Supply chain strategy for high technology-content product and its consequences to technology transfer mechanism

Abstract

The purpose of this article is to develop supply strategy of a company producing high technology-content product and subsequently to analyse the consequences of the strategy on technology transfer process that takes place on the company itself or between the company and its suppliers. Taking into consideration the extensive impact of globalisation on company's operation activities, the article focuses on Vertical Integration and Local Suppliers strategies on behalf of supply strategy in the global environment. Four supply chain factors are considered in the selection process of these two supply strategies, namely, country environment, competitive situation, company characteristic and extent of globalisation. Finally, this article describes dominant mechanisms of technology transfer as consequences of supply strategy.