TECHNOLOGY CHOICE IN A GLOBAL INDUSTRY: THE CASE OF THE TWIN-WIRE IN CANADA Benjamin Ofori-Amoah B.A.(Hons), University of Ghana, 1977 M.Sc., University of Science & Technology, Kumasi, Ghana, 1980 M.A ., University of Exeter, 1984 THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY in the Department of Geography @ Benjamin Ofori-Amoah 1989 SIMON FRASER UNIVERSITY September, 1989 All rights reserved. This work may not be reproduced in whole or in part, by photocopy or other means, without permission of the author. APPROVAL Name: Benjamin Ofori-Amoah Degree: Doctor of Philosophy Title of Thesis: Technology Choice in a Global Industry: The Case of the Twin-Wire in Canada Examining Comrnittee: Chairman: I. Hutchinson Associate Professor R. Hayter Professor Senior Supervisor S.T.WO~~ Professor S: GIoberman Professor Dep'mment of Business Administration Simon Fraser University M.D. Thomas Professor External Ex'aminer Dep'mment of Geography University of Washington Date Approved: September 29, 1989 PARTIAL COPYRIGHT LICENSE I hereby grant to Simon Fraser Unlverslty the right to lend my thesis, proJect or extended essay (the tltle of which is shown below) to users of the Simon Fraser Unlversl ty Library, and to make partial or single copies only for such users or In response to a request from the library of any other university, or other educational Institution, on its own behalf or for one of Its users. I further agree that permission for multiple copying of this work for scholarly purposes may be granted by me or the Dean of Graduate Studies. It is understood that copying or publlcatlon of this work for financial gain shall not be allowed without my written permission. T i t 1 e of Thes i s/Project/Extended Essay Techno1oq.y Choice in a Global Industry: The Case of the Twin-Wire in Canada Author: (signaturb~ Benjamin Ofori- Amoah ( name (date) ABSTRACT This thesis develops a framework to analyse technology choice and diffusion in 'global' manu- facturing industries. The thesis recognises that technology change results from choices made by in- dividual firms, which are made within specific industrial, technological, spatial and managerial contexts. The industrial context refers to the organisational characteristics of industries and the factors affecting supply and demand conditions. The technological context refers to research and development systems and the factors that lead to process and product innovations. The spatial con- text refers to the economic and political characteristcs of particular nations and regions while the managerial context refers to the investment decision-making processes underlying technology adoption. The choice of twin-wire paper machines in Canada is examined empirically, using informa- tion from published and unpublished corporate records and personal interviews. First, trends in the global demand, supply and trade for pulp and paper are related to the evolution of paper making technology. Second, the research and development process and of the twin-wire paper machine and the factors affecting the process are analysed. Third, the global diffusion patterns of twin-wires, $\ particularly with reference to Canada, are examined. Finally, the investment decision-making pro- cesses leading to twin-wire adoptions by six Canadian firms are examined in detail. The framework provides for an effective understanding of twin-wire choices in Canada. Canada's manufacturing strength in newsprint, the paper grade for which the twin-wire was origi- nally developed, helps explain the relative importance of the twin-wire in the country's pulp and paper industry. Second, the achievement of national technological capability in the design and man- ufacture of the twin-wire is significant for the timing of twin-wire adoption in Canada. Third, the importance of equipment suppliers in twin-wire development has meant rapid dissemination of in- formation about the technology. Thus Canadian firms have become fast adopters even though Canada has lost its technological capability in twin-wire manufacturing. Fourth, intra-regional differences in industrial, market and production structures, account for the concentration of twin-wires in Eastern Canada. Finally, the case studies show that past investment history, innovativeness, production structure, investment strategy and decision-making of firms, help ex- plain differences in the timing of twin-wire adoption decisions. ACKNOWLEDGEMENTS I am extremely grateful to the people whose advice, support and encouragement made it pos- sible for me to complete this thesis. First, I would like to thank Dr. Roger Hayter, my senior super- visor, whose continued advice and assistance enabled me to survive when the going became tough. Second, I thank Dr. S.T Wong, my other Committee member, for his friendly and encouraging atti- tude throughout the writing of this thesis. Third, I thank Simon Fraser University Department of Geography and Financial Aid Office for providing me with financial support throughout my studies and, the latter, for my fieldwork. Fourth, I thank the Pastor and congregation of the Coquitlam Presbyterian Church, for their acceptance, brotherly love and affection, encouragement, prayer and additional financial support throughout both my studies and the fieldwork for this thesis. OR this group, my special thanks go to Cliff and Lois Bablitz, my host parents, Bob and Olive MacBay, Fred and Marlene Lowenberger, Glen and Dana Coukell, Larry and Kathryn Bablitz, Ron and Sue Harry, the Women's Home Missions, my house fellowship group that met at Ron and Sue's and the Renewal Fellowship. Fifth, I thank the members of the African Evangelical Christian Fellowship for their prayer support and encouragement; Dr. E.Y. Osei-Twum, for providing me with free accomodation throughout my four-week stay in Montreal; my respondents, who took time out of their busy schedules, to meet with me; Sabina Adjibolosoo, for typing some of the manuscripts ; Karlic Ho, for doing all the graphics; and Eric Grass, my fellow graduate student, with whom I shared most of my problems during the writing of this thesis. My special thanks also go to Agnes, my wife, and David, Jonathan and Abigail, my family, for bearing patiently with me as I crawled slowly through finishing this thesis. They missed too many wonderful moments because the only answer they got from me concerning a holiday was that I have to go to school. For their patience, support and encouragement, I am extremely grate- ful. Finally, I thank my mother and sister to whom I owe all my education. All said and done I say "Thanks be to God". \ DEDICATION To my mother and my sister, who never had the opportunity to go to school yet had the vision to give me a foundation strong enough to support a Ph.D degree. TABLE OF CONTENTS Approval ................................................................................................................................... ii ... Abstract ................................................................................................................................... 111 Acknowledgements .................................................................................................................... v Dedication ................................................................................................................................ vi List of Tables .......................................................................................................................... xii List of Figures ......................................................................................................................... xv I . INTRODUCTION ............................................................................................................ 1 The Problem .................................................................................................................... 1 Goals And Objectives ....................................................................................................... 2 Research Design .............................................................................................................. 3 Selection of Industry ............................................................................................... 3 Selection of Technology .......................................................................................... 3 Selection of Region .................................................................................................. 4 The Time Frame ..................................................................................................... 5 Information And Data Sources ................................................................................ 5 Information And Data Collection ............................................................................. 6 Pulp And Paper Technology: Characteristics And Trends. 1950-1988 ................................ 7 Pulping Technologies ............................................................................................... 8 Bleaching ............................................................................................................. 13 Paper-Making ....................................................................................................... 16 Process Control Computer Systems ....................................................................... 19 I1. TECHNOLOGY DIFFUSION IN THE MANUFACTURING SECTOR: A FRAMEWORK FOR ANALYSIS ..................................................................................