The transfer of resources and competencies for developing technological capabilities - The case of Fujitsu-ICL

In the management literature and the literature on technology transfer, it is widely acknowledged that learning in general, and the leveraging of knowledge throughout firms in particular, is important. However, there appears little systematic evidence of what technology and knowledge is transferred between organizations and how this occurs. The literature also tends to neglect how firms use such technology/knowledge transfer to cultivate appropriate technological capabilities. This paper addresses this gap in the literature by examining the successful exchange of resources and competencies between Fujitsu and ICL, and how it helped to extend the technological capabilities of both firms. It traces the evolution of the relationship from that of a loose technology-sharing agreement to that of sustained project collaboration and partnership. This relationship proved to be enduring and provides a road map for firms engaged in technology/knowledge transfer to develop their indigenous technological capabilities.