Technology Acquisition and the Changing Face of Manufacturing Industry

Abstract

The structure of the UK manufacturing industry is shifting. The current trend is for large companies to focus on their core competencies and to reduce their supplier base. They now expect suppliers to provide modules and sub-assemblies with increasing integration and functionality. A review of the quantitative literature about knowledge inflows to small and medium-sized enterprises (SMEs) indicates that small companies are heavily reliant upon customers for information for technological innovation. Further understanding of this relationship is gained in this study by qualitative means, through a series of semi-structured interviews with senior managers in SMEs. Their strategies for technology acquisition are explored, and the influence of customers on technology is observed to centre on short-term requirements, rather than future technology needs. SMEs may have to re-examine their strategies for evolving their technologies if they are to capitalize on the opportunities of manufacturing in the future.