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Article
Publication date: 4 October 2019

Sajjad Shekarchian and Amir Albadvi

To gain the highest performance in technological efforts, firms have to balance their technology sourcing portfolio, i.e. they have to decide how to source the required…

Abstract

Purpose

To gain the highest performance in technological efforts, firms have to balance their technology sourcing portfolio, i.e. they have to decide how to source the required technology and whom to source from. This paper aims to tackle the issue by investigating the factors affecting the technology sourcing portfolio composition and the effect of the portfolio diversity on the performance outcome.

Design/methodology/approach

An inductive multiple case study was performed. Data of four biopharmaceutical producer firms in the period of 1998-2017 were collected. To expand the under study time span, the under study firms were all chosen from the first-comer ones. They entered the NBP arena in the 1998-2008 period, i.e. the period in which Iranian NBP industry was in its formation stage.

Findings

This paper detects the affecting technology-, firm-, industry- and national level factors in Iran biopharmaceutical industry and analyses their influencing mechanism. It is demonstrated that there are factors in a developing country, specifically Iran, which do not matter in developed countries. In addition, the synergistic effect of using various technology sources vehicles is confirmed.

Social implications

Inaccessibility to infrastructures and global communication barrier problems are features of Iran innovation system. Such features discourage the foreign firms to make long-term investments in Iran which consequently deprives Iranian firms of their knowledge and technology. The modification of these problems is suggested.

Originality/value

Factors such as access to infrastructures and global communication barrier are not prevalent in developed countries; therefore, less attention has been paid to them in the literature.

Details

Journal of Science and Technology Policy Management, vol. 11 no. 1
Type: Research Article
ISSN: 2053-4620

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Article
Publication date: 11 April 2021

Gunae Choi and Se Ho Cho

The purpose of this paper is to examine firms’ knowledge-sourcing behavior in green technology development with respect to the home country’s market- vs nonmarket…

Abstract

Purpose

The purpose of this paper is to examine firms’ knowledge-sourcing behavior in green technology development with respect to the home country’s market- vs nonmarket environmental policy stringency.

Design/methodology/approach

This paper empirically analyzes the effects of market and nonmarket environmental policy stringency on firms’ knowledge sourcing activity with patent data from OECD countries during 1991–2010, across five categories of green technologies.

Findings

When a nation establishes more stringent market environmental policies, firms likely source more international knowledge rather than domestic knowledge about green technology, up to a point. After that level, this balance shifts (inverted U-shaped curve) due to the risks associated with greater investment costs and commerciality. Nonmarket environmental policies instead should exhibit a positive, linear relationship with international relative to domestic knowledge sourcing. This study also reveals the dynamic roles of a firm’s green technological capability with market-based environmental policy stringency and a substitutive role of the capability with nonmarket-based environmental policy stringency.

Research limitations/implications

This study shows the effect of market and nonmarket environmental policy stringency on firms’ knowledge sourcing. The findings provide meaningful implications for policymakers regarding the optimal levels of market and nonmarket environmental policy stringency that will enhance their countries’ green technology development.

Originality/value

This paper enriches the literature of environmental policy and knowledge sourcing and offers the direction of future research of how environmental policy stringency influences a firm’s knowledge sourcing for green technology development.

Details

Review of International Business and Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-6014

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Article
Publication date: 20 February 2009

Karen Ruckman

The purpose of this paper is to determine what the effects of acquisition are on R&D patterns.

Abstract

Purpose

The purpose of this paper is to determine what the effects of acquisition are on R&D patterns.

Design/methodology/approach

This paper tests whether the actual post‐acquisition R&D intensity of the combined firm deviated from the predicted R&D intensity, where the predicted amount is an asset‐weighted average of pre‐acquisition values.

Findings

The results indicate that the combination of technology sourcing and technological relatedness have strong predictive powers for determining changes in post‐acquisition R&D intensity. Technology sourcing acquisition of unrelated technologies results in an increase in post‐acquisition R&D intensity, as predicted. Acquirers in this situation may be using their acquisition as a platform for research expansion.

Research limitations/implications

The dataset used in this paper was restricted to public acquirers and targets for completeness of financial information. It would be useful to determine the extent to which a technology sourcing acquirer is predicted to enter into an acquisition and also whether technology sourcing can be used as a predictor for the ultimate target company out of a pool of potential targets.

Practical implications

The results can be used to inform managers on a strategic level when research strategy deviates from what the theory would predict. For example, if a company that did a technology sourcing acquisition of an unrelated product subsequently decreased R&D intensity, then rival pharmaceutical firms can ascertain that the acquired research was ultimately determined to be too risky or unviable.

Originality/value

The value in this paper is the unique measurement for technology sourcing.

Details

Journal of Strategy and Management, vol. 2 no. 1
Type: Research Article
ISSN: 1755-425X

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Article
Publication date: 7 August 2009

Yuan‐Chieh Chang, Yi‐Che Chen and Ting‐Kuei Kuo

The purpose of this paper is to examine the strategic technology outsourcing of corporate ventures from an integrated perspective.

Abstract

Purpose

The purpose of this paper is to examine the strategic technology outsourcing of corporate ventures from an integrated perspective.

Design/methodology/approach

The proposed model argues that technology sourcing modes are jointly determined by the technological regime, industry‐specific factors and resource‐based view (RBV), as well as firm‐specific factors. Four Taiwanese top publicly traded pharmaceutical companies dedicated to biotechnology are studied.

Findings

This paper demonstrates that firms most likely to outsource technology are characterized by the following technological regime factors: reliant on external sources of innovation, tight IPR protection, path independent from the existing technology trajectory, less complexity, easy to codify and having resource‐based (RB) factors: irrelevant to the core competence, weak complementary assets, and autonomous innovation.

Practical implications

Current approaches generally focus on technology sourcing with a single strategic theory. New venture managers can apply the list of four industry‐specific factors and three firm‐specific factors of sourcing technologies to determine the appropriate sourcing modes (internal vs internal).

Originality/value

There has been little research on how technology sourcing can be done from a holistic, strategic angle. This paper demonstrates that technology sourcing strategy could be properly done by integrating multi‐levels, industry, firm and governance factors in a coordinated plan.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 15 no. 5
Type: Research Article
ISSN: 1355-2554

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Article
Publication date: 29 July 2019

Rony Cabrera and Domingo González

As part of a new focus on a better balance of investment in innovation activities in developing countries, this study aims to understand the effects of technological…

Abstract

Purpose

As part of a new focus on a better balance of investment in innovation activities in developing countries, this study aims to understand the effects of technological attributes (technological complexity and type of technology) on manufacturing technology sourcing (whether firms choose either internal development or external sources).

Design/methodology/approach

Multiple-case studies were conducted in the Peruvian manufacturing sector.

Findings

The authors found that, across Peruvian manufacturing firms, they develop a certain manufacturing technology related to their capabilities. However, when the total cost of acquisition is lower than internal costs of developing technologies, they will choose external sources, regardless of their capabilities and complexity of the technology. In addition, analysis of the type of technology indicated that the pursuit of simultaneous exploration and exploitation occurs when firms use external sources rather than internal.

Research limitations/implications

This study has the limitation that data have been collected years after the decision-making process; the results are based solely on the authors’ analysis using the case of Peruvian industry, and they do not track the impact on the performance of manufacturing technology decisions.

Practical implications

The findings have important implications for technology managers of South American manufacturing firms that are decision makers in the sourcing of new manufacturing technologies.

Originality/value

The results of this study provide literature with insights into technology sourcing strategy in developing countries and the importance of progress in transitioning to technological innovation and catchup.

Objetivo

Como parte de um novo foco em um melhor equilíbrio do investimento em atividades de inovação nos países em desenvolvimento, este estudo compreende os efeitos dos atributos tecnológicos (complexidade tecnológica e tipo de tecnologia) no suprimento de tecnologia de fabricação (se as empresas escolhem desenvolvimento interno ou fontes externas).

Design/metodologia/abordagem

Estudos de casos múltiplos foram conduzidos no setor manufatureiro peruano.

Resultados

Descobrimos que, em todas as empresas de fabricação peruanas, elas desenvolvem uma certa tecnologia de fabricação relacionada às suas capacidades. No entanto, quando o custo total de aquisição é menor do que os custos internos de desenvolvimento de tecnologias, eles escolhem fontes externas, independentemente de suas capacidades e complexidade da tecnologia. Além disso, a análise do tipo de tecnologia indicou que a busca da exploração e exploração simultâneas ocorre quando as empresas usam fontes externas em vez de internas.

Limitações/implicações da pesquisa

Este estudo tem a limitação de que os dados foram coletados anos após o processo de tomada de decisão, os resultados são baseados exclusivamente em nossa análise usando o caso da indústria peruana e não acompanhamos o impacto sobre o desempenho das decisões de tecnologia de fabricação.

Originalidade/valor

Os resultados deste estudo fornecem à literatura insights sobre a estratégia de fornecimento de tecnologia nos países em desenvolvimento e a importância do progresso na transição para a inovação tecnológica e o catch-up.

Palavras-chave

Sourcing de tecnologia, Tecnologia de fabricação, Peru

Objetivo

Como parte de un nuevo enfoque en un mejor equilibrio de la inversión en actividades de innovación en los países en desarrollo, este estudio comprende los efectos de los atributos tecnológicos (complejidad tecnológica y tipo de tecnología) en la fuente de tecnología de manufactura (ya sea que las empresas elijan desarrollo interno o fuentes externas).

Diseño/metodología/aproximación

Se realizaron estudios de casos múltiples en el sector manufacturero peruano.

Resultados

Los resultados muestran que, en todas las empresas manufactureras peruanas, desarrollan una cierta tecnología de manufactura relacionada con sus capacidades. Sin embargo, cuando el costo total de adquisición es menor que el costo interno de desarrollar tecnologías, elegirán fuentes externas, independientemente de sus capacidades y la complejidad de la tecnología. Además, el análisis del tipo de tecnología indicó que la búsqueda simultánea de exploración y explotación ocurre cuando las empresas utilizan fuentes externas en lugar de internas.

Limitaciones

Este estudio tiene la limitante de que los datos fueron recopilados luego del proceso de toma de decisiones, los resultados se basan únicamente en la industria peruana y no analizamos el impacto que tuvieron las decisiones recolectadas.

Originalidad/valor

Los resultados de este estudio proporcionan información sobre la estrategia de abastecimiento de tecnología en los países en desarrollo y la importancia del progreso en la transición a la innovación tecnológica y la puesta al día.

Palabras clave

Fuente de tecnología, Tecnología de fabricación, Perú

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 17 no. 4
Type: Research Article
ISSN: 1536-5433

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Article
Publication date: 31 October 2008

Lutfus Sayeed

The purpose of this paper is to enhance our understanding of managerial decision‐making process regarding offshore sourcing of information technology (IT) projects. The…

Abstract

Purpose

The purpose of this paper is to enhance our understanding of managerial decision‐making process regarding offshore sourcing of information technology (IT) projects. The study explored the relationship between transaction cost economics and maturity levels of a firm's offshore sourcing activities. Transactions costs theory and firms' offshore sourcing maturity levels provided the framework for studying the decision process.

Design/methodology/approach

The present study is a qualitative empirical investigation of the underlying decision process to offshore IT projects. The study is based on interviews of executives in fifteen large to medium size companies.

Findings

The data suggest that transaction cost mitigation approaches used by a firm vary based on the size of the company as well as the maturity level of the firm's offshore sourcing activities.

Research limitations/implications

The present study is based on interviews of IT executives in fifteen firms. Case studies and confirmatory studies can provide further insights.

Practical implications

Offshore sourcing maturity can influence cost mitigation tactics used by managers.

Originality/value

This is the first study to explore the relationship between transactions cost economics and offshore sourcing maturity of a firm. Future studies can extend the findings to deepen our knowledge of offshore sourcing challenges.

Details

Industrial Management & Data Systems, vol. 108 no. 9
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 1 April 2003

Georgios I. Zekos

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination…

Abstract

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Details

Managerial Law, vol. 45 no. 1/2
Type: Research Article
ISSN: 0309-0558

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Article
Publication date: 31 January 2011

Sohel Ahmad and Roger G. Schroeder

The purpose of this paper is to conceptualize a learning‐based technology strategy along three dimensions: proactive technology posture, process adaptation and…

Abstract

Purpose

The purpose of this paper is to conceptualize a learning‐based technology strategy along three dimensions: proactive technology posture, process adaptation and experimentation, and collaborative technology sourcing; also to investigate their relationships with plant competitiveness (cost, quality, delivery, flexibility, and innovation).

Design/methodology/approach

Hypothesized relationships are tested from three perspectives – direct effects perspective, co‐alignment perspective, and mediation perspective – using structural equation modeling with an international dataset.

Findings

Results show that although the three dimensions of learning‐based technology strategy are not individually related to plant competitiveness (direct effects perspective), their co‐alignment strongly impacts plant competitiveness (co‐alignment perspective). Furthermore, this co‐alignment creates an environment in which employee suggestion and feedback can help make sense of novel situations, leading to superior plant competitiveness (mediation perspective).

Practical implications

Many plants develop some aspects of a learning‐based technology strategy while paying little or no attention to the rest. As the findings of the present study show, such an approach will contribute very little to achieving competitive advantage in the marketplace. More specifically, it is shown that three dimensions of learning‐based technology strategy, when used together, have a significant effect on plant competitiveness. Additionally, it is shown that employee suggestions for improvements drive a learning‐based approach to technology strategy. Therefore, managers should adopt a comprehensive approach to technology strategy using all three dimensions and engage their employees in the process of technology development and improvement.

Originality/value

The literature has stressed the need for proactive technology posture, process adaptation and experimentation, and collaborative technology sourcing to gain competitive advantage. However, little is known about their mutual interdependence and their combined impact on plant competitiveness. This paper attempts to fill in this gap in the literature.

Details

Journal of Manufacturing Technology Management, vol. 22 no. 1
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 1 January 2003

Christer Karlsson

Companies organize in a way that involves more and more activities that are external to the traditional organizational boundaries and as a consequence managing operations…

Abstract

Companies organize in a way that involves more and more activities that are external to the traditional organizational boundaries and as a consequence managing operations contains more and more issues and actions dealing with external networks. Hence new challenges face managing operations. The perspective raised here may be called a shift from an enterprise to an extraprise. This article analyzes this changing operations context with the aim of identifying important issues in operations management in academia as well as in practice and concludes by proposals and hypotheses for future research.

Details

International Journal of Operations & Production Management, vol. 23 no. 1
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 May 1995

Carl R. Frear, Mary S. Alguire and Lynn E. Metcalf

Companies that successfully incorporate international sourcing intotheir international marketing strategies enhance their abilities toprovide their customers with quality…

Abstract

Companies that successfully incorporate international sourcing into their international marketing strategies enhance their abilities to provide their customers with quality products at acceptable prices. To a large extent, an effective international marketing strategy depends on a firm′s ability to segment its international markets. Previous studies addressed country segmentation on the basis of clustering a group of countries by an array of macroeconomic factors. These studies focussed their attention on segmenting countries on the factors important to making marketing decisions. Focusses on the making of sourcing decisions. More specifically, analyzes the extent to which countries belong to the same grouping on the basis of purchasing patterns of materials, components, finished products or technology. One‐hundred‐and‐thirty‐five firms representing 42 different countries were surveyed. The countries were clustered on the basis of these firms′ sourcing strategies. The market segment approach enables industrial marketers who are inexperienced in marketing internationally to borrow from the experience of firms which are already present in such markets. Furthermore, the availability and reliability of data and the proposed methodology can serve as useful tools in conducting such research.

Details

Journal of Business & Industrial Marketing, vol. 10 no. 2
Type: Research Article
ISSN: 0885-8624

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