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The Use of Technology in Organizations
Abstract
Multinational Corporations (MNC) face the challenge of compete in the new interconnected business environment. In particular technology is recognized as a factor that boost productivity and competitiveness and drives the business connectivity which in turn involves cross-borders goods, services and financial flows. MNC is recognized as being possessed of high-tech assets, and also, resources including capital, management skills and R&D capabilities and subsidiaries can get them, from its holding company, and they transfer technology to local businesses. A knowledge transfer, running parallel to the technology transfer take place benefiting to the local economy. Foreign Direct Investment (FDI) is considered as the primary vehicle to facilitate technology transfer (and underlying knowledge flows) toward emerging countries. The ultimate goal of the MNC is related to leverage technology and knowledge transfer in order to maintain a competitive edge and move toward even higher value-added activities.
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