2001 Volume 10 Issue 2 Pages 215-231
The main objective of this paper is to study inter-firm technology transfer in a recent automobile assembly project in Thailand. The transfer occurred from the Japanese car maker (J-firm) to local part suppliers. Based on our field survey results, there was a technology gap between local suppliers and the requirements of J-firm and this led J-firm to provide inter-firm technology transfer to non J-firm affiliates. Inter-firm technical assistance was found to take not only the form of advice but also direct support. Results of two case studies suggest that inter-firm technology linkage was an effective way to improve supplier's technological capability. However, to benefit fully from interfirm relationships, suppliers should be aware of the importance of their own efforts to improve technological capabilities.