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This study investigates the relationship between selected internal and external
factors and German small- and medium-sized enterprises’ technology transfer
activities. The research features a comprehensive analysis on the relationship
between different modes of foreign operations and intensity of transferred
technology including a detailed review of channels, means and drivers of
technology transfer. The research model is based on a sample of 164 so called
‘Hidden Champions’ from Germany and identifies a positive relationship for
number of employees and firm age on the mode of operation. However, annual
revenues and Research & Development intensity of the German small- and
medium-sized enterprises have not been found to have a significant impact.
Firms with higher firm age, are assumed to have superior international
experience and are thus risk-taking with regard to entering foreign markets.
Additionally, other variables such as host-country networks, a firm’s degree of
product differentiation, political and business environment and host-country
location of FDI are investigated. The paper concludes with a discussion about
implications for decisionmakers on both sides.