The impact of external environment and technological learning system on the relationship between technological alliance and performance of Korean small telecom firms

This study examines how external environment and internal technological competencies affect the relationship between the use of technological alliances and the performance of the firm's new product development activities. Based on the sample of 63 technology-based small firms in the Korean telecommunication equipment and device sector, the proposed five hypotheses are tested by using multiple regression analysis. The major findings of this study are as follows: (1) the more severe the market competition and technological change, the stronger the impact of technological alliances on the firm's new product development; and (2) the better structured the technological learning system (knowledge acquisition process, knowledge diffusion and storage process, and knowledge assimilation and application process) related to an technological alliance, the stronger the impact of the technological alliance on the firm's new product development. In addition, some managerial implications are presented and future research directions are suggested.