International Technology Transfer in Services

This study examines the nature of technology and the process of its transfer in five service industries from parent companies to foreign affiliates. Three principal research questions are posed: What is the key technology in each industry? What are the main methods for transferring this technology? How and why do technology and transfer methods differ across firms, industries and countries? The empirical analysis shows that key technologies were generally knowledge of/experience in the industry and methodology for producing the service. Transfer of the technology was mainly done through the training and transfer of experts: and organizational forms were wholly owned subsidiaries and international partnerships. More technology transfer occurred when firms were more international, when affiliates were more recently-established, and when parent ownership was lower in the affiliate. Some evidence exists that more firm-specific, jointly produced technology leads to higher ownership percentage and greater transfer to affiliates.