Technological Innovation and Role of Technology Strategy: Towards Development of a Model

Vidhu Vohra Lecturer in PG Deptt. of Computer Sc & IT Vidhu.261984 !m"i#.com ABSTRA T In $pite of the incre"$in! import"nce of inno%"tion "nd the ro#e p#"&ed '& techno#o!ic"# c"p"'i#itie$ in " firm($ !ro)th tr"*ector&+ #itt#e i$ ,no)n ho) techno#o!ic"# inno%"tion in different or!"ni-"tion$ i$ dri%en '& their techno#o!& $tr"te!&+ the p#"n th"t !uide$ the "ccumu#"tion "nd dep#o&ment of techno#o!ic"# re$ource$ "nd c"p"'i#itie$. Thi$ p"per throu!h " re%ie) of di%er$e #iter"ture on techno#o!ic"# inno%"tion "nd techno#o!& $tr"te!& not on#& h"$ propo$ed " conceptu"# fr"me)or, to e.p#ore the re#"tion$hip 'et)een techno#o!& $tr"te!&+ techno#o!ic"# inno%"tion "nd or!"ni-"tion"# f"ctor$+ fo##o)ed '& the outcome$+ 'ut h"$ "#$o di$cu$$ed the ro#e of techno#o!& $tr"te!& in techno#o!ic"# inno%"tion. I!TR"D# TI"! The current d&n"mic en%ironment dem"nd$ "## or!"ni-"tion$ to ch"n!e / 'oth r"dic"##& "nd increment"##&. Su$t"in"'#e de%e#opment c"nnot h"ppen )ithout inno%"tion. It i$ %er& e$$enti"# for "n or!"ni-"tion to ch"n!e the )"& it oper"te$ "nd "#$o ch"n!e the product$ "nd $er%ice$ it pro%ide$. It c"##$ for "n or!"ni-"tion th"t encour"!e$ e.periment"tion+ con$t"nt#& monitor$ the en%ironment+ e%"#u"te$ it$ o)n perform"nce "nd i$ committed to continuou$#& impro%e perform"nce. 0"n"!in! inno%"tion i$ mu#tif"ceted "nd in%o#%e$ %"riou$ "$pect$. 1 $tre"m of re$e"rch #in,in! inno%"tion to the ,no)#ed!e '"$e of the or!"ni-"tion hi!h#i!ht$ the import"nce of %"riou$ critic"# f"ctor$ )hich en"'#e the "c2ui$ition "nd "pp#ic"tion of ,no)#ed!e to promote inno%"tion. It mention$ th"t imp#icit ,no)#ed!e c"n 'e m"n"!ed indirect#& '& m"n"!in! %"riou$ f"ctor$ )hich contri'ute to "n or!"ni-"tion($ cu#ture+ $tructure+ techno#o!& "nd #e"der$hip. 1ccordin! to thi$ $tre"m of re$e"rch inno%"tion c"n 'e promoted '& m"n"!in! the t"cit "nd e.p#icit ,no)#ed!e em'edded in the$e f"ctor$. 3ne of the$e f"ctor$+ techno#o!ie$ i$ continuou$#& ch"n!in! "nd i$ " critic"# contri'utor to the tur'u#ent m"r,et$. 0oreo%er+ techno#o!& "$ "n int"n!i'#e ,no)#ed!e '"$ed "$$et incre"$e$ the potenti"# of inno%"tion m"n"!ement. 4tt#ie & 5rid!e$ 619878 $u!!e$t th"t techno#o!& po#ic& ref#ect$ the inno%"ti%e "ttitude of "n or!"ni-"tion "nd it$ commitment to inno%"tion. 9hi#e techno#o!& c"n p#"& "n import"nt ro#e in "n or!"ni-"tion($ inno%"tion proce$$+ too much techno#o!& mi!ht e%en $tif#e inno%"tion '& $t"nd"rdi-in! the e.i$tin! )or,f#o)$ "nd proce$$e$. The #on! run competiti%e po$ition of "n or!"ni-"tion i$ therefore dependent on ho) prudent#& or!"ni-"tion$ m"n"!e their techno#o!ic"# "$$et '"$e$. :irm$ differ 'ec"u$e the& de%e#op competencie$ in different techno#o!ie$. 1$&mmetrie$ in ,no)#ed!e endo)ment$ m"& pro%ide " '"$i$ for techno#o!ic"# hetero!eneit&. 3n the other h"nd firm$ m"& "#$o differ in the )"& the& e.p#oit or dep#o& the "%"i#"'#e ; "c2uired techno#o!&. 6<e$t" & Di'"!!io+ 2==78. Tod"&+ the $tr"te!ic m"n"!ement of techno#o!& i$ con$idered one of the mo$t import"nt i$$ue$ in #iter"ture 6>"hr" & Co%in 19978. ?1 comp"n& c"n u$e techno#o!& to cre"te " competiti%e "d%"nt"!e '& cre"tin! '"rrier$ th"t deter entr& of ri%"#$+ introducin! no%e# product$ or techno#o!& proce$$e$ th"t "ttr"ct ne) cu$tomer$+ or ch"n!in! the ru#e$ of competition in the indu$tr& 6Go#der & Te##i$+ 1997@ >"hr"+ <"$h & 5ic,ford+ 199A8.B 6"$ 2uoted in >"hr"+ 19968. The cre"tion+ de%e#opment "nd "pp#ic"tion of techno#o!& c"n form the '"$i$ for the $ucce$$ of P"!e C 1

firm$. 9here"$ the focu$ of techno#o!& in #o) techno#o!& or!"ni-"tion$ i$ prim"ri#& to uti#i-e "nd e.p"nd techno#o!& inno%"tion+ techno#o!& in hi!h techno#o!& indu$trie$ i$ one of the critic"# f"ctor$ for determinin! the future $ucce$$ of firm$.6 1ntoniou & 1n$off + 2==48. Gro)th throu!h inno%"tion$ mi!ht not nece$$"ri#& t",e p#"ce throu!h 're",Dthrou!h inno%"tion$. E"ther it in%o#%e$ inno%"ti%e )"&$ of inte!r"tin! e.i$tin! or de%e#opin! techno#o!ie$ into hi!h %"#ue $o#ution$. The$e inno%"ti%e )"&$ $p"n "cro$$ the entire %"#ue ch"in "nd re2uire inte!r"tion "cro$$ intern"# "nd e.tern"# 'u$ine$$ 'ound"rie$. 69h"#en+ 2==F 8. The techno#o!ic"# choice$ of " firm "re u$u"##& c#"rified in it$ techno#o!& $tr"te!& i.e.+ the p#"n th"t !uide$ the "ccumu#"tion "nd dep#o&ment of techno#o!ic"# re$ource$ "nd c"p"'i#itie$ 6>"hr"+ 19968. 1ccordin! to G"p#"n & <orton+ ?In our pr"ctice+ ho)e%er+ )e o'$er%ed th"t no t)o or!"ni-"tion$ thou!ht "'out $tr"te!& in the $"me )"&.B 6 T"#onen & H",,"r"inen+ 2==88. In $pite of the incre"$in! import"nce of inno%"tion "nd the ro#e p#"&ed '& techno#o!ic"# c"p"'i#itie$ in " firm($ !ro)th tr"*ector& $urpri$in!#&+ #itt#e i$ ,no)n ho) techno#o!ic"# inno%"tion in different or!"ni-"tion$ i$ dri%en '& their techno#o!& $tr"te!&. Thu$ re$e"rch i$ nece$$"r& to determine ho) techno#o!& $tr"te!& !uide$ the "c2ui$ition+ dep#o&ment "nd "'"ndonment of techno#o!& to promote inno%"tion. Thi$ p"per 'e!in$ '& re%ie)in! $ome of the ,e& #iter"ture in techno#o!& $tr"te!& "nd techno#o!ic"# inno%"tion. The #iter"ture hint$ "t the import"nce of %"riou$ or!"ni-"tion"# f"ctor$ )hich promote inno%"tion in the or!"ni-"tion. 3n the '"$i$ of the #iter"ture re%ie) " conceptu"# fr"me)or, h"$ 'een de%e#oped to e.p#ore the re#"tion$hip 'et)een techno#o!& $tr"te!&+ techno#o!ic"# inno%"tion "nd or!"ni-"tion"# f"ctor$+ fo##o)ed '& the outcome$. The !o%ernment ru#e$ "nd %"riou$ po#icie$ "#$o "ffect the techno#o!& $tr"te!& of firm$. The p"per further di$cu$$e$ the ro#e of techno#o!& $tr"te!& in techno#o!ic"# inno%"tion. M$T%"D"&"'( )ournals Reviewed The "rtic#e$ ; re$e"rch p"per$ inc#uded in thi$ "rtic#e )ere identified throu!h " $e"rch m"de u$in! the $e"rch en!ine$ of e#ectronic d"t"'"$e$ $uch "$ 45SC3+ 15I Inform "nd 4mer"#d :u## Te.t u$in! $e"rch $trin!$ #i,e technology strategy "nd technological innovation. The $e"rch )"$ re$tricted to the #"$t 1A &e"r$ r"n!in! from 1997 to 2==8. Thi$ "rtic#e "$$e$$ed re$e"rch in the "re" of techno#o!& $tr"te!& "$ "ddre$$ed '& F= p"per$@ re$e"rch in the "re" of techno#o!ic"# inno%"tion "$ "ddre$$ed '& "round AA p"per$@ the import"nce of %"riou$ or!"ni-"tion"# f"ctor$ )hich promote " #e"rnin! c#im"te for inno%"tion "$ "ddre$$ed '& "round A= p"per$ "nd the import"nce of %"riou$ dimen$ion$ of techno#o!& $tr"te!& "$ "ddre$$ed '& "round A= p"per$+ pu'#i$hed in %"riou$ "c"demic *ourn"#$. T$ %!"&"'I A& I!!"VATI"! Inno%"tion inc#ude$ 'oth product ; $er%ice "nd proce$$ inno%"tion$. Product inno%"tion$ "re product$ th"t "re percei%ed to 'e ne) '& either the producer or the cu$tomer@ the #"tter inc#ude$ 'oth endDu$er$ "nd di$tri'utor$. Proce$$ inno%"tion refer$ to ne) proce$$e$ )hich either reduce the co$t of production or en"'#e the production of ne) product$. 6H"rm$en+ Grunert+ & Dec#erc,+ 2===8. Ser%ice inno%"tion in%o#%e$ ch"n!e in the proce$$ of de#i%erin! e.i$tin! $er%ice$ or the de%e#opment of comp#ete#& ne) ,ind of $er%ice$. 6 Leiponen+ 2==A8. It c"n "#$o inc#ude the "pp#ic"tion of "d%"nce$ in techno#o!& to "n e.i$tin! product $o "$ to cre"te " ne) product. 1ccordin! to Che$'rou!h 6 2==78 + ? The inno%"tion proce$$ h"$ ch"n!ed from " $ome)h"t c#o$ed+ $in!u#"r inno%"tion pro*ect to " continuou$ "cti%e "nd Iopen( inno%"tion P"!e C 2

$&$tem.B 6Duin+ 3rtt & Go,+ 2==F8. Ee$e"rcher$ h"%e 'rou!ht out the import"nce of co##"'or"tion$ "nd net)or,$ for techno#o!ic"# inno%"tion. 6Pi$"no & Teece+ 1989@ C"$um"no+ 1986@ Eo& & 5"ner*ee+ 2==F@ G"#e & Litt#e+ 2==F@ 3,"d"+ 2==F@ Gert#er & Le%itte+ 2==A@ Vi#*"mm"+ 2==F8. Co##"'or"tion$ "cro$$ function$+ product$ "nd di%i$ion$ "nd tru$t in the$e net)or,$ 6E&croft+ 2==68 en"'#e firm$ to thri%e '& com'inin! c"p"'i#itie$ "cro$$ 'u$ine$$e$. Inno%"tion occur$ on#& )hen "n or!"ni-"tion coup#e$ or!"ni-"tion"# ,no)Dho) )ith need$ of the u$er$. The c&c#ic"# inno%"tion mode# %ie)$ inno%"tion proce$$ "$ continuou$ inter"ction 'et)een de%e#opment$ "nd ch"n!e$ in m"r,et$+ product "nd $er%ice$+ techno#o!&+ "nd $cience. 6Duin+ 3rtt & Go,+ 2==F8. 1ccordin! to V"n de V"n 619868+ inno%"tion+ or the ne)ne$$ of "n ide" c"n inc#ude 'oth techno#o!ic"# inno%"tion 6ne) techno#o!ie$+ product$+ "nd $er%ice$8 "nd "dmini$tr"ti%e inno%"tion$ 6ne) procedure$+ po#icie$ "nd or!"ni-"tion"# form$8. 6 Hun!+ 2==48. ?Techno#o!ic"# inno%"tion pert"in$ to product$+ $er%ice$ "nd production proce$$ techno#o!&@ it i$ re#"ted to '"$ic "cti%itie$ "nd c"n concern either product or proce$$.B 6"$ 2uoted in Lin+ 2==8+ p.21 8. 9e c"n+ therefore+ "$$ume th"t techno#o!ic"# inno%"tion$ 6outcome$8 "re the re$u#t of product ; proce$$ de%e#opment "cti%itie$ "nd m"r,et de%e#opment ; $er%ice impro%ement "cti%itie$. ?Ser%ice "nd proce$$ techno#o!ic"# inno%"tion$ compri$e techno#o!ic"##& ne) or $i!nific"nt#& impro%ed product$ "nd $er%ice$. 1n inno%"tion h"$ 'een imp#emented if it h"$ 'een introduced on the m"r,et 6$er%ice inno%"tion8 or h"$ 'een u$ed )ithin " production or de#i%er& proce$$ inno%"tion. J$u"##&+ the introduction of $er%ice "nd proce$$ techno#o!ic"# inno%"tion$ in%o#%e$ " $erie$ of $cientific+ techno#o!ic"#+ or!"ni-"tion"#+ fin"nci"# "nd commerci"# "cti%itie$.B 6Siri##i & 4%"n!e#i$t" +1998+ p.89F8. :or " $er%ice to 'e con$idered "$ techno#o!ic"##& inno%"ti%e it$ ch"r"cteri$tic$ "nd mode of u$in! $hou#d either 'e comp#ete#& ne) or $hou#d h"%e 'een $i!nific"nt#& impro%ed 2u"#it"ti%e#& or in term$ of their perform"nce "nd techno#o!ie$ u$ed. 1 techno#o!ic"##& inno%"ti%e $er%ice m"& in%o#%e the u$e of r"dic"##& ne) techno#o!ie$+ " com'in"tion of preD e.i$tin! techno#o!ie$ or ne) ,no)#ed!e. Proce$$ inno%"tion+ con$i$t$ of the "doption of " production or " de#i%er& method )hich i$ ne) from " techno#o!ic"# point of %ie). Such "doption m"& in%o#%e ch"n!e$ in e2uipment+ or!"ni-"tion of production or " com'in"tion of 'oth. The intention of proce$$ inno%"tion m"& 'e either to produce or de#i%er inno%"ted $er%ice$ or to impro%e the production or de#i%er& of e.i$tin! $er%ice$ )hich )ou#d not h"%e 'een po$$i'#e '& u$in! the preDe.i$tin! production method$. 6Siri##i & 4%"n!e#i$t" +1998 8 9hi#e $ome inno%"tion$ "re techno#o!& '"$ed 6per$on"# computer$+ "uto fue# in*ection$ etc.8+ other inno%"tion$ #i,e ne) product$ "nd $er%ice$ in fin"nci"# $er%ice$ "re f"ci#it"ted '& techno#o!&. 1$ "doption "cti%it& i$ " form of inno%"tion+ hi!h "doption r"te$ ref#ect hi!h #e%e#$ of inno%"ti%ene$$. 60"n#e& & 0cf"##"n+ 2==68. Techno#o!ic"# inno%"tion$ c"n $e#dom 'e de%e#oped '& " $in!#e firm in " %"cuum of "n indu$tri"# en%ironment. 0"n& comp#ement"r& inno%"tion$ "re u$u"##& re2uired 'efore " p"rticu#"r techno#o!& i$ $uit"'#e for commerci"# "pp#ic"tion. 6V"n de Ven & G"rud+ 19898. 0"n& inno%"tion '"$ed $tr"te!ie$ "re '"$ed on the uni2ue m"r,et "pp#ic"tion of "n e.i$tin! inte!r"ted $et of techno#o!ie$ r"ther th"n re2uirin! techno#o!ic"# 're",Dthrou!h. 6 5erm"n & H"!"n+ 2==68. The techno#o!ic"# inno%"tion proce$$ con$i$t$ of four 'ro"d $t"!e$ of Pro'#em Eeco!nition ; Ide" Gener"tion+ Techno#o!& Se#ection+ So#ution De%e#opment "nd Imp#ement"tion. 6<"r"&"n"n+ 2==F8. There h"$ 'een " )or#d)ide ch"n!e in the techno#o!ic"# inno%"tion proce$$ / 'oth in the )"& the re$e"rch i$ or!"ni-ed "nd the )"& the ne) techno#o!& i$ commerci"#i-ed. The tr"dition"# #ine"r "ppro"ch / E&D+ protot&pin!+ m"nuf"cturin! $t"rtup+ P"!e C 7

m"r,etin! "nd di$tri'ution "## inDhou$e h"$ !i%en )"& to #e$$ %ertic"##& inte!r"ted $tructure$+ )hich in%o#%e co##"'or"tion )ith other indu$tr& p"rticip"nt$. 6 Pi$"no & Teece+ 1989 8. P"tent$ "re "n import"nt in$trument for the protection of inno%"tion$. Indu$tr& $ur%e&$ h"%e re%e"#ed th"t firm$ u$e p"tent$ "$ "n "ppropri"'i#it& mech"ni$m to meet their I$tr"te!ic moti%e$( of u$e of p"tent$ "$ ne!oti"tin! #e%er$+ "$ too#$ for pre%ention of infrin!ement $uit$ or to '#oc, inno%"tion$ from competitor$ "nd "#$o to c"pture the e.tr" %"#ue of inno%"ti%e effort$. :irm$ "#$o u$e the e.tr" m"r,et po)er "ccumu#"ted throu!h p"tent$ to contro# the diffu$ion of inno%"tion "nd re$u#t$ of re$e"rch. 6 S"mp"th+ 2==F8. Ho)e%er+ p"tent$ come )ith their o)n dr")'"c,. The& pro%ide inno%"tor$ )ith #on!er monopo#& period$ "nd tend to incre"$e monopo#i$tic $ector$ )ithin the econom&. Thi$ deter$ 'oth the impro%ement of e.i$tin! product$ "nd the in%ention of hi!her 2u"#it& !ood$ '& out$ide firm$. 6Horii & I)"i$",o+ 2==F8. 1n inno%"tor c"n re"p the 'enefit$ from hi$ inno%"tion either '& #icen$in! hi$ p"tent protected ,no)#ed!e or '& dep#o&in! the inno%"tion in product$ or proce$$e$. 9hi#e in the former c"$e the firm e.tr"ct$ " fee from )hom he #icen$e$+ in the #"tter c"$e he $urp"$$e$ hi$ competitor$ '& incre"$in! the inno%"tionDre#"ted $"#e$ "nd ; or profit$ of hi$ o)n firm. 6 Hippe#+ 19878. The $ucce$$fu# commerci"#i-"tion of techno#o!ic"# inno%"tion to " #"r!e e.tent i$ determined '& the uti#i-"tion of comp#ement"r& "$$et$ "nd ,no)#ed!e )hich mi!ht 'e em'odied in the firm$ m"r,etin!+ m"nuf"cturin! "nd "fterD$"#e$ $upport "cti%itie$. To the e.tent the comp#ement"r& "$$et$ "re critic"# or "re f"%or"'#& po$itioned )ith the competitor$@ decide the firm($ $tr"te!& )ith re$pect to the $ourcin! of comp#ement"r& "$$et$. 6 5"$"nt+ 199F@ 5"$"nt & Ch"ndr"+ 2===8. Techno#o!ic"# inno%"tion not on#& $er%e$ "$ "n import"nt competiti%e too# 6 Ch"t")"&+ T"it & 9ie#d+ Porter+ 1987@ :#"hert&+ 19878 'ut "#$o p#"&$ "n import"nt ro#e in impro%in! the firm($ perform"nce. 6Hipp+ Tether & 0i#e$+ 2===@ Tidd+ 2==18. 1#thou!h the re#"tion$hip 'et)een inno%"tion "nd fin"nci"# 'u$ine$$ perform"nce i$ not $imp#e "nd )e## under$tood+ prior re$e"rch indic"te$ " $tron! inter"ction 'et)een !ro)th in $"#e$ "nd different inno%"tion$@ 'et)een e.penditure on E&D 6E&D "$ " proportion of $"#e$8 "nd ne) product "nnouncement$ "nd )ith perform"nce me"$ure$ $uch "$ %"#ue "dded "nd m"r,et to 'oo, %"#ue. 6Hipp+ Tether & 0i#e$+ 2===@ Tidd+ 2==18. 1 fe) of the effect$ )hich c"n 'e "$$oci"ted )ith $er%ice proce$$ inno%"tion$ "reK impro%ement to the $er%ice pro%ider($ producti%it& "nd f#e.i'i#it&@ more r"pid production "nd ; or de#i%er& of $er%ice$@ impro%ement in 2u"#it& of $er%ice$ pro%ided@ incre"$ed m"r,et pre$ence throu!h " )ider r"n!e or " more ?u$erDfriend#&B $et of $er%ice$. 6 Hipp+ Tether & 0i#e$+ 2===8. ProductDproce$$ inno%"tion h"$ 'een found to h"%e " po$iti%e imp"ct on fin"nci"# re$u#t$ 6"$ comp"red to !o"#$8+ m"r,et po$ition "nd '"r!"inin! po)er. 6Len$$en & E"ndo&+ 2==68. T$ %!"&"'( STRAT$'( 1#thou!h+ the concept of techno#o!& $tr"te!& h"$ 'een " p"rt of m"n"!ement of techno#o!& #iter"ture $ince the #"te 19F=$ there i$ $ti## " #ot of de'"te re!"rdin! ho) to define techno#o!& $tr"te!&. It c"n 'e 'rief#& "nd 'ro"d#& defined "$ " portfo#io of choice$ "nd p#"n$ th"t " firm u$e$ to "ddre$$ the techno#o!ic"# thre"t$ "nd opportunitie$ in it$ e.tern"# en%ironment. 1ccordin! to 60e&er+ 2==88+ ?The oper"tion"# e.pre$$ion of " techno#o!& $tr"te!& i$ the $et of pro*ect$ th"t "n or!"ni-"tion )"nt$ to imp#ement. Determinin! " $tr"te!& i$ $e#ectin! the pro*ect$ "nd the portfo#io of pro*ect$.B The 'ro"d o'*ecti%e of techno#o!& $tr"te!& i$ to !uide " firm in "c2uirin!+ de%e#opin! "nd "pp#&in! techno#o!& for competiti%e "d%"nt"!e.

P"!e C 4

1ccordin! to :ord & Thom"$ 6199F8+ ?The firm i$ ch"r"cteri-ed not on#& '& the confi!ur"tion of it$ o)n techno#o!&+ 'ut in "ddition+ '& it$ re#"tion$hip$ )ith "nd #in,"!e$ to the $&$tem$ / or di$crete techno#o!ie$ / of other$( $uch th"t " Ime"nin!fu# techno#o!& $tr"te!& i$ ine%it"'#& " net)or, $tr"te!&.B 6 D"%enport et."#.+ 2==7 8. 1ccordin! to :ord "nd Thom"$ + Ithe ,e& f"ctor in techno#o!& $tr"te!& i$ for the firm to under$t"nd the re#"ti%e import"nce "nd #oc"tion of the r"n!e of techno#o!ie$ 'oth intern"# "nd e.tern"# th"t it mu$t emp#o&.( 6"$ cited in H"rri$+ Co#i$ & Dic,$on+ 2===+ p.27=8. Ho)e%er+ for " d&n"mic techno#o!& $tr"te!& )hich i$ recepti%e to ch"n!e$ in the en%ironment+ it i$ imper"ti%e th"t the de%e#opment of techno#o!& i$ em'edded )ith other $tr"te!ic choice$ )ith )hich " firm coDe%o#%e$. 1nother import"nt "$pect of techno#o!& $tr"te!& i$ it$ imp#ement"tion. Techno#o!ie$ "re not ch"r"cteri-ed '& preDdetermined #e%e# of efficienc&. The #e%e# of oper"tion"# efficienc& "tt"ined throu!h " techno#o!& depend$ on the effort$ m"de '& " firm to "$$imi#"te "nd modif& it to $uit $pecific re2uirement$. 6Der"ni&"!"#"+ 2==18. 3ne of the ,e& "$pect$ of inno%"tion m"n"!ement i$ the c"p"cit& to de%e#op "nd imp#ement " $ound techno#o!& $tr"te!&. 60e&er+ 2==88. Techno#o!& $tr"te!ie$+ ho)e%er+ "re not confined to hi!hDtechno#o!& indu$trie$. C"p"cit&Ddri%en or " cu$tomerDdri%en indu$tr& too re2uire$ " techno#o!& $tr"te!&. Such $tr"te!ie$ determine the choice of technic"# c"p"'i#itie$ "nd "%"i#"'#e product "nd proce$$ p#"tform$ of the firm$. In f"ct+ comp"nie$ )hich do not $ee the need to m"n"!e techno#o!& "$ " form"# proce$$ "re di$D"d%"nt"!ed. 65on & S".on+ 2===8. Techno#o!& $tr"te!& of "n or!"ni-"tion h"$ to 'e con$t"nt#& re%ie)ed "nd monitored $o "$ to cope )ith the d&n"mic en%ironment. :eed'"c, #oop$ 'ui#t into the techno#o!& $tr"te!& "re "n import"nt )"& to "d*u$t "nd reconfi!ure the techno#o!ic"# c"p"'i#itie$. 6D"%enport+ Hunt & So#omon+ 2==78. 1ccordin! to 65ur!e#m"nn & Eo$en'#oom+ 19898 the %"riou$ dimen$ion$ of techno#o!& $tr"te!& of " firm c"n 'e under$tood throu!h the $u'$t"nce "nd en"ctment of techno#o!& $tr"te!&. Su*stance of Technology Strategy Competitive Strategy Stance Techno#o!& $tr"te!& "$ "n in$trument of more comprehen$i%e corpor"te "nd 'u$ine$$ $tr"te!ie$ define$ the ro#e )hich techno#o!& c"n p#"& "$ " $ource of competition to $u$t"in "d%"nt"!e in product differenti"tion or co$t or to de%e#op ne) product$ "nd #ine$ of 'u$ine$$. Ee$e"rcher$ 6 5ond & Hou$ton+ 2==7@ 5"$"nt & Ch"ndr"+ 2==2@ Do)#in! & Gee+ 1994@ Chri$ten$on+ 2==2 8 h"%e 'rou!ht out the import"nce of fit 'et)een techno#o!& $tr"te!& "nd other $tr"te!ie$ 6 'u$ine$$+ m"nuf"cturin! etc.8 of " firm in order to !"in competiti%e "d%"nt"!e. 1 fit 'et)een $tr"te!ie$ en"'#e$ "n or!"ni-"tion to impro%e it$ 'u$ine$$ perform"nce. 6 Do)#in! & Gee+ 1994@ <"m'i$"n+ 2==2@ Ch"m"n$,i & 9""!o+ 2==6@ >"hr" & Co%in+ 19948 Techno#o!& #e"der$hip c"n 'e di$cu$$ed in term$ of timin! re#"ti%e to ri%"#$ or the commerci"# u$e of ne) techno#o!&. :irm$ )i$hin! to t",e on the techno#o!& #e"der$hip po$ition mu$t m",e " choice )ith re$pect to #e"d time '& )hich the& )i$h to #e"d their competitor$. 6 Eeic, & Dic,$on+ 19978. 1ccordin! to Lie'erm"n & 0ont!omer& 619888+ firm$ undert",in! " pioneerin! or " techno#o!& #e"der$hip po$ture focu$ their re$e"rch "nd de%e#opment initi"ti%e$ on cre"tin! inno%"tion$ '"$ed on $t"teDofDthe "rt techno#o!ie$ com'ined )ith po$$i'#e fir$tDmo%er "d%"nt"!e$. Comp"nie$ often u$e pioneerin! to c"pture premium $e!ment$+ "chie%e economie$ of $c"#e+ $et indu$tr& $t"nd"rd$ or contro# di$tri'ution ch"nne#$. 6Go#der & Te##i$+ 19978. Le"der$hip $tr"te!ie$ "re ho)e%er+ dependent on the effort$ of hi!h#&D$,i##ed emp#o&ee$ )ho "re "$$oci"ted )ith e.tern"# net)or,$ of $peci"#i-ed )or,er$ "nd e.pert #e!"# "d%ice. 6G"#'r"ith+ P"!e C A

Eodri!ue-+ & De<o'#e+ 2==88. Techno#o!&Dfo##o)er firm$+ on the other h"nd put emph"$i$ on $tr"te!ie$ th"t in%o#%e #o)Dco$t m"nuf"cturin! of pro%en product$ "nd techno#o!ie$. 6 G"#'r"ith+ Eodri!ue-+ & De<o'#e+ 2==8 8. 1 comp"n& c"n outperform ri%"#$ on#& if it c"n pre$er%e the difference )hich it h"$ e$t"'#i$hed. The !ro)in! popu#"rit& of out$ourcin! ref#ect$ the !ro)in! reco!nition th"t it i$ difficu#t to perform "## "cti%itie$ "$ producti%e#& "$ $peci"#i$t$. 6Porter+ 19968. Value Chain Stance (Scope) The $cope of techno#o!& $tr"te!&+ )ith reference to the %"#ue ch"in+ determine$ the $et of techno#o!ic"# c"p"'i#itie$ th"t the firm decide$ to de%e#op intern"##&. Thi$ $et of techno#o!ie$ i$ c"##ed the core techno#o!ie$ "nd )ith re$pect to the$e the firm need$ to decide )hether to 'e " #e"der or " fo##o)er )hen 'rin!in! the$e techno#o!ie$ to m"r,et. The other techno#o!ie$ u$ed '& the firm "re the peripher"# techno#o!ie$. The $cope+ in other )ord$+ !uide$ " firm to identif& the mi. of product "nd proce$$ techno#o!ie$ )hich )i## compri$e the firm($ portfo#io. Throu!h the %"#ue ch"in $t"nce " firm c"n decide )hether to dep#o& it$ re$ource$ for " fe) techno#o!ic"# c"p"'i#itie$ o%er )hich it h"$ competiti%e "d%"nt"!e or to di%er$if& it$e#f into de%e#opin! num'er of techno#o!ic"# c"p"'i#itie$. The $c"#e "nd 'u$ine$$ focu$ of " firm decide$ the $cope of it$ techno#o!& $tr"te!&. The V"#ue Ch"in "n"#&$i$ '& Porter e."mine$ the oper"tion$ of the firm in term$ of the techno#o!ie$ )hich "re u$ed in e"ch $e!ment "nd ho) the different techno#o!ie$ inter"ct )ith e"ch other. The incre"$ed comp#e.it& of product$ "nd production proce$$e$ o%er time h"$ #ed to di%er$it& in the techno#o!& portfo#io of m"n& or!"ni-"tion$. 1ccordin! to Gr"n$tr"nd 619988+ firm$ )ith techno#o!ic"##& di%er$ified portfo#io h"%e #"r!er inte!r"tion+ coordin"tion "nd communic"tion co$t$ )hich c"n 'e contro##ed to the e.tent the techno#o!ie$ "re coherent. 6Leten+ 5e#der'o$. & Loo&+ 2==F8. Resource Commitment Stance (Depth) The depth of " techno#o!& $tr"te!& c"n 'e e.pre$$ed in term$ of the techno#o!ic"# option$ "%"i#"'#e )ith the firm. The inten$it& of re$ource commitment to techno#o!& determine$ the depth of " firm($ techno#o!& $tr"te!&. Gre"ter techno#o!ic"# depth en"'#e$ "n or!"ni-"tion to 'e f#e.i'#e "nd re$pond to ne) dem"nd$ of the cu$tomer$. i In !ener"#+ 'ro"der the $cope of " firm($ techno#o!& $tr"te!& "nd !re"ter the firm($ commitment to #e"der$hip po$ition+ !re"ter the re$ource$ it )i## h"%e to commit. ii Gre"ter the re$ource$ committed '& "n or!"ni-"tion to E&D "nd techno#o!& de%e#opment+ !re"ter the or!"ni-"tion"# $#"c, )hich "n or!"ni-"tion c"n u$e to meet the ch"n!in! dem"nd$ in the m"r,etp#"ce. The techno#o!& choice of " firm c"n "#$o 'e e.p#"ined "$ " tr"deDoff 'et)een fi.ed "nd %"ri"'#e co$t$@ )ith hi!her the in%e$tment in fi.ed co$t$ 6"d%"nced techno#o!ie$8 #e$$ " firm need$ to $pend on %"ri"'#e co$t$. 6Min+ 19988. Management Stance (Organizational Fit) Thi$ refer$ to the e.tent "n or!"ni-"tion c"n $tructure it$e#f $o "$ to meet the or!"ni-"tion"# re2uirement$ f#o)in! from competiti%e+ %"#ue ch"in "nd re$ource commitment $t"nce$. 1ccordin! to Stee#e 619FA8+ decentr"#i-ed #"'or"torie$ "re more $uited for "pp#ic"tion of techno#o!ie$ "nd not for !ener"tion of ne) techno#o!ie$. Ho)e%er+ decentr"#i-ed #"'or"torie$ due to c#o$e coup#in! )ith m"r,et$ "nd other corpor"te function$ "re 'etter $uited for product$ re#"ted re$e"rch. 6 0"#ec,i+ 198=8. Di%i$ion"# E&D or the 0Dform or!"ni-"tion $tructure )here techno#o!ic"# inno%"tion i$ decentr"#i-ed in the %"riou$ di%i$ion$ i$ prim"ri#& concerned )ith "pp#ied E&D to "ddre$$ the $pecific re2uirement$ of onD!oin! product de%e#opment "nd #e$$

P"!e C 6

concerned )ith de%e#opin! fund"ment"# E&D re2uired for 'ui#din! di$tincti%e techno#o!ic"# c"p"'i#itie$. 6 Chri$ten$on+ 2==28. $nactment of Technology Strategy 1ccordin! to Chri$ten$on "nd 5ur!e#m"n+ ho) "n or!"ni-"tion en"ct$ it techno#o!& $tr"te!& ref#ect$ the $u'$t"nce of techno#o!& $tr"te!&. Techno#o!& $tr"te!& i$ en"cted throu!h the "ppropri"tion "nd dep#o&ment of techno#o!&. Sourcing The fie#d of techno#o!& $ourcin! i$ import"nt for inno%"tion in firm$ "$ it determine$ )here "nd ho) techno#o!ic"# ,no)#ed!e i$ to 'e u$ed to de%e#op ne) product$ or proce$$e$ i$ "c2uired. 6Hemmert+ 2==88. Intern"# $ourcin! of techno#o!& depend$ on the firm($ E&D c"p"'i#it&. 3ne of the m"*or purpo$e$ of the E & D $pendin! i$ to inf#uence the future in%e$tment f"%or"'#&+ either '& #o)erin! co$t$ or '& incre"$in! return$. In or!"ni-"tion$+ E&D i$ $upported "$ "n o%erhe"d e.pen$e "nd i$ " critic"# re2uirement for e.p#or"tor& re$e"rch effort$ "nd for de%e#opin! or m"int"inin! technic"# e.perti$e in "re"$ )hich "re *ud!ed to 'e e$$enti"# for future competiti%e "d%"nt"!e. E & D i$ u$u"##& me"$ured in term$ of input 6E&D to $"#e$ r"tio8 or $een "$ " comp"n& re$ource 6doe$ the comp"n& in 2ue$tion h"%e E&D f"ci#itie$ or not8. 6 H"rm$en+ Grunert+ & Dec#erc,+ 2=== 8. 1 firm($ E&D effort$ not on#& contri'ute to !ener"tion of ne) ,no)#ed!e 'ut "#$o to 'ui#din! it$ "'$orpti%e c"p"cit&. 6 Cohen & Le%inth"#+ 199=8. 1#thou!h " ri$,& option+ 'ec"u$e the $ucce$$ of the techno#o!& i$ not !u"r"nteed in the m"r,et+ intern"# de%e#opment of techno#o!& re$u#t$ in propriet"r& techno#o!& )hich " firm c"n u$e to cre"te "n "d%"nt"!e. 1 !#o'"# E&D $tr"te!& ho)e%er re2uire$ the de%e#opment of inDhou$e technic"# "nd or!"ni-"tion"# #e"rnin! competencie$ in comp#e. "##i"nce$ )ith other firm$ "nd intern"tion"# center$ of re$e"rch e.ce##ence. Su'$e2uent commerci"#i-"tion depend$ on " $trin! of !#o'"# interDfirm "##i"nce$ in comp#ement"r& techno#o!ie$ "nd the poo#in! of fin"nci"#+ production+ "nd commerci"#i-"tion co$t$ "nd ri$,$. 6 G"ounide$+ 19998. 4.tern"# $ourcin! of techno#o!& c"n t",e p#"ce throu!h #icen$in!+ $tr"te!ic techno#o!& "!reement$+ mer!er$ "nd "c2ui$ition$ or throu!h recruitment of $t"ff )ith "ppropri"te ,no)#ed!e. 1 %er& re#e%"nt point )ith reference to e.tern"# $ourcin! of techno#o!& i$ th"t+ $ince the techno#o!ie$ "%"i#"'#e in the m"r,et "re "#$o "%"i#"'#e to the competin! firm$+ the& c"nnot offer " $u$t"in"'#e competiti%e "d%"nt"!e. 6 0onto&"+ >"r"te & 0"rtin+ 2==F8. 1 mi.ed intern"# ; e.tern"# "ppro"ch m"& in%o#%e fundin! of *oint %enture$+ co##"'or"ti%e re$e"rch or $tr"te!ic "##i"nce$. It $tre$$e$ on the comp#ement"rit& 'et)een inDhou$e E&D "nd e.tern"# ,no)Dho). 1ccordin! to 6 0o)er& & Eo$en'#oom+ 19898+ ? cooper"ti%e re$e"rch pro!r"m$ "#one "re in$ufficient Nmore i$ needed+ $pecific"##& the de%e#opment of $ufficient e.perti$e )ithin the$e firm$ to uti#i-e the re$u#t$ of e.tern"##& performed re$e"rch.B 6"$ cited in Veu!e#er$+ 199F+p.7=48. Ho)e%er+ deci$ion to 'u& techno#o!& re2uire$ " much )ider ,no)#ed!e '"$e th"n 'ein! $imp#& ")"re from )here " techno#o!& c"n 'e 'ou!ht che"p#&. Competiti%e "d%"nt"!e i$ !"ined on#& from c#u$ter of techno#o!ie$ )hich "re hi!h#& $&ner!i$tic. 1ccordin! to Teece 619FF8+ it not on#& in%o#%e$ identif&in! the ri!ht techno#o!& for " p"rticu#"r purpo$e 'ut "#$o "n under$t"ndin! of the me"n$ '& )hich it )i## 'e inte!r"ted )ith the firm($ tr"dition"# techno#o!&. 6<e$t" & Di'i"!!io+ 2==78. The deci$ion to $ource techno#o!& intern"##& or e.tern"##& i$ ho)e%er dependent on t)o critic"# f"ctor$D the e"$e of "ppropri"'i#it& 6e.tent to )hich 'enefit from re$e"rch "cti%it& c"n 'e P"!e C F

c"ptured8 "nd the tr"n$"ction co$t$ 6the e"$e )ith )hich contr"ct$ for the purch"$e or $"#e of techno#o!& c"n 'e )ritten+ e.ecuted "nd enforced )ithout #e"din! to une.pected outcome$ th"t impo$e #"r!e co$t$ on one or 'oth p"rtie$. The e.tent to )hich " p"rticu#"r techno#o!& i$ protected '& inte##ectu"# propert& ri!ht$ "#$o effect$ the deci$ion of " firm to $ource intern"##& or e.tern"##&. 6Pi$"no & Teece+ 1989@ D"%i$+ 2==8.8. 1#thou!h endo!enou$ techno#o!& $tr"te!& )hich #"&$ emph"$i$ on intern"# E&D effort$ of "n or!"ni-"tion en"'#e$ "n or!"ni-"tion to de%e#op " $tron! techno#o!ic"# '"$e )hich i$ inimit"'#e 6Ho)e##i$+ 199F@ Min+ 19988 the import"nce of comp#ementin! intern"# techno#o!& )ith e.tern"# techno#o!& c"nnot 'e denied. 69it-em"n+ S#o)in$,i+ Dir,.+ Go##o'+ T"o+ 9"rd+ & 0ir"!"#i"+ 2==6@ G"ounide$+ 19998. The opportunitie$ for "ppropri"tin! the 'enefit$ of intern"# E&D "#$o inf#uence " firm($ commitment of re$ource$ to the proce$$. 66>h"n! & Liu+ 2==F8 Product and Process Development 1ccordin! to 6 Gri$hn"n & J#rich+ 2==18+ ?Product de%e#opment c"n 'e de$cri'ed "$ the proce$$ th"t identifie$ " m"r,et opportunit& "nd tr"n$form$ it into " product "%"i#"'#e for $"#e$.B 6 "$ cited in Chroneer & Sten#und+ 2==6+ p.2788. Techno#o!& $tr"te!& i$ "#$o en"cted '& dep#o&in! techno#o!& to de%e#op product$. 9hi#e t",in! " deci$ion to de%e#op product$ firm$ need to t",e " deci$ion )hether techno#o!& )ou#d dri%e the de%e#opment of the product 6 techno#o!& pu$h8 or product de%e#opment "nd ; or m"r,et de%e#opment )ou#d dri%e the de%e#opment of techno#o!& 6m"r,et pu##8 . 4%er& product i$ compo$ed of " num'er of techno#o!ie$. :irm$ infu$e techno#o!& into ne) product$ either '& 'und#in! or '& di$rupti%e techno#o!ie$. Throu!h 'und#in!+ firm$ com'ine the different e#ement$ of their product #ine$ into 'und#e$. E"dic"# inno%"tion$+ "nd $ometime$ modu#"r or "rchitectur"# inno%"tion$+ dep#o& di$rupti%e techno#o!ie$. The 'enefit$ of inform"tion techno#o!ie$ #i,e de$,top $oft)"re "nd )e'D'"$ed too#$ for different $t"!e$ of the <e) Product De%e#opment 6<PD8 proce$$ "re 'ein! )ide#& reco!ni-ed. Ho)e%er+ it i$ e$$enti"# for techno#o!& to 'e em'edded into the peop#e($ )or, "nd proce$$e$ in order th"t it i$ fu##& e.p#oited "nd the 'enefit$ re"ped. 6 5"rc-",+ Su#t"n & Hu#tin,+ 2==F8. Di!it"# 4nterpri$e Techno#o!&+ " theoretic"# fr"me)or, for co##"'or"ti%e de$i!n "nd production de%e#opment in the conte.t of " product($ #ifec&c#e+ repre$ent$ "n emer!in! $&nthe$i$ of ne) techno#o!ie$. The fr"me)or, c"n 'e u$ed to confi!ure di!it"# product "nd proce$$ de%e#opment techno#o!ie$ )hich "$$imi#"te de$i!n d"t"+ "t %"riou$ #e%e#$ of comp#etene$$+ )ith " hi!h de!ree of re"#Dtime me"$urement feed'"c, from the production en%ironment in order to %"#id"te the product($ to#er"nce $pecific"tion "nd the $e#ected production "nd "$$em'#& proce$$e$. It he#p$ to reduce the imp#ement"tion ri$, "nd $tre"m#ine the "$$em'#& "nd inte!r"tion proce$$e$. 6 0"ropou#o$+ + >h"n!+ Ch"pm"n+ 5r"m"## & Eo!er$+ 2==F8. 4%er& "cti%it& ; proce$$ in the %"#ue ch"in u$e$ $ome techno#o!& to com'ine r") m"teri"#$ or component$ "nd hum"n re$ource$ to produce $ome output. Dep#o&ment of techno#o!& in the %"#ue ch"in )ou#d en"'#e "n or!"ni-"tion to e.p#oit the techno#o!ic"# c"p"'i#itie$ in oper"tion$. :or e."mp#e the "doption of enterpri$e re$ource p#"nnin! 64EP8 $&$tem$ "cro$$ the %"#ue ch"in 6 in'ound #o!i$tic$+ oper"tion$ "nd m"r,etin! "nd $"#e$ "nd di$tri'ution 8 c"n 'e u$ed '& " firm to not on#& impro%e it$ in%entor& "nd fi.ed "$$et$ turno%er 'ut "#$o #e"d to efficiencie$ in m"r,etin!+ $"#e$ "nd di$tri'ution. 6 0"to#c$&+ 5ooth & 9eider+ 2==A8. The cu$tomer re#"tion$hip m"n"!ement 6CE08 %"#ue ch"in he#p$ to impro%e the efficienc& of firm$ '& or!"ni-in!+ "#i!nin! "nd inte!r"tin! the or!"ni-"tion proce$$e$ "#on! the %"#ue ch"in 'et)een the cu$tomer+ the firm "nd it$ e.tended enterpri$e. 6Ch"n+ 2==A8. Thi$ i$ $upp#emented '& cu$tomer inte##i!ence )herein the firm$ u$e %"riou$ techno#o!ie$ to co##ect d"t" P"!e C 8

"'out cu$tomer$ from %"riou$ $ource$ $p"nnin! "cro$$ "## "re"$ of "n enterpri$e throu!h m"n& different 'u$ine$$ proce$$e$ "nd in%o#%in! m"n& 'u$ine$$ unit$. 6 Ch"n+ 2==A 8. Inform"tion Techno#o!& u$ed in the %"riou$ proce$$e$ of the %"#ue ch"in "ffect$ po$iti%e#& the perform"nce of the proce$$e$ )hen it i$ not on#& $tr"te!ic"##& "#i!ned to the 'u$ine$$ $tr"te!& of the firm 'ut "#$o th"t it$ prim"r& #ocu$ 6the point in the %"#ue ch"in )here the imp"ct of IT imp"ct$ "re hi!he$t8 i$ in proce$$e$ th"t "re con$idered e$$enti"# for the e.ecution of e"ch 'u$ine$$ $tr"te!&. :or e."mp#e+ for $uperior perform"nce the #ocu$ of $tr"te!ic "#i!nment )ith inform"tion techno#o!& i$ in $"#e$ "nd m"r,etin! "nd cu$tomer re#"tion$hip$ for cu$tomer intim"te firm$. 6T"##on+ 2==F8. Therefore+ $e#ection of techno#o!& in thi$ dom"in focu$e$ not mere#& on the choice of $pecific techno#o!ie$ 'ut "#$o on the potenti"# for techno#o!& inte!r"tion. The e.tent to )hich the techno#o!& i$ "d"pted or "#tered $o "$ to $uit the need$ of the or!"ni-"tion "#$o determine$ the #e%e# of oper"tin! efficienc& "tt"ined '& the or!"ni-"tion. In f"ct+ firm$ u$in! %er& $imi#"r techno#o!ie$ mi!ht differ in the #e%e# of efficienc& dependin! on the techno#o!& $tr"te!& fo##o)ed "fter the initi"# "doption of techno#o!&.6 Der"ni&"!"#"+ 2==1+ >h"n! & Liu+ 2==F.8. echnical Support Inform"tion techno#o!& u$ed "$ " me"n$ of technic"# $upport c"n $er%e "$ "n import"nt me"n$ of cooper"tion 'et)een the different p#"&er$ "cro$$ the %"#ue ch"in "nd the ?endDu$er$B. 3ne of $uch e."mp#e$+ the 9or#d 9ide 9e' h"$ emer!ed "$ "n import"nt too# to not on#& pro%ide inform"tion to potenti"# cu$tomer$ 'ut "#$o en"'#e e"$& proce$$in! of e#ectronic tr"n$"ction$. The u$e of the 9or#d 9ide 9e' reduce$ $e"rch co$t$ "nd the time re2uired to $e"rch for potenti"# $upp#ier$. ?Tr"n$"ction"# )e'$ite$B inc#ude e#ectronic c"t"#o!ue$+ $hoppin! c"rt$+ p"&ment $&$tem$ "nd order tr"c,in! $&$tem$ th"t offer 'u&er$ " con%enient "nd co$tD effecti%e )"& to $upport the procurement proce$$ '& "##o)in! for the identific"tion "nd $e#ection of $upp#ier$ "nd the e.ecution of 'u$ine$$ tr"n$"ction$. 6 5en$#im"ne+ P#"i$"nt & 5ern"rd+ 2==A8. Dr"m"tic "d%"nce$ of inform"tion "nd communic"tion techno#o!& "$ " me"n$ of technic"# $upport "#$o h"$ inf#uenced the )"& or!"ni-"tion$ "n"#&-e cu$tomer inform"tion. 3r!"ni-"tion$ "re "#$o uti#i-in! IT interf"ce$ to "cce$$ hi$torie$ of inter"ction$ )ith p"rticu#"r cu$tomer$. Thi$ "!!re!"te inform"tion h"$ he#ped or!"ni-"tion$ to impro%e the 2u"#it& of cu$tomer inter"ction$. 6 De$ou-"+ G.C+ 1)"-u+ M. et."#.+ 2==8 8 4.ten$i%e ,no)#ed!e 6ne) "$ )e## "$ prior8 i$ re2uired "t %"riou$ $t"!e$ of the production c&c#e. <e) $oft)"re too#$ "ct "$ " me"n$ of c"pturin!+ repre$entin! "nd "pp#&in! "## t&pe$ of ,no)#ed!e for effecti%e de$i!n "nd technic"# $upport re2uired for production. 1ccordin! to T"tum 62==A8+ timin! of technic"# inform"tion i$ e.treme#& critic"# for effecti%e oper"tion$. Time#& technic"# re$pon$e to ch"n!ed condition$ "nd other fie#d pro'#em$ i$ "n e$$enti"# e#ement for $upport. I!T$R+A $ B$T,$$! I!!"VATI"! A!D T$ %!"&"'( STRAT$'( The firm($ inno%"ti%e "cti%itie$ ref#ect the firm($ techno#o!& $tr"te!& "nd the en"ctment of techno#o!& $tr"te!& $er%e$ to further de%e#op it$ inno%"ti%e c"p"'i#itie$. 65ur!e#m"n+ Chri$ten$en & 9hee#)ri!ht+ 2==48. The techno#o!ic"# inno%"tion proce$$ c"n 'e 'ro"d#& identified throu!h four $t"!e$ of pro'#em reco!nition+ techno#o!& $e#ection+ $o#ution de%e#opment "nd imp#ement"tion )hi#e techno#o!& $tr"te!& c"n 'e under$tood throu!h it$ $u'$t"nce "nd en"ctment. Succe$$fu# techno#o!ic"# inno%"tion 'e!in$ )hen " firm reco!ni-e$ the potenti"# of u$in! techno#o!& to $o#%e " p"rticu#"r pro'#em or fu#fi## m"r,et need$. Thi$ reco!nition h"$ to " cert"in e.tent@ root$ in the 'u$ine$$ $tr"te!& of the firm )hich determine$ the e.tent to )hich techno#o!& c"n 'e u$ed P"!e C 9

"$ " $ource of competiti%e "d%"nt"!e. Durin! the techno#o!& $e#ection $t"!e the comp"n& e%"#u"te$ different techno#o!ie$ )hich $h"## he#p the firm to come out )ith potenti"# de$i!n$. The choice of " p"rticu#"r techno#o!& "p"rt from 'ein! dependent on the e.tent the firm )"nt$ to u$e techno#o!& "$ " too# to compete "#$o depend$ on the co$t of techno#o!&+ the re$ource$ the firm )"nt$ to in%e$t in the techno#o!& "nd the di%er$it& of techno#o!& portfo#io )hich the firm fee#$ competent to h"nd#e. The $o#ution de%e#opment $t"!e c"n 'e identified "$ the oper"tion"#i-"tion of the potenti"# de$i!n$. Thi$ m"& proceed either '& formu#"tin! " ne) $o#ution from )ithin the firm '& in%e$tin! in intern"# E&D "cti%itie$ or '& "doptin! " re"d&D m"de $o#ution from out$ide. Thi$ deci$ion )hether to de%e#op $o#ution intern"##& or to $ource it from e.tern"# $ource$+ to " #"r!e e.tent i$ dependent on )hether the firm )"nt$ to h"%e " propriet"r& ri!ht on the $o#ution de%e#oped )hich )ou#d !i%e it " competiti%e ed!e "$ comp"red to other p#"&er$ in the m"r,et "nd "#$o on ho) the firm e%"#u"te$ the ?m",e or 'u&B deci$ion. The fu## 'enefit$ of techno#o!ic"# inno%"tion "re ne%er fu##& re"#i-ed unti# "nd un#e$$ the $o#ution i$ imp#emented either in the form of ne) product$ in the m"r,et or in the form of co$t reduction from impro%ed proce$$e$. The $tr"te!& of "n or!"ni-"tion )ith re$pect to the dep#o&ment of techno#o!& dri%e$ the imp#ement"tion of $o#ution for techno#o!ic"# inno%"tion. T",in! thi$ per$pecti%e+ )e c"n propo$e th"t techno#o!ic"# inno%"tion in "n or!"ni-"tion not on#& ref#ect$ the techno#o!& $tr"te!& of the or!"ni-"tion 'ut #oo,in! "t techno#o!ic"# inno%"tion throu!h the #en$ of $u'$t"nce "nd en"ctment of techno#o!& $tr"te!& )e c"n propo$e the fo##o)in!. 1p"rt from 'u$ine$$ $tr"te!&+ the $u'$t"nce of techno#o!& $tr"te!& dri%e$ the techno#o!& $e#ection $t"!e$ of techno#o!ic"# inno%"tion+ th"t i$+ in e$$ence+ the $u'$t"nce of techno#o!& $tr"te!& he#p$ to identif& )h"t of techno#o!ic"# inno%"tion. The en"ctment of techno#o!& $tr"te!& '& )"& of "ppropri"tion "nd dep#o&ment of techno#o!& ref#ect$ the $o#ution de%e#opment "nd imp#ement"tion $t"!e$ of techno#o!ic"# inno%"tion+ )herein it he#p$ to identif& the ho) of techno#o!ic"# inno%"tion. The $u'$t"nce of techno#o!& $tr"te!& "!"in dri%e$ the firm($ deci$ion )ith re$pect to de%e#opment of " $o#ution "nd imp#ement"tion of the $"me. The imp#ement"tion of techno#o!ic"# inno%"tion $hou#d $er%e "$ " $ource of feed'"c, to the firm to refine "nd modif& it$ techno#o!& $tr"te!&. 3r!"ni-"tion$ do not #"& do)n their techno#o!& $tr"te!ie$ in i$o#"tion. The !o%ernment "nd %"riou$ po#icie$ "nd re!u#"tion$ "re "mon!$t the %"riou$ en%ironment"# f"ctor$ )hich "ffect the or!"ni-"tion$( choice of techno#o!ie$. $++$ T "+ '"V$R!M$!T- ."&I I$S A!D R$'#&ATI"!S "! T$ %!"&"'( STRAT$'( Go%ernment po#ic& "nd %"riou$ ru#e$ "nd re!u#"tion$ h"%e "n imp"ct on the firm($ techno#o!& $tr"te!& "nd it$ effort$ to)"rd$ inno%"tion 'oth in term$ of fundin! "nd pro%i$ion of !uide#ine$ for de%e#opment. 3n " m"cro #e%e#+ $ome of the critic"# f"ctor$ "re po#icie$ undert",en to promote m"croeconomic $t"'i#it&@ po#icie$ en$urin! re$ource "##oc"tion in "ccord"nce )ith comp"r"ti%e "d%"nt"!e@ r"pid "ccumu#"tion of ph&$ic"# "nd hum"n c"pit"#@ de%e#opment of "!ricu#tur"# $ector "nd promotin! competent 'ure"ucr"cie$. 6 9e$tph"#+ 2==28. In Indi" there i$ " need to '"#"nce inno%"tion po#icie$ th"t $upport tr"dition"# indu$tr& "nd techno#o!& )ith po#icie$ th"t 'etter re$pond to i$$ue$ of competition "nd enterpri$e de%e#opment. 6 Ch"tur%edi+ 2==F8. 9hi#e the #i'er"#i-"tion me"$ure$ undert",en '& the Go%ernment of Indi" hit h"rd the Sm"## "nd 0edium 4nterpri$e$ 6S04$8 )ho found it h"rd to $ur%i%e the competiti%e pre$$ure+ the 2==6 'ud!et of the Go%ernment introduced " $peci"# pro%i$ion for impro%in! credit f#o)$ to the S04$.6 Ven,"t"r"m"n"i"h & P"r"$h"r+ 2==F8. :or e."mp#e in Chin"+ the Go%ernment i$ committed to dri%e " num'er of re!u#"tor& reform$ "nd in$titution"# ch"n!e$ )hich "re re2uired P"!e C 1=

to enh"nce Chine$e ,no)#ed!e cre"tion "nd inno%"ti%e c"p"'i#itie$. Thi$ !et$ m"nife$ted in the incre"$e in E&D $pendin!. 1'o%e "##+ the Iopen po#ic&( pr"cticed '& the Go%ernment rem"in$ the re"# ,e& to the ch"n!e in !ro)th d&n"mic$ "nd inno%"tion. 6Simon+ 2==F8. The re!u#"tor& '"rrier$ to entr& "#$o p#"& "n import"nt ro#e in determinin! the domin"nce of firm$ in cert"in $ector$. 6 Ch"t")"&+ T"it & 9ie#d+ 2==F8. Stren!thenin! of p"tent #")$ "#$o p#"&$ "n import"nt ro#e in tr"n$formin! or!"ni-"tion$ from imit"tor$ to inno%"tor$. 6G"#e. & Litt#e+ 2==F8. The incre"$in! import"nce of en%ironment"# i$$ue$ #e"d$ to techno#o!ic"# ch"n!e "nd or!"ni-"tion"# ch"n!e to en"ct it. 65oden+ 19948. IM.A T "+ "R'A!I/ATI"!A& +A T"RS "! I!!"VATI"! A!D T$ %!"&"'( STRAT$'( 1 re%ie) of #iter"ture on inno%"tion h"$ 'rou!ht out the import"nce of %"riou$ or!"ni-"tion"# f"ctor$ )hich cre"te " #e"rnin! en%ironment )hich promote$ inno%"tion. Tr"n$ition to " ne) techno#o!& )ithin the or!"ni-"tion f"ce$ not on#& fin"nci"# '"rrier$ 'ut " #ot of cu#tur"# "nd po#itic"# '"rrier$ too. Proce$$ techno#o!ie$ "re intim"te#& #in,ed not on#& to the product techno#o!ie$ 'ut "#$o to or!"ni-"tion"# f"ctor$. 6 E&cr"ft+ 2==68. 1n or!"ni-"tion"# en%ironment "nd cu#ture )hich promote$ #e"rnin! "nd de%e#opment of emp#o&ee$@ open communic"tion ch"nne#$ "nd #e"rnin! from cu$tomer$+ $upp#ier$ "nd e%en competitor$ i$ in " 'etter po$ition to inno%"te. It i$ throu!h #e"rnin! th"t "n or!"ni-"tion i$ "'#e to incre"$e the depth "nd di%er$it& of ,no)#ed!e. In f"ct+ hi!her the #e"rnin! "'i#it& of " firm+ hi!her i$ the #e%e# of comp"n&($ competiti%ene$$+ inno%"ti%ene$$ "nd product introduction $ucce$$. 6Meun!+ 1999@ 0or"#e$+ 0oreno.& 0onte$+ 2==F.8. 9i#$on 62==F8 introduced " ne) per$pecti%e of #e"rnin!K learning from "nd learning with e"ch other. In the former the $t",eho#der$ #e"rn thin!$ th"t "re "#re"d& ,no)n to other$ from )hom the& "re #e"rnin!. In other )ord$ thi$ in%o#%e$ " rec&c#in! of e.i$tin! ,no)#ed!e. Learning with i$ " co##"'or"ti%e "nd "cti%e proce$$ )hich in%o#%e$ cre"tion of ne) ,no)#ed!e. Such co##"'or"tion$ "nd net)or,$ not on#& promote continuou$ f#o) of inform"tion 'ut "#$o promote tru$t "nd reciproc"# re#"tion$hip$ )hich "re %"#u"'#e for r"pid#& inno%"tin! ,no)#ed!e inten$i%e techno#o!ie$. 6E&croft+ 2==68. Tr"inin! "nd de%e#opment pro!r"mme$ thou!h not con$idered "$ inno%"ti%e input$+ cou#d 'e e.p#icit#& re!"rded "$ one of the m"in ch"nne#$ to up!r"de the techno#o!ic"# c"p"'i#itie$ of firm$. 6Siri##i & 4%"n!e#i$t"+ 19988. The pro'#em $o#%in! c"p"'i#itie$ of ,no)#ed!e )or,er$ #ie in their educ"tion '"c,!round+ profe$$ion"# tr"inin!+ cre"ti%it& "nd moti%"tion. 1ppro%ed "nd focu$ed tr"inin! pro!r"m$ he#p in production of ne) ,no)#ed!e )hich there'& #e"d$ to inno%"ti%e $o#ution$ "nd m"n"!ement of ch"n!e. 64!'u+ 2==68. 0oreo%er+ due to ch"n!e of techno#o!& from m"nu"# )or, to " hi!h !r"de of "utom"tion due to "d%"nced techno#o!& there h"$ 'een "n incre"$e in dem"nd for hi!h#& $,i##ed )or, force. 6 Chroneer & Sten#und+ 2==6@ Soh"i#. 199F8. Tr"inin! of emp#o&ee$ "nd de%e#opment of ch"mpion$ "#$o en"'#e$ "d%"nced too#$ to 'ecome em'edded in the product$ "nd proce$$e$ of the or!"ni-"tion. 65"rc-",+ Su#t"n & Hu#tin,+ 2==F8 Irre$pecti%e of or!"ni-"tion($ $tr"te!& to de%e#op techno#o!& in$ide or to $ource from out$ide+ it $hou#d pro%ide u$er$ )ith $ufficient "nd "ppropri"te educ"tion "nd tr"inin! on the ne) techno#o!& $o "$ to m",e the "doption $u$t"in"'#e. Ch"n!e in the mindD$et of emp#o&ee$ from ?<ot In%ented Here S&ndromeB to ?In%ented 1n&)here S&ndromeB "#$o promote$ h"rne$$in! of e.tern"# techno#o!& for inno%"tion. 69it-em"n+ S#o)in$,&+ Dir,.+ Go##o'+ T"o+ 9"rd & 0ir"!#i"+ 2==68. Techno#o!& dep#o&ed in the %"#ue ch"in re2uire$ interDfunction"# inte!r"tion. Therefore or!"ni-"tion"# ch"r"cteri$tic$ )hich encour"!e *o' rot"tion "nd interDdi%i$ion"# te"m$ )i## en$ure P"!e C 11

th"t "## the emp#o&ee$ "re $e"m#e$$#& inte!r"ted in " $upp#& ch"in "nd "re con$t"nt#& #e"rnin! )ith "n "im to promote inno%"tion. The$e te"m$ de%e#op " t"cit ,no)#ed!e of ho) to h"nd#e critic"# $itu"tion$. Sh"red 'et)een it$ mem'er$+ thi$ t"cit ,no)#ed!e m"& "#$o determine the efficienc& of the comp"n&. 6Chroneer & Sten#und+ 2==68. 4.ecution of techno#o!& $tr"te!& $o "$ to #e"d to inno%"tion re2uire$ ch"n!e in the $et procedure$ in the or!"ni-"tion. Thi$ up$et$ the $t"tu$ 2uo "nd often in%ite$ re$i$t"nce from the emp#o&ee$. Cro$$ function"# communic"tion "nd cooper"tion en"'#e$ " ch"n!e in the mind$et of emp#o&ee$ "nd m",e$ them more f#e.i'#e to ch"n!e$. 6C"#"'re$e+ 19998. It "#$o promote$ cro$$D di$cip#in"r& #e"rnin! 'oth )ithin "nd "cro$$ 'ound"rie$ of the firm. Hetero!eneit& of ,no)#ed!e+ ,no)Dho) "nd e.perti$e "%"i#"'#e c"n incre"$e the cre"ti%it& #e%e# of emp#o&ee$. 6 Eod"n & G"#unic+ 2==48. Communic"tion )ith $t",eho#der$ out$ide the or!"ni-"tion "#$o he#p$ "n or!"ni-"tion to de%e#op it$ d&n"mic c"p"'i#itie$ )hich ref#ect "n or!"ni-"tion($ c"p"cit& to de%e#op ne) "nd inno%"ti%e form$ of competiti%e "d%"nt"!e "nd $&ner!i$tic inno%"ti%e c"p"'i#it&. 61&u$o+ Eodri!ue- & Eic"rt 2==6@ Per$"ud 2==A8. 3r!"ni-"tion"# #e"rnin! t",e$ p#"ce on#& )hen ,no)#ed!e i$ tr"n$ferred throu!hout the or!"ni-"tion+ inte!r"ted )ith other ,no)#ed!e "re"$ "nd "pp#ied to " ne) product or proce$$. 6Ge$$#er+ 5ier#& & Gop"#",ri$hn"n+ 2===8. 3r!"ni-"tion"# ,no)#ed!e )hich i$ em'edded in the inter"ction$ 'et)een emp#o&ee$ of the firm "nd "#$o 'et)een emp#o&ee$ "nd e.tern"# $t",eho#der$ "re "n import"nt $ource for pro*ect ide"$ th"t pro%ide input for techno#o!& $tr"te!&. 60e&er+ 2==88. 1ddition"##& incenti%e $cheme$ "nd re)"rd$ for $h"rin! ,no)#ed!e "re import"nt mech"ni$m$ to encour"!e emp#o&ee$ to $h"re inform"tion "nd e.perience$ )ith e"ch other. It not on#& enh"nce$ the or!"ni-"tion$ ,no)#ed!e '"$e 'ut "#$o enh"nce$ the $pirit of te"m)or,. It "#$o he#p$ emp#o&ee$ to under$t"nd )here the& fit into the co##ecti%e dimen$ion of the )or,p#"ce. 6H$u 2==6@ Ee-!ui 2==F8. Incenti%e "nd perform"nce me"$urement $&$tem$ th"t re)"rd cooper"tion "nd co##ecti%e "chie%ement$ in$te"d of indi%idu"# perform"nce+ on#& )i## #e"d to continuou$ enrichment "nd "pp#ic"tion of indi%idu"# ,no)Dho). 6 H"rr&$on+199F8. 1nother import"nt or!"ni-"tion"# f"ctor )hich h"$ " profound imp"ct on the inno%"ti%e "cti%it& i$ the o%er"## or!"ni-"tion $tructure. In "ddition to the tr"dition"# hier"rchic"# $tructure$ "nd the f#"t te"m '"$ed $tructure$ )hich promote form"# re#"tion$hip$+ there i$ "n incre"$in! trend to)"rd$ inform"# re#"tion$hip$ )hich $p"n 'e&ond or!"ni-"tion"# 'ound"rie$. 69"n! & 1hm"d+ 2==78. 3r!"ni-"tion$+ $hou#d no #on!er !u"rd their ,no)#ed!e in p&r"mid"# $tructure$+ 'ut $hou#d form #e"rnin! net)or,$ )hich $p"n !eo!r"phic"# #oc"tion$ "nd or!"ni-"tion"# 'ound"rie$. Thi$ )ou#d en"'#e them to 'e more "!i#e "nd re$pon$i%e to inno%"tion$. ?9h"t or!"ni-"tion$ need i$ " )i##in!ne$$ to e.periment )ith "#tern"ti%e $cheme$ in$te"d of the ri!id hier"rchic"# $tructure of mo$t or!"ni-"tion$.B 6Go#dm"n+ 198A+ p.88. 1ccordin! to 6 :io# & L&#e$+ 198A8 " centr"#i-ed or!"ni-"tion $tructure inhi'it$ the intern"# #e"rnin! proce$$ "nd m",e$ diffu$ion of ,no)#ed!e difficu#t "cro$$ the or!"ni-"tion. 6 "$ cited in Ge$$#er+ 5ier#& & Gop"#",ri$hn"n+ 2===8. :orm"#i-"tion refer$ to the e.tent to )hich *o'$ )ithin the or!"ni-"tion "re $t"nd"rdi-ed. If " *o' i$ hi!h#& form"#i-ed the incum'ent doe$ not h"%e much di$cretion re!"rdin! )h"t *o' i$ to 'e done+ ho) it i$ to 'e done or )hen it i$ to 'e done. Prior re$e"rch Gro%er 619978 indic"te$ th"t the de!ree of centr"#i-"tion i$ ne!"ti%e#& re#"ted to inno%"tion. Hi!h centr"#i-"tion of deci$ion m",in! #e"%e$ #itt#e "utonom& in the h"nd$ of the te"mDmem'er$ )ho thu$ re$i$t "n& "ttempt$ of inno%"tion '& the or!"ni-"tion. 1utonom& on the other h"nd+ moti%"te$ the emp#o&ee$ to tr& out ne) too#$ "nd techni2ue$ for the $ucce$$ of "n& product or proce$$ P"!e C 12

de%e#opment. 6"$ cited in 5"rc-",+ Su#t"n & Hu#tin,+ 2==F8. 1 con$en$u$ dri%en $tructure )here hori-ont"# "nd %ertic"# communic"tion i$ re2uired deter$ imp#ement"tion of ri$,Dt",in! $tr"te!ie$ )here"$ " hier"rchic"# $tructure )here deci$ionDm",in! "nd $tr"te!& formu#"tion po)er i$ concentr"ted in " fe) h"nd$ promote$ " ri$,Dt",in! cu#ture. It "#$o promote$ the "doption of r"dic"# proce$$ inno%"tion$. 6Hemmert+ 2==8@ 4tt#ie+ 5rid!e$ & 3OGeefe+ 19848. The deci$ion$ re#"tin! to techno#o!& $tr"te!& "re u$u"##& the dom"in of the top m"n"!ement. 6Soh"i#+ 199F8. It i$ the top m"n"!ement )hich p#"&$ " %er& import"nt ro#e in 'ui#din! " cu#ture of #e"rnin! "nd inno%"tion. The "ttitude$+ '"c,!round$ "nd per$on"#itie$ of the Chief 4.ecuti%e "nd the !roup of $enior e.ecuti%e$ )ho $urround him determine the cu#ture+ tr"dition$ "nd per$on"#it& of the corpor"tion. ?9hen the top m"n"!ement i$ ri!id+ con$er%"ti%e+ dri%en '& the num'er$ "nd the E3I$+ one i$ not #i,e#& to $ee the e#ement of ri$, t",in! th"t "n inno%"ti%e comp"n& dem"nd$.? 6 Go#dm"n+ 2==A+ p.98. Inno%"tion #e"der$hip re2uire$ " #ot of communic"tion "nd con%incin! unti# the %i$ion h"$ 'een "'$or'ed throu!hout the or!"ni-"tion. The pre$ence of ch"mpion$ of p"rticu#"r techno#o!ie$ "#$o determine$ the $i!nific"nt "doption of r"dic"# inno%"tion proce$$e$. 6 4tt#ie+ 5rid!e$ & 3OGeefe+ 19848 . 4ffecti%e #e"der$ "#$o p#"& "n import"nt ro#e in encour"!in! the or!"ni-"tion to incorpor"te e.tern"# $ourcin! of techno#o!& for inno%"tion into the %er& f"'ric of the firm. The& "rticu#"te %i$ion"r& !o"#$ of comp#ementin! intern"# $ource$ )ith e.tern"# $ource$ to "chie%e inno%"tion "nd !ro)th. The$e #e"der$ re)"rd emp#o&ee$ for effecti%e u$e of e.tern"# $ource$. 69it-em"n+ S#o)in$,&+ Dir,.+ Go##o'+ T"o+ 9"rd & 0ir"!#i"+ 2==68. Thi$ imp#ie$ ?cu#tureB+ " $oft $ide need$ to 'e de%e#oped "#on! )ith form"# $tr"te!ie$ "nd $tructure$ )ithin firm$. 5ur!e#m"n & Eo$en'#oom$ 619898+ e%o#ution"r& proce$$ fr"me)or, for techno#o!& $tr"te!& repre$ent$ $tr"te!& m",in! "$ " $oci"# #e"rnin! proce$$ )herein techno#o!& $tr"te!& i$ inherent#& " function of the 2u"ntit& "nd 2u"#it& of or!"ni-"tion"# c"p"'i#itie$. 6 H"mp$um & T"tum+ 199F 8. A "! $.T#A& +RAM$,"R0 5"$ed on the "'o%e di$cu$$ion$+ " mode# i$ 'ein! propo$ed. Thi$ mode# e.p#"in$ the re#"tion$hip 'et)een techno#o!& $tr"te!&+ techno#o!ic"# inno%"tion "nd or!"ni-"tion"# f"ctor$. Techno#o!ic"# inno%"tion in "n or!"ni-"tion i$ dri%en '& it$ techno#o!& $tr"te!& )hich h"$ it$ root$ in the 'u$ine$$ $tr"te!& of the firm. :eed'"c, o't"ined from imp#ement"tion of techno#o!ic"# inno%"tion "nd the e%o#ution of techno#o!& $hou#d form the '"$i$ for the or!"ni-"tion to re%i$e it$ techno#o!& $tr"te!&. The ro#e of the Go%ernment "$ )e## "$ the %"riou$ directi%e$ h"$ "n imp"ct on the firm($ techno#o!& $tr"te!&. 3r!"ni-"tion"# f"ctor$ p#"& " critic"# ro#e in cre"tin! " #e"rnin! en%ironment to promote inno%"tion. 1 'iDdirection"# "rro) 'et)een techno#o!& $tr"te!& "nd or!"ni-"tion"# f"ctor$+ "nticip"te th"t it i$ not on#& the firm($ techno#o!& $tr"te!& )hich h"$ "n effect on the %"riou$ or!"ni-"tion"# f"ctor$ 'ut %"riou$ f"ctor$ #i,e the e.perti$e #e%e# "nd "ccumu#"ted e.perience of emp#o&ee$ p#"& "n import"nt ro#e )ith re$pect to the firm($ choice of techno#o!& for imp#ement"tion. The outcome effect$ of techno#o!ic"# inno%"tion c"n 'e me"$ured "$ or!"ni-"tion"# perform"nce )ith re$pect to it$ oper"tion$ "nd 'u$ine$$ imp"ct )ith re$pect to profit. The mode# 6:i!ure 1 8 h"$ to 'e empiric"##& te$ted out for it$ fe"$i'i#it&. "! &#SI"!

P"!e C 17

Thi$ p"per h"$ propo$ed " mode# for e.p#orin! the re#"tion$hip 'et)een techno#o!& $tr"te!& "nd techno#o!ic"# inno%"tion. Techno#o!& $tr"te!& c"nnot )or, in i$o#"tion to #e"d to inno%"tion. It $hou#d 'e comp#emented '& %"riou$ or!"ni-"tion"# f"ctor$ for competiti%e "d%"nt"!e. Techno#o!& $tr"te!& of "n or!"ni-"tion c"n 'e under$tood '& "n"#&-in! the techno#o!ic"# inno%"tion proce$$. The p"per hi!h#i!ht$ the import"nce of com'inin! $tr"te!ic "nd oper"tion"# #e%e#$ of "n"#&$i$. Thi$ mode# )ou#d he#p m"n"!er$ to m"n"!e their inno%"tion$ 'etter '& pur$uin! "ppropri"te techno#o!& $tr"te!& for inno%"tion. HE "nd tr"inin! & de%e#opment po#icie$ c"n 'e modu#"ted $o "$ to $upport the techno#o!& $tr"te!& for inno%"tion$. 1 $&ner!& 'et)een m"n"!ement of techno#o!& "nd m"n"!ement of $ofter "$pect$ )ou#d 'enefit the or!"ni-"tion. Ho)e%er+ $ince the mode# h"$ 'een propo$ed on the '"$i$ of #iter"ture re%ie) it need$ to 'e e#"'or"ted "nd refined throu!h $&$tem"tic re$e"rch. +I'#R$ 1

Business Strategy
(Gap nalysis!

Government policies Technology Rules & Regulations Strategy Organizational Factors

Technological Innovation

Performance Operational Business

P"!e C 14

R$+$R$! $S
1ntoniou+ P.H. & 1n$off+ H.I. 62==48. Str"te!ic m"n"!ement of techno#o!&. Techno#o!& 1n"#&$i$ & Str"te!ic 0"n"!ement+ 16628+ 2FAD291.

1&ueo+ S.+ Eodri!ue-+ 0.1.+ "nd Eic"rt+ L.4. 62==68. Ee$pon$i'#e competiti%ene$$ "t the ?microB #e%e# of the firm. J$in! $t",eho#der di"#o!ue "$ " $ource of ne) ide"$ K " d&n"mic c"p"'i#it& under#&in! $u$t"in"'#e inno%"tion. Corpor"te Go%ern"nce+ 6648K 4FAD49=. 5"rc-",+ G.+ Su#t"n+ :.& Hu#tin,+ 4.L. 62==F8. Detremin"nt$ of IT u$"!e "nd ne) product perform"nce. Lourn"# of Product Inno%"tion 0"n"!ement+ 24+ 6==D617
5"$"nt+ E. & Ch"ndr"+ P.62==28. 5ui#din! Techno#o!ic"# c"p"'i#itie$ in " #i'er"#i$in! de%e#opin! econom& K firm $tr"te!ie$ "nd pu'#ic po#ic&. 4conomic$ of inno%"tion ne) techno#o!&+ 1164DA8+ 799D421.

5"$"nt+ E. 6199F8. 1n"#&$in! Techno#o!& Str"te!&. Some I$$ue$. 4conomic "nd Po#itic"# 9ee,#&+ 726488+ 111D12=. 5en$#im"ne+ M.+ P#"i$"nt+ 0.& 5ern"rd+ P. 62==A8. In%e$ti!"tin! Se"rch Co$t$ "nd Coordin"tion Co$t$ in 4#ectronic 0"r,et$ K 1 Tr"n$"ction Co$t$ 4conomic$ Per$pecti%e.+ 4#ectronic 0"r,et$+ 1A 678+ 217D224. 5erm"n+ S.L. & H"!"n+ L. 62==68. Ho) techno#o!&Ddri%en 'u$ine$$ $tr"te!& c"n $pur inno%"tion "nd !ro)th. Str"te!& & Le"der$hip+ 74628+ 28D74.
5oden+ 0.619948. Shiftin! the $tr"te!ic p"r"di!m K the c"$e of the c"t"#&tic con%erter. Techno#o!& 1n"#&$i$ & Str"te!ic 0"n"!ement+ 6628+ 1994. 5ond+ 4.J. & Hou$ton+ 0.5. 62==78.5"rrier$ to m"tchin! ne) techno#o!ie$ "nd m"r,et opportunitie$ in e$t"'#i$hed firm$. The Lourn"# of Product Inno%"tion 0"n"!ement+ 2=+ 12=D17A. 5one+ S. & S".on+ T. 62===8. De%e#opin! effecti%e techno#o!& $tr"te!ie$. Ee$e"rch Techno#o!& 0"n"!ement+ 47648+ A=DA8.

5ur!e#m"n+ E.1.+ Chri$ten$en+ C.0. & 9hee#)ri!ht+ S.C. De$i!n "nd Imp#ement"tion of Techno#o!& Str"te!& K 1n 4%o#ution"r& Per$pecti%e K 1 !ener"# 0"n"!ement per$pecti%e in Str"te!ic m"n"!ement of Techno#o!& "nd 0"n"!ement+ 4th. 4dition+ p.7.
C"#"'re$e+ G. 619998. 0"n"!in! inform"tion in product de%e#opment. Lo!i$tic$ Inform"tion 0"n"!ement+ 12668K 479D4A=. C"$um"no+0.1.619868Di%er$it& "nd inno%"tion in L"p"ne$e techno#o!& m"n"!ement. In E. S. Eo$en'#oom "nd E.1. 5ur!e#m"n 6ed$.8. Ee$e"rch on Techno#o!ic"# Inno%"tion+ 0"n"!ement "nd Po#ic&+ 7+ 17FD16F. Ce$"roni+: 62==78. Techno#o!& $tr"te!ie$ in the ,no)#ed!e econom&K the #icen$in! "cti%it& of Himont. Intern"tion"# Lourn"# of Inno%"tion m"n"!ement+ F628+ 227D24A. Ch"m"n$,i+1. & 9""!o+ S.L. 62==18. 3r!"ni-"tion"# perform"nce of techno#o!&D'"$ed firm$ D The ro#e of techno#o!& "nd 'u$ine$$ $tr"te!ie$. 4nterpri$e "nd Inno%"tion 0"n"!ement Studie$+ 2 678+ 2=AD227.

Ch"n+ L.3. 62==A8. To)"rd " unified %ie) of cu$tomer re#"tion$hip m"n"!ement. The Lourn"# of 1meric"n 1c"dem& of 5u$ine$$+ 2A+ 72D78.
Ch"t")"&+ L.+ T"it+ L. & 9ie#d+ D.62==F8 :r"me)or,$ for ph"rm"ceutic"# inno%"tion in de%e#opin! countrie$ D the c"$e of Indi"n Ph"rm". Techno#o!& 1n"#&$i$ & Str"te!ic 0"n"!ement+ 196A8+ 69FDF=8. Ch"t")"&+ L.+ T"it+ L. & 9ie#d+ D.62==F8 :r"me)or,$ for ph"rm"ceutic"# inno%"tion in de%e#opin! countrie$ D the c"$e of Indi"n Ph"rm". Techno#o!& 1n"#&$i$ & Str"te!ic 0"n"!ement+ 196A8+ 69FDF=8. Ch"tur%edi+ S. 6 2==F8.4.p#orin! inter#in,"!e$ 'et)een n"tion"# "nd $ector"# inno%"tion $&$tem$ for r"pid techno#o!ic"# c"tchDupK c"$e of Indi"n 'ioph"rm"ceutic"# indu$tr&. Techno#o!& 1n"#&$i$ & Str"te!ic 0"n"!ement+ 196A8+ 647D6AF.

P"!e C 1A

Chri$ten$on+ L.:.62==28.Corpor"te Str"te!& "nd the m"n"!ement of techno#o!& "nd inno%"tion. Indu$tri"# & Corpor"te ch"n!e+ 11628+ 267D288.

P"!e C 16

i

De$i!n "nd Imp#ement"tion of Techno#o!& Str"te!& K 1n 4%o#ution"r& Per$pecti%e in 5ur!e#m"n+ E.1.+ Chri$ten$en+ C.0. & 9hee#)ri!ht+ S.C. Str"te!ic m"n"!ement of Techno#o!& "nd 0"n"!ement+ 4th. 4dition+ p.14A.
ii

Techno#o!& Str"te!& K 3%er%ie) in <"r"&"n"n+ V.G. 0"n"!in! Techno#o!& "nd Inno%"tion for Competiti%e 1d%"nt"!e+ Pe"r$on 4duc"tion Inc. p.261.

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