This thesis is aimed at investigating the patterns of FDI & technology transfer in small and medium-sized companies, and their influence on the process, mode selection and contract success. After a review survey of literatures, the following three types in each of FDI & technology transfer were identified based on business and technological capabilities of Korean firms;
1) dependency type: Joint venture between small Korean firm starting new business and large MNC or technology-intensive foreign firm, where almost all resources of new business coming from foreign partner.
2) cooperative type: Korean firm and foreign partner with equal bargaining power joins to enhance their competitive force in domestic market.
3) divisionalized type: Korean and foreign partners maintain their new business in divisionalized form, either in the area of segmented market or differentiated technology.
4) dependency type: Korean firm wholly dependent on foreign partner due to technological gap and lack of experience.
5) acquisition type: Korean firm acquires new technology in order to extend product lines based on its technological capability.
6) assimilation type: technology-intensive Korean firm imports matured technology and assimilates it for leveling-up productivity.
To validate these patterns, in-depth case study of 34 firms was carried out by interviews and questionnaire. The results of qualitative and statistical analysis indicate as followings:
1) The process, mode selection, contract success were most distintively different among the six types.
2) Korean firms prefer joint ventures in the case of new technology, high competition, large and new business.
3) Foreign partners prefer joint venture in the case of larger domestic market, high technology, weak competition.
4) Market competition, technological unfittedness, small size of market are the critical factors of failure in all the cases.
5) Most failure appeared in cooperative and acquisition types, because of conflict in contract content or difference in market strategy.
Further research with a larger sample size including larger companies and also with a more elaborate research methodology will be needed to improve the results of this study.