Organisational learning and the risks of technology transfers in China

Abstract

The transfer of technology from the foreign partner to the domestic partner has been a problem for international joint ventures throughout the world, but particularly in China. Because of the nature of organisational learning, especially in its tacit forms, such transfers can occur quite subtly without the foreign partner realising what has transpired until it is too late. The problem is complicated by the fact that technology is short‐lived and must be exploited within narrow time frames, the fact that the Chinese partner’s primary interest is in acquiring the foreign partner’s technology, and the fact that the foreign partner typically shows little interest in obtaining the Chinese partner’s unique non‐technical knowledge as an offset. This article attempts to show how technology transfers can be controlled in the first place and how the foreign partner’s competitive advantage can be preserved by acquiring the domestic partner’s unique knowledge of host country circumstances.

Citation

Wong, Y., Maher, T.E., Nicholson, J.D. and Feng Bai, A. (2003), "Organisational learning and the risks of technology transfers in China", Management Research News, Vol. 26 No. 12, pp. 1-11. https://doi.org/10.1108/01409170310783682