Managing the Development and Transfer of Process Technologies in the Semiconductor Manufacturing Industry

Abstract A considerable literature on firm‐level differences in capabilities deals with product innovation, whereas intra‐firm management of process innovation has received less attention. This paper analyses the management of the new process technologies in the semiconductor industry. It shows that successful development and introduction of new process technologies relies on the replication of complex ‘routines’ within a firm, since in many cases a new manufacturing process is developed in an R and D facility and then transferred to a manufacturing site. Firm‐specific differences in the management and organization of process innovation, as well as in the degree of coordination of new product and new process development strategies, appear to be significant and influence performance.