Technology transfer at hero Honda

Abstract

This case is of the partnership and the technology transfer between a leading Japanese company (Honda) with leading edge automotive technology, and an Indian company (Hero Motors) with a sound domestic market share and solid local reputation. Each had the potential to add significant value to the other, conditional upon their core value systems being compatible. One company, Hero, had the local market presence and the other Honda, had the right technology, in other markets. The key question is how to make optimal use, in terms of value creation, of technological leadership, in a foreign market that is relatively less sophisticated than that of the technology source. Such matters are strategi..