An integrated framework of developing technological capabilities from multinationals to subsidiaries established in developing countries: the case of Moroccan manufacturing industry

Melehi, Dina (2017) An integrated framework of developing technological capabilities from multinationals to subsidiaries established in developing countries: the case of Moroccan manufacturing industry. (DBA thesis), Kingston University, .

Abstract

An integrated fraework of Park and Ghauri (2011) of developing technological capabilities will be replicated and examined from Multinationals to subsidiaries doing business in Morocco. This research identifies the key elements that affect the ability of subsidiaried in Morocco to cultivate technological capabilities through imported technology. The main objective of this research is to investigate the role of Multinationals in contributing technological capabilities to subsidiaries established in target markets. It will replicate the same conceptual framework used by PArk and Ghauri (2011), and take into consideration the external factors, government support, the recipient technology infrastructure, and the technology transfer mode. It will be relevant to investigate how these external factors are crucial to Moroccan industries for the development of their technological capabilities. They argue that three fundamental constructs influence technology acquisition in SMLFS: firm-specific resources of knowledge acquirers that include human capital, intent to learn and international experience; trust and organizational compatibility (trust, compatible organizational culture, and business relatedness); and collaborative support by knowledge transferors that included active assistance of foreign acquiring firms in technology management, and the participation of foreign expatriate experts. Not only endogenous factors can contribute to the development of technological capability of the firms established in Morocco, but external factors can also play a significant role in determining the development of technological capability of SMLFs. A review of existing literature shows that no previous study has replicated the Park & Ghauri's model of technological capabilities in Morocco. This model was only replicated in Indonesia, India and South Korea but not in Morocco. In terms of North African countries, an academic research focusing on the Egyptian can industry has been done but not in Morocco, so that is why it is interesting to conduct this study. The main objective of this research is to investigate whether Multinationals contribute towards the enhancement of technological capabilities of subsidiaries established in foreign markets, especially in Morocco. Given that drivers promoting technology acquisitions from acquiring firms have been largely neglected in the literature, this research attempts to identify key factors influenceing this phenomenon. Although many studies have discussed knowledge exchange through international acquisitions (IAs), little attention has been given to small and medium sized local acquired firms (SMLFs). Park and Ghauri (2011) have used a list of all Korean firms acquired by foreign MNEs from Foreign Direct Investment published by the Ministry of Knowledge and Economy (2008).

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