Technology transfer, outsourcing, capability and performance: A comparison of foreign and local firms in Ghana

Owing to intense competition in today's business environment, organisations that aspire to excel in their respective sectors need to develop the appropriate capabilities in order to gain and sustain a competitive edge. Outsourcing and technology transfer provide firms with the platform for developing capability to achieve superior performance in the marketplace. However, in the setting of a developing economy, the relative effects of outsourcing and technology transfer on corporate performance among foreign and local companies when investigated together in an amalgamated model is yet to be examined empirically. To obtain a deeper understanding, two pathways through which outsourcing and technology transfer enhance corporate performance of companies in Ghana are presented. Results of this research indicate differences in the extent to which outsourcing and technology transfer influence capability and subsequently affect corporate performance. Limitations of this study as well as implications of the findings for managers and researchers are ultimately highlighted.