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Cluster Capabilities or Ethnic Ties? Location Choice by Foreign and Domestic Entrants in the Services Offshoring Industry in India

Published on Aug 1, 2009in Journal of International Business Studies 7.72
· DOI :10.1057/jibs.2008.91
Srilata Zaheer27
Estimated H-index: 27
(UMN: University of Minnesota),
Anna Lamin1
Estimated H-index: 1
(College of Business Administration),
Mani R. Subramani17
Estimated H-index: 17
(UMN: University of Minnesota)
We contrast the knowledge spillovers perspective, which focuses on the externalities that arise from locating in a cluster, with the social ties perspective, which emphasizes resource flow through ethnic connections, arguing that these factors differentially influence the location decisions of foreign and domestic entrants in the services-offshoring industry in India. We develop a typology of the capabilities involved in the offshoring of services and, using 108 location decisions across 11 city clusters, find that ethnic networks exert greater influence than cluster capabilities on location decisions, although, as expected, the effect is stronger and more widespread in the case of Indian rather than foreign firms.
  • References (59)
  • Citations (118)
Published on Dec 1, 2010in Journal of Economics and Management Strategy 1.02
Ramana Nanda15
Estimated H-index: 15
(Harvard University),
Tarun Khanna43
Estimated H-index: 43
(Harvard University)
This study explores the importance of cross-border social networks for entrepreneurs in developing countries by examining ties between the Indian expatriate community and local entrepreneurs in India's software industry. We find that local entrepreneurs who have previously lived outside India rely significantly more on diaspora networks for business leads and financing. This is especially true for entrepreneurs who are based outside software hubs - where getting leads to new businesses and acces...
Ana Cristina O. Siqueira2
Estimated H-index: 2
(University of Cambridge)
This study of Brazilian immigrants in the United States examines the extent to which the human capital and the family social capital theories explain the probability of owning a business. This study incorporates into the analytical models a variable that controls for the presence of a market niche and tests for the net effects of human and family social capital. Analyses of U.S. 2000 Census data find that high school graduates are more likely to own their own business and that a college educatio...
Published on Mar 1, 2007in Organization Science 3.26
Stephen Tallman25
Estimated H-index: 25
(UR: University of Richmond),
Anupama Phene12
Estimated H-index: 12
(UofU: University of Utah)
This paper examines knowledge flows within and across geographic boundaries of clusters and nations in the biotechnology industry. We hypothesize that these flows are characterized by various factors relating to the knowledge itself and by firm innovativeness and the presence of prior knowledge flows at the firm level. Surprisingly, our findings suggest that geographic proximity does not matter in some instances, while in others it has a decidedly nonlinear effect opposite to that hypothesized. ...
Published on Mar 1, 2006in Journal of Business Venturing 6.33
Timothy B. Folta23
Estimated H-index: 23
(Purdue University),
Arnold C. Cooper32
Estimated H-index: 32
(Purdue University),
Yoon-suk Baik1
Estimated H-index: 1
(Purdue University)
This study clarifies the relationship betweengeographic cluster size and firm performance. Following a review of relevantliterature, several hypotheses are proposed. Data on 789 private and publicbiotechnology firms founded in the United States between 1973 and 1998 are usedto test the hypotheses. According to the data, economies of agglomeration(i.e., clusters) benefit firms in their ability to innovate through patentingand to attract alliance and private equity partners. At the same time, the ...
Published on Feb 1, 2006in Management Science 4.22
Arturs Kalnins9
Estimated H-index: 9
(Cornell University),
Wilbur Chung11
Estimated H-index: 11
(UMD: University of Maryland, College Park)
Immigrant entrepreneurs often rely on their groups local social capital in their new home market to establish and maintain their businesses. In particular, immigrant entrepreneurs with few resources of their own receive help from those possessing more resources. Supporting these arguments using the empirical setting of Gujarati immigrant entrepreneurs in the lodging industry, we find that the likelihood of survival of an immigrant entrepreneurs hotel increases when surrounded by higher counts of...
Published on Jan 1, 2006
J. Scott Long28
Estimated H-index: 28
Jeremy Freese1
Estimated H-index: 1
Regression Models for Categorical Dependent Variables Using Stata, 2nd Edition, by J. Scott Long and Jeremy Freese, shows how to fit and interpret regression models for categorical data with Stata. Nearly 50% longer than the previous edition, the book covers new topics for fitting and interpretating models included in Stata 9, such as multinomial probit models, the stereotype logistic model, and zero-truncated count models. Many of the interpretation techniques have been updated to include inter...
Published on Aug 1, 2005in Academy of Management Journal 7.19
Linda Canina16
Estimated H-index: 16
(Cornell University),
Cathy A. Enz34
Estimated H-index: 34
(Cornell University),
Jeffrey S. Harrison27
Estimated H-index: 27
(UR: University of Richmond)
This study provides evidence regarding the strategic dynamics of competitive clusters. Firms that agglomerate (co-locate) may benefit from the differentiation of competitors without making similar differentiating investments themselves. Alternatively, co-locating with a high percentage of firms with low-cost strategic orientations reduces performance for firms pursuing high levels of differentiation. Further, the lowest-cost providers with the greatest strategic distance from the norm of the com...
Published on Aug 1, 2005in Strategic Management Journal 5.57
Lilach Nachum22
Estimated H-index: 22
(Baruch College),
Srilata Zaheer27
Estimated H-index: 27
(UMN: University of Minnesota)
Why do firms go abroad when technology makes it possible to do business at a distance? We argue that the cost of distance differentially affects investment motivations across industries. We find support for this hypothesis in a study of U.S. inward and outward FDI. Knowledge seeking and efficiency seeking are the two most important explanations for international activity in information-intensive industries, reinforcing the value of intangible resources in this sphere. In less information-intensi...
Published on Jul 1, 2005in Organization Science 3.26
Elaine Romanelli10
Estimated H-index: 10
(Georgetown University),
Olga M. Khessina8
Estimated H-index: 8
(Georgetown University)
We explore the concept of regional industrial identity as an important missing component in our understanding of the development of metropolitan regions and the spatial arrangements of industries. While economists and sociologists have explained the location of industry clusters on the basis of unevenly distributed resources, and historians have provided rich descriptive insight into the developmental dynamics of particular metropolitan regions, little systematic theory has been advanced to expl...
Published on Jun 1, 2005in Studies in Comparative International Development 0.83
AnnaLee Saxenian25
Estimated H-index: 25
By 2000, over one-third of Silicon Valley’s high-skilled workers were foreign-born, and overwhelmingly from Asia. These U.S.-educated engineers are transforming developmental opportunities for formerly peripheral regions as they build professional and business connections to their home countries. In a process more akin to “brain circulation” than “brain drain,” these engineers and entrepreneurs, aided by the lowered transaction costs associated with digitization, are transferring technical and i...
Cited By118
Published on Apr 1, 2018in International Business Review 3.64
Florian Taübe13
Estimated H-index: 13
(ULB: Université libre de Bruxelles),
Amit Karna5
Estimated H-index: 5
(IIMA: Indian Institute of Management Ahmedabad),
Petra Sonderegger3
Estimated H-index: 3
Abstract The presence of network ties within location plays a significant role in organization and evolution of clusters. This has proven to be particularly true for clusters specializing in knowledge intensive industries, where the organization of resources – people and technology – has been a primary driver for firm and regional performance. With the help of a longitudinal case study of the Bangalore IT cluster in India, we investigate the effect of local and non-local network ties on its evol...
Published on Nov 12, 2018in Environment and Planning A 2.46
Philip Müller , Martin Franz7
Estimated H-index: 7
Even though labour has been an important research topic in the field of economic geography for many years, up to now little has been known about transnational labour migration of highly skilled employees in global production networks. This article examines the role and the impact of highly skilled (re-)migrants of Turkish origin who studied and/or worked in Germany for several years in knowledge-intensive business services (KIBS) offshoring. To do so we analyse the empirical case of a German aut...
Published on Jun 1, 2019in Journal of International Business Studies 7.72
Yadong Luo64
Estimated H-index: 64
(UM: University of Miami),
Huan Zhang (SYSU: Sun Yat-sen University), Juan Bu (IU: Indiana University Bloomington)
This study reviews research from 1970 through 2016 on developed country multinational enterprises (DMNEs) entering and competing in developing economies. To identify the current state of knowledge of this research and push it further, we review the literature using bibliometric and qualitative content analyses covering leading journals and books. We articulate frontier issues that are understudied yet critical to both theorization and practice of DMNEs in developing economies. We discuss the fin...
Published on Jan 1, 2019in Journal of World Business 5.79
Daomi Lin2
Estimated H-index: 2
(SYSU: Sun Yat-sen University),
Wei Zheng1
Estimated H-index: 1
(UIBE: Beijing Institute of Foreign Trade)
+ 2 AuthorsMike Wright97
Estimated H-index: 97
(Imperial College London)
Building on the social network and strategic entrepreneurship literature, we investigate the overall relationship between returnee entrepreneurs’ networks in different periods and locations, domestic resource acquisitions and firm performance. While the labor mobility literature emphasizes the “gone but not forgotten” networks in the prior location of migrants, other studies argue that returnees suffer from a lack of local networks. Our findings show that returnee entrepreneurs are different in ...
Published on Dec 1, 2018in Journal of World Business 5.79
Pallavi Shukla3
Estimated H-index: 3
(RU: Rutgers University),
John Cantwell38
Estimated H-index: 38
(RU: Rutgers University)
We examine how, and to what extent, migrants in a host country attract foreign direct investment (FDI) from firms based in their country of origin (CO). Introducing the notion of institutional affinity, we argue that increased institutional affinity and increased connectedness of institutional environments of migrants’ CO and country of residence, make a location attractive to CO firms. Empirical analysis of FDI and migration panel data shows that in addition to the traditional factors influenci...
Silveli Cristo-Andrade1
Estimated H-index: 1
(UBI: University of Beira Interior),
João J. Ferreira20
Estimated H-index: 20
(UBI: University of Beira Interior)
Based on the need for companies to remain competitive and dynamic in a constantly changing environment, this systematic review on knowledge spillovers and strategic entrepreneurship seeks to identify what type of research, scales, variables and databases have been used in the academia and that seek to increase knowledge on this theme. Thus, this study covers 153 articles published in the last 19 years (1999–2017), in the Social Sciences Citation Index (SSCI) via Web of Knowledge. The articles we...
Published on Oct 8, 2018in New England Journal of Entrepreneurship
Mayank Jaiswal (Rider University)
Purpose The purpose of this paper is to move beyond individual level characteristics of founders to explain the performance gap between white and black majority owned new ventures. It specifically investigates three potential mediators: demographic characteristics of venture’s location, financial size of the venture and its credit riskiness. Design/methodology/approach The Kauffman Firm Survey, a longitudinal data set of 4,928 new ventures started in the USA in 2004, has been utilized in this pa...
Published on Oct 1, 2018in International Business Review 3.64
Xiaoqing Li3
Estimated H-index: 3
(Brunel University London),
Rose Quan3
Estimated H-index: 3
(Northumbria University)
+ 1 AuthorsGoudarz Azar6
Estimated H-index: 6
(Brunel University London)
This study examines the extent to which MNEs from developed (DMNEs) and emerging (EMNEs) economies differ in Location behaviour. Studies on MNE location choices have failed to capture the changing FDI landscape and leave the inconsistent findings unexplained. We address this gap by systematically reviewing the extant literature on location choices of DMNEs and EMNEs over the past 36 years – from the introduction of the OLI model to 2016. Key themes emerging from the review reflect a comprehensiv...