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Int. J. Technology Management, Vol. 14, No. 5, 1997 539
Strategic management of technology – a glimpse

of literature
Zafar Husain and Sushil

Department of Management Studies, Indian Institute of Technology, Hauz
Khas, New Delhi - 110 016, India
Abstract: A literature review exercise was undertaken to identify the research

issues in the area of Management of Technology. The articles reviewed have
been grouped under seven headings which are strategic management of
technology, technology planning and forecasting, technology transfer and
acquisition, development and innovation management, technology and
organizational issues, adoption and implementation of new technologies, and
technology management: implications for developing countries. A brief review
of technology management in the automobile industry has also been presented.
Keywords: Strategic management of technology; technology transfer;

innovation management; implications for developing countries.
Reference to this paper should be made as follows: Husain, Z. and Sushil,

(1997) ‘Strategic management of technology - a glimpse of literature’, Int. J.
Technology Management, Vol. 14, No. 5, pp.539—578.
Biographical notes: Zafar Husain is Reader (Assistant Professor) at Devi

Ahilya University (DAU), Indore and presently involved in a research
assignment on strategic management of technology in the Indian automobile
industry at Indian Institute of Technology, Delhi (IITD). He has published
research articles in journals including Technology Management, Maryland,
USA. He was instrumental in starting the Master of Computer Management
(MCM) programme at DAU. He has consulted widely in Indian private
industrial organizations. He is a recipient of Rotary Foundation’s Group Study
Exchange Fellowship to Utah, USA. His active area of research interest is
management of technology in developing countries.
Dr. Sushil is Professor of strategic, flexible systems, and technology
management. He is currently the head of department of management studies,
11TD. He has over 100 publications in various journals and conferences. Some
representative journals are Systems Practice, System Research, Technology
Management, European Journal of Operations Research, International Journal
of Production Research, etc. He has acted as consultant to both governmental
and private industrial organizations. He has a special interest in flexibility in
management and has also proposed a situation-actor-process-learning-action-performance
(SAP-LAP) model for management.
_________________________________________________________________________
1 Introduction
In recent years scenario managers have been told by management gurus that
‘Technology Strategy’ has joined the ever-lengthening list of concerns which demand
their majority
Copyright © 1997 lnderscience Enterprises Ltd.

540 Z. Husain and Sushil
attention [1]. This has caused a fair amount of concern in management circles to work in the area of
technology management. We start with a working definition of Technology and Management of
Technology.
Technology defined: “The classical definitions of ‘Technology’ speak of application of science, the
entire body of methods and materials, and other characteristics related to it. Any technology has
clearly three identifiable components:
• Hardware: the physical/logical plant (machine, equipment, contrivance); the means of carrying
out the tasks to achieve objectives or goals. Hardware includes not only to
the physical structure of components, but their logical layout also.
• Software: the set of rules, guidelines, and algorithms necessary for using the
hardware, i.e. the know-how to carry out tasks to achieve goals or pursue objectives.
• Brainware: The purpose (objectives and goals), the application, and the justification of
hardware/software deployment, the know-how and know-why of technology”.
Noon and Radford [2] say that these three components are interdependent, codeterminant, and
equally important: their relationship is circular and not linear or hierarchical.
Management of Technology defined: “Management of Technology links engineering, science,

marketing, operations, human resources, and other management disciplines to formulate strategy,
develop technological capabilities, and use them to achieve strategic objectives” [3].
2 Strategic management of technology
2.1 Technology strategy
In western countries the investment in technology and technological innovations is at an all time
high. Japanese firms are spending 30% more on technological innovations and R&D activities than
their US counterparts. As a result there has been increased interest in the 1990s among the
management scholars, and practitioners in the role of technology in matters such as corporate
strategy, global competition, strategic alliance, core competence, resource leverage [4] and the like.
Pavitt [5] has suggested four characteristics of technological innovation activities in an
organization. Such activities involve continuous and intensive collaboration and interaction among
functionally and professionally specialized groups. They remain profoundly uncertain activities.
They are cumulative in nature. Lastly, they are highly differentiated.
According to him, the strategic management tasks are to find and maintain a stable product niche
and to systematically benefit from user experience. In R&D based technologies, the key
opportunities are for horizontal diversification into new product markets. According to him the firms
do not have a free choice about whether or not to be broad front or specialized, product or process
oriented. Similarly they do not have a completely free hand about being a leader or a follower. In
many areas, it is not clear before the event who all are in the innovation race, where the starting and
finishing lines are, and what the race is all about.
Strategic management of technology - a glimpse of literature 541
Despite all these constraints the strategic technology management should indicate the future
direction as to where the organization would like to be. The author has not suggested contents of
technology strategy but have mentioned about the criticism of the contained view of technological
strategy. The author has concluded that conventional wisdom from business school and management
consultants about technology strategy is irrelevant and even misleading. According to him the
successful management of technology requires the capacity to orchestrate and integrate functional
and specialist groups for the implementation of innovations, continuous questioning of the
appropriateness of exploitation of existing technology and a willingness to take a long view of
technological accumulation within the firm.
Frohman [6] has explained that what may happen when an organization does not consider
inclusion of technology in its business plans. The author has also suggested that strategic planning
cannot anticipate all technical developments or their impact on markets and products. But when
strategic planning systematically considers technology forecasts and assessments relevant to both
market needs and opportunities, technology can become an effective competitive weapon. A
framework for incorporating technological issues into business strategy has been proposed, which
consists of four steps that are:
1 “Identifying the organization’s distinctive technological competence(s),
2 identify technology that contributes or will contribute to business success,
3 coordinating business goals and technological implications, and
4 aligning systems for implementation”.
Corporate strategy often focuses on financial and marketing factors and neglects the technology as
the key resource to be planned [7]. A key to bridging the gap lies in re positioning the technology as
a strategic resource in the business planning process. The emerging principles which could help in
integrating technology and strategic planning are anticipation of direction and timing of technology,
technology to be viewed as a capital assets, and assuring congruence of investment in technology
and business strategy to successful technology management.
What is technology strategy? The answer to this burning question has been attempted by Ford
[1].
“It consists of policies, plans and procedures for acquiring knowledge and ability,
managing that knowledge and ability within the company and exploiting them for profits.
Technology strategy is not the same as R&D strategy which is concerned only with
acquiring technology through in-house activities.”
It is further explained that technology strategy is that aspect of overall business strategy which is
concerned with exploiting, developing and maintaining the sum total of the company’s knowledge
and abilities. The author has also proposed a methodology for framing a technology strategy in
which it is suggested the auditing of distinctive technologies which a company possesses, its
strengths in basic technologies of the product(s) which the organization manufactures or markets or
both, and the external technologies which are either existing or there is reasonable chance of it being
a successful one. He has also recommended auditing of customers’ know ledge particularly in
industrial and hi-tech products and stage of technology in the technology life cycle. The author is a
proponent of the idea that the technologies no more in use within the organizations should be phased
out by finding a suitable market for such ‘old
542 Z Husain and Sushil
technologies’. Technology strategy may have three elements, strategy for technology acquisition,
strategy for technology exploitation, and strategy for technology management. Finally, the article
concludes with a suggestion that the chief executive officers to ensure that long-term technology
acquisition and exploitation of technology portfolios are seen as the organizations’ primary
purposes.
Wilson [8] in his brief comment on strategic management of technology leaves no doubts about
considering the technology management as a function at par with other classic functions of
management. The author observes that
“Technology strategy. (no matter how broadly defined) is itself but one part of an overall
business strategy. I have often linked business strategy to a cable, made up of interwoven
strands (a marketing strategy, a manufacturing strategy, a human resource strategy, etc.)
bound closely together to give greater tensile strength to the whole. A technology strategy,
therefore, like any other functional strategy, must always be conceived and implemented
within the context of the overall strategic management of the business.”
Sethi and Hickey [9], through their study have proposed a methodology for inserting the strategic
approach for technology management function into overall business planning process. The
methodology evolved by them will go a long way in strategically managing the technology function
of the present and future organizations. The author has argued on technology management to be
performed as investment planning in business. In their work on technology investment priorities,
some interesting issues have been raised related to the products which are already in the market but
in different quadrants of growth and market share (BCG) matrix.
Managers in this technology age wish to wed the scientific and technical knowledge with
existing strengths of the firms which may lie in engineering, in marketing, in human resources, in
manufacturing, or in any combination of these functions [10]. They also want to make better choices
in selecting new technologies for development and especially want to minimize the time required
between development in the laboratory and commercialization. In meeting these challenges, the
practising managers have shown use of some fascinating principles like for example, know the
technological core and link it to strategic intent, take a global view of technical competence, and
time of the essence which may form the essential components of the technology strategy.
Banerjee and Krishnamoorthy [11] describe the perfect operation of joint venture depends on
internal policy decisions, carrying out of meaningful market research, the proper selection of a
partner, proper maintenance of support teams and staff, and an effective feasibility study. They have
suggested the implications of joint venture partnerships coming up in developing countries in
formulating technology strategy. The two partners coming together pool their funds and
technological resources for the mutual benefit of each other. As an alternative to joint venture
partnership the direct foreign investment has been discussed for its advantages and various risk
factors associated with it to be considered for technology strategy formulation.
Erickson et al [12] have suggested that the short-term profit motives should not be able to derail
the long range plans of R&D of a firm. The strategic management of technology calls for focus on
developing technologies that supports a firm’s products and markets. A balance has to be struck in
new technology development and incremental improvements in existing product lines and adapting
old products for new markets which brings down business risk and improves profitability. The
authors have also outlined the goal of strategic technology management as a contributor to the firm’s
value by
improving the cash flows and thereby assuring the continued growth. It should also be purposeful
and must always be connected with the firm’s overall business strategy. The advantages and
disadvantages of joint ventures have been described with special reference to the organizations
based in developing countries. The problems which have been highlighted draw attention towards
the understanding and the grasp of the organizations which are going in for the joint venture
partnership. Such organizations seem to work towards short term advantages and not focusing on
building a successful competitive advantage using the acquired technology. The firms must also
learn how to utilize the strategic alliance as a mode of learning new technologies and building a
sound technology base. The market advantage can prove to be temporary while technology
advantage can turn out be a long lasting and permanent in nature. In the process of taking the
advantage they need to protect themselves from technological deskilling and work towards
assimilation of new sources of technologies, skills, and core competencies.
In interesting and extensive research carried out at International Motor Vehicle Programme
(IMVP) based at MIT, strategic options for automobile manufacturers in the global market were
considered [13]. The empirical study has considered the ‘post -Japanese’ model for stud y and has
taken into account factors like developments in industry, stronger vertical and horizontal integration,
multi-market presence, global sourcing and global operations, new manufacturing technologies and
techniques, size of the industry, growth rate, resource concentration, ownership and international
operations, technology, pressures of change, supply policies, economies of scale, and implications
for the components industry.
Jones [14] has discussed the importance of having a technology strategy in long run for a
developed country like Australia. The author has suggested a broad framework for preparing the
national technology strategy. The factors which may be taken into consideration while working out a
long term national technology strategy are development capabilities, manufacturing culture, need to
improve R&D, education planning, and venture capital and financial markets.
2.2 Technology management and corporate strategy
Corporate strategy can be seen as interaction of four major components which are portfolio
management, restructuring, transferring skills, and sharing activities [15]. Moving from competitive
strategy to corporate strategy is like passing through the Bermuda Triangle where the failure rate is
higher than the success rate. The corporate strategy which increases the competitiveness of the firm
is the best defence against the raiders and takeovers. Technology and its effective management also
support the competitiveness of various business units of the firm and therefore takes pressure from
the corporate strategy. But technology strategy must figure in corporate strategy.
Hamel and Prahalad [16] have defined ‘strategic intent’ as the obsession to win at all levels of
the organization and sustain this spirit of wining for substantial period of time. The authors have
indicated that the organizations those which have emerged as global leaders in their respective
sectors of industry, started with the ambitions that were out of all proportions to the resources they
had at their disposal. But what they have created is the obsession with winning and eventually
satisfying the quest for global leadership.
Strategic intent of CEO who sets ambitious targets for a period of time, relentlessly develops the
firm’s capabilities, and transforms the b asis of competition to its advantage.
In extremely dynamic industries, alignment between the strategic intent and strategic action is not
likely to last long. Strategic action either lead or lag the strategic intent over time. Such divergence
between intent and action has been termed as ‘strategic dissonance’ [17].
In an exclusive global study undertaken at Sloan School of Management and supported by the
International Centre for Research in Management of Technology (ICRMOT), it was concluded that
technological advantage can be realized by effectively linking the technology strategy with overall
corporate strategy and leveraging internal technology with an increasing number and variety of
external technology sources [18]. The study reveals that CEOs of Japanese firms play a more
prominent role in the process of technology strategy development, project selection and
prioritization, internal resource allocation, and selection of outside technological investment
proposals. The CEOs of Japanese firms involve themselves more rigorously in linking the two
strategies than their North American and European counterparts. The study has taken into
consideration 244 organizations which are spending 80% of the total money invested in R&D in
North American, European, and Japanese firms. The importance of technology management in
Japanese firms can be estimated from a simple fact that in 95% of the firms included in the sample
were having their Chief Technology Officers (CTOs) on the board of directors. Maybe it is one of
the important reasons behind Japanese global success on the technology front. Green [19]
empirically proves the importance of involvement of top management and its support of R&D
projects lead to the success of the firm.
Jelinek and Goldhar [20] suggest that the impact of new technologies are far-reaching and
widespread. To extract maximum benefit from these technological changes there has to be a smooth
and strong interface of technology strategy and corporate business strategy. Gerwin [21] establishes
research agenda for manufacturing flexibility in strategic perspective. The research agenda which
the author has derived, grows out of the appraisal of theoretical and applied work, and includes
generic flexibility strategies, the flexibility dimensions, methods of delivery, ways of evaluating and
changing a process’s flexibility, and measurement problems.
Managing a major technological change proactively is always a big challenge for any firm [22].
Major technological change also brings in some kind of technological discontinuity, and the real
challenge lies in the smooth transition from old to new technology. The technology would continue
to evolve and shift, and this property of technology brings in the discontinuity. According to him “A
strategic posture implies that leadership adopt a long-term perspective on technology and the
inevitability of change.”
2.3 Technology Management and future approaches
Werther et al [23] have outlined the characteristics of technology management function.

Emphasizing the precise distinction between technology and technology management, it is
mentioned that “technology addresses the application of scientific and engineering knowledge to the
solution of problems” while “technology management, has a broader charter: the integration of
technology throughout the organization as a source of sustainable competitive advantage.” The
authors have indicated that the changing dynamics of technology management can be best seen as an
evolving technology paradigm for competitive advantage. Technology management function was
not recognized in management theory and science because there was very little transparency in it. It
used to work like a ‘black-box’ where people, money, and other resources were
consumed and technological innovations were coming out. According to the authors, ‘control’
paradigm emerged out of black-box framework with the growing demand for technology. Strategic
approach has evolved out of control paradigm, it is also referred as the ‘Third generation Paradigm’
which argues for an integration of technology with corporate strategy. Technology has been seen as
an essential component of corporate strategy and hence cannot be separated from the strategic
thinking and planning process.
The authors have indicated towards the ‘Fourth Generation’ paradigm which is likely to evolve
from the ‘Third Generation’ paradigm and is an execution -oriented approach. The firms will
concentrate on continuously refining their abilities to acquire and deploy relevant technologies
which is treated as the integral part of its corporate strategy. The technology leaders will battle with
the competition on two fronts and they are acquisition and deployment. But the sustainable
competitive advantage will come from the organization’s capability to learn continuously the
technology acquisition and deployment tactics. According to the authors “the measurable payoffs
from this execution-oriented paradigm will be a sustainable competitive advantage because the
strategic edge that results is neither easily observed nor quickly duplicated by competitors.”
How the businesses be managed in the twenty-first century and what will be there problems and
aspirations? How will they be forecasting the business scenarios and technologies of the future?
Makridakis [24] has indicated some approaches for resolving these issues. Nobuhiko [25] discusses
the effects of increasing consumerism and the rising value of the Yen on the Japanese approach to
technology and marketing strategies.
2.4 Technology leadership and core competencies
Prahalad and Hamel [26] have given new dimensions to the core competence which a firm needs to
develop. The roots of competitiveness lie in core competencies. Core competencies have been
defined as collective learning in the organization to coordinate and integrate the diverse production
skill, and multiple streams of technologies. They do not diminish with use and get enhanced with
application and sharing. They need to be nurtured. Cultivating core competence does not mean that a
firm should spend more on R&D than its competitors. It also does not mean that the firm should
become heavily vertically integrated. The authors have suggested tests to identify the core
competencies in a company. A core competence should provide potential access to a wide variety of
markets, should provide a (perceived) core benefit to the customers, and should be difficult for the
competitors to imitate. The physical embodiment of one or more core competencies in the end
products results in core products. The authors have insisted that core competencies should constitute
the focus for corporate strategy.
Masanori [27] has outlined criteria for technological strength which a nation or a firm develops
over a period of time. The author indicates that relative priority that is placed on specific
technologies and evaluating a specific area and its importance for the development of local industry.
Potentials and pitfalls of technologies in context to a country have been considered. By persistently
working in a particular area, a nation develops potentials for breakthroughs and failures which come
across, goes a long way in developing core competence.
3 Technology planning and forecasting
3.1 Technology planning
Gunsteren [28] based on his study of R&D divisions of diversified technology-based companies
which have achieved unparalleled technological breakthroughs initially, but could not sustain their
technological leadership because of inappropriate technology, marketing and production plans.
There was also lack of understanding and technology was not considered to be an important
corporate resource. In this context he has raised some valid questions:
“Are we an organization of doers or thinkers? Are we in the business of making and doing
things or we are in knowledge business? Are we offering a product or a capacity to our
customers?”
He has suggested a classification of the various organizations on the dominant roles which they are
playing for strategy formulation. According to him four classes are License Taker, License Giver,
Jobber, and Consultant. Features of these four classifications have also been provided.
An organization is supposed to choose from these four roles which are being played at a given
point in time in the present market situation. An organization is free to choose an outside party for
the role of license taker and jobber and if it decides to do on its own then there should be an
altogether different group of people working on them. By doing this the identity crisis can also be
avoided and there will be a balance in all four activities which let a technological innovation see the
light of the day, and this is how the technology management function elements are to planned to
maintain the traditions of technological breakthroughs in the long run. However, no methodology
has been suggested for preparation of long term plans to manage technology function.
Petroni [29] with his study of technology based firms has highlighted the growing need between
business planning and R&D activities. The author has indicated how an organization can work out
its business plans depending upon the organizational strengths in technology management function
and the area in which the firms operate. When technology management is thought to be considered at
par with other functions in the organization then it also comes under the purview of financial, cost,
productivity and profitability analyses and there the technology management function feels pressure
from short-term goals and hesitates in undertaking the long term and high risk projects. In a way the
firm tries to compromise with organizations long term objectives and involve itself in low-risk and
short projects. In order to avoid such situations it is proposed that the company should place itself in
one of the two positions that are technology push and demand pull, and then work out the business
plans which will better fulfil the organization’s long term obj ectives. A methodology has been
proposed for these two types of company classifications. In ‘technology push’ firms technology
could be the major driving force with R&D function in a strong top-down approach while in
‘demand pull’ companies a detailed mark etwise analysis needs to be done and business plans are to
be worked out in coordination with marketing and R&D with strong bottom-up approach.
Koerner [30] has suggested that if technology planning is not done effectively, then no amount
of investment in technology development can yield results. In the case study of General Motors, he
has made this point very clear that planning is crucial for quick and timely commercialization of
technologies developed in house.
He has touched upon several aspects of planning with special emphasis to interdepartmental
technology transfer. He also discusses the principles of technology planning which are following:
“(1) Balance marketing pull with technology push - you can’t just ask the marketing what they
want. If you do, you will miss half the action.
(2) Don’t fish on the road - keep the business objectives in front of the you all the time.
Everybody has limited time and budget.
(3) Don’t do technology for technology’s sake - try to solve the customer needs and don’t forget
to ask them what they want. A good dialogue will help you to be
creative.
(4) Minimize the disconnects in the flow of ideas - minimize the secrets, have frequent
reviews; build relationships.
(5) To improve technology transfer. Move the people with the products.”
Swamidass [31] has carried out a survey of US manufacturing firms to find out the technology
planning being done by them. It is reported that technology planning was seldom done by these
manufacturing units and the units which were doing technology planning consciously, needed an
improvement or even total overhaul of current manufacturing technology planning practices. The
author has suggested a planning approach with the assumption that the manufacturing technology
and competitive equilibrium are constantly changing. These changes are monitored for and exact
time frame is captured to modernize the existing facility. He also recommends the continual
assessment of the deterioration in manufacturing technology with time. He has compared the US
manufacturers with their Japanese and European counterparts on the basis of technology planning
practices and cited several reasons for US manufacturing falling behind on this count. The reasons
which have been cited include the lack of experience with modern technology, inadequate
understanding of the modern technology, the lack of skills to evaluate the intangible and
non-financial aspect of process technology and the lack of top management understanding and
support for advanced manufacturing technology.
Staley [32] argues that technology asset planning is done to minimize the technology gap. The
author has identified the various components of technology asset planning process. Discussing the
benefits of technology asset planning, reduction in development cycle time and cost, availability of
an opportunity to the various role players to develop a shared vision, and objective investment on
technological assets have been seen as major advantages apart from making the business more
technology driven and improved top management’s control over technology related business risk.
Planning the technology transfer is a very crucial factor even when the parties involved are parts
of the same firm. Transfer of technology from R&D to manufacturing also needs to be planned
carefully and delay in the process can lead to disastrous results [30]. The case of General Motors has
been cited by the author to demonstrate that only committing resources is not the end of the problem
but only a beginning. Resource leverage is more important than resource allocation [4].
Roller and Tombak [33] have developed and analyzed a model of multiple firm investment in
manufacturing technology. One uses FMS and other uses Dedicated Equipments (DE). The authors
have found that larger market and more differentiated
products result in a higher proportion of FMS firms being sustained. An inverse relationship was
observed between number of firms in an industry and proportion of firms investing in FMS.
3.2 Technology forecasting
Today’s economic conditions demand a very serious effort in the direction of technology
forecasting. The global characteristics, and fast changing nature of the world economy, the need for
sophisticated and conscious exercise on technological forecasting is at an all time high [34]. An
array of forecasting methodologies is available to cater to the needs of various problem
characteristics. The factors are affecting the choice of forecasting methodology includes availability
of resources, availability of data, credibility of source of data, similarities in present and future
technologies, and number of variables affecting the development of new technology.
3.3 Technology and its impact on business
Technology has a long term impact on the business scenario of any country or industry. In a study
carried out by Business Environment Study Group in the UK. Whaley and Burrows [35] have
revealed that market leaders in a particular industry have their own reservations in coming out with
new technologies. The group has held several environmental factors responsible for this reason.
Major factors which were identified by the study group included people’s conservat ive behaviour,
their perception that technological breakthroughs are extremely difficult to make, if one proposes
any new technology, there will be stiff resistance either from peer level or from top management
level. The study revealed that all major technological breakthroughs are likely from small companies
in which a handful of creative people are working, may be such companies are operating from
garages.
It was also felt that whenever you need any technological breakthrough from a small company,
may be from the same group of people, acquire a company which is doing applied technology
research in the same area. The observation of the Study Group was in the foreseeable future, firms
will rise and fall along with the product life cycle of the industries concerned. There may be few
cases where the fortune of a firm is extended because growing activity for innovation in the existing
products, or because producing new products, or because of another technological breakthrough in
general purpose technology area providing a helping hand.
The study group has evaluated the impact of the emerging technologies on the overall business
scenario in general, and computer and communication, education, travel, health, distribution,
leisure, mining, quarrying, oil, chemicals, metals, construction, clothing, food, utilities, banking and
insurance in particular.
Another study on how technology based firms monitor the business environment was conducted
by Technical Change Centre, London [36]. The study was carried out on UK based companies only.
It has revealed that the practice of monitoring the technological environment is found to be related to
the absolute size of a company, its capital intensity, planning horizon, degree of diversification, and
the most important factor is importance attributed to technological factors in the strategic planning
of a company. The study has revealed striking differences in the attitude of the companies to actual
or potential innovations occurring outside their own fields of technological competence but are
likely
to impact upon the demand for their products. It was assumed that the people within the organization
are quite aware of the advancements taking place in their own industry.
There were two extreme opinions observed, at one hand people were of opinion that product
substitution will take place and a large range of products will be replaced with the new solutions, and
in order to survive in the market the organizations will need to develop technologically, and
technology will play crucial role in corporate business strategy. On the other hand people denied that
such a threat exists, and if at all any technological innovation hits the market, they being old timers
will be in a comfortable position to exploit the same.
Masakazu [37] discusses the issue of Japan’s internationalization in context to its market,
technology, and work culture in the organizations. The author has related the work culture in Japan
with social value system. The long working hours and low wages in Japan in comparison to other
developed countries is talked about and the point made is that all these things are negotiable but what
has not been compromised is devotion of Japanese workers. Working for a firm is not treated as a
sale of physical efforts for money but is a “spiritual mission or duty to be performed with devotion.”
The author has concluded that the Japanese work ethics are as fair as of any of the Western countries.
Ashton et al [38] suggest keeping track of worldwide developments is an expensive and time
consuming process but it cannot be left alone. The objectives for monitoring efforts can be outlined.
The basic goal of technology monitoring programme is to provide an awareness of events, current
developments, and trend in S&T areas.
4 Technology acquisition and transfer
4.1 Technology transfer
A framework for technology transfer from developed to developing and under developed (or ‘less
developed’) countries has been proposed by Madu [39]. He has covered a wide variety of topics
including relevant technology for a country, the nature of technology, evaluation of indigenous
technologies and process of technology transfer.
“Less developed countries (LDCs) need western technology to alleviate from their
economic difficulties. With some noted exceptions, however, technology transfers have
not generally been successful.”
Inappropriate types of technology have been transferred from the multinational companies of
western origin. In some other cases, the technology transfer has been done without any prior analysis
of strengths and weaknesses of the recipient organization. In his study the author has proposed a
decision-making process for technology transfer and subsequent development on the same. He has
also outlined that how well established techniques like Delhpi, Scenarios, Social Judgement
Analysis, Simulation, Optimization etc. may be used for making technology transfer decisions.
Success factors for technology transfer have also been dis cussed.
The advantages and disadvantages of technology transfer in context to both, the transferring
country and transferee country have been discussed. The author has indicated that the key to
innovation is not to create chaos but to create an environment in which information can be created
from chaos. The role of management is very important in creating such type of environment.
Gibson and Smilor [40] have discussed the importance of factors facilitating technology
transfer, effectiveness of different methods of technology transfer, barriers in technology transfer,
and ways to improve effectiveness of technology transfer, and key variables for technology
acquisition success, and have supported the hypotheses involving these variables with an empirical
study.
Banerjee [41] has mentioned that technology gap is a reality everywhere. The technology
transfer, therefore, becomes imperative in order to bridge the gap. The process of technology
diffusion is not transferring shelf knowledge from affluent to poor economies.
“Perhaps dispatching technologies to third world country is an act of sale rather than one of
technology transfer. Evidently, the international market of technology is an imperfect one
as buyers are not adequately informed about the product and they are easily influenced by
the potential seller.”
The technology transfer problem is different in different sectors and times. In certain cases massive
business interest causes favourable influence in deciding the purchase of technology. In some
sectors political interests cause an altogether new dimension in choosing or rejecting a technology.
In all the cases of technology transfer commercial factor is always present, and wherever it is either
weak or absent such sectors can be called as non-commercial sectors.
Robertson [42], while describing his own experience of technology acquisition in a
pharmaceutical laboratory, has pointed out various reasons for technology transfer. Senior
management’s dissatisfaction, availing of an opportunity to acquire technology on very attractive
terms, limited or very little effort required to obtain technology, and complementing the existing
in-house technological development could form the basis for making a decision on technology
transfer. The author has brought out the lessons learned in the process of technology acquisition.
According to him, technology acquisition can reduce the total time required to convert an idea or
formulation into a commercializable product, and a small or medium scale industry may very well
carry out an incremental product or process innovation but evolving full fledged technology may not
be possible. The risks in technology transfer are always very high and failure rate is also substantial
but a management committed to genuine technology transfer must become tolerant to failures. The
organization and human resource aspect of technology acquisition must be planned and executed
with great care. Technology transfer should become a part of the organizational culture for
progressive firms. All the technologies are subject to refinement and there is always scope for further
innovation. The decision of technology acquisition has to be made at the right time otherwise one
may lose the opportunity to milk the technology to its fullest extent. Top management have an
important role to play in technology acquisition decision making but they genuinely need to
establish the need for the technology within the organization and need not appear as advocates of a
particular technology.
HP-Grenoble is a case of technology transfer in which intra-firm technology transfer for making
the firm’s presence felt in the European market turned out to be a great success and technology was
made to flow back to parent company and rest of the world’s HP organizations [43].
Discussing the problems of technology transfer, Dearing [44] describes ‘Homophily’ as the
degree to which people are alike, and ‘Hetrophily’ as the degree to which the people are different. He
has suggested that the technology transfer occurs smoothly
between like -minded people. The strategies for technology transfer are always based on reducing the
gap among communicative participants. Georgantzas and Madu [45] have presented a
comprehensive literature review on technology transfer and management and have also dealt with
the various cognitive process involved in the same.
Lee [46] discusses the framework of technology transfer keeping competitiveness as the
objective for technology acquisition. According to the author acquiring know-how related to
product, process, people, procedures, and performance are the forms of technology transfer. The
reasons for technology acquisition have been suggested as bridging the gap between the actual and
perceived performance and improved competitiveness.
Macdonald [47] discusses the nature and ways of industrial espionage and its effects over
legitimate technology transfer and subsequent innovations. Technological information is crucia l for
a firm to remain competitive. Firms need to keep acquiring the information and the most efficient
mode of information acquisition is through individuals and informal networks. It becomes very
difficult for informed organizations to concede relevant information from being divulged to the
needy firms and individuals. Effectiveness of technology transfer cannot be improved considerably
unless industrial espionage is considered alongside other means by which information flows
informally, it cannot be seen in perspective. And unless it is seen from the perspective of technology
transfer as a whole, the prevailing attitude to industrial espionage will continue to cause suspicions
on some of the most important means by which technology transfer occurs and innovations come
about.
Spann et al [48] have elucidated the measures of technology transfer effectiveness used by
sponsors, developers, and adopters. The authors have focused on government funded technologies
transferred to private sector industries. An empirically based taxonomy of metrics of technology
transfer has been presented. Kroonenberg [49] has emphasized the close co-operation between
universities and industry and suggested that it is the key requisite to intensify dialogue which can
result in technology transfer.
4.2 Technology management and strategic alliances
Sasaki [50] has brought out the lessons which Japanese auto firms have learned from strategic
alliances (SAs). The history of strategic alliances go back to 1925 when Ford established a tie up
with Werke AG of Germany. The first strategic alliance took place with a Japanese firm in 1953
when Nissan tied itself up with Austin and could survive only up to 1960. The author has discussed
the various case studies and brought out the fact that the Japanese firms have entered into SAs which
have served them different objectives from time to time. In 1950s these firms entered into the SAs
for acquiring then state-of-art technology from the American and European firms. In l960s the SAs
were made to survive the storm of foreign capital in Japan, this was the time when Japan had adopted
the free pattern of economy. In 1970s the SAs were made with very heavy emphasis on
indigenization and subsequent innovation, this was the time when Japan brought out small cars. In
1980s the SAs were made to explore the economies of scale and scope, and finally in the 1990s the
SAs are being made to emerge as true multinational companies. This history of SAs has some very
important lessons for all developing countries like India those who are acquiring technologies for a
variety of reasons.
4.3 Strategic alliances and market leadership
Strategic technology alliances come into being for a variety of reasons, market leadership is one of
the very frequent reasons [51]. In an empirical study considering two major aspects of strategic
interfirm partnering, i.e., establishing stable network of cooperating firms, and market leader firms
participating unproportionately, it is revealed that the large international firms play a leading role in
such collaborations. This partnering helps them in competitive re-positioning. The strategic SAs
have helped the bigger companies more than the smaller firms or inner circle of the nodal
companies. While important considerations of SAs could be to increase the corporate flexibility and
the extension of core competencies of the partnering firms.
Barney [52] has discussed the acquisition of firms as a result of implementation of a particular
strategy. A conceptual framework has been suggested by the author to work out returns on
investments on such strategic acquisitions.
Ohmae [53] suggests that alliances are just the tools of convenience, but are critical instruments
of serving the customers in global environment. Catering to global customer needs generation of
cash, lower unit cost, and experience to push technology further. Nothing stays proprietary for a very
long time and a player can master all the arts, hence operating globally means operating with
partners which amounts to SAs which also help in spreading technology. Alliances are to be
carefully worked out, particularly on upstream and downstream activities; one should never forget
that it is a marriage of two partners and will be happy and successful (will last longer) only when
both will do their respective jobs well. SAs can prove to be potent instrument and effective
mechanism to meet the challenges of global competition. Apart from technological alliances, the
firms enter into logistics alliances with firms which have developed core competencies in this area
and help in reducing distribution and storage operating costs and improve the quality of customer
services [54].
5 Development and innovation management
5.1 Technology development
Masanori [55] has suggested a theory for technological developments. The theory involves five
stages which are refinement of technology for existing products and production processes, applied
technologies for new products, advanced technologies and its implementation for mass
manufacturing, concentrating on future technologies, and finally exploring the Nobel Prize class
breakthroughs, technologies and discoveries. He has also indicated the priorities for technology
development placed by Japanese firms.
Van de Yen [56] defines technological innovations as “the development and implementation of
new ideas by people who over time engage in transaction with others in an institutional order.” He
has concentrated on four factors namely new ideas, people, transactions, and organizational context,
and problems related to them. The author has suggested answers to the questions general
management usually encounters, like how innovations develop over time? what kind of problems do
they offer? How can they appropriately respond to these problems? A creative idea becomes an
innovation when it is commercially implemented and institutionalized. There are good number of
creative ideas or inventions which do not see the light of the day. The success of an innovation is
determined by the degree of currency it is able to attract.
Roberts [57] has outlined some important points of managing invention and innovations which
include understanding of the process of the same as a mu ltistage one. To achieve effective and
commercializable innovations an organization needs ‘critical role playing’. The highest product
development success rate is achieved when the marketing and R&D organizations work in close
collaboration, market pull brings in more successful innovations than the technology push, and top
management commitment is the key factor for institutionalized development of effective products
and processes.
Western societies have depended on individual inventor-cum-entrepreneur for many of their
most profitable and successful technological developments and innovations [58]. The author has
suggested to large institutions to make use of individual entrepreneurial development system to meet
the enormous challenges of recent times. Fanaticism and commitment, capability to accept chaos,
low early cost, no detailed control, incentives and low risks, sustenance for long time horizons, and
flexible financial support have been included in the list of advantages for individual entrepreneurial
systems while top man problem, time scale conflict, heavy expenditures, and detailed control too
soon, have been seen as problem of large institutions in supporting technology development
projects.
5.2 Innovation management
Abernathy and Chakravarthy [59] have developed a policy framework for technological innovation.
The framework is based on two important dimensions of government intervention which are
technology creation action and market modification action. The developed framework has been
tested for applicability using known examples.
In a classic empirical study innovation cost and time of 200 American and Japanese firms
dealing with internal and external technologies, Mansfield [60] has indicated that it the type of
industry which matters in realizing innovations in shortest period of time and spending minimum of
resources. Japanese have advantage in some industries (particularly machinery) while Americans
have advantage in some other industries (particularly chemicals). He found Japanese to be very
quick and effective users and innovative on external technologies (technologies not developed
within the firm) while Americans were found to be more creative in internal technologies. Japanese
firms were found to have more allocation of funds for innovation and less for setting up market for
the innovated products. In comparison to American firms, Japanese are spending roughly 25% less
time and 50% less money on innovation on external technologies than that of on internal
technologies. An organization which is not innovative can survive in long run with great difficulty or
it will be a dead weight in the neck of the market which the customers are not likely to tolerate for
very long. Every organization wishing to hold its customer base and expand the existing one must
innovate and try to offer need-based solutions to the customers in a variety of ways. Needless to say
the solutions entering the market should have a required amount of technological innovation and
should also be economical in the long run. In a typical competitive business scenario one should try
to innovate more than its competitors. For realizing innovations in technology and the final products
requires creating climate for innovation.
Humble and Jones [61] have suggested that the strategic point in creating the climate for
innovation is to plan to phase-out existing products and services. Easing on the winning products or
services can prove to be dangerous. Obsolescence needs to be planned otherwise it is forced on the
organization either by competition or by market
forces which many at times becomes a very expensive proposition. The authors have also suggested
a systematic method for promoting climate for innovation by designed interactions and preparing a
summary of best ideas for innovations. This approach can prove to be very effective because people
at all levels in the organization are involved in screening the ideas, so they obviously have
commitment to convert these ideas into innovative products. Their argument about the incremental
innovation also seems quite plausible, since radical innovations or technological breakthroughs can
be realized once in a while, but incremental innovation in the existing products can go on almost on
a regular basis. Also their argument of changing 1000 products even by a fraction of a percent can
have cumulative impact. Incremental innovation should be a habit and not an exception and whole
organization should be involved. In managing radical breakthroughs a different approach is
required. Such innovations are not expected from busy managers, there has to be a separate division
with required facilities, and creative and qualified people having flair for innovations. The authors
have suggested different approaches for doing the same. Many times it is not possible to realize
radical innovations within the existing firm’s set up. In such cases contract research, consultants, and
universities can be funded for specific research projects or a long term contract may be signed with
any of the above or with any combination of the above organizations.
Subramanian [62] has discussed the approach of Japanese firms in managing technology in
general and managing innovations in particular. According to the author, to meet the emerging
technological challenges, innovative Japanese companies are trying out a ‘Total Technology
Management’ approach by covering technological creativity, organizational dynamics and team
building. These firms have assigned middle management the key role in this context . Craig [63] has
outlined the requirement of attitude change and removal of corporate cultural barriers to successful
new product development process.
Ali et al [64] have suggested a novel approach for selecting projects for pioneering on an
incremental basis. The authors basically have emphasized the organizations capabilities and its
experience of taking up such projects and have recommended Game Theory approach to choose a
project. They have also identified certain factors for quantification which can be used for strategy
development. The study is based on the organizations which have had two options i.e., of pioneering,
and incremental innovations. While concluding, the authors say
“There is a consensus among researchers working ~n the R&D resource allocation problem
that a firm’s new product portfolio should be balanced between lab -based, technically
ambitious projects and market driven projects that flow from customer analysis. The latter
tend to minor modifications of existing products which have a higher probability of
completion but low profit potential.”
Zahra et al [65] have suggested that how technological pioneering can help a company in having
edge over its competitors. They have also highlighted the various elements which are involved in the
pioneering process. According to them technological pioneering is “developing and
commercializing an emerging technology in pursuit of growth and profits.” In an important
observation, the authors have also identified technological pioneering and market leadership as two
different activities and success in one not necessarily ensures the success for another. Technological
pioneering may not be a worthwhile proposition under all circumstances, there is an element of risk
associated with it. Coordinated efforts of marketing, production, R&D, and other functional areas
have been emphasized in commercializing the technology. Resolving issues related to various
activities while commercializing new technologies promote organizational learning. Bringing in
the dark side of technology pioneering the authors have raised a valid point for promoting
awareness about the new technology, because when a new technology is commercialized there is a
very little knowledge available among the users. The pioneering organization has to invest very
heavily by way of advertising and conducting awareness promotion programmes in order to
popularize the same.
When is technological pioneering profitable? In answering this question it has been
mentioned that in slow technology diffusion industry where the cost of imitation is high, customer
needs are changing very fast, and market development effort is phenomenal, heavy investment in
technology pioneering may not be recommended. A process for converting the technological
pioneering into market leadership has been proposed as follows:
(1) acquire market leadership position;
(2) overcome incumbent inertia;
(3) manage the duality of technological pioneering;
(4) speed up technological development and commercialization; and
(5) link pioneering activities to competitive strategy.
Smith and Reinertsen [66] appreciate the pressure on manufacturers in the times of shrinking
product and process technology life cycles and suggest 10 different approaches to overcome this
problem. They have advocated the judicious blending of these approaches to suit the needs of a
particular organization. The approaches recommended are
“Be flexible about process, let economics be your guide, watch out for complexity,
manage the invention pipeline, be aware of phased development, fundamental
limitations, responsibility belongs to people, avoid the ‘thinking stage’ trap, staff teams
adequately, staff with generalists, let the team manage the team, manage both technical
and market risk, and develop a reserve.”
According to the authors, the R&D manager becomes the main actor to put in effort for cutting
down the development time and may be he is in the strongest position to do the same.
Beckett [67] has discussed why technological changes are taking place and what are the
implications of such changes on the market place and the work patterns of the people. Three most
dramatic changes, which he has focused on are technology, globalization of market, and changing
patterns of work. The author considers profit as the vital ingredient in technological changes.
Availability of funds for making use of funds is quite necessary.
“It is the combination of rapid technological change, greatly speeded up diffusion of

information and profit levels, sufficiently high for business to take advantage of the
opportunities thus made available, which I believe will provide the fundamental
dynamics for change in the world in next few years.”
Globalization of markets is taking place basically because of changing technology. Some of the
latest technologies allow economies of scale of such a magnitude that no amount of effort in
product design, process innovation, and diligence on the shop floor can enable the small volume
manufacturers to compete with them. The quality delivered by these
technologies is also far more superior and consistent. In the three changes that are discussed there are
two common aspects. Firstly, they are not dictated by the government but are market-led. Secondly,
they mean greater flexibility and diversity. The author has emphasized on high profitability for
enabling a firm to become more adaptive to technological change and quickness in adapting the new
technology is the key to faster growth.
Innovations have been looked upon as objects of considerable academic interest for a variety of
reasons [68]. Innovation has been seen as a piece of information which is subsequently converted
into a product. For this purpose the human beings are not considered only as information processors
but also information creators. A technologically innovative firm is a negative entropy system which
continuously creates new orders and structures (new products and processes) in order to survive and
grow. The authors discuss two case studies of firms dealing in two different products. Information
has been considered as the key to creation process. Out of syntactic and semantic types of
information the later is considered to be more holistic and capable of evolving and transforming the
technological solutions. Information (semantic) helps creating new technologies, new processes,
new products, and this information should be diffused throughout the firm for setting an
environment for further innovations. If the firm can benefit from such innovations which has been
referred to as ‘ripple’, then it can secure greater economic advantage.
Zimmerman [69] has mentioned that the firms seeking turnaround successfully between 1902
and 1987 have introduced greater numbers of small incremental innovations to differentiate the
successful products from the unsuccessful ones. In his comprehensive study of 15 such firms (a large
number of automobile firms were included) seven could not manage a turnaround because they
introduced significant and abrupt innovations only and did not support them with continuous
incremental innovations.
The relationship between incremental innovation and production has been perceived as a
‘ladder’ [70]. Because usable things come as a culminati on of cumulative scientific research; the
ideas tested in the laboratories move step-by-step towards increasing practicality, and by keeping the
practicality alive incremental innovations are realized.
Concepts of technology trajectory [71] and technology corridor have been brought out [72]. A
technological trajectory is a path which shows continuity in the technological innovations for a
particular industry or product while technology corridor is the gap between upper and lower limits of
the performance characteristics of a particular technology.
Laying down a strategic plan for technological innovations, a firm needs to go through the
several phases [73]. The phases can be different manifestations of product conception based on
scientific and technological data, manufacturing process design, stating the financial plan, the
manufacturing properties, design based on control size of the market (Flexible Manufacturing
Systems), and forecasting of new products.
Takeuchi and Nonaka [74] have discussed the ‘rugby approach’ of new product development.
According to them the new product development process used to move like relay race, with one
group of functional specialists handing over to another in the classical manner. Under the rugby
approach, the new products emerge as a result of constant interaction of hand picked,
multidisciplinary group whose members work together right from beginning till end like a rugby
team. The authors have also indicated that companies able to bring in new products faster show six
characteristics which are built-in instability,
self-organizing project teams, overlapping development phases, multi-learning, subtle control, and
organizational transfer of learning. A product that arrives a few months late in the market easily lose
several months of payback.
Exploiting a technological innovation is also a very challenging job and needs a carefully crafted
strategy for building the organization’s future. If an innovation is not appropriately commercialized
and taken benefit of, then the pioneering organization may leave more money on table for its
competitors and they can grow so strong that the firm realizing innovation may have to take a back
seat [75].
Nonaka [76] is of the opinion that when a firm is operating in a high degree of uncertainty,
markets are shifting, technologies are proliferated, competitors are multiplying, and products are
becoming obsolete at a faster rate, then consistent creation of knowledge, wide dissemination in the
organization, and quick embodiment decides the success. The firms taking up these activities are
called as ‘knowledge -creating’ companies and involve themselves in the sole business of continuous
innovation.
Who profits most from a technological innovation is a question to be pondered upon. Imitators
can often outperform innovators if they are better positioned with respect to critical complementary
resources as well as the underlying infrastructure [77]. Successful technological innovation requires
a special combination of managerial and entrepreneurial skills [78].
Lynn et al [79] have concluded that incremental products line extensions and improvements are
essential for maintaining leadership which is established by discontinuous (radical) innovations. The
authors have evolved a probe and learn process for marketing discontinuous innovations effectively.
6 Technology management and organizational issues
6.1 High-tech organizations
The nature and structure of a high technology firm is reflected directly from the environment the
firm is operating in and the characteristics of the technology in which it is dealing [80]. The
shrinking technology life cycles are putting pressures on firms for quick commercialization of
innovations. This presses the organization from two opposite sides. It asks a firm to use high
technology as tools and produce high technology as their products. Certain characteristics of the
technology itself have strong bearing on organization of hi-tech firms. The interdependence of
individuals in research and development has been very well appreciated. The authors have discussed
the various environmental factors and their effects on the organizational restructuring with special
reference to organization as learning systems, the use of flexible and temporary designs, integration,
permeable boundaries, differentiation, and ongoing resolution of competing tensions. Effective high
technology organizations are able to deal with many conflicting demands using the appropriate
measure(s) proposed.
Avishai and Taylor [81] have quoted George M.C. Fisher, CEO of Motorola, Inc., saying that it
is easier for a technocrat to learn finance, HRD, and legal principles than for a finance expert to learn
about Reduced Instruction Set Computer (RISC) architecture, Direct Random Access Memory
(DRAM) technology, and Cellular Telecommunication Systems (CTS) without deep immersion in
the respective stream of technology. Nevis et
al [82] have emphasized that organizations dealing in hi-tech products must visualize themselves as
learning systems if they wish to remain ahead of competitors in global business.
To relate creativity with technological innovations and to develop a comprehensive
understanding of the creative behaviour and performance, a multi-perspective model has been
presented [83]. The model deals with individual, technical, and organizational perspectives, which
focuses respectively on distinctive individual characteristics associated with technical creativ ity, the
required technical resources, and organization culture as a supporter or suppressor of creativity.
A technology base, i.e., technological know-how and organizational leverage for effectively
deploying that know-how, is essential for accomplishing the operational and strategic goals [84].
Four components of technology base suggested are technological assets, organizational assets,
external assets, and projects to deploy the first three components. The strengths in these components
will determine the firms capability to take up a new business project and the strategy for entry into
the market with new technology.
Management of technology as seen by Asian managers and scientific and educational
professionals involves new approaches to developing and managing the human resources [85]. In an
executive development seminar held in 1989 in Asian Institute of Technology, Bangkok, the Asian
professionals responded different than their European and North American counterparts in the
understanding of the very topic which was management of technology and its related aspects. The
Asian group chose the main theme as team development and profit sharing while European and other
chose the main theme as development of an organization structure to handle the issues of
coordination, conflicts and collective decision-making along with human resource development.
Duck [86] has described the need to take people into confidence while introducing any kind of
change including the technological changes. The author has emphasized the change paradoxes and
mentioned that trust is hardest to develop and achieve when you need it most during the change
process.
Roberts and Fusefield [87] have divided the research activities in six overlapping phases which
are preproject, project possibilities, project initiation, project execution, project outcome evaluation,
and project transfer. They have identified the needed roles in these phases of activities as idea
generating, entreprenuering or championing, project leading, gatekeeping, and sponsoring or
coaching.
6.2 Technology management and R&D management
Mathis [88] has discussed the role of technology managers and has outlined how it differs from that
of the R&D managers. An R&D manager uses the firm’s internal resources to develop technol ogies
that a firm needs to achieve its corporate objectives while the technology manager sees to it that the
firm has the technology available to it and uses it effectively in all spheres of application. The
technology manager forecasts, plans, acquires, develops, and assesses the technology which the firm
is using and even takes decisions related to phasing out the same. With the help of a case study of a
chemicals manufacturing firm he has attempted generalization of the experience of changing the
attitude of the people in acquiring technology. Need for change has to be perceived at the apex level
of management. The understanding of the need for change in the attitude has to be supplemented
with technological forecasting and strategic planning to expedite the
change. According to the author, the CEO’s interest in technology management is of paramount
importance in bringing a change in the attitude towards the management of technology function.
Jun’ichi [89] has emphasized the need for creative research for Japan to sustain its global
leadership in hi-tech products. After World War II when Japan needed to establish herself in the
world market, started manufacturing inexpensive high-quality goods which helped her in spreading
the benefits of modern science and technology around the world. According to the author most of
these products were based on the researches conducted in then technologically advanced countries.
Japanese manufacturers responded to the oil crisis of the 1970s very intelligently by automating
production to reduce labour cost and offsetting higher fuel bills. The other alternative could be to
reduce the head counts which could lead to higher unemployment and deindustrialization of Japan.
The author has also discussed the number of technological breakthroughs realized and
commercialized in Japan. The wide gap in the two, shows Japan’s weakness in creative research and
to overcome this, the author has strongly pleaded the candidature of Japanese universities as a
breeding ground for basic researches and inspired researchers.
Takemochi [90] has observed that the USA and Japan are the only countries where R&D budgets
are increasing rapidly. The USA with its mammoth technology storage and Japan and other newly
industrialized countries of Asia (NICs) with R&P (Research & Production) strength, are in a
position to mend a relationship which will facilitate growth of technological stock in the Pacific
basin. Schmitt [91] has outlined the key strategic choices in managing centrally funded R&D which
are generic versus targeted and market-driven versus technology driven.
Gold [92] has discussed in detail the input and output sides of most efforts to appraise the
effectiveness of R&D programmes. The article identifies six major types of contributions which
R&D programmes could provide. The author also discusses the bearing of these contributions of
R&D performance alone, R&D contribution to over-all performance of the firm, and the R&D
performance of a firm in comparison to its competitors. Generally the analyses of R&D performance
focuses on contributions made in enhancing capabilities and quality of existing products and
processes, development of products and processes yielding major commercial advantages over
competition, and advances in the knowledge to cope up with the future challenges. The author has
emphasized that R&D should generate three additional kinds of improvements which are reducing or
minimizing increase in cost of producing existing products, reducing lags behind competitors’
innovation in products and processes, and adapting designs and processes to shifts in supply and
prices input. The top management has been held responsible and a broad framework has been
provided for performance evaluation of R&D programmes. Sushil [93] has presented a concept of
‘wastivity’ which can be made use of in evaluating the R&D performance particularly in minimizing
the waste.
6.3 Stratocracy
Bahrami and Evans [94] have described an organizational innovation pioneered by high-technology
firms in California’s ‘Silicon Valley’. The authors have termed this innovation as STRATOCRACY
and have suggested that it provides the organizational capability to focus on short-lived
opportunities, and the fle xibility to manoeuvre in capricious settings. According to authors,
Stratocracy is an organizational regime of the
high-technology arena where strategic ends change constantly and organizational means have to be
marshalled cohesively. In the high-technology arena, the distinction between short-term operational
activities become blurred, and the time lag between the decision and action is typically short.
Stratocracy helps technology firms to maintain a sense of focus and cohesion, while retaining the
sufficient flexibility to cope up with new imperatives. They have defined stratocracy in
organizational context as the ‘rule of doers’.
Adler and Ferdows [95] have emphasized the new position in organization structure of large
firms to cater to the increasing importance of technology to competitiveness. The combined effects
of technological diversifications and synergy requirements puts enormous pressure on coordination
mechanism. The firms that are facing these types of coordination problems might be expected to lag
their more effectively integrated competitors in the capability to develop and deploy new
technologies. A CTO may contribute to the facilitating process developing and deploying new
product and process technologies. The CTOs are likely to become a more common position in top
management teams.
6.4 Technology management in service industries
After having invested $180 billion in hardware and software for service industries like finance,
insurance, wholesale, retail, and business service companies in the USA, the effectiveness of labour
and capital utilization is marginally improved [96]. The investment in technology alone is not
responsible for improved corporate performance, but what is required is the employee skills and
capability to exploit the same to the best advantage of the corporate business. Coupling technology
with other operational procedures will be imperative for realizing maximum return on investment for
the future service industry leaders.
Husain and Sushil [97] have brought out learning issues in the case of service sector firms.
Brainware or humanware parts being more dominant in soft technologies, management of
technology in service industries. The absorbtion of soft technologies needs good understanding of
the local work culture.
7 Adoption and implementation of new technologies
7.1 Technology adoption
McCardle [98] has suggested a model for systematic information gathering and thereby reducing the
uncertainty in adoption decision. He has also suggested a model to quantify the uncertainty and
indicated when to stop information gathering and make a decision for adoption of a new technology.
Mamer and McCardle [99] have proposed a model for making decision regarding adoption of
new technology whose economic value can be gauged directly with certainty. The uncertainty can be
decreased in this model by sequentially gathering information, updating his prior beliefs, ideas, and
opinions in a Bayesian manner. The model accounts for the competition by way of either substitute
or complementary products but does not account for uncertainty regarding the competitors’ actions.
With regard to the marketing of new technologies, Kalish and Lilien [100] have suggested a model
to decide the entry
timing so that it is not before the market’s early birds are mature enough to accept it and not late
enough for the technology developing firm to reap the benefits.
As far as the adoption of new technologies by subordinates in an organization is concerned,
Leonard-Barton and Dfschamps [101] observed that managers do influence the adoption process,
such influence is not equally dominating under all circumstances. Goodman and Griffith [102] have
proposed a multid imensional structure of implementation system. The suggested system has five
processes namely, socialization, commitment, reward allocation, feedback and redesign, and
diffusion, which are conceptually interrelated to each other at least theoretically.
Mansfield [103] has reported results of a survey of 175 firms to analyze the diffusion rate of
Flexible Manufacturing Technology (FMT) in Japan, the USA and Western Europe. He has
concluded that the Japanese firms have a clear lead over the USA and West European firms for a
very simple reason that they were already using related innovations like industrial robots and other
automation systems which paved the way for early adoption of the new technologies. The US firms
were found to be late respondents to related technologies hence were falling behind in adopting the
new ones. The firms which are able to adopt a particular type of manufacturing technology, becomes
quite comfortable in adopting the next level of innovations.
While discussing the acceptance of new technologies by industrialized world, Kuhlmann [104]
has identified the few factors related to adoption of new technologies. Technological progress
cannot be stopped, the new technological developments have and will attract criticism, the
introduction of ‘ intelligent’ technologies may be helpful to mitigate the effects like job losses,
environmental pollution, and high rate of accidents. The communication regarding the advantages of
new technology by opinion leaders can prove to be helpful. Comprehensive quantitative norms may
be established for the acceptable risk level.
7.2 Technology maturation and technology substitution
Steele [105] has outlined dual risks for the pioneering users of the new technology. The new
technology adopted may not be successful every time. The conventional technology may also fail in
the changed requirements of the users. With new technology, the pioneering users may look silly for
having adopted unproven things. But once the technology establishes its credibility one can find
several supporters seeking new uses. He has divided the discussion on maturation of technology into
two parts, maturation of industries and maturation of technologies. The study of industries has
indicated that at the initial stage it is characterized by a large variety of product features and an
equally large number of products from different suppliers. And gradually emerges a dominant
configuration and a set of product features. Then comes the age of product and process innovations.
Initially the innovation is directed towards the proliferation of products and features which
determines the dominant and useful configuration. In the second stage the innovations are directed to
stabilize the industry and contribute to the widespread acceptance of the dominant configuration
taking care the needs of a large cross section of the users. As the industry move towards the late
maturity part of the industry life cycle, the product differentiation becomes more and more difficult.
Breadth of the product line, strength of distribution, quality of service, and customers perception of
the firm’s technology determines the success of an individual organization.
The emergence of new technology is under the senses of wonder, doubts, and anxieties
regarding its capabilities and there is always a scope for tremendous improvement. During the early
years, the progress is rapid and nearly all energies are concentrated on improving the raw physical
capabilities. As the technology is applied, rapid growth is arrested, because now the innovations are
constrained to be compatible with the older versions of the same technology. Materials, processes,
and components tend to stabilize. Yet unrecovered investments in the then new technology forces
the adoption of the advances that make use of the same facilities. “Every technology has a theoretical
upper limit of performance imposed by nature.” As the technology reaches closer to the natural
limits the processes become more sophisticated, expensive and specialized. Thus, importance of
manufacturing increases and raises the effectiveness of the technology management function. He has
extended the work on technology life cycle by applying the microeconomic analysis of marginal cost
and marginal utility to show that after a particular limit a firm wanting to sustain the competitive
advantage with its existing technology must invest heavily in R&D. If a new technology hits the
market which has the capability to replace the old one, the competing firm will have economic
advantage for the reason that the investment required to create an increment of improvement will be
less. The inflection point in the technology life cycle S-curve is very difficult to predict. That makes
it difficult to understand whether or not a technology has reached to the maturity stage. Beyond a
certain point the pace of innovation diminishes.
When a new technology starts supplanting an existing one, discontinuity is confronted and we
are brought down to a much lower level on the technology S-curve. But the new technology, if it
succeeds, has the potential to go higher than the state-of-the-art which might have been reached
closer to its natural limits. Hence, this discontinuity is worth facing.
Fisher and Pry [106] have analyzed the pattern of technology substitution and found that it also
follows the shape of the classical ‘S curve’. Analyzing a wide range of examples they have
concluded that the time scale varies widely for different technologies but the characteristics of the S
curve always hold. It shows that once 10-15% substitution has occurred then the process carries on
in a self sustaining manner. Cooper and Schendel [107] have addressed two broad questions which
are “What was the nature of substitution of the new technology for the old”, and “wha t response
strategies were used to counter substitution threats?”. The authors have found the model suggested
by Fisher and Pry quite useful and effective.
7.3 Technology change and chaos
Like physical systems, chaos and self organization is applicable to the managerial systems [108].
The process of chaos and self organization systems emerging out of the same gives tremendous
insight to the managers in a different way of understanding the response to changes introduced from
the time to time by the management. The important observations made on the recent discoveries
about the complex behaviour of dynamic systems concludes that chaos is a fundamental property of
every nonlinear system (including human systems). It is a type of instability where it becomes
difficult to predict the longterm future, the instability created has some influence limits and order
emerges as a spontaneous self organization. In conventional wisdom, to be cost effective and being
able to explore the economies of scale were the crucial factors for corporate success.
But in the age of shrinking technology and product life cycles the parameters of market leadership
and corporate success have been refined.
A company which absorbs the technological chaos is not or is hardly capable of becoming a
leader but a firm which can cause such chaos has a very high possibility of reaching to the apex and
staying there for a long time [109]. In an exclusive interview the CEO/CTO of the Silicon Graphics
Inc indicated that long term product planning could be dangerous and it should be done on a short
term basis to remain innovative, competitive, and industry leader.
lansiti [110] has discussed the product development process in an extremely turbulent
environment created by confluence of the computer, telecommunication, and media industries. The
turbulent environment in an industry calls for extreme flexibility and responsiveness, particularly in
the development of new technologies and introduction of new products. The author has suggested a
flexible model for effective product development and emphasized need for a flexible product
development process as a critical source of advantage in environments where technological
evolution and competitive requirements are highly unpredictable.
Collins and Porras [111] are of the opinion that sitting and waiting for a great idea is a bad
idea. Also do not accept the false view that a charismatic visionary leader can only make a company
successful. Once essentials are learned, get down to the hard work of making your company into a
visionary one, and create chaos for others and manage chaos created by others to survive in business.
7.4 Technology push and market pull
The two classic forces which act simultaneously or one at a time on a technology based business are
technology push and market pull [112]. The market pull is created by the customer needs which a
business endeavour to satisfy, while technology push is created by development of advanced
technology for which the demand may have to be created. The ‘Greenhouse’ environment needs to
be provided for creating a dominating technology push and board’s role has been seen as a very vital
factor in the successfully creating effective technology push.
Urakawa [113] has concluded that the market dialogue approach is effective for assessing the
hidden demand for an non-existing and/or for a new product. Blios [114] talks of integration of
marketing strategy with management of Advanced Manufacturing Technology (AMT). It has been
emphasized that marketing strategies should be reexamined when an investment is made in
manufacturing technology, and technology strategy should be re-examined before making massive
investments or organizational changes in marketing set up.
Alden [115] has discussed the performance of US firms’ products in the Japanese market. He
has given an example of bevel gears manufacturing machines which a US firm manufactures and
until 1986 had 90% of the market share in Japan.
Hamel and Prahalad [116] talk of expeditionary marketing using corporate imagination in
realizing technological innovations which will keep a firm ahead of competitors and take it towards
the development of core competencies. The market pull companies ask customers what they want,
while technology push is knowing what customers need before customers know it themselves. The
potential of tomorrow’s opportunities lies in technological innovations and they need to be managed
as competently as today’s businesses.
7.5 Technology management and other management aspects
The choice of acquiring new manufacturing technology has been dominated by a single reason, that
is the need to respond to the competition, in the past. This obviously required that the choice of new
technology be based on complete manufacturing strategy of the firm instead of a superficial defence
[117]. With the development on the technology management front, it is quite possible to plan and
acquire technology which helps in meeting the competitive challenges and realizing the economies
of scope and scale simultaneously by being flexible. Both the economies together have been referred
to as ‘economies of integration’.
Fryxell [118] has examined the business-level process R&D and return on investment (ROI)
under strategic orientation of product differentiation and cost leadership using a longitudinal
covariance structure modelling. A high level of stability in process R&D allocations has been
noticed. Increases in business-level process R&D intensity have shown quick and positive results in
the years following the current one in all three strategic samples chosen for the study.
Change in the basic conception of managerial responsibilities is required for improving
international competitiveness of technology based firms [119]. The emphasis on narrow
specialization of managers within each major functional area delivered results only in restricted
domain. Effective integration of specialized functions at successively higher corporate levels, as has
demonstrated by Japanese in the last two decades, is a ‘worth following’ strategy to improve
competitiveness in the global market. Making technological contribution to the competitiveness
visible requires reaching beyond R&D and engineering criteria and needs to take internal and
external environmental factors into consideration.
Hayes and Abernathy [120] have concluded that companies cannot become more innovative by
spending more on R&D or by doing more basic research. Critical decisions like imitative versus
innovative product design, backward integration, and process development directly affects several
functional areas of management, and major conflicts can only be resolved at senior executive levels.
According to the authors, the key to long term success or even survival in business is: to invest, to
innovate, to lead, and to create values where none existed.
If technology is given implicit or peripheral consideration and fails to deal with technology as
an integral factor of strategy formulation, Price [3] fears three forms which this failure can take.
These forms are an inadequate understanding of necessary and sufficient technologies, a focus on
product technologies and neglect of process technologies, and an inability to properly analyze the
barriers for converting technology push into market pull.
Womack and Jones [121] discuss the implementation of the concept of ‘lean’ organization. The
authors have identified a five point programme to root out waste and pursue perfection in all
operations. Define value from the perspective of the customer, identify the entire value stream and
eliminate waste, make remaining value creating steps flow, design and provide what customer wants
only on demand, and pursue perfection are the five steps which lean organizations have taken.
8 Technology management: implications for developing countries
8.1 Technology leapfrogging
Sharif [122] has mentioned that
“Technology comes with mixed blessings. It considerably enhances human

muscular and mental capabilities, and conditions our living surroundings to make
it more and more comfortable.”
According to him there is no unique path to development, and empirical research has shown that
neither population nor the natural resources endowment can guarantee a country’s economic success
or failure. The role of technology has been the most crucial in the overall growth and development of
a country. “The countries of the Asian region are thus paying the increasing attention to the
application of technology for development.” Differentiating in technology substitution and
leapfrogging, he suggests that substitution is successive, and follows the step-by-step replacement of
old technologies with the new ones without having skipped any of the intermediate steps i.e.
following the S-curve pattern of technology substitution, while leapfrogging refers to a situation
where a country or a unit which has started late in the game can still become a technology leader by
carefully skipping the intermediate steps. He has quoted examples of Japan in automobile industry,
Republic of Korea in iron and steel industry, and Indonesia in fibre-optics and satellite technology in
communication industry.
In the research agenda which has been recommended for developing countries to take up, the author
has placed emphasis on technology climate determinants which include level of socioeconomic
development, status of physical infrastructure and support services, and expenditure for research and
development in select areas of specialization. These studies are time consuming and ask for massive
resources. Without losing time the developing countries should take an indication of GDP/GNP
growth and quickly decide the areas of leapfrogging depending upon the four inter-related
components of technology, and then plan formulation and implementation strategies. According to
him it is a worthwhile exercise to work out a leapfrogging strategy in select areas for a given country.
Transfer of technology from developed countries to developing countries is a mutual necessity
[123]. Unfortunately the perception is not held widely across the globe. The low-income population
of the world can become the technology leaders and donors of technology only if their income and
purchasing power rise. This is likely to happen only with the real increase of productivity of the
facilities and quality of their produce. Dependence on natural resources cannot be taken too far; this
has been proved by countries like Japan and Korea. The interest of the developed countries, of
course, lies in expanding markets for their products.
Management of technology in a dual world (meaning the developed and developing countries) has to
be seen in the context of macro and micro terms [124]. The approaches of micro and macro
technology management need to be analyzed in the light of general management theories based on
time specific, space specific, and sector specific principles. The case of China has been discussed for
development of macro and micro technologies. It has also been concluded that the development and
effective management of micro technology is very crucial for long term success while the success
based on sound macro technology can prove to be very short lived.
Thiagarajan [125] has raised a very valid question that “can technological innovation bring
about a change in the attitude of people in developing countries?” Trying to seek an answer to this
perpetual question, the author has discussed various reasons for slow and sluggish growth of
entrepreneurs and entrepreneurship in developing countries. Apart from colonial rule and
dependence on natural resources, he has held the absence of strong thrust towards universal
education as an important factor for lack of development. The article also covers some of the
measures undertaken in India for blending the technological innovations and entrepreneurship
development.
A study of 33 Taiwanese firms was conducted for assessing the innovativeness and innovation
strategies of the developing countries in general and Taiwan in particular [126]. The authors have
concluded that in order to have an innovation culture, there has to be a base of trained manpower and
a strong market for the product locally. As regards the innovation strategy, it was suggested that
innovations should be realized in growth stages of technology life cycles where the profits are at a
peak, while the developing countries are making product and process technology innovations only in
the maturity stages.
8.2 Technology and global competitiveness
Technology is considered to be a major competitive factor for the countries at macro level and for
individual firms at micro level. Chakrabarti [127] presents a discussion on the researches based on
conceptual issues and measurement of technology indicators.
The twenty-first century is going to be totally dominated by technology and technological
competitiveness [128]. The entire world will agree to the fact that the atmosphere for creative
application of technology is critical to the economic growth, national security, and social stability.
Husain and Sushil [129] have indicated the need for trained manpower in developed and
underdeveloped countries for effective acquisitiona and subsequent absorption of foreign
technologies.
Hamel and Prahalad [75] have suggested five ways in which management can ‘leverage’ its
resources. One of the ways is by accumulating resources which have been further divided into two
i.e., extracting and borrowing. By ext racting the authors mean that a company must be capable of
learning from its own and others experiences and it should be able to do it faster and more efficient
than its competitors. Borrowing is the another way to leverage resources. It has so happened in the
past that USA has developed technologies and Japan has created markets for those technologies
faster than the former. The authors indicate that
“Technology is stateless. It crosses borders in the form of scientific papers, foreign

sponsorship of university research, international licensing, cross-border equity stakes in
hi-tech start-ups, and international academic conferences. Tapping into the global market
for technology is a potentially important source of resource leverage.”
Ohmae [130] has indicated about the role of technology for managing in a borderless world. He has
discussed how technology has dismantled the political boundaries of the world for a business, and
information and awareness regarding the products and solutions flow across the countries without
any real-time lag. He has described the characteristics of universal products. The point which the
author has emphasized is that to go global, a firm has to be strong in technology and market locally.
Technology and markets are made global by customer needs. According to him, globalization is
required because customer needs have been globalized and fixed cost of meeting such needs have
soared high.
Hamel and Prahalad [131] have differentiated between global business, global competition, and
global companies. The global competitors must have the capability to think and act differently. They
may slice the company in one way for distribution of investments, in another for technology, and in
manufacturing in still other way.
Sharif [132] has elucidated the role of technology in its different facets. Mainly the technology
was considered to be the means of converting input into marketable output. When competition
grows, it demands a technology-based framework which helps in improving productivity of all the
activities a firm is involved in. Hence technology plays a crucial role in improving the productivity
and thereby competitiveness of a country in general and a firm in particular.
Shank and Govindarajan [133] have suggested a framework for analyzing the investment in
manufacturing technologies and their value addition and product differentiation. They have also
critically evaluated the existing frameworks of cost analysis on investment in technology. The
authors believe that strategic cost management is a powerful way of analyzing the investment
opportunities in technology which in turn decide a firm’s competitiveness in the long run.
Husain and Sushil [97] have discussed the technology management practices of Indian
manufacturing and service firms. The authors have concluded that in absence of a clear-cut
technology strategy, a firm operates in a higher degree of uncertainty and dependence on technology
providers does not reduce over time.
9 Technology management and the automobile industry
9.1 Secret behind Japanese success
Drucker [134], while discussing the reasons behind Japan’s success in the global market, has
revealed that the Ministry of International Trade and Industry (MITI) Government of Japan was of
the opinion that the expansion of the automobile industry would have adverse effects on her
development and balance of payment situation. MITI had indicated that expansion of automobile
industry means more demand for scarce petroleum and iron ores. But eventually Japanese have been
able to prevail in the overseas markets because they could bring out the required technology with
appropriate national priorities and leadership styles.
When the yen started climbing up, the Japanese automobile manufacturers were forced to hike
the dollar prices and Americans had a wonderful chance for recovering the market share which they
had lost to their Japanese counterparts [135]. The USA lost this opportunity by following the suite
and exposing its corporate attitude. This price revision by US firms was uncalled for.
Koshiro [136] has outlined the personnel planning, technological changes, and outsourcing
strategies of Japanese firms particularly after 1970’s oil crisis. The author has presented three
variations of ‘lifetime employment’ model being practised by large Japanese automobile
manufacturing firms. The variations of this model are the stationary model, the growth model, and
the stagnation model.
Kamath and Liker [137] have analyzed the vendor-customer relationship being maintained by
leading Japanese automobile manufacturing firms in context to product development. The Japanese
automakers assign vendors different roles and give even first
tier suppliers varying level of responsibility as far as product development is concerned. Only a
select few enjoy the full-blown partnership. The authors have provided guidelines for customers and
suppliers.
9.2 Automobile industry and manufacturing practices
Lutz [138] has discussed the various problems which North American and European auto industry is
facing in recent times. The author has discussed the downsizing of cars and volume of
manufacturing in a plant. To his mind Japanese started taking advantage of economies of scale and
manufactured a very large number of vehicles and less number of models and were able to sell
because of low price. After the oil crisis of seventies, people preferred fuel efficient cars and
Japanese found themselves in an advantageous position. North American and European
manufacturers took a little more time to switch over to new requirements of the consumers and got
beaten up initially.
Levy [139] has described the restructuring of European automobile industry in the face of dual
crisis in 1980s. Firstly, the oil crisis sent shock waves through world economies and caused turmoil
of varying duration and intensity. Secondly, the stiff competition which was offered by Japanese
firms, both from inside as well as outside Europe. Cole [140] has suggested an almost religious
approach to reducing waste and increasing productivity and profitability. The author has outlined the
need for use of computers in designing new products and assiting other manufacturing related
operations, and R&D for new material, process and product development.
Snowdon [141] describes the important parameters Austin Rover considered before entering
into a joint venture with Honda Motors of Japan. The important ones include the type of company,
its philosophy and outlook; the nature of its products and engineering skills; and the size and strength
of the company. The joint venture prospered and both companies were prepared to adopt the
principles of each other. The most important fact reported is, simultaneously Austin Rover has also
developed its independent competitive strengths. The author has indicated that the dual strategy of
building strength by taking help and competing with Japanese firms will set the agenda for future
strategic alliances at international level.
Ward et al [142] have reported the Toyota’s approach called as ‘set -based concurrent
engineering’, for developing new models. The process looks very cumbersome but it delivers better
cars faster. Toyota engineers delay decisions and pass partial information while exploring numerous
prototypes. They gradually narrow down their choice of final solutions which come out in the forms
of new models.
Joshi [143] highlights the problems faced on the indigenization front by firms in developing
countries which have b orrowed technology from abroad. The author has identified several categories
of vendors as regards the quality and technology. He has grouped them as ignorant vendors,
confused vendors, disinterested vendors, proud vendors, monopolistic vendors, and competent
vendors. Joshi [144] outlines the importance of product designers of the firms acquiring
technologies and their role in technology adoption and implementation.
Dyer [145] describes how Chrysler made a turnaround and created an American ‘keiretsu’ by
radically changing the relationship with vendors. Instead of asking them to win a deal for supplying
components for two years, they started involving the suppliers in product development and process
improvement and giving them an opportunity to share the benefits of successful ventures for the the
entire life of the model. Now Chrysler does
not dictate the prices of the components, but the two sides sit together to find ways of lowering costs
of making cars and sharing the savings. The author has highlighted an important difference in
keiretsu which Chrysler has created that the firm does not have an equity holding in vendor
companies hence dropping a supplier on account of non-performance should not be difficult, while
the same is difficult for Japanese counterparts of Chrysler.
10 Conclusion
There is a large amount of literature available on the issues related to Management of Technology in
the context of the developed countries. The various prominent authors in the area have tried to
capture the different problems faced by technology based firms, and have thrown light on the various
aspects of the technology management function. In fact, it has become very difficult to find a firm
which is not using any technology and is therefore not faced with the task of managing it.
It is very surprising to learn from the literature that nothing much has been written about the
Management of Technology in developing countries in general and India in particular. After the
liberalization of Indian economy and globalization of trade, commerce, and industry, being initiated
in 1991, there has been a mad rush for technology acquisition from developed countries. Indian
management researchers have started penning down the things but only in a very limited domain.
There has been some stray cases available of technology transfer in the literature which does not
reflect fully the motives behind acquisition of technology from abroad, and the subsequent
experiences. An attempt needs to be made for analyzing both successful and unsuccessful cases of
technology development, technology transfer, and subsequent indigenization.
Management of indigenous technology and the process of continuous innovations, technology
planning, technology strategy, integration of technology strategy with business strategy, and
flexibility in technology strategy need to be emphasized and long term benefits of effective
management of technology have to be conveyed to the corporate world of the country. We need to
bring in more transparency in managing the technology by adopting a professional approach.
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Strategic Management of Technology - A Glimpse of Literature - IVA

Data · September 2014

Zafar Husain Professor Sushil

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Waste Management: a framework for intervention View project

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Strategic management of technology – a glimpse

Zafar Husain and Sushil

Abstract: A literature review exercise was undertaken to identify the research

Keywords: Strategic management of technology; technology transfer;

Reference to this paper should be made as follows: Husain, Z. and Sushil,

Biographical notes: Zafar Husain is Reader (Assistant Professor) at Devi

Copyright © 1997 lnderscience Enterprises Ltd.

Management of Technology defined: “Management of Technology links engineering, science,

2 Strategic management of technology

2.1 Technology strategy

2.2 Technology management and corporate strategy

2.3 Technology Management and future approaches

Werther et al [23] have outlined the characteristics of technology management function.

2.4 Technology leadership and core competencies

3 Technology planning and forecasting

3.1 Technology planning

reviews; build relationships.

3.2 Technology forecasting

3.3 Technology and its impact on business

4 Technology acquisition and transfer

4.1 Technology transfer

4.2 Technology management and strategic alliances

4.3 Strategic alliances and market leadership

5 Development and innovation management

5.1 Technology development

5.2 Innovation management

(1) acquire market leadership position;

(2) overcome incumbent inertia;

(3) manage the duality of technological pioneering;

(4) speed up technological development and commercialization; and

(5) link pioneering activities to competitive strategy.

“It is the combination of rapid technological change, greatly speeded up diffusion of

6 Technology management and organizational issues

6.1 High-tech organizations

6.2 Technology management and R&D management

6.4 Technology management in service industries

7 Adoption and implementation of new technologies

7.1 Technology adoption

7.2 Technology maturation and technology substitution

7.3 Technology change and chaos

7.4 Technology push and market pull

7.5 Technology management and other management aspects

8 Technology management: implications for developing countries

8.1 Technology leapfrogging

Sharif [122] has mentioned that

“Technology comes with mixed blessings. It considerably enhances human

8.2 Technology and global competitiveness

“Technology is stateless. It crosses borders in the form of scientific papers, foreign

9 Technology management and the automobile industry

9.1 Secret behind Japanese success

9.2 Automobile industry and manufacturing practices

8 Wilson, I. (1986) ‘The strategic management of technology: corporate fad or strateg ic

56 Van de Ven, A.H. (1986) ‘Central problems in th e managhement of innovation’, Management

78 Maidique, M.A. (1980) ‘ Entrepreneurs champions and technology innovations’, Sloan

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