Synergy from Technological Innovation

 

 Synergy and technological innovation

 

 

 

Synergy can come from technological innovation in the process of value creation. Several authors suggest that high technical availability and capability of a firm makes the firm more readily accept crossvergence or transvergence aspect of culture. Technical advances and capabilities allow a business organization to specialize in production formulation, develop strategic organization and extend its quality standards to overseas countries.

 

Gupta and Wang (2004) refer to the example of Chongquing CHN & CHN Ceramics Co. Ltd. (C&C) to explain how a once almost-bankrupted company with poor technology evolved into a multinational firm that embraces a transvergence strategic perspective. With the help of the Chinese government’s special reserves, C&C could establish a joint venture with a ceramic company based in Hong Kong, and in 1998 C&C became a leading company in China, achieving leadership in Asia by 1999.

 

In order for a firm to be able to accept new values and extend its internal cultural values to overseas, solid technical capabilities are important to connect the firm to a network of top-class local and global resources.

 

- Jules Lee

 

Reference:

Gupta, Vipin and Wang, Jifu. (2004) ‘The Transvergence Proposition Under Globalization: Looking Beyond Convergence, Divergence and Crossvergence’, Multinational Business Review, 12(2), PP. 37-57 [Online]. Available from: http://search.ebscohost.com.ezproxy.liv.ac.uk/login.aspx?direct=true&db=bth&AN=16106917&site=ehost-live&scope=site.