IT-Enabled International Market Research for Technology Transfer: A New Paradigm
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1 IT-Enabled International Market Research for Technology Transfer: A New Paradigm Nazmun Nahar 1, Kalle Lyytinen 2 and Najmul Huda 3 1,2 Computer Science and Information Systems, Jyväskylä University, Jyväskylä, P.O.Box 35, FIN-40351, Finland 3 Information Processing, Tallinn Technical University, Tallinn, Raja 15, EE0026, Estonia Abstract-By utilizing technology through international technology transfer, companies can internationalize successfully. International market research for technology transfer is very time-consuming and expensive when using conventional approaches. This study presents a methodology that facilitates the selection of appropriate markets and suitable technology recipients from around the world by cost efficiently using new information technologies. I. INTRODUCTION Currently, high-tech companies invest a relatively high percent of their turnover in R&D and put large efforts into R&D on a continuous basis. Generally, technology life cycles are very short in high-tech industries in industrialized countries [12]. Further, product life cycles are shortening [2, 10, 11] and markets in industrialized countries are increasingly becoming competitive, complex and turbulent [5, 10, 11]. The Internet, database services, a variety of advanced telecom services such as teleconferencing and high-speed data transmission, fax, global business news services, electronic banking systems and improved logistics systems are bringing more competitors into the market place. Competition is further intensified due to deregulation, development of trade blocks, the liberalization of trade through GATT agreements, evolvement of new global companies from Korea, Taiwan and so on. Consequently, companies are now facing competition in their domestic markets and will face more intense competition in the future. Companies have the possibilities to execute technology transfer (i.e. TT refers to a process of various activities where the technology is communicated and transmitted by the supplier to the receiver across a national border to enhance the capability of the receiver. Technology refers to applied scientific knowledge and skills that facilitate the manufacturing of a product or the performing of a service) driven internationalization, make profit, survive and grow [9, 10, 12]. Through the transfer of technology, a technology supplier can extend the technology life cycle, recover R&D expenses, and utilize irrelevant technologies which have accidentally developed from R&D. They can obtain access to foreign markets, thereby overcoming market entry barriers, and gain benefits from the opportunities and knowledge of foreign markets, create profits, achieve growth and long-term survival [10, 11]. By acquiring foreign technology, the technology recipient located at an emerging market can upgrade its technological capabilities [3, 4, 9, 10, 11], overcome the lack of R&D facilities [11], acquire prestigious brand names and trade marks [1, 11], introduce competitive products faster into the market place, diversify to new areas through the utilization of new technology and grow in domestic and international markets. The appropriate selection of markets and technology recipients are critical factors for successful technology driven internationalization [10]. These tasks are performed by doing secondary market research, i.e. gathering information from compiled sources necessary to make sound international technology transfer (ITT) decisions, and by primary market research, i.e. collecting information directly from specific marketplaces through surveys, interviews, etc. [8]. However, effective international market research for technology transfer (IMRTT) using conventional market research tools is slow and expensive. Secondary market research, which is dependent on printed materials, may not be accurate due to old statistics, vague product or service breakdowns, distorted statistics due to incomplete data gathering techniques, and other factors. Primary market research may be very expensive for a technology supplier as well as time consuming. The selection of the technology recipient through primary market research and interviewing is time consuming and not affordable for all companies. Online IMRTT (OIMRTT refers to the international market research through computer based mediums utilizing new ITs in the global electronic environment) is inexpensive and can be effective. The innovative uses of a variety of IT tools in IMRTT may facilitate the OIMRTT. The advent and rapid growth of the Internet [6] and increases in high quality databases [6, 11, 12 13] have revolutionized the ways information is collected. The Internet can be useful for performing secondary and primary market research [6, 14]. The Internet can eliminate barriers of distance, time and geography and can facilitate worldwide communication among the company and potential customers around the world [10, 12, 13]. The worldwide explosive growth of Internet tools and databases are increasing the opportunities for OIMRTT. Unfortunately, companies are failing to utilize these IT tools for IMRTT. The main reason behind this is a current lack of frameworks for the use of computer based media for the IMRTT. There has also been a limited amount of empirical research undertaken to determine how companies can execute OIMRTT. The present research has been
2 undertaken to develop a framework for OIMRTT and to contribute knowledge. The main research problem of this study has been identified as how companies can execute IMRTT more effectively and efficiently using ITs. This paper is comprised of six major sections. The introduction is described in section I. Section II presents the research framework, which describes the conventional tools and their substitute IT tools for IMRTT. The methodology applied in this research is described in Section III. Case companies are examined in section IV; they are Electricity Producer, Paper Machine Manufacturer, Paper and Pulp Technology Supplier and Elevator-Escalator Manufacturer. In this section, we examine how high-tech companies are selecting appropriate countries and the suitable technology recipients for their ITT endeavors. Section V develops an ITenabled IMRTT process framework. In Section VI, conclusions are drawn and implications of the research are discussed. II. RESEARCH FRAMEWORK A. Conventional IMRTT Tools A review of current literature and empirical studies suggest that companies of the industrialized countries are commonly using conventional IMRTT tools in order to select appropriate markets and technology recipients for technology driven internationalization. Companies are utilizing several publications from international organizations to identify attractive foreign markets. For example, the Statistical Yearbook produced by the United Nations contains international trade data on products and provides information on exports and imports by country; the World Atlas published by the World Bank provides useful data on population, GNP figures, etc. These companies are using industry directories to identify prospective technology recipients. In order to select appropriate technology recipients companies are using faceto-face interviews. It is an effective primary market research tool for collecting required data. It is flexible and allows open-ended questions, visual presentations and lengthy interviews. The researcher can judge the quality of the response. It does not give access to dispersed samples. It is also a very expensive method of collecting data. This study determines that conventional tools have some limitations as well as being highly expensive when compared to IT tools for IMRTT. Our long involvement in this research area has helped us to develop Table I. It exhibits the substitute IT tools for conventional tools of secondary and primary market research in the context of ITT. This study focuses mainly on the essential points of major IT tools that can make IMRTT cost efficient. Our investigation has been restricted here to those that have the potential to make large contributions to the OIMRTT. TABLE I SUBSTITUTE IT TOOLS FOR CONVENTIONAL TOOLS Conventional tools Publications of international organizations, directories, periodic reports, magazines, newspapers, etc. Interviewing by telephone or faceto-face meeting B. IT Tools for IMRTT Secondary research tools Primary research tools IT tools for IMRTT Databases, research Web sites, search engines, Internet directories and virtual libraries, CD-ROMs, push technology Surveying by and Web, newsgroups, trade mailing lists, Internet telephony, teleconferencing, video conferencing, competitor s homepage Databases: Continuous and rapid expansion of the Internet around the world and parallel proliferation of databases that can be accessed through the Internet, allows information to be more readily available. These developments allow distant sources of information to be tapped instantly. Searching online sources is faster and more convenient than searching print sources and most international market related information (e.g. latest updates in international trade statistics) is available in databases. On-line sources can provide more complete and up-to-date information, however, most of the sources cost money and their use requires skill. Inefficient searching can waste large amounts of money and time. Research Web Sites: Research web sites can be useful for conducting international market research of TT. Strategis ( is a research Web site containing abundant international market research data. Strategis is maintained by Industry Canada and the Department of Foreign Affairs and International Trade. One useful feature of Strategis is the Dynamic Document Creator. It can prepare customized market research reports based on specified criteria. The Strategis Web site contains several resources that can be very useful for international market research activities; it offers several useful market study reports free of charge. It contains a large number of other international business reports and resources. It has links to several other Web sites that are valuable for conducting international market research. Michigan State University has a research web site ( full of resources; it has a large on-line library of world trade resources including lists of links to world trade organizations, lists of mailing lists and so on. Search Engines, Internet Directories and Virtual Libraries: A variety of meta-search engines (e. g. directories (e.g. Yahoo), and on-line libraries (e.g. World Wide Web Virtual Library) can assist efficiently in the collection of relevant market data on the Internet. It is necessary to
3 become familiar with the help facilities of meta-search engines, directories and on-line libraries in order to make the search effective. CD-ROMs and Digital Video/Versatile Disk (DVD): CD- ROMs can store large amounts (600 MB or more) of data in text and/or graphical form [7]. There are a number of advantages to the CD-ROM medium in comparison with online and the Internet. Once a CD-ROM is bought, it is less expensive to search a CD-ROM information than on-line databases. However, the contained information cannot be continuously updated as it can be on-line or on the Internet. One of the main problems with CD-ROMs today is, they are too small for use with various market databases. To overcome this, a substitute medium has been created that is abbreviated DVD. The digital versatile disk (DVD) holds 4.7 gigabytes of information on one of its two sides. It is easier to store, access and digest data from DVD. Push Technology: Push technology can automatically collect required secondary data to desktops via the Internet. PointCast and similar information pushers require that users download a client program. This program captures users profile and then periodically initiates requests for information on their behalf from the server [10]. Using PointCast, the user is able to select the specific information that they want to access. A technology supplier can utilize push technology for collecting market and potential technology related information, scanning the emerging technologies and environment, monitoring the competitor s action, collecting information for various business decisions and so on. Push technology is increasing its spectrum of advantages. Push technology should be used in a very decisive way to get specific information; otherwise it can bring irrelevant information to boxes. Survey: is the most highly used Internet tool, allowing communication with people around the world at a very low cost. Communicating via is one of the most important tools used in international business today [11, 12, 13]. surveys of potential customers, employees of different organizations, practitioners and scholars are low cost and fast. It gives access to dispersed samples. The respondents can be recruited through posting in mailing lists, electronic digest and so on. The respondents can respond at their convenience, putting more thought into research questions. In most of cases, survey is less intrusive. It does not allow open-ended questions and it is not flexible. Not all people reply to s. Those who do, may not say their true belief. Informants may filter and provide information from their viewpoint. survey should be used with purpose and care in order to achieve benefits. Companies should not abuse , as it does not suit the Internet culture. Web Survey: A company has the possibilities of surveying through its multilingual web pages [8] at very low costs. Technology recipients from emerging markets of Asia, South and Central America and Africa can be reached with English, Spanish and French language web pages. Companies of these countries are more willing to visit their own language web sites and provide information in their local language. A webbased survey is less intrusive and the respondents can respond at their convenience. Newsgroups: Newsgroup (e.g. Deja News, is a useful tool for conducting international market research. Several millions of people from around the world are participating in discussions 24 hours a day on numerous topics. Any member in the discussion group can send a message to the entire group and other members can respond quickly. One should observe and understand the culture of the newsgroups for some time before posting to them. Newsgroups can be an effective tool of making business contacts with customers and business networks, keeping up to date with technological and legal issues, researching customers changing needs and so on. Trade Mailing List: Popular mailing lists (e.g. international business list digest of the Association for International Business) targeted at global business communities have several thousands of subscribers. A company can connect with thousands of people who share a common interest and they can do it all through . Posting inquiries about international market data on this list exposes the inquiry of business professionals all over the world. Subscribers from around the world reply with relevant data within a very short period. It is cost efficient and simpler than having to navigate to a newsgroup each time one wants to check on reactions to their last posting. Internet Telephony: Internet telephony interview is useful in collecting primary data from the customers. It is also a less expensive method for collecting data. It is flexible and allows open-ended questions. The informant is out of the sight of interviewer and so it is difficult to judge the quality of the response and control the interview. Teleconferencing: Teleconferencing allows the company to have real-time chats or asynchronous, threaded discussions with potential and present customers around the world. Teleconferencing with customers, employees of different organizations and practitioners are cost efficient. By utilizing teleconferencing a group of knowledgeable persons can form an on-line focus group and can rapidly accumulate substantial amounts of information. However, not all people are fluent in teleconferencing. To launch teleconferencing requires moderate hardware and software; visitors need only their regular browsers. Video Conferencing: Video conferencing on the Internet allows access to remote scholars, practitioners and executives of the potential customers, visual presentation, the holding of remote business meetings and the possibility of rapidly solving the problems of potential customers around the world. It saves time and travel expenses. Open-ended questions are feasible in this medium and interviews can be flexible. To launch teleconferencing requires moderate
4 hardware and software. The quality of video conferencing on the Internet is not good yet, but improving steadily. Competitor s Homepage: Company homepage investigations of competing companies can provide various data (e.g. products and services, marketing strategy, etc.). In order to collect data from homepage investigations, the searcher should be efficient and experienced in homepage investigating; otherwise time may be misused. There are other IT tools for IMRTT; integrating data mining tool, executive information systems, database management systems with Internet and using SPSS software. A. Research Design and Method III. FIELD STUDY The goal of the field study was to identify how high-tech companies are selecting appropriate countries and the suitable technology recipients for their ITT endeavors. The research framework and relevant literature review guided us in formulating the field study. The qualitative case study approach is an appropriate method when little is known about a particular phenomenon with the objective of identifying theoretical constructs and developing theory. Multiple case study methodology has been utilized to execute the research project. The study focused on high-tech companies in Finland, which have transferred technology to developing countries. The case companies were selected from different industries and organizations. The selection of case companies have been determined by the following considerations: suppliers of technologies who are involved in high-tech areas and have transferred technology to developing countries; those companies who were knowledgeable and were willing to share their knowledge, opinions and insights. The informants for this study were those who are directly involved in technology management and persons involved in the actual process of transferring technology. The interviews were conducted at two stages. The initial interviews were open-ended, allowing free description of the interviewee s area of responsibility and relationship to the transferred technology. Questions asked include: What was their country and technology recipient selection process for ITT? Which factors were important in selecting the appropriate country? Which characteristics were important in selecting the appropriate technology recipient? How information technology had been/could be used for country and technology recipient selection process? This gave us the necessary data for designing a more focused interview guide in the second stage. Each interview lasted about two hours. At least six people were interviewed from each company, and in some companies the number of interviews were more than ten. Data reduction of all interviews started immediately following the transcription of the tape-recorded interviews; this helped to bring the raw data into a summarized and thus a manageable form. The transcription was checked and corrected. During the second stage of the interview, comparisons were made at various levels, for example: comparisons between informants at the company level, and comparisons between companies experience. In this research, several measures were applied in the following ways: question guides were verified by case companies and several experts; data verification was attempted through asking the same questions to several employees of one organization, as well collecting secondary data for the same questions and verifying them. A. A Producer of Electricity IV. CASE COMPANIES 1 A large Finnish Energy Company (FEC) relentlessly upgrades its technology through intensive R&D efforts and has developed technology for operation and maintenance (O&M) of power stations. It uses advanced information technology in its R&D efforts and other aspects of business operations. By continually upgrading technology, the company stays ahead of competitors. It has transferred O&M technology to several advanced industrialized countries as well as developing countries. By investigating internal database, and energy related market databases (external), and CD with market data, the company identified South East Asia as an attractive market. Due to deregulation and privatization, the demand for O&M technology has increased in South East Asian (SEA) countries and other parts of the world. FEC made a feasibility study of the potential in SEA markets and desired to enter SEA markets through transferring its O&M technology. FEC used company-related databases to investigate prospective technology recipients. It identified a prospective technology recipient with high financial solvency and made preliminary negotiation through telephone, fax and face-toface meeting. Finally it negotiated a technology transfer contract with a technology recipient in Malaysia and made several agreements with the recipient, one of which specifies FEC s sole and total responsibility for managing the operation of the power plant. Due to the underdevelopment of IT in the Malaysian company at that time, FEC has not been able to use IT to the fullest potential for executing the primary market research. reasons. 1 The real names of the companies are altered for confidentiality
5 It supplied O&M technology which combines information systems, procedures and problem solving expertise. The technology is unique, complex and partially legally protected. The technology was transmitted through the provision of documents and intensive training. It provided for theoretical training supported by simulators to a few of the employees from the technology recipient in Finland. In addition, Finnish experts were sent to Malaysia to provide training. The plant came into operation at the beginning of The plant sells electricity to private companies. Through the continuous development of technology, the creation of highly advanced performance-monitoring systems, and the participation in operations, FEC has been able to make the ITT effective. Furthermore, the experience of the technology supplier and quality of technical and management education for recipient employees has made the project successful. Currently, FEC is using several IT tools to monitor the Malaysian market. They include a company internal database, CD with market data, country and market databases (external), , push technology, Internet, Intranet, teleconferencing, mailing lists, newsgroups, telephone, fax and travel on site. B. A Paper Machine Manufacturer A Finnish Paper Machine Manufacturer s (FPMM) heavy, continuous investments in R&D has made it one of the world leaders of paper machine manufacturing technology. The company has paper machine production plants in Finland and has transferred technology to advanced industrialized countries as well as developing countries. Paper machine manufacturing is a matured industry in industrialized countries. By investigating internal database, and market databases (external), and CD with market data, the company identified China as an attractive market. Due to economic reform, the Chinese economy has been performing quite well and China is a huge, potential market for small and medium-sized paper machines. However, small and mediumsized paper machines are not manufactured in industrialized countries because of diminishing demand. FPMM wanted access to the Chinese market in order to satisfy local demands, utilize cheaper inputs and export to nearby markets. FPMM utilized company-related databases in order to identify prospective technology recipient. It identified and met a Chinese manufacturer of paper machines in 1987, made a feasibility study and began negotiations. The company used telephone, fax and face-to-face meetings for the preliminary negotiations. Finally, the company established a JV with the Chinese partner in The Chinese partner has long been involved in paper machine manufacturing. According to the needs of the technology recipient and available conditions in China, FPMM carefully selected the type and level of technology to be transferred and supplied paper machine manufacturing technology, quality control know-how, management know-how and marketing knowhow. FPMM provided training by Finnish experts in technical, managerial and marketing areas to local Chinese employees in China. Chinese employees also traveled to Finland for training in the Finnish business styles. The strong commitment on behalf of the technology supplier, the high demand of paper machines and low input costs drove the project to a success. Company internal database, CD with market data, country and market databases (external), , Internet, Intranet, teleconferencing, mailing lists, newsgroups, telephone, fax and on-site visits are a few ways in which the company currently monitor the market. C. Paper and Pulp Technology Supplier This Finnish company is one of the global leaders in servicing the pulp and paper industry. It has transferred pulp and paper industry servicing technology to several advanced industrialized countries, such as, USA, Germany, France, and Japan, as well as to developing countries. Through heavy investments in R&D, the company sustains its technology leadership position. The company has a very strong presence in western markets. By investigating internal database, paper industry-related market databases (external), and CD with market data, the company identified South East Asia (SEA) as an attractive market. In order to satisfy local demand in SEA and strengthen its position in the market place, the company wanted to establish a full-service technology center at a favorable location in SEA. Through a feasibility study, Thailand was identified as the most favorable location. The company negotiated with a local authority of that region by exhibiting the importance of the technology for that area and establishing its own subsidiary in Expatriates from Finland are located in the local organization. The technologies transferred from Finland were specifically for paper machine roll coverings and coatings, engineering know-how and business control systems and practices. These are cutting-edge technologies, and were adapted according to the needs of SEA market. The technology was transmitted through the provision of documents and intensive training. The Finnish company trained mainly managers, engineers and shop floor technicians. The continual upgrading of technology, the high performance technology and the strong commitment by the technology supplier led the project to success. The market is monitored by the company with the use of company internal database, CD with market data, country and market databases (external), , Internet, Intranet, teleconferencing, mailing lists, newsgroups, telephone, fax and travel on site.
6 D. An Elevator and Escalator Manufacturer The Finnish elevator and escalator manufacturer (FEEM) is one of the world leaders in manufacturing, installation, maintenance and modernization of elevators and escalators. It relentlessly upgrades its technology through high investments in R&D. It has transferred technology to Western Europe, North America as well as to developing countries around the world. Mainly, due to the maturing of its traditional markets in Western Europe and North America, and increased global competition, FEEM was looking for opportunity in emerging markets. By investigating company internal database, country and elevator related market databases (external), and CD with market data, FEEM identified India as an attractive market. The large size of the market, economic reform, and steady growth were the key factors for identifying India as a prospective country for ITT. FEEM made feasibility studies to evaluate the technology transfer to India. It made a promotion targeted to India. One prospective technology recipient from India made inquiries to FEEM through a Finnish industrial development fund (FIDF). The Indian technology recipient had experience in the manufacture, erection and maintenance of certain types of lifts. Increased competition in the Indian market, shortage of funds, and lack of R&D facilities and modern technology, motivated the prospective technology recipient to approach FEEM. In 1984, it negotiated a favorable technology transfer contract. It used telephone, faxed, and express mail for preliminary negotiations, and face-to-face meetings for final negotiation. Due to underdevelopment of IT at that time in the Indian company, FEEM has not been able to use IT to the fullest potential for executing the primary market research. It made a license and technical assistance agreement as well as other agreements, such as, confidentiality with individual employees in the JV. FEEM contributed technology and owned part of the new company, while FIDF invested money in the new venture. The technology was a combination of product know-how, process know-how, operation know-how and management know-how. Some parts are legally protected through patents. FEEM arranged training for Indian managers and engineers in Finland and other Western countries. They opened a new factory at the beginning of 1987 in India. FEEM upgrades its technology relentlessly; participates in managerial and human resource training operations; it uses incentives, and socialization to make ITT effective. Due to the very active role of FEEM, reform in the Indian economy and improvement of certain laws and regulations, the ITT project has become profitable. The company has been using such tools as company internal database, CD with market data, country and market databases (external), , Internet, Intranet, teleconferencing, mailing lists, newsgroups, telephone, fax and local visits to monitor the Indian market. V. DEVELOPING A FRAMEWORK FOR IT- ENABLED IMRTT A. The IT-Enabled IMRTT Framework A framework has been developed through several in-depth interviews of researchers of an ITT research project group and ITT practitioners, through investigations of previous research on ITT and literature review in the field of ITT and IT, and by analysis of the case companies. Stage 1: Market Selection for Technology Transfer In order to identify appropriate markets the technology supplying company should identify products and services that can be produced by the technology and their specific code numbers in international markets. This is needed to determine the market size. The company then can select a few attractive markets, by considering the factors of the technology receiving country (see Table II). These are important country-related factors for ITT [1, 9, 10, 11]. The receiving country is the country where the technology receiver is located. Through further investigation the technology supplier should select one or very few markets, since in most cases technology transfer is very complex and a long process. The receiving country s agreements with international organizations have some impact on ITT. Relations with world intellectual property organizations (WIPO), world trade organizations (WTO), the United Nations (UN) etc. provide more security and confidence to the technology supplier. TABLE II TECHNOLOGY RECEIVING COUNTRY RELATED FACTORS AND IMPLICATIONS FOR MARKET SELECTION Country related factors Economic situation Technological development Infrastructure Implications for market selection Stability of the economy, large size of the market and less competition, make the market attractive for ITT. If the technological development is low, adaptations are required in technology, which in turn raise costs. ITT becomes slow and expensive if logistics, telecommunication, banking and promotional infrastructure are underdeveloped. Technology protection Weak technology protection law can be
7 law Laws related to repatriation of income Other legal issues Import barrier Cultural factors Political situation very risky for a technology supplier. Relaxation of laws related to repatriation of income make the market attractive. Problematic laws related to ITT mode, labor, etc. create barriers for ITT and make the market unattractive. High import barriers can make difficult to import required machinery and equipment. Due to language and management style differences, ITT becomes slow and expensive. Political instability makes the market unattractive. Using printed material to investigate the above factors requires a large amount of time; furthermore, it may not be current data. Trade statistics database (i.e. Comtrade) of the UN can help identify the largest and fastest growing markets for the product or service produced by the technology. Up to-date and comprehensive information of several markets around the world can be found at the database of the US Department of Commerce. In-depth investigation of the Country Commercial guide (CCG) section of the Department of Commerce database can provide specific information of the particular markets. With a low fee, companies from outside the USA can use various very useful databases (e.g. Stat-USA, of US Department of Commerce. Research sites (Strategis Canada, and Michigan university, are also very useful in providing market-related information. Country-specific useful information also can be found in the on-line CIA 1997 fact book. Using push technology, search engines, and Internet directories, market-related information can also be collected. Utilizing more than one data collecting method and/or source enhances validity and reduces the chance of biased results. Stage 2: Selection of Technology recipient Once the appropriate market is selected, the company should identify appropriate technology recipients by considering the characteristics of technology recipients (see Table III). These are important characteristics of a technology recipient [1, 10, 11]. The technology recipient is the buyer of the technology. The recipient s main characteristic and their implications for suitability are described below. TABLE III CHARACTERISTICS OF TECHNOLOGY RECIPIENTS AND IMPLICATIONS FOR SELECTION Technology recipient s Characteristics Implications Objectives of ITT Technological level When the objectives of the supplier and recipient are compatible, both can achieve high benefits. A higher technological level enables ITT to become easier, faster and less expensive. Experience Having experience helps in taking appropriate actions and avoiding problems and risks. Local knowledge Resources IT skills and IT infrastructure In-depth local knowledge increases the possibilities of ITT success. Sufficient financial resources on behalf of the recipient make them an attractive recipient. Improved IT skills and infrastructure can make the ITT process efficient, thus attractive for a supplier. Up to now, companies have usually searched published directories and contacted commercial sections of the specific country in order to obtain lists of potential technology recipients. For further investigation, face-to-face meeting are arranged. These are slow and expensive. Potential recipients can be identified very cost efficiently by investigating country-specific Internet directories, searching company databases, ing to mailing lists, newsgroups, chambers of commerce, country trade associations and local trade magazine. Internet Telephony, teleconferencing and video conferencing can be used to make in-depth interviews of the potential technology recipients, which is faster and cheaper than face-to-face meetings. Companies should do on-going international market research as the present global technology and business environment has become highly complex with rapid and unexpected changes occurring often. It will help to reduce risks and avail opportunities. B. Advantages of the IT-enabled IMRTT Framework Effective utilization of the framework can provide most of the following benefits. It assist in: Selection of potential foreign markets among several countries of the world. Determination of the technology transfer environment of a particular market (i.e. technology developments, types of technology used, availability of inputs, etc.). Identification of potential size of the market of the products and/or services produced by the utilization of the technology. Investigation of the prospective technology recipients and their characteristics (e.g. motives, objectives, experience, line of business, size, etc.) in a particular market. Identification of potential technological and business risks. Identification of the barriers to accessing that market.
8 Determination of market suitability in relation to the company s goals and competitive advantages. The conceptual framework illustrates the process and explicitly exhibits the required action sequence as well as the corresponding relationships between actions. VI. CONCLUSIONS High-tech companies in industrialized countries are facing a rapid shortening of technology life cycles and increased competition in their domestic markets. Studying the possibilities of IT-enabled IMRTT for a quick selection of appropriate markets and technology recipients for rapid technology transfer driven internationalization is important in light of this and other factors. Through theoretical and empirical research, we identified the functions in IMRTT; various conventional tools used to perform these tasks and identified the unique strengths of a variety of IT tools. We then utilized the IT tools to execute the IMRTT. This has led us to the development of a framework of ITenabled IMRTT for the technology supplier. This study argues that companies have the possibility to execute IMRTT more efficiently and effectively. The model has been used in practice by Akisumi Oy Ltd. to perform IMRTT. The results confirm that the IT-enabled IMRTT framework can help in identifying: demand for technology in various attractive markets, potential size of the market, types of technology used in those markets, information technology developments, suitability of the legal environment for technology protection, potential technological and business risks, availability of technology recipients and their characteristics. This study contends that IMRTT can be facilitated by transforming a complex IMRTT situation into a less complex form via the utilization of new ITs. OIMRTT will uncover new areas of research. It will be an important research area, as it currently offers and will continue to offer large benefits and innovations in global computer networking. ACKNOWLEDGMENT [4] M. Chen, Managing International Technology Transfer: Thunderbird Series in International Management. International Thomson Business Press, London, [5] M. R. Eaker and F. Rubenstein, Managing in the Global Business Environment: Issues, Organisations and Functions. South-Western Pub, USA, [6] D. L. Hoffman and T. P. Novak, Marketing In Hypermedia Computer - Mediated Environments: Conceptual Foundations, Journal of Marketing, 60(Winter), 50-68, [7] D. Minoli and E. Minoli, Web Commerce Handbook. McGraw-Hill, New York, [8] N. Nahar and V. Savolainen, Information and communication technologies for global productivity increase, Proceedings of the 19th Information Systems Architecture and Technology, pp , Wroclaw, October [9] N. Nahar, Globalisation of small and medium-sized enterprises through the management of IT-enabled technology transfer projects, Proceedings of the 14th World Congress on Project Management, Vol. 2, pp , Ljubljana, June [10] N. Nahar, Risks assessment of IT-enabled international technology transfer: case of globalisation of SMEs, Proceedings of the Fifth World Conference on Human Choice and Computers on Computers and Networks in the Age of Globalisation, pp , Geneva, August [11] N. Nahar, IT-enabled effective and efficient international technology transfer for SMEs, Proceedings of the Evolution and Challenges in System Development, pp , Bled, February [12] N. Nahar, IT-Enabled international promotion of technology transfer for high-tech enterprises, Proceedings of the UIC/AMA Research Symposium on Marketing and Entrepreneurship, Boston, 1998, in press. [13] N. Nahar, N. Huda and J. Tepandi, Globalisation of enterprises through electronic promotion, Proceedings of the Global-Local Interplay in the Baltic Sea Region Conference, pp. 1-10, Pärnu, October [14] T. Vassos, Strategic Internet Marketing. Macmillan Computer Publishing, Indiana, Thanks to all the interviewees that participated in this study for being so cooperative. Also thanks to the Department of Computer Science and Information Systems of Jyväskylä University for its support through financial and other resources. REFERENCES [1] Z. Al-Obaidi, International Technology Transfer Mode Selection. Helsinki School of Economics, Series B-135, HSE Press, Helsinki, [2] D. J. Bowersox and D. J. Closs, Logistical Management: The Integrated Supply Chain Process. McGraw Hill, USA, [3] P. J. Buckley, International Technology Transfer by Small and Medium-sized Enterprises: Country Studies. Macmillan Press, London, 1997.
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