Technology Transfer Potential in Local and Foreign-Owned Firms in Emerging Economies

Abstract

Technology transfer in international collaborations is challenging but can bring benefits to both local and foreign-owned firms in emerging economies. In this paper we focus on conditions for potential technology transfer in emerging economies. We develop a configurational theoretical framework and empirically operationalize it using qualitative comparative analysis. Building on differences in absorptive capacity between these two kinds of firms and relying on data from the construction industry in Ghana, we develop a process model of technology transfer in emerging economies. Our model shows that technology transfer in local and foreign firms can be achieved through different combinations of human resource development and knowledge management, as well as international collaborations and networks. The model also explicates mechanisms leading to potential technology transfer. Based on the findings and the process model, the study makes several contributions to the absorptive capacity and technology transfer literature in emerging economies by shedding light on the underlying processes that foster a firm's ability to absorb technology in international collaborations.