K. Scott Swan

A Product and Process Model of the Technology-Sourcing Decision

The technology-sourcing decision traditionally has examined the choice either to innovate internally or to acquire technology from outside sources. The increasing complexity of this decision requires a move beyond the simple “make-versus-buy” dichotomy. We seek to test factors that influence the technology decision of subsidiaries for product and process technology across the continuum of options from internal development to outsourcing. We also explore concordance between the research streams of new product development and technology sourcing. Regression models are used to analyze data from 187 subsidiaries that suggest product and process technology development decisions sometimes are associated with similar factors and at other times they diverge. In particular, we find that external product and process technology acquisition decisions are associated negatively with differentiation goals and associated positively with product dynamism. While external product acquisition is associated negatively with a low cost goal and positively with increasing distance between primary marketing and R&D operations, external process technology acquisition is associated positively with high competitive intensity. Implications include the following: (1) While external product technology acquisition may provide quicker or even less expensive initial solutions, external reliance makes it difficult to maintain a long-term positional advantage; (2) When greater distances separate key functional activities, external partners may provide solutions that are more responsive to local consumer needs, and the potential for improved communication may allow for quicker adaptation and increased flexibility; (3) In highly dynamic product situations, internal development, while providing greater control, can be expensive and can result in technologies that are not accepted by the marketplace; and (4) As competitive intensity increases, strategic imperatives may reduce the focus on product design and development and may require increasing concentration on manufacturing costs and efficiencies.

Technology acquisition strategy in an internationally competitive environment

This research empirically examines the technology strategies of multinational firms operating in the US market. The findings suggest that external reliance on product and process technologies has a negative impact on firm success. Furthermore, geographic distance between key activities moderates the role of technology strategy on international firm success. Also, the complementary assets, dominance of the product design, and the degree of appropriability have a direct impact on firm performance.

Global Versus Multidomestic: Culture’s Consequences on Innovation

This study examines the relationship of national culture to firm innovation, moderated by the type of industry in which the firm competes.

Interdisciplinary Approaches to Product Design, Innovation, & Branding in International Marketing

Interdisciplinary approaches are critical to solve the interesting problems of the day. Branding, product design, and innovation are topics that have not been covered in the series so far but have been gaining attention. In all three cases, there is significant research and practitioner interest. This volume seeks to capture and synthesize the cutting-edge knowledge in the area of branding, product design, innovation, and strategic thought in international marketing. This volume was conceived from a conference held at The College of William & Mary where speakers from many fields - including business, arts, architecture, industrial design, and engineering - were invited to share their methods, findings and insights. The interdisciplinary nature of the conference and this subsequent volume serve to help us gain an appreciation for alternative perspectives while also facilitating cross-disciplinary research in these important areas.