Path of the Formation and Evolution of Technological Capabilities for Manufacturing Complex Product Systems in Latecomer Firms: The Case Study of TUGA Company

Abstract

During last decades a large amount of efforts have been made by developing countries to acquire essential knowledge and technological capabilities for manufacturing and developing complex products systems (CoPS). As an example, TUGA as an Iranian company have succeeded in acquiring essential technological capabilities for manufacturing and upgrading gas turbines as a complex product system. This paper aims at investigating the path of formation and evolution of technological capabilities of manufacturing gas turbines by this Iranian latecomer firm through applying qualitative approach and case study strategy during last 22 years. The findings illustrate that, the path of formation and evolution of technological capabilities in this company includes four stages: 1) purchasing and exploiting foreign purchased gas turbines; 2) localizing and transferring technologics of manufacturing gas turbines; 3) manufacturing gas turbines domestically with low variety; and 4) diversitying products portfolio and carrying out incremental improvement based on research and development. In addition, technology acquisition strategies, technology learning mechanisms, government policies and actions and volume of sale of company in each stage have been mentioned. Our findings can enhance understanding of managers and policy makers in this industry and other CoPS areas about dillerent stage of formation and evolution of technological capabilities and their considerations and requirements.

Keywords

• technological capabilities
• complex products and systems
• technology acquisition
• learning mechanisms
• tuga