In the past, the choice between reliance on internally developed technology and external acquisition of technology(through licensing, various types of alliances, or even illegal methods) has been posed. Such a dichotomous perspective no longer fits the configuration of technology threats, opportunities and capacities faced by many firms in recent environment. Even large and technically strong firms are finding themselves unable to control their technical destines in significant techno-market domains. With the growth in inter-disciplinarity, and the globalization of technology and the proliferation of sources, and the necessity for rapid acquisition and commercialization in the worldwide competition, many firms have turned to external sourcing strategies in technology acquisition.
The purpose of this thesis is to examine the technology acquisition strategy of Korean firms. This thesis primarily focuses on the following research questions as follows:
1) What are the important factors among competitive environment and internal resources to determine technology acquisition strategy?
2) What is relationship between technology acquainting strategy and technological &commercial success?
3) How do technology internalization efforts impact on technological and commercial success? And how could firms internalize acquired technologies from outsourcing?
First of all, this thesis reviews the related literatures, such as technology strategy, technology acquisition strategy, the factors determing technology strategies among competitive environment and internal resources and the factors related to technological and commercial success. Through literature review, it becomes clear that technology outsourcing is the most effective and prevalent alternative in turbulent and piercely competitive environment such as high-tech industry, and especially to the late-comers such as firms in newly industrialized economies. The remarkable characteristic of high-tech competition is the timing factor to achieve competitive edge, so key success factors can be classified into timing, product performance, and cost.
Next, it analyses ten case projects of two business units of one large electronic firms based on the research framework. The major finding are as follows:
1) Many projects utilize a variety of technology acquisition methods concurrently.
2) The choice of technology acquisition strategies depends on competitive environment, technology characteristics, business strategy, and firm's capacities. Especially it depends on firm's capacities and business strategy.
3) Technological and commercial success can be varied depending on the technology acquisition strategy.
4) Technology internalization efforts impact on technological and commercial success.
5) Firms usually utilize make & buy strategy rather than make or buy strategy.
The case study provides policy implications as follows:
1) Technological capability is the critical factor to long-term success. So firms should focus on internal R&D to complement externally acquired technology and to maintain core competence, by which they can rapidly reach world-class level in competitive edge.
2) In high-tech industries, timing is the most critical factor in determing technology acquisition strategy and commercial success. Firms should choose the technology strategy by considering the speed of technological advancement and changes in both environment and internal capability. Also firms should do best speed up in assimilating outsourcing technology and accumulating internal technological capability.
Finally, this thesis reveals that, a firm should select technology acquisition strategy that is most suitable to the firm's capacities, competitive strategy and their internal/external environment, when selecting new strategy.
