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

Organizational growth and performance hinge upon the effective implementation and transfer of technological knowledge. Implementing and transferring such knowledge however can be difficult and time-consuming. Interestingly, we understand little about what determines the performance of implementation and transfer projects. In this paper we help fill this gap by analyzing multiple determinants of time-to-build - i.e., the time it takes for a firm to build and ramp up operations at a manufacturing plant. Theoretically, we develop predictions regarding the effects of market, 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. Consistent with our theory, we find that competition from rivals with superior technology is associated with shorter time-to-build, as is firm experience; while 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.