Quantitative Measurement of Advanced Manufacturing Technology Transfer from Foreign-Based Companies to Local Companies

The literature on foreign direct investment (FDI) has recently analyzed the nature of the firm’s entry mode choice in a foreign market, particularly the choice between a joint venture and a wholly owned subsidiary. Most of these companies use Advanced Manufacturing Technologies (AMT) in manufacturing operations conducted in host country. Therefore this paper aims to measure the contribution of AMTs to a host country. A study of 1026 foreign-based companies was analyzed and results mainly categories under two analytical tool. The present research has used multiple regression (MR) models for determining the factors affecting to the usage of AMT, which are introduced by foreign-based companies. The result indicates some guide to the organization of advanced manufacturing technologies from foreign-based companies. Artificial Neural Networks (ANN) model also guided better than the MR model for prediction of AMT from which variables are better for the developing countries.