Location, Control and Innovation in Knowledge-Intensive Industries

Published on Jul 21, 2008in Journal of Economic Geography3.36
· DOI :10.1093/jeg/lbn024
Ram Mudambi42
Estimated H-index: 42
(TU: Temple University)
The rising share of intangibles in economies worldwide highlights the crucial role of knowledge-intensive and creative industries in current and future wealth generation. The recognition of this trend has led to intense competition in these industries. At the micro-level, firms from both advanced and emerging economies are globally dispersing their value chains to control costs and leverage capabilities. The geography of innovation is the outcome of a dynamic process whereby firms from emerging economies strive to catch-up with advanced economy competitors, creating strong pressures for continued innovation. However, two distinct strategies can be discerned with regard to the control of the value chain. A vertical integration strategy emphasizes taking advantage of ‘linkage economies’ whereby controlling multiple value chain activities enhances the efficiency and effectiveness of each one of them. In contrast, a specialization strategy focuses on identifying and controlling the creative heart of the value chain, while outsourcing all other activities. The global mobile handset industry is used as the template to illustrate the theory.
  • References (96)
  • Citations (496)
Published on Nov 19, 2013
Clayton M. Christensen49
Estimated H-index: 49
A Wall Street Journal and Businessweek bestseller. Named by Fast Company as one of the most influential leadership books in its Leadership Hall of Fame. An innovation classic. From Steve Jobs to Jeff Bezos, Clay Christensens work continues to underpin todays most innovative leaders and organizations. The bestselling classic on disruptive innovation, by renowned author Clayton M. Christensen. His work is cited by the worlds best-known thought leaders, from Steve Jobs to Malcolm Gladwell. In this ...
Published on Dec 31, 2010
John H. Dunning62
Estimated H-index: 62
Sarianna M. Lundan14
Estimated H-index: 14
This is the second edition of the celebrated volume by Professor John H. Dunning, first published in 1993, which has now been not only updated but also enriched with the addition of a number of new topics. This addition was not least due to the expertise of the co-author, Sarianna Lundan, in the institutional aspects of international business and the internal governance of transnational corporations (TNCs). It is a comprehensive synthesis of all the theories in International Business based on ex...
Published on May 1, 2008in Regional Studies3.07
Nicholas A. Phelps29
Estimated H-index: 29
(UCL: University College London)
Phelps N. A. Cluster or capture? Manufacturing foreign direct investment, external economies and agglomeration, Regional Studies. This paper reviews the nature and significance of external economies associated with multinational enterprise (MNE) participation in the manufacturing industries of host economies. It argues that the balance of forces of internalization and externalization is currently skewed towards the former and the interests of MNEs rather than the latter and the interests of loca...
Published on Dec 1, 2007in Academy of Management Journal7.19
Jennifer A. Marrone6
Estimated H-index: 6
(SU: Seattle University),
Paul E. Tesluk30
Estimated H-index: 30
(UMD: University of Maryland, College Park),
Jay B. Carson4
Estimated H-index: 4
(SMU: Southern Methodist University)
We adopt a multilevel approach to a paradox that arises when research findings on the performance benefits of team boundary spanning are juxtaposed with earlier work demonstrating the role overload of individuals who span boundaries. Results revealed that individual and team-level factors predicted member boundary-spanning behavior, which increases individual role overload, which then negatively impacts team viability. However, when we aggregated to the team level of analysis, higher levels of b...
Published on Sep 1, 2007in Industry and Innovation3.16
Andrew Currah1
Estimated H-index: 1
(University of Oxford)
During the past decade, the Hollywood studios have broadly sought to subdue, rather than explore, the technological possibilities of the Internet. Specifically, the studios have used their ownership of creative works to control the speed and direction of innovation in an emerging digitally networked social and economic environment, which is built upon the Internet and an ecology of hardware and software technologies. In this paper, I use a relational perspective to examine two critical aspects o...
Published on Sep 1, 2007in Industry and Innovation3.16
Jan Vang-Lauridsen20
Estimated H-index: 20
(AAU: Aalborg University),
Cristina Chaminade21
Estimated H-index: 21
(Lund University)
This paper discusses the importance of global-local linkages for the development of indigenous production in cultural clusters by analyzing the interplay between the indigenous film production cluster in Toronto, Canada, and Hollywood's runaway productions. Global-local linkages are at the forefront of the current debate in cluster studies, the discussion has so far had only a limited impact on the research on cultural clusters. The paper identifies the limitations to the dominant cluster models...
Published on Jul 1, 2007in Industry and Innovation3.16
Heli Koski7
Estimated H-index: 7
(Aalto University),
Tobias Kretschmer18
Estimated H-index: 18
(LMU: Ludwig Maximilian University of Munich)
We document the evolution of product innovation and features in the mobile telephone handset market. We distinguish between two types of product innovation: vertical and horizontal innovation. Using data on mobile telephone handsets from 1990 to 2003, we study the emergence of a dominant design in vertical and horizontal innovations and find that, while vertical product characteristics converged to some extent, no dominant design emerged. For horizontal product characteristics, some horizontal i...
Published on May 1, 2007in Journal of Product Innovation Management3.78
Roger J. Calantone65
Estimated H-index: 65
(SPbU: Saint Petersburg State University),
Michael A. Stanko11
Estimated H-index: 11
(SPbU: Saint Petersburg State University)
The outsourcing of innovation has been on the rise for years, but research in this area lags behind industry practice. Interviews with managers and a theory base grounded in transaction cost analysis are used to guide the development of an exploratory model that details potential drivers of the outsourcing of innovation activities. Using industry-level data, the proposed model is partially tested using two distinct regression analyses that reveal significant effects both contemporaneously and pe...
Published on Feb 1, 2007in Industry and Innovation3.16
Bengt-Åke Lundvall47
Estimated H-index: 47
(AAU: Aalborg University)
The term national system of innovation has been around for more than 20 years and today it has become widely spread among policy makers as well as among scholars all over the world. This paper takes stock and looks ahead from a somewhat personal point of view. It also gives some insight into how and why the concept came about. The paper argues that a key to progress is to get a better understanding of knowledge and learning as the basis for innovation and to understand how different modes of inn...
Published on Jan 1, 2007
Jan Vang-Lauridsen20
Estimated H-index: 20
Cristina Chaminade21
Estimated H-index: 21
This paper illustrates the importance of global-local linkages in cultural cluster studies by discussing the impact of Hollywood’s runway productions on the indigenous film cluster in Toronto, Canada. While global-local linkages are at the forefront of the current debate in cluster studies, the discussion has not yet permeated the research on cultural clusters. The paper identifies the limitations to the dominant models, inserts global-local linkages in the literature and applies it empirically....
Cited By496
Published on Apr 3, 2019in Scientific Reports4.01
O.F.A. Larsen8
Estimated H-index: 8
(VU: VU University Amsterdam),
A. H. Koning14
Estimated H-index: 14
(EUR: Erasmus University Rotterdam)
+ 1 AuthorsEric Claassen34
Estimated H-index: 34
(VU: VU University Amsterdam)
Faecal transplants (microbiota transfer) have shown to be promising therapies having a wide range of therapeutic applications. However, current safety considerations hamper further valorisation. As such, well designed faecal transplant analogues provide an interesting alternative to minimize possible safety aspects. However, to date little knowledge on how to rationally design such analogues exists. Here, we show by applying first order basic graph theory that such analogues dedicated to restori...
Published on Jul 1, 2019in International Business Review3.64
Ismail Gölgeci5
Estimated H-index: 5
(AU: Aarhus University),
Shahin Assadinia1
Estimated H-index: 1
(UEA: University of East Anglia)
+ 1 AuthorsJorma Larimo15
Estimated H-index: 15
(University of Vaasa)
Abstract While extant research has examined the separate influences of dynamic capabilities and institutions on international performance, their interactive role has received limited attention. Therefore, we examine the role of host-country institutional conditions in the relationships between emerging-market firms’ (EMFs) innovation-related dynamic capabilities and their international performance. We use multi-source secondary data and primary data from multiple informants from 254 Turkish inte...
Published on Nov 1, 2019in Journal of World Business5.79
Randi Lunnan12
Estimated H-index: 12
(BI Norwegian Business School),
Sara L. McGaughey8
Estimated H-index: 8
(Griffith University)
Abstract We investigate how a brand-owning MNE can coordinate and safeguard exchanges in its international production network following a decline in formal authority and a shift in ‘hub firm’ status to another member of the network. Our empirical material is drawn from a case study of a Norwegian shipbuilder. We illuminate what mechanisms are used by a network orchestrator in a peripheral position with limited formal authority, when they are used, and by whom they are developed and deployed. Our...
Published on Jan 1, 2017
Cecilia Jona Lasinio1
Estimated H-index: 1
Stefano Manzocchi9
Estimated H-index: 9
Valentina Meliciani
This paper investigates the role of knowledge based capital for participation and value appropriation in global supply chains (GVC) for a sample of European countries over 1995-2011. We distinguish between different forms of participation in GVC entailing a different degree of capability to create value added domestically and examine how different intangible assets contribute to countries’ engagement and value appropriation in GVC. We find that knowledge based capital is positively correlated wi...
Published on Jun 13, 2019in European Planning Studies2.10
Marco Bettiol7
Estimated H-index: 7
(UNIPD: University of Padua),
Maria Chiarvesio6
Estimated H-index: 6
(University of Udine)
+ 1 AuthorsDebora Gottardello
Published on Apr 1, 2018in International Business Review3.64
Haritha Saranga14
Estimated H-index: 14
(IIMB: Indian Institute of Management Bangalore),
Andreas Schotter10
Estimated H-index: 10
(UWO: University of Western Ontario),
Ram Mudambi42
Estimated H-index: 42
(TU: Temple University)
Abstract The rapid development of emerging market firms and their foray into global value chains has attracted significant attention. In this perspectives paper, we draw on case studies from the automotive industries in India and China, to describe the coevolution of domestic firms and advanced economy multinational enterprises (AMNE) entrants. We first show that domestic firms that used catch-up strategies such as capability upgradation, investments into internal R&D and globalization through m...
Published on Mar 6, 2019in Journal of International Business Studies7.72
Stephanie Lu Wang9
Estimated H-index: 9
(IU: Indiana University Bloomington),
Dan Li14
Estimated H-index: 14
(IU: Indiana University Bloomington)
We extend the internalization literature by theorizing on how public disclosure of corporate social irresponsibility (CSI) can damage reputation-based firm-specific advantages of multinational companies (MNCs) and how foreign subsidiary governance can subsequently be used as strategic responses. Specifically, we distinguish between two foreign subsidiary governance mechanisms – information control and ownership control – that the prior literature has often assumed operate in parallel, and posit ...
Published on Feb 7, 2019in Journal of International Business Studies7.72
Gabriel R.G. Benito24
Estimated H-index: 24
(BI Norwegian Business School),
Bent Petersen26
Estimated H-index: 26
(CBS: Copenhagen Business School),
Lawrence S. Welch18
Estimated H-index: 18
(Melbourne Business School)
In a research note in this issue, Strange and Humphrey discuss how a global value chain (GVC) approach serves to usefully move internalization theory towards a better understanding of the increasingly important ‘middle ground’ between markets and hierarchies in the contemporary highly globalized international business scene. After a brief recount of their main arguments, we argue that their discussion needs to the extended, as it does not adequately recognize important differences between intern...
Published on Dec 5, 2018in Journal of Economic Geography3.36
Alessia Lo Turco9
Estimated H-index: 9
(Marche Polytechnic University),
Daniela Maggioni10
Estimated H-index: 10
(Ca' Foscari University of Venice)
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