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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)
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Abstract
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)
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References59
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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)
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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. ...
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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 ...
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Estimated H-index: 9
(Cornell University),
Wilbur Chung11
Estimated H-index: 11
(UMD: University of Maryland, College Park)
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Estimated H-index: 28
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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...
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Linda Canina16
Estimated H-index: 16
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Estimated H-index: 34
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Jeffrey S. Harrison27
Estimated H-index: 27
(UR: University of Richmond)
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Estimated H-index: 22
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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
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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...
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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...
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Florian Taübe13
Estimated H-index: 13
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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...
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Estimated H-index: 7
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Estimated H-index: 64
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Estimated H-index: 97
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Estimated H-index: 1
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