Strategic Management: Formulation and Implementation

Technology And The Multinational Enterprise - Summary

A critical aspect of succeeding in an international environment of rapid technological change is the ability to transfer technology from one location to another.

Especially, the multinational firm is the agent for transferring benefits of advanced technology across border. That is, technology is a the heart of companies that operate across national boundaries. Thus, the technology plays a key role on a firm's business strategy.

Moreover, the success of the firm depends on the appropriateness of a particular technology to a specific location. Therefore, it is important to understand the connections between competition and technology as well as the unique considerations of each of these aspects of doing business internationally.

Issues stem from the transnational scope of the multinational corporation and a realization that its actions may at times conflict with specific interests of their host or home country. Especially, large differences between the relative technological capabilities of different countries create fears and special challenges about MNE activities that transfer technology across borders. Therefore, managers should understand the implication of global decisions making in a private corporation and to know where the process converges with and diverges from interests of national sovereignties.

This chapter is intend to give managers a basic knowledge of these issues.