Building Technological Capability Through Importing Technology: The Case of Indonesian Manufacturing Industry |
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Authors: | Vinod Kumar Uma Kumar Aditha Persaud |
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Affiliation: | (1) School of Business, Carleton University, Dunton Tower, 1125 Colonel By Drive, Ottawa, Ontario, Canada, K1S 5B6 |
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Abstract: | This research investigates the critical elements affecting the ability of firms in developing countries to cultivate their technological capability through imported technology. The information obtained from forty-five technology recipient Indonesian manufacturing firms indicate that the cultivation of technological capability is affected by several factors such as a firm's technological absorption capacity in terms of R&D activities and availability of technical personnel; transfer channels; government's involvement; and a firm's learning culture. Also, the acquisition of mature technology just to boost production capacity or improve product quality contributes very little to the development of technological capability. |
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