this paper, we first identified all the significant indicators representing organizational competence and TT effectiveness in Iranian firms. Then we measured the effect of each of organizational competence indicators on TT effectiveness in Iranian electrical manufacturing firms.