THE DYNAMICS OF TECHNOLOGY MANAGEMENT PRACTICES IN LOCAL FIRMS IN FOREIGN PARTNERSHIPS IN THE CONTEXT OF A LESS DEVELOPED ECONOMY

Abstract

This paper investigates the technology management practices and the learning processes for the technological development of local firms in foreign partnerships. It initially notes that the existing literature is focused on the technological benefits to local firms in developing economies from multinational corporations rather than explaining the dynamics of the technology management practices used by local firms who engage in foreign partnerships. This paper also notes a gap in the current literature regarding the technology learning process during partnerships from the perspective of the local partner firms in developing economies. The structural analysis of the data from six case studies of joint venture partner firms in Sri Lanka shows that the technology management practices of local firms need to evolve strategically, based on the partnership characteristics, throughout the life of that partnership. It identifies that the level of skills and capabilities within the local firm, the organizational dominance of the foreign partner firm, clarity of roles in the partnership, and the potential technological contribution from the foreign partner firm are all significant determining factors affecting the choice of dynamic technology management practices by local partner firms.