Abstract:
In the free trade world and highly competitive environment, managements in various businesses need to
seek their solutions to cope with the business risk. One of the solutions in manufacturing or production
finns is to locate their plants in many places around the world. Sometimes the factors do not come from
the business environment itself but it may come from the internal politics of each country such as the
political policy. Major factors that concern management decision are labor cost and transportation cost.
These factors cause management of the business looks for their solutions to reduce the business risk and
operating cost. One of their solutions is the same like other big finns; having many plants covering their
clients and reducing transportation cost. The company case study is the second largest Hard Disk Drive
manufacturer. It also has many plants in many locations around the world, the rest of them are located at
South East Asia. To reduce business risk and transportation cost, At the first time, at Thailand site, the
company case study has SF, HGA, HSA, and HDD operation but at Malaysia site has only HSA and
HDD operation. Case study is partial transferring the Production Lines of HGA operations from
Thailand to Malaysia. This activity will create the transferring of Knowledge and Technology between
countries. This collaboration will generate innovation in two-way technology transfer. This research
will analyze the risk mechanism of knowledge.