Technology Absorption in Emerging Nations

Abstract

Technology is becoming increasingly critical to the success of all business firms, and to national economic growth. The process of globalization is driven by technology development and the ability of corporations to leverage technology effectively and rapidly. The technological gap between advanced and emerging nations remains vast, and the first step to narrowing the gap is for emerging nations to absorb technology successfully. This paper argues that a supporting raft of national institutions is essential if technology (developed at home or abroad) is to be absorbed effectively. Economic, political, social, and cultural institutions are evaluated for their relationship to the absorption of technology. We compare four countries in respect of these major institutional characteristics, providing relevant data available on the respective institutions, as well as for technology absorption, in each country. A review of the data indicates broad support for the propositions developed in the paper, and for the overall thesis linking institutional forces to the efficacy of technology absorption.

Key Words:

• Institutions
• technology absorption
• economic
• political
• social
• cultural
• indicators
• transnational corporations
• developing nations
• institutional reform
• general managers
• policy makers