Abstract:

In the present era of globalization, every business entity in developed and developing economies are relying on technology to advance its production or service processes. The technological race is revolutionizing the aspects of product or service production system even most business organizations may not typically consider high-tech operations. Although technology-oriented organizations may produce very different products or services to sustain their differentiation and leadership in the market. These organizations when developing their business model and strategies may have more emphasis to build their high-tech capacity to sustain their position in the competitive market, particularly in the Saudi-based petrochemical industry. For this purpose, Saudi-based organizations attempt to obtain high-tech distinctive competencies across their national border by using the option of international joint ventures. These choices may allow them and partner firms to take advantage of national differences in terms of cost and quality factors of production such as labor, energy, land, and capital, which permits these organizations to lower their cost structures and boost oval profitability.