Effect of Technology Adoption on New Product Innovation

T. Joseph Musandiwa and Collins C. Ngwakwe
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T. Joseph Musandiwa: University of Limpopo, South Africa
Collins C. Ngwakwe: University of Limpopo, South Africa

Managing Global Transitions, 2020, vol. 18, issue 3 (Fall), 177-194

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.

Keywords: technology adoption; product innovation; foreign technology; technology licensing (search for similar items in EconPapers)
JEL-codes: L6 M11 O3 O31 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.26493/1854-6935.18.177-194

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