The Technology Management factors of surveys done in the West include:
technology awareness, internal R&D emphasis, market and ROI planning and external R&D reliance. The first Technology Management factor developed as part of this study was R&D emphasis and its linkage with other business operations. It included the firm‘s processes for organising, managing and investing in R&D. The recognition of achievements in R&D and the importance of cost-benefit analyses of R&D investments were considered vital by the respondents in this study. Further, the firms surveyed tended to regard internal commitment to R&D as a source of technology acquisition. This supports the results of a study of TM in Western economies conducted by Edler et al. (2002) which strongly identifies ―internal R&D and cooperation amongst divisions as the most sought after strategy‖ (p.157).
Although Elder et al. emphasize the growing importance and need for external sources of technology, the results of my research do not support this argument. Other studies based in Western economies also report the ‗internal and external R&D emphases‘ as two distinct factors, and suggest that the state should provide incentives to encourage this (Banister & Chen, 2006; Chase, 2001; Zahra, 1996B; Bruder, 1983, p.213; Wilbon, 1999). And this can be seen in practice: those workers responsible for a firm‘s R&D are integrated into their business divisions and are rewarded internally;
at the same time, external links with laboratories and universities are equally respected.
The second TM factor identified in this study, that of keeping abreast with emerging technologies. It loaded heavily on the three technology awareness variables and market-driven programs. This indicated that firms emphasised the need for
information on the different types of technologies available and also ensured that the technology and product plans they developed were based on market needs. The factor in the literature that was closest to this is ‗technology awareness‘, but this includes only knowledge of the technology environment, and it equates to just one of the sub-factors of keeping abreast with emerging technologies, that is, ‗technology planning processes and market-driven programs‘. This demonstrates another difference between Western firms, which treat scanning processes as one strategy and project planning as another, and firms in a non-West environment which scan their environments in order to be able to develop their product-driven plans. Wilbon (1999, p.193) considers ‗global technology focus‘ as a stand-alone strategy and one that relies on executives to do the planning work. Ansoff (1987) also regards strategic orientation and market-driven as separate strategies.
The third factor that has evolved out of this study is formal processes to plan and select technology. This includes the processes for streamlining the selection of technology and the development of projects, and whether they are market-driven or product-driven. It also includes an emphasis on employing planning processes rather than relying on ad hoc decisions. The factor in the literature that is closest to this is
‗Market and ROI Planning‘, in which firms emphasise ROI planning for R&D projects and also incorporate it into their products (the development for which is market-driven). Ansoff (1987) suggests that the factors of market-driven and product-driven should be seen as separate strategies, while Mintberg and Waters (1985) identify planning processes as strategies but do not relate them to being product or market-driven. This factor, then, developed as it has been from a study of non-Western firms seems more comprehensive than in previous research, as it
includes processes for the employment of both market and product-driven strategies.
This could be considered as a unique feature of this study and suggests that firms in high tech sectors in the West are more concerned with market-driven products and do their planning accordingly, whereas non-Western firms look for both product-driven and market-driven plans (which may be to capture both types of markets, or may be due to risk minimization).
The fourth factor, that of in-country external acquisition of technology, reflected the methods by which the firms acquired technology. This research indicated firms relied mainly upon other companies in the country and from local research laboratories and universities. The strategy applied to firms in the West that is similar to this is
‗External Reliance on R&D‘, which indicates a reliance on external sources for technology, including laboratories and universities, and funding from financial institutions. In relation to this, Wilbon (1999, p.191) observes that ―firms which acquire technology externally outperformed firms who focus only on cooperative strategies or internal R&D‖. Michael (1991) suggests a mix of internal and external technology strategies. The strategy of firms in non-Western countries, such as Malaysia, for acquiring technology has typically been to rely on research laboratories, universities and other companies, with no dependence or reliance on securing funds from the (external) financial sector. This suggests a difference in strategies for technology acquisition by firms in different environments. The similarities and differences between the results for Western and non-Western firms has been summarized in Table 6.3 (p.166).
Table 6.3: Comparison of TM factors between Western and non-Western countries
TM factor TM description Similar or different in the two environments (West & non-West) TM-1 R&D emphasis and its linkage with
other business operations (strategic TM-3 Formal processes to plan and select
technology (formal planning)
Source: Developed for this thesis from the survey results