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Effect of Technology Adoption on New Product Innovation

Author

Listed:
  • T. Joseph Musandiwa

    (University of Limpopo, South Africa)

  • Collins C. Ngwakwe

    (University of Limpopo, South Africa)

Abstract

This paper examines the effect of licensing of foreign technology on new product innovation and market access. Data were collected from the archives of the World Bank’s Global Enterprises Survey for fifty countries. The data were analysed using the Structural Equation Model (SEM) with the aid of STATA software. The SEM result show that licensing of external technology is positively and significantly related to new product innovation and access to market. However, the moderating independent variable (website usage) did not show a significant relationship with new product innovation and market access. The paper offers practical implication for new product innovation, which is that local enterprises can save the internal cost and time of research and development for new products by adopting the option of licensing foreign technology. This also has the advantage of assisting local enterprises to offer a new product to the market. Further research is recommended to add more countries to increase the number of observations.

Suggested Citation

  • T. Joseph Musandiwa & Collins C. Ngwakwe, 2020. "Effect of Technology Adoption on New Product Innovation," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 18(3 (Fall)), pages 177-194.
    • Handle: RePEc:mgt:youmgt:v:18:y:2020:i:3:p:177-194
    DOI: 10.26493/1854-6935.18.177-194
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    References listed on IDEAS

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    More about this item

    Keywords

    technology adoption; product innovation; foreign technology; technology licensing;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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