Technology Assessment and Acquisition in the US Electronics Manufacturing Industry Tugrul U Daim, Ph.D.
TECHNOLOGY “the science or study of the practical or industrial arts, applied sciences etc; the system by which a society provides its members with those things needed or desired.” “the science of the application of knowledge to practical purposes in a particular field; the totality of means employed by a people to provide itself with the objects of material welfare.” Webster’s (1981, 1984)
TECHNOLOGY Knowledge of how to apply other knowledge to create or modify useful things or processes where knowledge has been derived scientifically or otherwise. [Aldridge (1990)]
Technology Assessment capability assessment, needs assessment, market assessment, gap assessment, impact assessment, selection assessment
Technology Acquisition obtaining and adapting new technologies through know-how, hardware, software, design and manufacturing capability for improved performance and long term competitiveness
Outline
Expert Panel Name and Title Company J. Callaway, President Microflect Co Inc E. Feinstein, President Scala Electronic Corp B. Reddersen, Vice-President Spectra Physics D. Coleman, CEO Merix C. Hewitson, Vice-President Current Electronics P. Danner, President Pacific Microelectronics Corp E. Cousins, President Stoner Communications R. Lockhart, President Biamp Systems
Technology Evaluation Attributes Methodologies
Evaluation Attributes Four Perspectives Technological Economic Social Political
Evaluation Methodologies Payback Period Return On Investment Internal Rate of Return Marginal Profit Net Present Value Decision Theory Integer Programming Modeling Simulation Multi Objective Integer Programming Goal Programming Utility Curves Scenarios and Games Physical Modeling Graphics Delphi Brain Storming Cross-Impact Analysis Scoring with multiple objectives
Technology Acquisition Channels Sponsoring University Research Industry/University Research Consortia Supporting of Employees' Education Community College External R&D Centers Consultants In-House Technology Development Licensing Agreements Vendor/Suppliers Technical Meetings Technical Journals Participation in Trade Shows Purchasing of Existing Technology
Impacts Increase in productivity Product quality improvements Shortened product development cycle Increase in the number of new products Improvements in labor-management relations Increase in accuracy of the information flows Reduced production costs Increase in responsiveness to production schedule changes Reduced maintenance costs Improved service performance Increase in domestic sales Increase in international sales
Field Study Results Economical Attributes Technological Attributes Attribute Types Social Attributes Political Attributes 1 2 3 4 Level of Importance
Evaluation Methods
Technology Acquisition Channels
Impacts
Research Questions
Research Questions / Hypotheses Research Question 1: What are the technology evaluation patterns in the U.S. electronics manufacturing industry? Hypothesis 1.1 When testing technology evaluation processes within this sample of firms from the U.S. electronics manufacturing industry, no significant factors will be found. Hypothesis 1.2 When testing technology evaluation processes within this sample of firms from the U.S. electronics manufacturing industry, no significant differences in these evaluation processes will be found when firms are compared on relevant organizational characteristics.
Hypothesis Testing Results Null Hypothesis 1.1 When testing technology evaluation processes within this sample of firms from the U.S. electronics manufacturing industry, no significant factors will be found. Method Factor Analysis Result Reject Null Hypothesis
Hypothesis Testing Results Evaluation Attributes: Technological Evaluation Attributes: Economic Factor 1 Flexibility and Efficiency Factor 1 Tactical Costs Factor 2 Strategic Attributes Factor 2 Strategic Costs Factor 3 Mfg Floor Requirements Factor 3 Competitiveness Factor 4 Product Development Evaluation Attributes: Social Evaluation Attributes: Political Factor 1 Operational Social Concerns Factor 1 Uniqueness Factor 2 Strategic Social Concerns Factor 2 Industry trends Evaluation Methods Factor 1 Analytic Tools Factor 2 Financial Tools Factor 3 Modeling Tools
Hypothesis Testing Results Null Hypothesis 1.2 When testing technology evaluation processes within this sample of firms from the U.S. electronics manufacturing industry, no significant differences in these evaluation processes will be found when firms are compared on relevant organizational characteristics. Method Discriminant Analysis Result Reject Null Hypothesis
Significant Discriminating Characteristics For Each Variable Are Shaded H: High L: Low; M: Measurement Tool Mfg, E: Electrical Eqpt Mfg.
Research Questions / Hypotheses Research Question 2 What are the technology acquisition patterns in the U.S. electronics manufacturing industry? Hypothesis 2.1 When testing technology acquisition processes within this sample of firms from the U.S. electronics manufacturing industry, no significant factors will be found. Hypothesis 2.2 When testing technology acquisition processes within this sample of firms from the U.S. electronics manufacturing industry, no significant differences in these acquisition processes will be found when firms are compared on relevant organizational characteristics
Hypothesis Testing Results Null Hypothesis 2.1 When testing technology acquisition processes within this sample of firms from the U.S. electronics manufacturing industry, no significant factors will be found. Method Factor Analysis Result Reject Null Hypothesis Factor 1 Research and Education Factor 2 Networking Factor 3 In House / Vendors
Hypothesis Testing Results Null Hypothesis 2.2 When testing technology acquisition processes within this sample of firms from the U.S. electronics manufacturing industry, no significant differences in these acquisition processes will be found when firms are compared on relevant organizational characteristics Method Discriminant Analysis Result Reject Null Hypothesis Significant Discriminating Characteristics For Each Variable Are Shaded; H: High L: Low
Research Questions / Hypotheses Research Question 3: What are the impacts of the acquired technologies in the U.S. electronics manufacturing industry? Hypothesis 3.1 When testing the impacts resulting from the acquired technologies within this sample of firms from the U.S. electronics manufacturing industry, no significant factors will be found. Hypothesis 3.2 When testing the impacts resulting from the acquired technologies within this sample of firms from the U.S. electronics manufacturing industry, no significant differences among those impacts will be found when firms are compared on relevant organizational characteristics.
Hypothesis Testing Results Null Hypothesis 3.1 When testing the impacts resulting from the acquired technologies within this sample of firms from the U.S. electronics manufacturing industry, no significant factors will be found. Method Factor Analysis Result Reject Null Hypothesis Factor 1 Organizational and Operational Competitiveness Factor2 Market / New Product Dev. Competitiveness
Hypothesis Testing Results Null Hypothesis 3.2 When testing the impacts resulting from the acquired technologies within this sample of firms from the U.S. electronics manufacturing industry, no significant differences among those impacts will be found when firms are compared on relevant organizational characteristics. Method Discriminant Analysis Result Can not Reject Null Hypothesis
Research Questions / Hypotheses Research Question 4: What are the relationships between technology evaluation patterns, acquisition strategies, and the resulting impacts in the U.S. electronics manufacturing industry? Hypothesis 4.1 When testing the relationships between technology evaluation strategies and resulting impacts within this sample of firms from the U.S. electronics manufacturing industry, no significant relationships will be found. Hypothesis 4.2 When testing the relationships between technology acquisition strategies and resulting impacts within this sample of firms from the U.S. electronics manufacturing industry, no significant relationships will be found.
Hypothesis Testing Results Null Hypothesis 4.1 When testing the relationships between technology evaluation strategies and resulting impacts within this sample of firms from the U.S. electronics manufacturing industry, no significant relationships will be found. Method Multiple Regression Result Reject Null Hypothesis
Hypothesis Testing Results Organizational and Operational Comp. = f (Flexibility and Efficiency, Manufacturing Floor Requirements, Strategic Attributes, Product Development, Tactical Costs, Strategic Costs, Operational Social Concerns, Strategic Social Concerns, Uniqueness) Market and New Product Development Comp. = f (Strategic Attributes, Product Development, Competitiveness, Strategic Social Concerns, Uniqueness Organizational and Operational Comp. = f (Analytical Tools, Financial Tools, Modeling Tools) Market and New Product Development Comp. = f ( Modeling Tools )
Hypothesis Testing Results Null Hypothesis 4.2 When testing the relationships between technology acquisition strategies and resulting impacts within this sample of firms from the U.S. electronics manufacturing industry, no significant relationships will be found. Method Multiple Regression Result Reject Null Hypothesis
Hypothesis Testing Results Organizational and Operational Comp. = f (Networking, Research and education) Market and New Product Development Comp. = f (In House/ Vendors, Networking)
Conclusion Decision Makers can determine the appropriate technology evaluation and acquisition strategies based on the sales volume, employment size, SIC code, and targeted goals of their companies
Hypothetical Scenario Company A Sales Volume < $50M, Employment Size < 500 - Small Meas. Tool Manufacturer, Goal : Improve Market/New Prod. Dev. Comp. Evaluation Attributes Competitiveness Evaluation Methodology Modeling Acquisition Strategy In House/Vendors
Hypothetical Scenario Company B Sales Volume > $50M, Employment Size > 500 - Large Elec. Eqpt Manufacturer, Goal : Improve Org/Oper Comp. Evaluation Attributes Flexibility/Efficiency, Mfg. Floor Req., Strategic Attributes, Uniqueness Evaluation Methodology Analytic, Financial, Modeling Acquisition Strategy Networking Research/Education
Contribution The study fills the gap identified in the literature for determining the appropriate technology evaluation and acquisition strategies
Limitations The study was conducted in the US Electronics Manufacturing Industry. The evaluation attributes, and the resulting impacts have limited performance measures. Conclusions are based on the responses of the Decision Makers
Future Research Developing objective performance measures for attributes and impacts Developing benchmarks for best practices by repeating this study in other industries and countries, and for other types of technologies Developing decision support systems that could utilize the results of this study Explore the relationship between the technology acquisition and evalution strategies