Bou-Wen Lin

Technology Transfer as Technological Learning: A Source of Competitive Advantage for Firms with Limited R&D Resources

The objective of this article is to answer why and how firms in developing countries with limited R&D resources can gain sustainable competitive advantage through technology transfer (TT). Successful firms are those that can accumulate competence through internal technological learning after transferring technologies from external technology sources. Organizational intelligence, firm specificity of technology, and causal ambiguity are identified as three mediators between technological learning performance and several antecedents previously discussed in the literature. A survey of Taiwanese manufacturers is conducted to explore the technological learning phenomenon as an integral part of TT, which is important but often neglected. This article also provides an interesting research setting for the evaluation of technological learning theories.

Patent portfolio diversity, technology strategy, and firm value

This paper investigates how the composition and diversity of a firms patent portfolio can create synergy and, thus, contribute to firm performance. To resolve two conflicting views on whether technology diversity or strategic focus can improve firm performance, we develop a scheme to measure the diversity of a patent portfolio at the two levels of broad technology diversity and core field diversity. In our framework, both views can be valid. The former argument is effective when the focal firm has very high technology stocks and profitability is used as a performance measure. The latter is true for a focal firm with above average technology stocks and where shareholder value is considered as a performance indicator. This paper highlights technology stocks as a moderator between the relationship of technology diversity and firm performance. Generally, a firm without very high-technology stocks should concentrate its R&D resources on a specific technology field, and even within the core technology field the firm should stay focus on a small number of core technologies. Results support the competence-based view of the firm. Technology-based firms should develop a portfolio with a clear technology focus. This study lays the groundwork for future study on the interrelationships of technology strategy, patent portfolio, and long-term performance.

Fostering product innovation in industry networks: the mediating role of knowledge integration

The locus of innovation has shifted from single entrepreneurial firms to groups of networked firms. Inter-organizational cooperation rather than competition to exploit the value of knowledge through new product innovation lies at the heart of the knowledge-based economy. This paper focuses on the phenomenon of network product innovation and the holistic integration of distributed knowledge across organizational boundaries to foster production innovation. A new construct, knowledge integration, is found to have a strong positive impact on new product performance. Resource complementarity, market orientation, and information sharing are three antecedents that positively affect knowledge integration across organizational boundaries. Survey data also suggest that knowledge integration serves as a mediator between the three antecedents and product innovation performance. Managerial implications and future research directions are discussed.

Effects of cultural difference on technology transfer projects: an empirical study of Taiwanese manufacturing companies

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.

New high‐tech venturing as process of resource accumulation

Purpose – The purpose of this research is to explore, through the lens of a resource‐based view and dynamic capability theory, how new ventures in high‐technology industries accumulate resources to survive and sustain competitive advantage.Design/methodology/approach – This study used the multiple case study approach completed for three integrated circuit (IC) design companies in Taiwan by conducting in‐depth interviews with senior executives in each case. Through the aforementioned case studies, the paper was able to summarize and verify the key elements and steps to find the customer and achieve the firm growth.Findings – It was found that three core elements, technology, networking and legitimacy are necessary. In addition, there are emerging and embedding steps adopted by each case in this study for new ventures to successfully penetrate the market and sustain the competitive advantage.Research limitations/implications – The findings are focused on one country, and three cases of a specific industry i...

Contingency View on Technological Differentiation and Firm Performance: Evidence in an Economic Downturn

Although the importance of strategy for firm performance has been studied, little evidence has been offered regarding this linkage in hostile environments characterized by a lack of exploitable market opportunity and fiercer competition. This study aims to examine the viability of strategic postures of technological differentiation in such a setting using data from 1,054 samples across 32 industries in 30 countries during 20012002, when global economies suffered a downturn. The empirical results show that differentiation-oriented firms underperformed efficiency-oriented ones during this period. However, in the face of deteriorating market conditions, a strategic orientation toward technological differentiation, in concert with an internal commitment to R&D investment or external munificence toward technological opportunity, yields better performance. Finally, this study finds that firms with tight coupling between differentiation and efficiency outmaneuver those with a pure strategy or no strategy at the time of an economic downturn.

Knowledge diversity as a moderator: inter-firm relationships, R&D investment and absorptive capacity

The study examines how knowledge diversity moderates the effects of R&D investment, strategic alliances, and acquisitions on firm performance using a sample of 2404 firm-year data from US technology firms. Results confirm that the main effect of knowledge diversity on firm growth is not significant and it indeed plays a role of a moderator. The theory of absorptive capacity provides a good explanation that for firms with high knowledge diversity, strategic alliances and acquisitions are more effective while for firms with low knowledge diversity, internal R&D investment is more effective. These findings point to an important research direct that the characteristics of a firms knowledge portfolio play a critical role in determining the effectiveness of knowledge sourcing as well as interfirm partnership strategies.

Predicting citations to biotechnology patents based on the information from the patent documents

The purpose of this study is to develop a simple and robust model for predicting citations to a patent based on the information from the front page of the patent documents. The number of citations received is frequently used as an indicator of the value and importance of a patent. However, it takes a long time for a patent to accumulate a large number of citations from later patents. Highly cited patents may well be very old and accordingly may not represent cutting-edge technology. If we can predict the pattern of citations to a patent right after it is granted, the tradability of patents will be greatly enhanced. This paper provides a simple regression model to predict citations to biotechnology patents from the front pages of patent documents. The model can be used as a supplementary evaluation tool in mergers and acquisitions, strategic technology planning, valuation of high-tech firms and R&D performance evaluation.

Mergers and acquisitions as a human resource strategy

– This paper investigates how a firms human resource capability can affect the deployment and effectiveness of corporate mergers and acquisitions strategy., – Mergers and acquisitions (M&A) is treated as a long‐term strategic orientation based on human resource advantage rather than a tactic to pursue short‐term goals. Using a sample of 267 US banking firms, the main and interaction effects of M&A intensity, HR capability, and in‐state propensity on four firm performance measures were examined., – The findings confirm that banking M&A could be very effective when the firm had high HR capability. Evidence was also found that HR capability had a direct impact on firm performance. Although in‐state M&A strategy was in general superior to out‐of‐state M&A strategy, a firm with excellent HR capability might narrow the performance difference between in‐state and out‐of‐state M&A., – An obvious drawback of using this sample of banking firms is that it raises questions about the generalizability of these findings to smaller financial firms and firms in other industries. This study considers firms having at least one M&A over a three‐year period, so we should not generalize our findings to those firms preferring to use internal growth strategies or greenfield start‐ups., – The main message of this paper is that human resource capability is critical for M&A strategy to be effective., – By extending previous investigations which showed that M&A strategy and HR capacity should be independently treated, this study highlights the critical role of internal HR capability in performance implications of M&A strategy.

Cooperating for supply chain effectiveness: manufacturing strategy for Chinese OEMs

As the world economy has become increasingly integrated, Chinese manufacturers play the role of world factories in the global value networks for many industries. The study examines the role of Chinese OEMs in the global supply chain and how the OEMs can enhance supply chain effectiveness. There is no single best strategy for OEM suppliers. They can choose either to be dedicated OEM service providers or to build their own-brand products. Both can achieve high supply chain effectiveness. However, once the OEM strategy is chosen, the way to manage the supply chain should be different. Dedicated OEM suppliers should emphasise particularly manufacturing flexibility in pursuing supply chain performance. Product modularity has a possibly negative impact on supply chain performance. For both dedicated OEM suppliers and own-brand ones, goal congruence is essential for supply chain performance. Managerial implications for this study are also discussed.