International technology transfer: building theory from a multiple case-study in the aircraft industry

International technology transfer occurs frequently in international operations, for example in cases of foreign direct investment where companies set-up existing manufacturing lines in new locations. It also occurs in situations of international outsourcing where a new supplier receives product and/or production process information. This technology transfer process often leads to difficulties, for example delays and much higher costs than anticipated. To gain insight into the causes of these difficulties we used a grounded theory approach to describe the process of international production technology transfer. We conducted four case studies in the aircraft industry and analyzed the problems that occurred. We found that technology transfer consists of three phases: preparation, installation and utilization. These three phases are influenced by three types of factors: technological, organizational and environmental. The combination of activities with factors enables an integrated view on international technology transfer. We found that the amount of technology, the accuracy of information, and the extent of organizational and environmental differences have a large impact on the efficiency of the technology transfer process.

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