John D. Daniels

Managing international technology transfer risk: A case analysis of U.S. high-technology firms in Asia

Abstract Using a comparative case analysis of nine U.S. high-tech manufacturers transferring technology to Asian operations through direct investments (wholly owned operations or joint ventures), we examined how they are protected against competitive loss of these technologies. We found some support for internalization theory in that companies preferred wholly owned operations as a means of protection. However, wholly owned operations were not always possible nor were they always sufficient to protect technologies. We found that companies additionally minimized transfer risks by viewing their technologies as a system, thus transferring only peripheral or dependent technologies. Further, they used prioritizing and segmenting technology levers to guard technology either in conjunction with or in lieu of entry mode.

Managing International Technology Transfer Risk: Alternatives and Complements to Ownership Structure

This exploratory study builds propositions for protecting technology when exploiting it through foreign production. It uses transaction cost as a preliminary basis to explore alternative methods to predict and assess firms’ methods of managing international technology transfer risks. It adds theoretical explanations based on the experiences of nine US high-tech companies’ entries and operations in Asia.

Competitiveness of Small Countries

Discussions on country competitiveness have become widespread; however, country competitiveness means different things to different people. It is often used to mean the ability to sell more in foreign markets, a concept criticised by Krugman (1994:44) because its pursuit could lead to beggar-thy-neighbour policies and/or trade wars. Such a definition also contradicts the theory that all countries gain from international trade through comparative advantage, and it implies an acceptance of the mercantilist promotion of trade surpluses that was in vogue from about 1500 to 1800. We prefer to consider national competitiveness as a means to an end — the end being the well-being of the nation’s residents; however, we acknowledge that the measurement of well-being is fraught with difficulties, especially when predicting how the future will evolve (Daniels, 1991).

The Relationship between Foreign Transfers and U.S. Companies’ International Strategies

This paper relates the different motives for transferring employees internationally to the conduct of each major international strategy (multidomestic, global, and transnational), proposes seven hypotheses on these relationships, presents and discusses the results of a survey of heads of human resources or international operations in United States based companies, and concludes with theoretical and practitioner implications of the study and suggestions for future research. We found significant support for three hypotheses and directional support for two others.

Operating Modes and Performance: US High-Technology Ventures in China

This chapter develops a theoretical model of optimum entry mode choice that is then modified through examination of 15 US high-technology entries into China. The model is based on foreign operations’ motivation theory, dominant logic theory, technology transfer cost theory and options theory. It is then linked to performance through contingency theory. The final adapted entry model proved effective in predicting the sample firms’ Chinese venture performance.