Exploiting a Technological Edge - Voluntary and Involuntary Dissemination of Technology
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Uda Zander Exploiting A Technological Edge - Voluntary and Involuntary Dissemination of Technology AKADEMISK AVHANDLING som for avlaggande av ekonomie doktorsexamen vid Handelshogskolan i Stockholm framlagges till offentlig granskning fredagen den 27 september 1991 kl 10.15 i sal KAW ahogskolan, Sveavagen 65 STOCKHOLM 1991 Exploiting A Technological Edge - Voluntary and Involuntary Dissemination of Technology INSTITUTE OF INTERNATIONAL BUSINESS (liB) STOCKHOLM SCHOOL OF ECONOMICS Address. Hollandarqatan 32, P.O Box 6501, S-113 83, Stockholm, Sweden. Telephone: +46 (0) 87369000, Telex 16514 HHS S, Fax +46 (0) 8319927 Founded In 1975 • Is a research Institute at the Stockholm School of Economics Conducts theoretical and empirical research within the area of Business Administration with emphasis on International Business Arranges seminars for businessmen, researchers and key people in the civil services • Is In charge of undergraduate and graduate courses In International Busi ness at the Stockholm School Econorrucs • Publishes Its research findings and results in a series of reserch papers, and In articles and books liB Board Professor Staffan Burenstam Linder, President, SSE (Chairman) Mr. Torbjbrn Ek, Chairman of the National Swedish Organization of Small Businesses Professor Lars-Gunnar Mattsson, SSE Professor Bertil Naslund, SSE Dr. Lars Otterbeck, Executive Vice President, Axel Johnson AB Dr.h.c. Jacob Palmstierna, Vice Chairman, Nordbanken Dr.h.c. Hans Rausing, Chairman, AB Tetra Pak Mr. Bert-Olof Svanholm, Executive Vice President, Asea Brown Boveri Ltd. Mr. Tom Wachtmeister, Vice Chairman, Atlas Copco AB Mr. Sven Agrup, Chairman, AGA AB Professor Jan-Erik Vahlne, Director liB Further information about current research at the Institute and its publica tions can be found in a brochure, which will be mailed on request. Exploiting A Technological - Voluntary and Involuntary Dissemination of Technology Udo Zander A Dissertation for the Doctor's Degree in Business Administration Stockholm School of Economics 1991 © lIB and the author ISBN 91-971005-52 Technology Transfer Technology Imitation Technological Innovation Manufacturing Multinational companies Distributed by: lIB, Institute of International Business P.O. Box 6501, S-11383 Stockholm Sweden. Tel +46(0)87369000 To Mother and Father Nacht In einem hochgewolbten, engen, gotischen Zimmer Faust unruhig auf seinem Sessel am Pulte. FAUST: Habe nun, ach ! ... Johann Wolfgang Goethe PREFACE This thesis was written while Udo Zander was a doctoral student at the Institute of International Business (lIB). The research was generously funded by the Swedish Council for Research in the Humanities and Social Sciences (HSFR) and the Institute for Management of Innovation and Technology (IMIT). This support is gratefully acknowledged. The preparation of the present volume was made possible due to the kind cooperation of company presidents and their managerial staffs in several Swedish international manufacturing firms. lIB would especially like to thank managers in Flakt AB and Atlas Copco AB for their time and openness. Stockholm, August 1991 Jan-Erik Vahlne Director Institute of International Business ix x first warm thanks go to my "Doktorvater'', Associate Professor Lars Hakanson. He gave me my first projects to work on as a young doctoral student, and patiently taught me the trade of conducting interviews during my years as a "journeyman." Lars has also been a major force behind the design and financing of my research projects and has always been there to give competent backing and enjoyable company when I needed it most. The generous support of the other members of my thesis committee, Professors Gunnar Hedlund and Bengt Stymne, has been invaluable for the completion of the thesis. Through Gunnar's sparkling comments, my mind has been continuously stimulated, and worlds of new ideas have been opened up. In addition to his academic professionalism, I have particularly enjoyed and benefitted from the merry gatherings at the Hedlunds', Bengt has always given constructive comments and general support. Professor Bruce Kogut of the Wharton School has unrelentingly discussed with me the latest theoretical developments in various fields related to the thesis, as well as patiently introduced me to some of the secrets of econometrics. In particular, my thinking has been clarified in the process of preparing two research papers on the topic of technology dissemination together with Bruce. Parts of my doctoral studies were conducted at the University of California, Berkeley, and at Stanford University, where I was impressed by the professional attitude and competence. Among the many academics that inspired me in this stimulating environment I would especially like to mention Professors Glen Carroll, James March and Richard Scott. I remain most thankful to the Sweden-America Foundation and the Fulbright Commission for making my stay in the U.S. possible. I would like to thank a number of people that at different stages in the preparation of the thesis have helped me in my work: Dag Rolander, who has always "increased variance" during our joint preparation of teaching and research papers during long nights at the Institute and lately in Rigas Jurmala. Dag has also in the most enjoyable way given me an understanding of practical business. During many discussions on a deck overlooking the San Francisco Bay, Mikael Runsten offered a mixture of wild xi ideas and roads back to reality. My friend and "fellow traveller" Robert Nobel has, besides his comments on my work, always been an invaluable partner in my struggle with computers. Peter Hagstrom and Dr. Erik Berglof have always lent me their professional expertise. kid brother Ivo has been a "Junge fur alles'' throughout the thesis work. Professors Erik Ruist and Lennart Sjoberg have commented in the most pleasant and knowledgeable wayan the statistics. The mock opposition performed by Associate Professor Soren Sjolander was much appreciated and gave plenty of food for thought. Professor John Dunning gave me an opportunity to work with him in San Francisco and, together with Professor Sanjaya LaB,widened my perspective on multinational companies and their effects on host country economies during a seminar in Kuala Lumpur. My warm thanks also go to the late Professor Peter Jones who "adopted" me during my time at D.C. Berkeley and gave me priceless insights into the labyrinths of big business and politics in addition to unforgettable evenings with his family and at the illustrious Bohemian Club. I appreciate Professor David Teece's efforts to afford me the opportunity to meet a number of distinguished researchers on an informal basis during the "Transamerica Seminar" at V.C. Berkeley. Professors Bo Carlsson, Farok Contractor, and Dennis Mueller have added valuable comments on research papers I have presented at various conferences. The comments on my work by Professor Ikujiro Nonaka, Professor Jan-Erik Vahlne, Dr. Karl Ahlander, and Per Arnan are greatly appreciated. My thanks also go to the large number of managers in Swedish multinational companies who have contributed so much of their time and experience during my years as a doctoral student. For the completion of this thesis, Dr. Berndt Kaltin and Bengt Hillerbrant at Flakt, Dr. Gunnar Wijk at Atlas Copco, and M.A. Carl-Erik Sjoberg at Pharmacia have been especially helpful. Annie Berglof helped me clarify my thoughts and language together with Dr. Jessie Lokrantz, and the lovely Vanja Ekberg prepared the figures and tables with the competent assistance of Robert Nobel and Lena Janson. The Institute of International Business (lIB), under its former directors Gunnar Hedlund and Lars Hakanson, as well as under its present director Jan-Erik Vahlne, has always generously provided me with excellent working conditions. Financial support has also been provided by the Swedish Council for Research in the Humanities and Social xii Sciences (HSFR), the Institute for Management of Innovation and Technology (IMIT), and AIfa-Laval AB through the Stockholm School of Economics. I remain most grateful. Finally, my thanks go to people who, above all, have created happiness in my surroundings while I worked on this thesis. It is hard to believe how much I have come to cherish and enjoy the people that constitute lIB: Amelie, Anna-Karin, Bruce, Carl, Charlotte, Christer, Christina, Dag, David, Erik, Eva, Gertrud, Gunnar, Helen, Ingrid, Ivo, Jan-Erik, Johan, Jonas, Karl, Kinl, Kjell, Lars H, Lars A, Lena J, Lena W, Manucher, Maria B, Maria L, Mirja, Patrick, Per, Peter, Robert, Siv, Vanja, Adne, and Orjan, Also, my heartfelt thanks to my sister Sari and all the artists at Circus Alvarado and Cirkus Hangol Stockholm in August, 1991 Udo Zander xiii xiv CONTENTS A TECHNOLOGICAL EDGE .......,..o.....I....-J..... V..L'l OBJECfIVES, AND 1 International Dissemination of Technology . 1 The Role ofMultinational Companies in the Creation and Dissemination of Technology . 3 Technology in Swedish MNCs . 5 Reasons to Conduct a Study on the Dissemination of Technology . 6 The 7 The Research Problem . 7 Objectives . 9 Delimitations . 11 Research Approach . 14 of Study . 15 CONCEPTS IN THIS STUDY . 17 Technology . 17 Innovation . 20 )issemmanon 'I Transfer, Imitation, and Diffusion . 23 Dissemination . 23 Technology Transfer . 23 Transfer mode . 28 Imitation . 29 Diffusion . 30 33 AND INVOLUNTARY - POINTS OF DEPARTURE 35 Technology Dissemination 0 •• 35 Models of Technology Transfer in MNCs 0 • 0 • 0 ••••••••• 35 Studies