Factors Driving Latecomer Firms Technological Capability Acquiring and Building in Manufacturing Complex Product Systems: The Case of Oil Turbo Compressor Company (OTC)

Document Type : Original Article

Authors

1 PhD Student of Technology management- Allameh Tabataba'i University

2 Faculty member of Allameh Tabataba'i University

3 Faculty Member of

Abstract

During last decades a large amount of efforts have been done by emerging economies and developing countries in order to technological catch-up and acquiring essential knowledge and capabilities for manufacturing and development of complex products and systems. As an example, Iran has been doing a lot of efforts in order to acquire essential knowledge, skills and capabilities for manufacturing and developing gas turbines and it achieved pleasant and remarkable results. So, this paper through applying qualitative approach and case study strategy has investigated the successful experience of acquiring knowledge, technological and managerial capabilities of manufacturing industrial gas turbines by Oil Turbo Compressor Company (OTC) during IGT25 project and has identified drivers and factors effective on this successful experience. The evidence illustrate that government policies, supports and initiatives; networking, interaction and cooperating within key players and stakeholders; existence of significant local market and demand; strategy and mode of technology acquisition; organizational and managerial capabilities and contextual and enviornmental factors have played key role in acquiring knowledge and technologies of manufacturing gas turbines by Oil Turbo Compressor Company.

Keywords

Main Subjects


Acha, V., Davies, A., Hobday, M., Salter, A., 2004. Exploring the capital goods economy: complex product systems in the UK. Industrial and Corporate Change. 13(3), pp. 505-529.
Chen, J., Tong, L., Ngai, E. W. T., 2007. Inter-organizational knowledge management in complex products and systems (Challenges and an exploratory framework). Journal of Technology Management in China, 2(2), pp. 134-144.
Choung, J. Y., Hwang, H. R., 2007. Developing the complex system in Korea: the case study of TDX and CDMA telecom system. International Journal of Technological Learning, Innovation and Development, 1(2).
Danaeifard, H., 2010. Theorizing strategies. 1th edition, SAMT Publications.
Davies, A., Hobday, M., 2005. The business of projects (Managing innovation in complex product systems). Cambridge University Press, New York.
Davies, A., Brady, T., Prencipe, A., Hobday, M., 2011. Innovation in Complex Products and Systems: Implications for Projectbased Organizations. Project-Based Organizing and Strategic Management. Advances in Strategic Management, Volume 28, pp.3–26.
Davies, A., Brady, T., 1998. Policies for a complex product system. Futures, 30(4), pp. 293–304.
Eisenhardt, K., M., 1989. Building theories from case study research. Academy of Management Review. 14(4), pp. 532-550.
Eisenhardt, K. M., Graebner, M. E., 2007. Theory Building from Cases: Opportunities and Challenges. Academy of Management Journal, 50(1), pp. 25–32.
Gunawan., Igel, B., Ramanathan, K., 2002. Innovation networks in a complex product system project: the case of the ISDN project in Indonesia. International Journal of Technology Management. 24(5/6), pp. 583-599.
Hobday, M., 1998. Product complexity, innovation and industrial organization. Research Policy, 26, pp.689–710.
Hobday, M., Rush, H., 1999. Technology management in complex product systems (CoPS) – ten questions answered, International Journal of Technology Management. 17(6), pp.618–638.
Hobday, M., Rush, H., Tidd, J., 2000. Innovation in complex products and system. Research Policy, Volume 29, pp.793–804.
Hobday, M., Davies, A., Prencipe, A., 2005. System integration: a core capability of modern corporation. Industrial and Corporate Change. 14(6), pp. 1109-1143.
Hobday, M.,, 2000. The project-based organization: an ideal form for managing complex products and systems?. Research Policy, Volume 29, pp.871-893.
Hobday, M. & Brady, T., 2000. A fast method for analysing and improving complex software processes. R&D Management. 30(1).
Kiamehr, M., Hobday, M., Kermanshah, A., 2013. Latecomer systems integration capability in complex capital goods: the case of Iran’s electricity generation systems. Industrial and Corporate Change, pp. 1–28.
Kiamehr, M., 2016. Paths of technological capability building in complex capital goods: The case of hydroelectricity generation systems in Iran. Technological Forecasting and Social Change, http://dx.doi.org/10.1016/j.techfore.2016.03.005.
Kiamehr, M., Hobday, M., Hamedi, M., 2015. Latecomer firm strategies in complex product systems (CoPS): The case of Iran’s thermal electricity generation systems. Research Policy. 44(6), pp. 1240–1251.
Kiyamehr, m., 2013. Technological Capabilities of Complex Capital Goods in Developing Economies: The Case of a Company in Iran’s Hydro Electricity Generation Industry. Journal of Science & Technology Policy, 6(1).
Lee, J. J., & Yoon, H., 2015. A comparative study of technological learning and organizational capability development in complex products systems: Distinctive paths of three latecomers in military aircraft industry. Research Policy. 44(7), pp. 1296–1313.
Lee, K., Malerba, F., 2016. Catch-up cycle and changes in industrial leadership: windows of opportunity and responses of firms and countries in the evolution of sectoral systems. Research Policy. http://dx.doi.org/10.1016/j.respol.2016.09.006
Malerba, F., Nelson, R., 2011. Learning and catching up in different sectoral systems: evidence from six industries. Industrial and Corporate Change. 20(6), pp. 1645-1675.
Majidpour, M., 2010. The Dynamics of Technological Catching-up: The Case of Iran’s Gas Turbine Industry. SPRU - Science and Technology Policy Research, University of Sussex.
Majidpour, M., 2012. Heavy duty gas turbines in Iran, India and China: Do national energy policies drive the industries? Energy Policy, Volume 41, pp. 723-732.
Majidpour, M., 2013a. Promoting Industrial Competitiveness in Complex Product Systems: Iran Industrial Policy Case Study. Economic Development: Industrial and Financial Policy (CHAPTER 1).
Majidpour, M., 2013b. The unintended consequences of US-led sanctions on Iranian industries. Iranian Studies. 4(1), pp. 1-15
Majidpour, M., 2016a. International technology transfer and the dynamics of complementarity: A new approach. Technological Forecasting and Social Change. http://dx.doi.org/10.1016/j.techfore.2016.03.004.
Majidpour, M., 2016b. Technological catch-up in complex product system. Journal of Engineering and Technology Management. http://dx.doi.org/10.1016/j.jengtecman.2016.07.003.
Miles, M. B., Huberman, A. M., 1994. Qualitative Data Analysis: An Expanded Sourcebook. SAGE Publication.
Miller, R., Hobday, M., Lerouxdemers, Th., Olleros, X., 1995. Innovation in Complex Systems Industries: the Case of Flight Simulation. Industrial and Corporate Change. 4(2). pp. 363-400.
Mowery, D. C., and Rosenberg, N., 1981. Technical Change in the Commercial Aircraft Industry, 1925-1975. Technological Forecasting and Social Change. Volume 20, pp. 347-358.
Naghizadeh, M., Manteghi, M., Ranga, M., Naghizadeh, R., 2016. Managing interaction in complex product systems: The experience of IR-150 aircraft design program. Technological Forecasting and Social Change. http://dx.doi.org/10.1016/j.techfore.2016.06.002.
Naghi Zadeh, M., Manteghi, M. & Naghi Zadeh, R., 2014. Convergence Among Science and Technology Capabilities of Different Players in Aviation Complex Product Systems. Quarterly Journal of Technology Development Management, 3(2), pp. 27-57.
Nelson, R., 2011, ‘Economic development as an evolutionary process,’ Innovation and Development, 1(1), pp.39–50.
Nilfourushan, H. & Arasti, M., 2014. Process of Innovation Networks Failure: the Knowledge Base Approach. Journal of Science and Technology Policy, 6(4), pp. 84-105.
Park, T. Y., 2012. How a latecomer succeeded in a complex product system industry: three case studies in the Korean telecommunication systems. Industrial and Corporate Change, 22(2), pp. 363–396.
Park, T. Y., & Kim , J. Y., 2014. The capabilities required for being successful in complex product systems: case study of Korean e-government. Asian Journal of Technology Innovation. 22(2), pp.268–285.
Park, T. Y., & Ji, I., 2015. From mass production to complex production: case of the Korean telecom equipment sector, Asia-Pacific Journal of Accounting & Economics, 22(1), pp.78-102.
Prencipe, A., 2000. Breadth and depth of technological capabilities in CoPS: the case of the aircraft engine control system. Research Policy, Volume 29, pp.895–911.
Ren, Y. T. and Yeo, K. T., 2006. Research Challenges on Complex Product Systems (CoPS) Innovation. Journal of the Chinese Institute of Industrial Engineers, 23(6), pp. 519-529.
Shaw, B., 1996. Networking in the Russian aerospace industry. R&D Management, 26(3).
Su, J. and Liu, J., 2012. Effective dynamic capabilities in complex product systems: experiences of local Chinese firm. Journal of Knowledge-based Innovation in China, 4(3), pp. 174-188.
Teixeira, F., Guerra, O., Ghirardi, A., 2006 Barriers to the Implementation of Learning Networks in Complex Production Systems: A Case Study on Offshore Oil Rigs, Latin American Business Review, 7(2), pp.71-92.
Yin, R., K., 2014. Case Study Research: design and Methods. 5th Edition. Sage Publication.
Zhang, L., Lam, W., Hu, H., 2013. Complex product and system, catch-up, and sectoral system of innovation: a case study of leading medical device companies in China. Int. J. Technological Learning, Innovation and Development, 6(3).