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Technology Transfer by Multinational Firms: The Resource Cost of Transferring Technological Know-How

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Abstract

The following sections are included:IntroductionTechnology Transfer and the Production of KnowledgeThe SampleDefinition of Technology Transfer CostsTransfer Costs: Data and HypothesesThe Level of Transfer CostsTechnology/Transferor CharacteristicsTransferee and Host Country CharacteristicsDeterminants of the Cost of International Technology Transfer: Tests and ResultsThe ModelStatistical Tests: Phase IStatistical Tests: Phase IIDefferences between International and Domestic Technology TransferConclusion References

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... For the empirical assessment of MNEs' R&D investments, we choose a greenfield investment perspective. As one of the three forms of overseas R&D -the other two are mergers & acquisitions (M&A) and international technological alliances (Hennart & Park, 1993;Mowery et al., 1996) -greenfield investment would represent a first best especially in the case of R&D internationalization as it reduces the costs and risks associated with the idiosyncratic nature of knowledge assets (Teece, 1977). Additionally, recent study by Blomkvist et al. (2019) relate the technological interactions among multinational units (between "sister" subsidiaries, as well as between subsidiaries and headquarters) with the overseas R&D entry mode. ...
... Actually, the majority of the research on R&D activities by MNE subunits has emphasized the importance of being embedded in local business networks and in national or regional innovation systems of a host country (Cantwell & Mudambi, 2005;Savona & Schiattarella, 2005). As previously stated, greenfield investment provides the greatest yield and best technological integration of any approach for cross-border R&D to entry a host country (Blomkvist et al., 2019;Teece, 1977). As a result, the network formed by cross-border greenfield investments has been becoming one of the main manifestations of MNEs' R&D internationalization. ...
... For 1% increase in the number of patents, papers and researchers in a country, the strength of its R&D capital outflows in the network increases by 0.192%, 0.570% and 0.062%, respectively. Most of these offshore R&D activities have new technology search as an important function and transfer home-base technology overseas or product development around the host market (Teece, 1977). The above results signify that technology-related variables explain most country positions in the network. ...
Article
As one of the manifestations of economic globalization, cross-border research and development (R&D) investment of multinational enterprises (MNEs) has become an important way for innovation resources to flow in the world and constitute a worldwide R&D network. The country’s position within the network has undergone a gradual evolution, but fewer studies have concentrated on the alterations to the network structure they have brought about and the factors affecting them. Our study of global cross-border R&D investment sheds light on the interactions of the global network within its singular context of country-level determinants, its internal network structure and geographical patterns. The findings suggest that global cross-border R&D investment has formed a stable geographical distribution pattern, and a complete but heterogeneous network structure, including a hierarchical structure and a core-periphery structure, while country features such as technological strength, skill levels, market potential, and economic development not only set the pace of cross-border R&D investment, but that they also influence both the network structure and the power positions of each node. Implications are discussed.
... Following the concept of an upward spiral of capability accumulation (Luo & Tung, 2018), over time firms are expected to improve their capability to properly orchestrate idea creation and transfer, which becomes an intangible asset for them (Andersson et al., 2016). This ability to adapt to ever changing capability demands is a central source of competitive advantage in the dynamic capabilities perspective (Teece, 1977;Teece et al., 1997). The literature on knowledge transfer suggest that experience is a decisive factor for the success of this transfer (Szulanski, 1996). ...
... The effectiveness of the knowledge transfer process is currently understood as being shaped by the transfer intention, the ability of the sender and the recipient as well as characteristics of the knowledge itself (Minbaeva, 2007;Teece, 1977), which can either facilitate and speed up or hamper and slow down the transfer. While impediments related to senders and recipients can be manageable, the characteristics of the knowledge to be transferred has effects that cannot be completely canceled out. ...
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This paper addresses the research gap in understanding the role of intra-firm reverse technology transfers for building output versus innovation capabilities. While we understand that some firms use external sources to create new technology before they are able to build internal innovation capability, the role of bridging lack of innovation capability through internal reverse technology transfers has not been explored in this context. We analyze the technology transfer strategy in the case of Huawei Technologies through a mixed methods design combining quantitative survival analysis of patents and qualitative interviews to understand and contextualize its mechanisms. The results show that the company strategically transferred ideas for new and complex technologies from centers of state-of-the-art technology towards its domestic Chinese locations. Tapping into offshore innovation capability is done by hiring experienced personnel that transfers innovative ideas to China instead of developing new products abroad. We find that this systematic transfer of complex ideas enabled Huawei to build output capability by bridging its lack of domestic innovation capability. This might be a way for growing firms to become competitive on the world market before having to build innovation capability at home first.
... For instance, as films and television are both two sectors of the broader media entertainment industry that share similar resources and infrastructures (recording studios, broadcasting technology, scripting competencies, distribution and advertising networks, etc.), Disney's acquisition of the television network ABC is a good example of related diversification. Conversely, unrelated diversification traditionally corresponds to expanding a business into very distant products and services or joining industries, markets, or sectors presenting different input-output configurations or limited synergies along with resources or capabilities (see, for example, Ahuja, Lampert, and Novelli, 2013;Bryce and Winter, 2009;Montgomery, 1982;Teece, 1977). Coca-Cola acquiring Columbia Pictures is a case of unrelated diversification, as the motion picture industry lacks-at least on the supply side-any evident similarity with the soft drinks industry in terms of production and distribution. ...
... The RBV framework suggests that firms should look inside their boundaries, at the inner resource and capability bundles (Chirico et al., 2011;Helfat and Peteraf, 2003), to find the sources of competitive advantage. Accordingly, the production or "supply-side" diversification focuses on the internal capabilities of firms to leverage and redeploy portfolio resources to contribute to the firm's core competencies across related products and markets and exploit strong synergies originated from common share assets, resources, and capabilities across businesses (Ahuja, Lampert, and Novelli, 2013;Teece, 1977Teece, , 1982. ...
... Teece [10] proposed that knowledge transfer refers to the process through which enterprises transfer resources such as information and technology to help accumulate new knowledge, thus narrowing the knowledge and technological gap between different regions. Gilbert and Cordey-Hayes [11] defined knowledge transfer as the process of absorbing knowledge, integrating it, and effectively reutilizing it. ...
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To identify the influencing factors and internal mechanism of knowledge transfer among prefabricated construction workers (PCWs), this study constructs a knowledge transfer behavior model for PCWs from various perspectives, including behavioral attitude, subjective norms, physiological perceived control, behavioral habits, and behavioral intention based on a modified Theory of Planned Behavior (TPB). It also employs a Structural Equation Model (SEM) for hypothesis validation and utilizes System Dynamics (SD) to simulate the knowledge transfer process of PCWs. Through empirical and simulation research, three conclusions are drawn: (1) Knowledge transfer willingness has a promoting effect on knowledge transfer behaviors. (2) Trusted relationships, organizational culture, physiological perceived control, and behavioral habits all have a promoting effect on workers’ knowledge transfer willingness and subsequently promote their knowledge transfer behaviors. (3) Among these factors, the strength of knowledge transfer willingness has the most significant impact on workers’ behavioral habits, followed by trusted relationships, physiological perceived control, and organizational culture. Additionally, when comparing the results of this study with knowledge transfer influencing factors of traditional construction workers (TCWs), it is found that trusted relationships and self-efficacy have a promoting effect on the knowledge transfer willingness of PCWs as well as TCWs. However, the impact of organizational culture, environmental perception, and behavioral habits on the knowledge transfer willingness of PCWs is more pronounced compared to TCWs. Based on TPB, this study constructs a suitable theoretical model to analyze the knowledge transfer process of PCWs by mining their group characteristics, and the research results establish a systematic analysis framework for the study of knowledge transfer behavior of PCWs. It also provides scientific suggestions for the formulation of targeted measures to enhance the willingness and efficiency of knowledge transfer of PCWs.
... Between the first interaction between the technology originator and the adopter and the final deployment of the technology, the process of technology transfer is defined by Teece (1977). Universities and other research institutions routinely create breakthroughs with the objective of ultimate commercialization in mind. ...
... As argued above, knowledge assets include not only information, but also skills and capabilities at the firm and individual level. In this regard, when IPR is exchanged in licensing agreements, the transfer of know-how is extremely difficult to specify in a contract (Arora, 1995;Teece, 1977). In essence, efficient exchange of knowledge assets entails more than information exchange. ...
... This factor is related to the capability of the firms to optimize the ownership of the firms, and the location of the host countries that making production abroad more profitable than relying on exports or licensing to other independent firms (Buckley & Casson, 1976;Dunning, 1977;John H Dunning, 1981;Dunning, 1993Dunning, , 2013Helpman, Melitz, & Yeaple, 2004;Hennart & HL Slangen, 2015;Markusen, 1995). Doing business outside a home country is more preferable than licensing if firms produce new products with high technology intensity or mostly rely on technology transfer from their parent's firms (Chung, 2001;Davidson & McFetridge, 1984;Mansfield & Romeo, 1980;Markusen, 1995;Teece, 1977;Wilson, 1977). ...
Article
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This study investigates the distribution of Foreign Direct Investment (FDI) across Indonesian economic sectors and home countries. Using descriptive statistics analysis of secondary data, the result shows that on average, FDI dominated the share of total investment, while domestic investment (DI) led the number of projects in Indonesia. FDI and DI mostly inflow to the chemical and pharmaceutical industry which is a part of manufacturing industries. The largest contributions of total FDI share come from Singapore and Japan. Investors from Japan reached the largest share of investment while investors from Singapore dominated the number of projects across Indonesian regions. Singapore reached the highest FDI share in Banten, Jakarta, Jawa Timur, Kalimantan Barat, Kalimantan Selatan, Kalimantan Tengah, Kepulauan Riau,Riau, Maluku Utara, Papua Barat, Sulawesi Utara, Sulawesi Barat, Sulawesi Selatan, and Sumatera Utara. Japan experienced the highest FDI in Jawa Barat and Jawa Tengah. This study can map the preference of investors from each home country. Investors from Australia and Mauritius mostly preferred to invest in the coal mining sector. Investors from Japan mostly preferred transport-related industries especially the industry of spare parts and accessories for four or more wheel motor vehicles. Investors from Singapore mostly selected telecommunication industries. Investors from South Korea mostly preferred to invest in plastic-related industries and processing industries. Some Investors from China invested in the electricity industry. Many investors from France also invested in the water supply sector. And Investors from the Republic of China mostly preferred to invest in the pulp, paper, and paperboard industry. The Indonesian Government needs to concern about the general characteristics of investors in home countries in attracting foreign investors. For policy purposes, knowing such characteristics provides scientific reasons for a government to have distinct strategies between different targeted home countries in order to attract foreign investors.
... Complexity in the knowledge and the number of technological interfaces can generate friction beyond transaction and production costs (Alves 2015). Some of these are technological transfer costs (Teece 1977). Others are related to coordination decisions such as suppliers switching costs (Monteverde and Teece 1982). ...
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This chapter focuses on the challenges of implementing mission-oriented policies (MOPs) in developing countries, with a particular emphasis on the Brazilian shipbuilding sector. The aim is to analyze the difficulties associated with setting MOPs and their impact on market creation and innovation. Despite the implementation of comprehensive institutional arrangements to foster technological and industrial development, the sector’s progress has been hindered by coordination uncertainties and high capability-building costs. The policies initially provided a boost, but the industry ultimately failed to catch up with international competitors. The article highlights the blurred boundary between policy expectations for market creation and the practical limitations of building a thriving industry.
... Обзор литературы Передача знаний представляет собой сложное многоаспектное явление. Считается, что у истоков концепции передачи знаний стоит Д. Тис (Teece, 1977), но более интенсивно исследовательский и практический интерес к трансферу знаний и управлению им начал возрастать с 1990-х гг. Однако до сих пор в литературе нет единого понимания передачи (трансфера) знаний. ...
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Статья посвящена исследованию особенностей и факторов развития трансфера знаний из академического сектора в организации высокотехнологичного сектора. Систематизированы способы получения и передачи знаний организацией, виды трансфера знаний. Выделены факторы трансфера знаний с позиции процессного, сетевого и системного подходов. С целью подтверждения полученных теоретических выводов проанализированы факторы трансфера знаний на примере крупного высокотехнологичного предприятия. Эмпирическую базу исследования составили результаты анкетирования работников (г. Ростов-на-Дону, Россия), осуществленного в апреле – мае 2023 года. На основе результатов анкетирования проведен корреляционный и регрессионный анализ, позволяющий установить фактическую взаимосвязь между факторами, характеризующими параметры трансфера знаний из академической среды. Показано, что все группы факторов имеют прямое положительное воздействие на результаты трансфера знаний. При этом подчеркивается, что факторы получателя знаний, поставщиков знаний и взаимного доверия участников трансфера, то есть факторы, характеризующие внутреннюю мотивацию участников, оказывают более сильное воздействие на результат трансфера знаний нежели факторы организации взаимодействия, отражающие внешнюю мотивацию. С помощью полученных выводов сформулированы рекомендации, направленные на повышение эффективности факторов, воздействующих на трансфер знаний на предприятие. Выделено пять основных направлений развития трансфера знаний: повышение эффективности организации взаимодействия поставщика и получателя знаний; укрепление уровня доверия между ними; расширение круга поставщиков знаний; повышение их способности к передаче знаний и способности к восприятию новых знаний получателем, рост эффективности применения полученных знаний. Подчеркивается значение профессионально-образовательной экосистемы как открытой неиерархической устойчивой взаимосвязи предприятия с образовательными, научными, общественными организациями в развитии трансфера знаний
... " Branstetter (1998) presents a review of the literature on international knowledge spillovers. The first paper of Jaffe and collaborators on international flows mentions two previous references on "technological flows" - Teece (1977) and Coe and Helpman (1995) (JAFFE;TRAJTENBERG, 1999, p. 106). Resuming Griliches's distinction, Jaffe and Trajtenberg (1999, p. 106) stress that "[k]nowledge spillovers are much harder to measure than technology transfer, precisely because they tend to be disembodied". ...
Article
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Innovation systems, as dynamic structures, tend to become progressively more globalized, reflecting the presence of a greater intensity of cross-border flows. This process is related to the emergence of a Global Innovation System (GIS). Our research investigates this structural transformation by focusing on international knowledge flows (IKFs). To integrate this investigation with the previous literature on national innovation systems (NISs), we examine international knowledge flows connecting institutions (firms, universities, research institutes, hospitals) from different NISs. Among possible IKF types, we focus on those created by patent citations - of other patents or scientific articles - and scientific coauthorships. We represent the institutions and the IKFs they create as networks where the nodes are the institutions and the links connecting these nodes are the IKFs. We organize the network in three layers according to the type of IKF that connects the institutions: scientific collaboration, patent citation or article citation in patents. We have divided this paper into five sections. The first presents our theoretical background. The second discusses the characteristics and properties of complex networks and complex systems, as well as some characteristics of multilayer networks, a concept used as an analytical tool to develop the empirical analysis. The third addresses the data and methodology. The fourth section analyses the structure of the three network layers, their entanglement and multiplex properties, and the institutions connecting them. The fifth and conclusive section discusses how those findings improve the understanding of an emerging GIS. KEYWORDS International knowledge flows; Innovation systems; Networks of networks
... In academia, the concept of KT originally came from the cross-border technology transfer between enterprises proposed by Teece. He believed that cross-regional technology transfer can help companies absorb a large amount of technical knowledge on the one hand, and on the other hand, it can also spread technology in different regions and narrow the technological gap between them [23]. Initial KT research focused primarily within organizations, exploring how knowledge is shared between individuals and teams to support organizational innovation and performance [24]. ...
Article
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The efficiency of industrial knowledge transfer (IKT) directly affects the level of knowledge connection and collaborative innovation in the industry. However, there is a lack of research, particularly from the perspective of network characteristics, to investigate the efficiency of IKT. Therefore, this study proposes a methodology for measuring the efficiency of weighted industrial knowledge transfer network (IKTN) by employing multiple network indicators. Firstly, based on patent data, a weighted IKTN model with node and edge weights is constructed, and the weighted clustering coefficient and path length of the network are defined. Then, considering the indicators of node weights, edge weights, weighted clustering coefficient, and path length, an efficiency measurement model for the weighted IKTN is established. Finally, we take the environmental protection industry (EPI) in the Yangtze River Delta region of China as the practical case to verify the scientific validity and applicability of the proposed method. The results show that the measurement method proposed can effectively evaluate the node efficiency and overall efficiency of IKTN, and provide a scientific basis for relevant policymaking. This study comprehensively considered multiple factors in the IKTN efficiency measurement and used existing data from the patent database in the weight setting, avoiding the problem of excessive reliance on subjective factors in previous studies that may lead to deviations in the authenticity of the evaluation.
... It is important to understand that STP represents a special case of alliances, given the unique nature of innovating and creating especially through R&D activities. In order to understand the growth of alliances we refer to aspects from evolutionary theory and the nature of technology (e.g., Teece, 1977;Nelson & Winter, 1982;Cantwell, 1989;Kogut & Zander, 1993). ...
... The dynamic capabilities paradigm postulates that, over time, firms can create, complement, and reshape their internal and external abilities for addressing the environmental volatility to gain new forms of competitive advantage (Bilir and Morales, 2020). These abilities are dynamic and make the firm capable of acquiring, combining, and transforming resources differently to gain strategically important values (Teece, 1977). The below sub-sections describe the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT) for realizing BDDPSCs. ...
... In practice, technology transfer plays an essential role in promoting the knowledge fow of collaborative innovators and the evolution of industry-university-research collaborative innovation. Moreover, it frequently takes crucial resources for a new technology or product to become viable, nonetheless, compared to the average cost of research, development, and application, the marginal cost of continuous application of the existing technology is negligible due to the low cost of transferring the existing innovation [44]. ...
Article
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Public technology collaborative innovation serves as an essential driving force to implement the innovation-driven strategy as well as promote national and regional economic sustainable development. Moreover, strengthening the construction of public technology collaborative innovation system is likewise of great significance for strengthening the quality and technology level of enterprises, enhancing their independent innovation capability, and achieving strategic transformation. Particularly, collaborative innovation of public technology in accordance with mature private technology enables the efficient allocation of technological and economic resources. In practice, there are still issues including high innovation costs, insufficient motivation, and low efficiency of innovation. Existing research typically ignores the technical cooperation among multiple parties. An evolutionary game model of public technology collaborative innovation is established in this paper to examine the interaction mechanism among the government, enterprises, and technology owners. For the purpose of analyzing the dynamic evolution of public technology collaborative innovation behavior and its influencing factors, numerical simulation experiments were conducted with meaningful results: (1) Setting the cost and benefit allocation coefficient in a scientific manner contributes to system stability and promotes cooperation among game players. (2) Reasonable government subsidies and penalties can assist in the formation of an active technological innovation between the firm and the technology owner. (3) The pricing method of private technology transfer is a significant factor influencing the evolution process. Besides, the adoption of a technology pricing method on the basis of government interests is conducive to the formation of a stable tripartite win-win situation. The research on collaborative innovation of public technology is further expanded in this paper, offering a reference for the formulation of relevant policies aimed at promoting cooperation in public technology innovation.
... The dynamic capabilities paradigm postulates that, over time, firms can create, complement, and reshape their internal and external abilities for addressing the environmental volatility to gain new forms of competitive advantage (Bilir and Morales, 2020). These abilities are dynamic and make the firm capable of acquiring, combining, and transforming resources differently to gain strategically important values (Teece, 1977). The below sub-sections describe the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT) for realizing BDDPSCs. ...
Article
During an emergency, there are many activities in a pharmaceutical supply chain (PSC) which are rendered ineffective. This study aims to propose a holistic approach for Big Data Driven Pharmaceuticals Supply Chain (BDDPSC) during medical emergencies. During unprecedented situations, the quality of healthcare services by using traditional supply chain becomes a challenge. The current study aims to generate a model wherein multiple entities will be the part of data entries like hospitals, clinical trials, medical practitioners, and drug manufacturing companies during COVID-19. The study has considered certified medical practitioners as the experts and based their responses for proposing a theoretical framework deploying E-Delphi-Qualitative Data Analysis approach. By critically examining experts' responses and comments, the study formulated four major themes and ten sub-themes for smooth functioning of BDDPSCs during an emergency. The E-Delphi was conducted in two rounds to reach final consensus and to find a balance for PSC in terms of efficiency and quality. This research is novel wherein big data enabled PSC theoretical model has been formulated using a qualitative approach for handling COVID-19. The proposed framework provides an enriched way to capture data from the important link viz. "health officials" of PSCs.
... La adquisición y transferencia de conocimiento tácito puede ocurrir exclusivamente a través de interacciones humanas físicas (Teece, 1977 Es importante tener en cuenta que la distinción entre estos dos tipos de conocimiento radica en el grado de formalización (qué tanto se puede expresar en un lenguaje) no en el tipo. Los dos caracterizan los lados opuestos de un continuum 4 , como se muestra en la figura 2. ...
Book
La integración entre la gestión del conocimiento y la innovación es un tema fundamental, no solo en el marco del modelo integrado de planificación y gestión (MIPG), sino en todas las organizaciones, públicas o privadas. En la práctica, en general, estos dos temas organizacionales, la gestión del conocimiento y la innovación, han sido tratados o desarrollados de manera independiente, como si fueran temas autónomos, aunque las tendencias organizacionales hablan de su integración. El objetivo de este ABC es servir de instrumento a los servidores públicos y demás colaboradores de las entidades para conocer, explorar y apropiarse de la relación entre conocimiento e innovación en el contexto de las entidades públicas.
... 7. For additional classic studies, see Teece (1977), Rugman (1981Rugman ( , 1996, Williamson (1975Williamson ( , 1981 and Hennart (1982Hennart ( , 2001. 8. Buckley and Casson (1976), as cited by Rugman and Verbeke (2003) recognized the contribution of several scholarly studies, both conceptual and empirical, to the development of their particular view on the MNE, including, Coase (1937), Penrose (1959), Vernon (1966Vernon ( , 1971, Hirsch (1967), Johnson (1970), Wells (1971), Dunning (1973) and Dunning and Pearce (1975), among others. ...
... As of December 31, 2020, China's railway standards have reached 1814, including 1708 industry standards and 106 national standards 1 . Teece (1977) first proposed the concept of knowledge transfer. From the perspective of exchange, Szulanski (1996) believed that knowledge transfer is a dynamic process of knowledge exchange between the knowledge source and knowledge receiver. ...
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Under “The Belt and Road” initiative, the international recognition of China’s high-speed railway (hereafter, HSR) standards is gradually improving along with China’s HSR “going global.” However, the “going global” process of China’s HSR standards still faces obstacles. Therefore, how to promote the “going global” of China’s HSR standards has become an important research topic. “Going global” of China’s HSR standards is essentially a process of knowledge transfer related to HSR standards. In this study, knowledge transfer theory was used to identify factors related to the knowledge transfer of China’s HSR standards “going global.” Furthermore, a causal loop diagram and stock-and-flow diagram were designed using the System Dynamics (hereafter, SD) method. Variable equations were constructed to quantitatively describe the dynamic relationship between the relevant factors. Subsequently, we used VENSIM software to verify the validity of the constructed SD model and conducted a simulation analysis on this SD model. Finally, conclusions were drawn on the influence of different factors on the knowledge transfer performance of China’s HSR standards “going global.” Among them, knowledge transfer capacity of China’s HSR enterprises, accepting willingness and absorptive capacity of HSR importing countries, the trust between two parties, and China’s manufacturing GVC status index all have a positive impact on the knowledge transfer performance of China’s HSR standards “going global.” The recessive, complexity, and specificity of HSR standards, the cultural distance and institutional distance between China’s HSR enterprises and HSR importing countries, and the competitor pressure faced by China’s HSR enterprises all have a negative impact on the knowledge transfer performance of China’s HSR standards “going global.” And the corresponding suggestions were put forward to promote the sustainable export of China’s HSR standards.
... Williamson [103] posits that the determinants of transaction costs are frequency, specificity, uncertainty, bounded rationality, and opportunistic behavior. TCE focuses on the risk of opportunism such as lock-in (hold-up), below-peak effort, or the misappropriation of proprietary information [90,104]. Asset specificity has received the earliest attention and is a highly influential attribute of the transaction [72]. ...
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Cloud computing has achieved great commercial success to date, but its associated risks may impede firms from adopting it more effectively. This paper addresses the issue from the perspective of firms that use cloud computing and argues that the modularization of firms’ internal IT systems play an important role in enabling their adoption of cloud services. We performed detailed empirical analyses employing a dataset containing 457 firms classified as small and medium-sized enterprises (SMEs) as well as large enterprises. Our empirical results mainly suggest that internal IT modularity aimed for organization-wide, top-down strategic business transformation can help firms better adopt application-level cloud services regardless of their firm size. Bottom-up non-strategic internal IT modularity siloed in individual projects can foster the use of server-level cloud services for SMEs, but not for large enterprises. Our findings reveal support for the general prior understanding of (a) the negative effect of internal IT expenditure and cloud-based software’s quality and risk concerns on application-level cloud adoption, and (b) the positive effect of perceived benefits of cloud-based software on application-level cloud adoption for both SMEs and large enterprises. Finally, when SMEs develop more custom Web services in house, they tend to adopt fewer server-level cloud services externally. The theoretical development and empirical analysis of the effect of IT modularity and firm size on cloud adoption contribute to our understanding of how firms can be more internally ready to use cloud computing effectively.
... In the knowledge management process, many research scholars have reflected a focus on knowledge transfer [15]. Teece [16] first proposed the concept of knowledge transfer, which was defined as one of the important means for enterprises to accumulate knowledge. Argote, L. et al. [17] defined knowledge transfer as the process of transferring experience from one organizational unit (e.g., a group, department, or division) to another. ...
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Against the background of the current development of China’s engineering consulting industry, the technology acceptance model (TAM) is applied to construct a model of digital management influencing the willingness to transfer knowledge in whole-process engineering consulting projects. Digital management is used as the independent variable, perceived usefulness and perceived ease of use as the mediating variables, and the willingness to transfer knowledge as the dependent variable to investigate the influence relationship among the three. In this paper, 263 sample data are selected and structural equation modeling is used to analyze the data. The results show that digital management has a significant positive influence on the willingness to transfer knowledge; perceived usefulness and perceived ease of use play a mediating role in the relationship between digital management and the willingness to transfer knowledge. This paper enriches the research on knowledge transfer of engineering consulting. From the perspective of digital management, measures are made for improving the willingness of members to transfer knowledge and for lifting management efficiency in the whole process of the engineering consulting project.
... An economic perspective on knowledge communication would entail examining the costs associated with such a knowledge transfer. For example, one study of the cost of technology transfer across MNC boundaries estimated it to be around 20% of the total project cost (Teece, 1977). This was a truly astonishing figure that challenges the claims of MNCs that they are efficient vehicles of knowledge communication. ...
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The knowledge-based view of the firm has gained currency in organizational theory since the 1990s. This paper evaluates it in a historical perspective, and suggests that the new theories of the firm as a receptacle of knowledge emerged in the context of the intensified knowledge communication within organizations in the early 1990s, and organizational practices that appropriated public property through the regime of intellectual property rights. This paper contends that organizational theory and practice are both in a state of dynamic mutual interaction, with theory often playing a lagging role. In other words, organizational actions precede, and are retroactively described (and legitimized) by theoretical developments. This paper subjects knowledge-based theories of the firm to scrutiny, and concludes that they resort to simplistic definitions of knowledge. Using information from other social sciences, this paper identifies some of the facets of knowledge that need to be considered in order to make the theories posited more meaningful.
... At the same time, the diffusion and spillover effects brought about by the process of technology transfer play an important role in driving technological progress [6], which provide a certain basis for knowledge flow. Knowledge flow was first discussed by Teece in an article in 1977, arguing that enterprises allow knowledge to flow through technology transfer [20]. Ounjian also proposed in 1987 that the influencing factors of knowledge flow may include technical characteristics, characteristics of technology suppliers and demanders and their communication channels [16]. ...
... Despite the growing importance of arm'slength transfers of technology, i.e. those that involve two unaffiliated parties, see Arora et al. (2002), the process of international diffusion of technology is predominantly conducted within the framework of MNCs. Although far from being cost-free, as documented in Teece (1977), internal transfers of technology are considered to be less problematic than arm'slength transactions. Similarly, Buckley and Casson (1976) argue that knowledge will typically be diffused internally, given that it is easily transferred and difficult to protect, although it is also acknowledged that internal transmission costs depend on factors such as distance. ...
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This study takes diffusion capacity, absorptive capacity, and relationship strength as the main influencing factors, constructs models of knowledge flow in small‐world networks and scale‐free networks, and uses numerical simulation to observe the flow characteristics of explicit knowledge and tacit knowledge in different networks. The knowledge of explicit flow in different networks exhibits the phenomenon of knowledge emergence, but this phenomenon is more obvious in a small‐world network. The flow of tacit knowledge in a small‐world network has a better effect. In a scale‐free network, the quantity and frequency of knowledge flow are significantly higher than those in a small‐world network. The reason for this phenomenon is the differences in the response, connection and structure of different networks. The quantity and frequency of the flow of explicit knowledge in the same network are significantly higher than those of tacit knowledge. The reason for this phenomenon is the different types of knowledge flow in different modes, with different levels of flow difficulty and flow sustainability. First, this study visually compares the differences in flow between the two types of knowledge. Second, flow models of the two types of knowledge are constructed, and the flow characteristics of the two types of knowledge in different networks are simulated. Finally, the reasons for the differences in flow between the two types of knowledge are explained by using loosely coupled theory.
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We critically assess, build upon and extend the contribution of Stephen Hymer to the theory of the multinational enterprise (MNE) and 10.1057/978-1-137-00772-8_138 (IB) scholarship. We claim that Hymer was able to raise questions of fundamental importance, provide answers and proceed to predictions, mostly of superior insight. We also discuss a number of limitations of his work and conclude that despite these limitations Hymer had a powerful framework and a sharp analytical mind that allowed him to become the pioneer and indeed the father figure of the theory of the MNE, FDI and IB scholarship.
Chapter
Multiproduct companies, which produce products in multiple technological or market categories, exist because of the characteristics of organizational knowledge, the limitations of markets for know-how and the dynamic nature of market opportunities.
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The evolutionary theory of the multinational enterprise (MNE) views the MNE as an instrument for generating and transferring knowledge. A multinational firm’s ability and incentive to transfer knowledge effectively and efficiently is the main reason for its global footprint. Internal knowledge transfers work better than transfers between firms because of the lower resource costs and greater control over trade secrets of transmitting knowledge internally versus across a market. In evolutionary theory, transaction cost or contractual difficulties are not the main reasons why firms become multinational. Evolutionary theory has influenced the knowledge-based and capability theories of the MNE in which the MNE is viewed as a repository of knowledge and resources rather than a nexus of contracts.
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Multinational firms are often accused of making excessive profits, charging excessive fees for technology and not providing enough training or high level jobs for nationals. Comparative analysis, using data from Latin America to represent developing countries and Europe and Canada to represent advanced countries, does not support these criticisms.
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Having estimated a linear regression with p coefficients, one may wish to test whether m additional observations belong to the same regression. This paper presents systematically the tests involved, relates the prediction interval (for m = 1) and the analysis of covariance (for m > p) within the framework of general linear hypothesis (for any m), and extends the results to testing the equality between subsets of coefficients.
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A study seeks to examine the mechanics of international corporate technology transfer and to provide evidence on the level and determinants of technology transfer costs. A rather precise ''resource cost'' definition of costs is employed. The focus of the study is limited to transfers both outward from and inward to but one country: the U.S.A. The transferors are corporations, generally U.S. multinational corporations. The study covers a range of corporate transfers, including the licensing of technology to independent corporations and to governments, to joint ventures, and to wholly owned subsidiaries. It does not include the transfer of technology that might occur, for instance, through the export of capital goods. The analysis highlights features common to transfers that are domestic in scope. The domain of this study is restricted to horizontal transfers falling into the design phase. Data on twenty-nine international technology transfer projects are given in briefs in Appendix A. (MCW)
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The optimal trade and licensing policies for a country which is the only owner of the technology to produce a good are developed in a general-equilibrium two-countries model. The analysis emphasizes the monopolistic position of the owner of the technology, and is essentially static in the sense that no process of generation of new technology is considered. The optimal behavior obtained turns out to entail (a) the full exploitation of any monopoly and/or monopsony power that the owner of the technology may possess with respect to the foreign market for his product and the foreign market for the factors which may be used in its production, and (b) full, competitive behavior with respect to the use of domestic resources and the sale of his product in the domestic market.
International Diffusion of Technology: The Case of Semiconductors Brookings Institution United Nations (I968) International Standard Industrial Classification of all Economic ActivitiesThe Transfer of Technology
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Technology and Technical Change In Economic Analysis and the Multinational Enterprise The Economics of Technological Change
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Mansfield, E. (1974). "Technology and Technical Change." In Economic Analysis and the Multinational Enterprise (ed. J. Dunning). London: Allen and Unwin. (I968). The Economics of Technological Change. New York: Norton. -(1973).
Classificatory Notes on the Production and Transmission of Technological Know-ledge Amercian Economic Review
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Arrow, K. (I969). " Classificatory Notes on the Production and Transmission of Technological Know-ledge." Amercian Economic Review; Papers and Proceedings, vol. 52 (May), pp. 29-35., (I962). Comment in Universities-National Bureau Committee for Economic Research. The Rate and Direction of Inventive Activity. Princeton: Princeton University Press.
Transfers of United States Aerospace Technology toJapan
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Hall, G. R. andJohnson, R. E. (1970). "Transfers of United States Aerospace Technology toJapan." In The Technology Factor in International Trade (ed. R. Vernon). N.Y.: National Bureau of Economic Research.
I967): Manufacturing Problems in India: The Cummings Diesel Experience EconomicDevelopment with Special Reference to East Asia
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Baranson, J. (I967): Manufacturing Problems in India: The Cummings Diesel Experience. Syracuse, N.Y.: Syracuse University Press. Berrill, K. (ed.) (I964). EconomicDevelopment with Special Reference to East Asia. NewYork: St Martins Press.
Research and Development and Economic Growth in Japan
  • K Oshima
Oshima, K. (I973). "Research and Development and Economic Growth in Japan." In Science and Technology in Economic Growth (ed. B. R. Williams). New York: John Wiley.