1. Technology Assessment and Acquisition in the US Electronics Manufacturing Industry
Tugrul U Daim, Ph.D.

2. 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)

3. 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)]

4. Technology Assessment
capability assessment, needs assessment, market assessment, gap assessment, impact assessment, selection assessment

5. Technology Acquisition
obtaining and adapting new technologies through know-how, hardware, software, design and manufacturing capability for improved performance and long term competitiveness

6. Outline

7. 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

8. Technology Evaluation
Attributes
Methodologies

9. Evaluation Attributes
Four Perspectives
Technological
Economic
Social
Political

10. 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

11. 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

12. 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

13. Field Study Results Economical Attributes Technological Attributes
Attribute Types
Social
Attributes
Political
Attributes 1 2 3 4
Level of Importance

14. Evaluation Methods

15. Technology Acquisition Channels

16. Impacts

17. Research Questions

18. 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.

19. 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

20. 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

21. 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

22. Significant Discriminating Characteristics For Each Variable Are Shaded
H: High L: Low; M: Measurement Tool Mfg, E: Electrical Eqpt Mfg.

23. 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

24. 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

25. 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

26. 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.

27. 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

28. 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

29. 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.

30. 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

31. 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 )

32. 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

33. Hypothesis Testing Results
Organizational and Operational Comp. = f (Networking, Research and education)
Market and New Product Development Comp. = f (In House/ Vendors, Networking)

34. 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

35. Hypothetical Scenario
Company A
Sales Volume < $50M, Employment Size < Small
Meas. Tool Manufacturer, Goal : Improve Market/New Prod. Dev. Comp.
Evaluation Attributes
Competitiveness
Evaluation Methodology
Modeling
Acquisition Strategy
In House/Vendors

36. Hypothetical Scenario
Company B
Sales Volume > $50M, Employment Size > 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

37. Contribution
The study fills the gap identified in the literature for determining the appropriate technology evaluation and acquisition strategies

38. 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

39. 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