APERTURA DE PROPOSICIONES Y PROPUESTA DE ADJUDICACIÓN

The relationships between all key concepts and technological capability development have been presented in Chapter 3. To strengthen these findings, this section gives more evidence about the effects of these key concepts on technological capability development. Also, the relationships among key concepts are identified.

4.3.1 The Rationale for Utilising Organisation & Organisational Learning Theory in Studying Technological Capability Development

Organisations are operated by social groups aiming to achieve one or more shared goals (Robbins, 2005). Top executives and managerial systems are crucial for accumulating knowledge and technological skills to accelerate the growth of organisations (see more details in Section 3.8 of Chapter 3).

81 As explained by Mark Easterby-Smith and Luis Araujo (1999), the concept of organisational learning has been recognised in the technological development literature for decades, but has only achieved wide recognition since the start of the 1990s. It might be concluded that both technical and social perspectives are embedded in organisational learning. Regarding the development of technological capability, interaction among employees or groups of them should be emphasised since it is grounded in organisational dynamics. Its effectiveness relates to communities of practice whereby people in groups share a passion and learn how to better complete an activity through frequent interaction (Wenger, 2007).

4.3.2 The Rationale for Integrating Technology Transfer, Organisational Learning Theory, and the Development of Technological Capability

Gaining an understanding of the perceptions towards technology transfer theory is essential in facilitating the development of technological capability. Some researchers (e.g., Mowery & Rosenberg, 1998) claim that knowledge and technology are the dominant aspects of today’s world. Burgelman et al. (1996) describe technology as being composed of skills, artifacts and theoretical and practical knowledge utilised in the development of products and services along with their production and delivery systems. Moreover, technology transfer can be seen as part of the acquirer’s learning process (Fichman & Kemerer, 1997). Technology transfer within commercial organisations serves the purpose of enabling acquirers to manufacture particular products or provide particular services. In this way the recipients of transfer both assimilate knowledge and innovate from it based on learning.

4.3.3 The Rationale for Integrating Organisational Learning and International Alliances

According to Drucker (1995), the most dramatic change in business activity concerns the increasing growth partnership-based rather than ownership-based relationships. The argument concerning an explanatory factor for this trend is that partnerships provide a basis for organisational learning, allowing partner firms mutual knowledge access (Inkpen & Beamish, 1997; Hamel, 1991; Kogut, 1988; Westney, 1988). Kogut (1988) was the first to specifically argue that an organisational learning imperative could be a motivating factor behind entry into joint ventures. There is a growing body of theoretical (Parkhe, 1991; Pucik, 1991; Kogut, 1988; Westney, 1988) and empirical studies (Inkpen, 1995; Inkpen & Crossan, 1995; Hamel,

82 1991; Dodgson, 1993b; Simonin & Helleloid, 1993) addressing alliances as devices for achieving access to partners’ skills and knowledge (Inkpen & Beamish, 1997) or as opportunities to learn from partners (Dodgson, 1993b; Ciborra, 1991).

4.3.4 The Rationale for Integrating Innovation and Technology Transfer

Technology transfer and organisational learning cannot fully explain developing technological capability in the context of the Thai automotive industry. Innovation is another essential element in technological capability development. With regard to linkages between technology transfer and innovation, innovation involves the creation of new products; technology transfer involves the transmission of knowledge of new products into the production and uses of old products (Gurbiel, 2002). Both of these can be taking place continually.

4.3.5 The Rationale for Integrating Organisational Learning, Innovation, and Technology Capability Development

Organisational learning is understood to occur when an organisation selects decision parameters that lead it to a preferred state after an external shock or disturbance. To date, the literature on organisational learning is rather eclectic. Little convergence or consensus on the meaning of the term or the basic nature of the phenomenon has been achieved (Kim, 1993; Huber, 1991). Interestingly, factors affecting innovation and technology development have been talked about for decades. With the belief that innovation is the key factor for successful business, developing countries around the globe have been discussing this issue to find out how they can successfully develop their own technology as developed countries have. “The Economics of Innovation”, by Freeman (1982a), points out that innovation is one of the key strategies in corporate survival and Trott’s (2005) study also highlights the significance of innovation by saying that it has now almost become cliché.

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4.3.6 The Rationale for the Importance of Government Policies as a Key Concept in the Conceptual Framework

The conceptual framework shows that government policies impacting on international alliances and technology transfer from multinational enterprise (MNE) corporations have supported the development of technology capabilities in the Thai automotive industry. Multinational automotive firms dominate the industry in both the government and private sectors, and have generally been able to operate on their own terms in the open Thai market. This behaviour of multinationals has been based on, and made possible by, several factors. First, foreign international automobile companies possess high technology. Their skills and the technological know-how have given MNEs strong bargaining power with the government. And although the government has not always given in to their demands, when the MNEs have been closely united, they have usually been able to push them through. The limited interference of the Thai government in their activities has helped them to operate in a relatively unrestrained environment. Essentially, the government has wanted to develop the automotive industry and, since local firms have lacked the necessary technology, the government has generally been supportive of, rather than hostile to, these firms entering the Thai market to create alliances with Thai business owners. This relationship is relevant then to opportunities for technology transfer.

In addition, the conceptual framework demonstrates that government policies impacting on organisation & organisational learning, and innovation strategies have aided the development of technology capabilities in the Thai automotive industry. Thai government policy regarding the industry has changed from a high to a low level of protection and from more import- oriented to more export-oriented strategies. Thus, there have been stronger relationships between Thai businesses and firms from developed countries, and more opportunities to learn how to create innovation and develop technological capability. Also, the government’s localisation policy has led to an increase in the number of Thai auto firms, to the point where they now jointly assert their interests through formal associations. Thai firms are therefore no longer a passive group and their demands have been reflected in localisation policy, and later on in liberalisation policy which have strengthened their position particularly in terms of production capacity.

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