Managing the technology purchase decision process in the Indian public sector

Abstract

This thesis attempted to structure precisely the decision process in ten technology purchase decisions made between 1969-80 in one petrochemical industry in the Indian public sector. Based on literature from Technology Transfer, Industrial Buying Behavior and Organization Theory, a research framework was developed. The framework consisted of the subject system: decision makers and the structure of relations through which they process the decisions; the object system; the technology ; the decision environment! The relations between the decision makers, the host country government, the suppliers, and the technology market structure. The interaction of these three systems, it was assumed, created the decision process.

These decisions were analyzed by using an analytical framework. The framework represented an integration of the structural model of Mintzberg and process model of Cyert and March. Based on this analysis a process model was developed. Decision heuristics used and a set of testable hypotheses were also formulated. Enterprise records, interviews with executives of the enterprise and government, published government reports and other published sources provided data for the study.

The model consists of six sub-systems:

1) The focal inter-organizational system of public enterprise, the government, suppliers and their governments. 2) Technology defined in terms of complexity, size of investment, and maturity of its products in the world market. 3) The economic and political environment governing the assumptions of decision makers. 4) The decision making process structure consisting of four phases -- Identification, Development, Selection and Administration. 5) Organizational learning which helps decision makers to change search heuristics, resolve organizational conflicts and reduce or absorb uncertainties present in decision making situations. 6) Decision performance defined in terms of total decision process time and suitability of purchase contracts.

Hypotheses are based on the relationship stated in the process model and on variations in the values of variables defining each sub-system.

The thesis contributes to research on strategic decision making processes by integrating existing theoretical frameworks of Mintzberg, Cyert and March. It contributes to Technology Transfer and Developmental Economics by showing the effects of organizational processes on decision performance. It also contributes to Marketing by including technology purchase within Industrial Buying Behaviour.

In addition, the study contributes to the understanding of strategic decision making processes in project organizations in developing countries and highlights critical linkages between micro-macro aspects of consequential decisions in public sector management.