Effects of Technology Flows on Industrial Performance: The Contingent Role of Diversity of R&D Human Capital

ABSTRACT Purpose: Given the growth in technology transactions on business marketing, there is an imperative need for a comprehensive understanding of business marketing issues in technology balance of payment (TBP). Earlier studies focused on the consequences of technology inflows to industrial organizations when referring to technology flow; thus, effects of technology outflows have not been considered and only half of the technology flows are studied. Thus the authors have conducted a comprehensive study to answer the following questions: (a) What are the effects of exporting and importing technology in terms of outflows and inflows on performance? (b) How does the extent of diversity of R&D human capital moderate the relationship between technology outflows and performance? (c) How does the extent of diversity of R&D human capital moderate the relationship between technology inflows and performance? Methodology/approach: This study consists of an industry-level, 9-year longitudinal analysis on the effects of technology outflows and inflows on industrial performance. Data from the “National Science and Technology Activity Survey, 2001–2009” and “Yearbook of Industrial Production Statistics, 2002–2010” were used for data on technology outflows, technology inflows, and productivity. We used conventional panel data methods (fixed- and random-effects regression) to test the hypotheses and also used two-dimensional simulated diagrams to illustrate the shape of the relationship between technology outflows and technology inflows on industrial production performance, and to show how the relationships might be moderated by diversity of R&D human capital. Findings: The framework contributes to the literature by understanding different technology outflows and inflows of a context in business marketing research. The relationships we explored in this study expand our understanding of the sources of industrial competiveness. Our study suggests some of the important underlying factors to understand the positive effects of technology outflows and inflows on performance. Our results also suggest that industries that are at lower levels of technology outflows and inflows are likely to improve performance if they devote more diversity of R&D human capital in transaction activities. This study also provides important managerial implications for practitioners by offering a comprehensive understanding of how technology marketing practices are operated in Taiwan. Originality/value/contribution. Most studies have focused on the inflows of technology, but the outflows still lack sufficient attention, especially the dynamic process of technology management. This article attempts to relate specifically export and import of technology to the performance. We also provide insight into the diversity of R&D human capital to verify the moderate effect of the relationship between technology outflows, inflows and performance.