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Learning, Knowledge Transfer, and Technology Implementation Performance: A Study of Time-to-Build in the Global Semiconductor Industry

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Author Info

  • Robert Salomon

    ()
    (Stern School of Business, New York University, New York, New York 10012)

  • Xavier Martin

    ()
    (CentER and Department of Organization and Strategy, Tilburg University, 5000 LE Tilburg, The Netherlands)

Abstract

Organizational growth and performance hinge upon the effective deployment of productive knowledge in new facilities. However, getting those facilities fully operational can be difficult and time consuming. Interestingly, we understand little about what determines the performance of that process. In this paper we help fill this gap by analyzing multiple determinants of time-to-build--i.e., the time it takes a firm to build and ramp up operations at a new manufacturing facility. Theoretically, we develop predictions regarding the effects of competitive, firm, and technology characteristics on time-to-build. Empirically, we test our predictions on a sample of plant construction projects in the memory segment of the global semiconductor industry. We find that competition from rivals with superior technology is associated with shorter time-to-build, at least up to a point. Firm and industry experience are associated with shorter time-to-build. International projects, and those that push the technological frontier, take longer. Findings from this study enrich the literatures on corporate growth, international expansion, and technology strategy. We discuss implications for research and practice.

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File URL: http://dx.doi.org/10.1287/mnsc.1080.0866
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Bibliographic Info

Article provided by INFORMS in its journal Management Science.

Volume (Year): 54 (2008)
Issue (Month): 7 (July)
Pages: 1266-1280

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Handle: RePEc:inm:ormnsc:v:54:y:2008:i:7:p:1266-1280

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Keywords: time-to-build; international knowledge transfer; organizational learning;

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Cited by:
  1. Alessandra Perri & Raffaele Oriani & Francesco Rullani, 2013. "Knowledge breadth of MNC subsidiaries and the duration of host-country firms' search," Working Papers 7, Department of Management, Università Ca' Foscari Venezia.
  2. Alessandra Perri & Raffaele Oriani & Francesco Rullani, 2012. "Does Co-Location Accelerate Knowledge Outflows from FDI? The Role of MNC Subsidiaries' Technology Sourcing Strategies," DRUID Working Papers 12-09, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.

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