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Book part
Publication date: 4 August 2017

Gerald A. McDermott and Carlo Pietrobelli

Advancing the ability of emerging market small and medium size enterprises (SMEs) to learn, absorb new technologies, and grow is one of the greatest challenges in economic…

Abstract

Advancing the ability of emerging market small and medium size enterprises (SMEs) to learn, absorb new technologies, and grow is one of the greatest challenges in economic development and to theories of knowledge transfer. This chapter analyzes the mechanisms that can facilitate or impede the participation of Latin American SMEs in global value chains (GVCs), and in turn improve their capabilities and productivity. We attempt to shift the focus of attention that scholars and policy-makers have toward the types of knowledge and network linkages that emerging market SMEs need to sustainably benefit from GVCs. By drawing on recent work from the knowledge theory of the firm, development, and network dynamics, we call into question a core assumption about the necessary benefits that can accrue to SMEs by being tied more closely to sources of pioneering technologies. We argue instead that in order to overcome legacies of resource constraints and technology gaps, these SMEs need access to a variety of applied and experiential knowledge that help them transform their existing organizational capabilities into ones that enable them to implement basic international process and product standards, in turn allowing them to learn from potentially fruitful relationships in GVCs. Because of the way such knowledge is created, through intense interactions and exchanges of tacit knowledge, access is constrained. With a focus on the need for broad based upgrading of SME capabilities, we further suggest that particular constellations of interorganizational networks and public-private institutions, often overlooked in IB research, are best suited to facilitate such access.

Details

Breaking up the Global Value Chain
Type: Book
ISBN: 978-1-78743-071-6

Keywords

Book part
Publication date: 4 August 2017

Abstract

Details

Breaking up the Global Value Chain
Type: Book
ISBN: 978-1-78743-071-6

Content available
Book part
Publication date: 4 August 2017

Abstract

Details

Breaking up the Global Value Chain
Type: Book
ISBN: 978-1-78743-071-6

Book part
Publication date: 24 June 2015

Sathyajit R. Gubbi and Sinan A. Sular

Outward foreign direct investments (FDI) by Turkish firms in the new millennium show intriguing geographic distribution pattern and unlike the predictions of classical…

Abstract

Outward foreign direct investments (FDI) by Turkish firms in the new millennium show intriguing geographic distribution pattern and unlike the predictions of classical theories of FDI. In this study we contribute by linking the observed pattern of outward FDI with Turkish firms’ motivation for investment across national borders. We enrich research by collecting and analyzing FDI motivation data at the firm-level for a very important but less researched developing country: Turkey. Content analysis of text material on the foreign investments made by 211 Turkish firms reveals that Turkish firms primarily perform FDI in European developed countries for reasons other than conventional, namely, market- and strategic-asset-seeking motivations. More importantly, Turkish firms seem to be using the European countries to (1) present themselves as a European Union company, (2) make use of special features of these countries to expand their businesses within and to other countries and, (3) make use of the favorable tax treatment policies available to foreign investors. Surprisingly, our analysis shows that in spite of its small size, the Netherlands is a preferred destination for Turkish FDI over other Western European countries due to its strategic location and favorable investment policies.

Details

Emerging Economies and Multinational Enterprises
Type: Book
ISBN: 978-1-78441-740-6

Keywords

Article
Publication date: 21 January 2019

Fernando G. Alberti and Federica Belfanti

The purpose of this paper is twofold. First, it aims at reconciling the literature on creating shared value (CSV) with the one on cluster development, searching for…

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Abstract

Purpose

The purpose of this paper is twofold. First, it aims at reconciling the literature on creating shared value (CSV) with the one on cluster development, searching for complementarities and similarities. Second, it aims at understanding the role of cluster development in CSV. For these reasons, the authors operationalized the general idea of cluster development with the widely accepted concept of cluster initiatives, i.e. systematic efforts aimed at cluster development. The authors focused on exploring the process of launching and supporting local cluster initiatives through empirical evidence. In particular, the authors aimed at analyzing how a CSV strategy can be defined and developed when adopted within a cluster initiative.

Design/methodology/approach

The research draws on a critical review of the literature focusing on CSV and on a conceptual reconciliation between the literature on the CSV ecosystem with the one on clusters, and more specifically on those initial cluster initiatives. The authors relied on an exploratory case study of an Italian cluster initiative in CSV, i.e. the Science and Innovation Food District (SIFooD) cluster promoted by Whirlpool. Thanks to the richness and great availability of information about the case, this study primarily relied on the use of secondary data.

Findings

The case of SIFooD has highlighted how Whirlpool promoted the cluster initiative within its CSV framework to achieve sustainable and collaborative innovation in food waste prevention and, conversely, how SIFooD enhanced CSV of its cluster members. To arrange its network development process, SIFooD has implemented all the elements that prior literature has considered fundamental for launching and supporting a successful cluster initiative. On the other hand, SIFooD was able to adopt a collective-impact approach, implementing the five elements needed in its ecosystem to create shared value. Moreover, thanks to all the activities comprised in the SIFooD cluster initiative, shared value was actually created.

Research limitations/implications

The present paper has some limitations. First of all, the empirical analysis focuses only on one cluster initiative; thus, cross/comparative analyses with other cluster initiatives may illuminate the findings better. Second, the authors relied on a very recent cluster initiative in a particular field (food waste prevention) and in one specific institutional context (Italy); thus, data may suffer from temporal, industrial and geographical biases.

Originality/value

Literature on the border between CSV and clusters is still in its infancy and almost nothing is known about their relationship, despite them being intimately related since the inception of this field. The paper qualifies for a very first attempt to understand how firms promote clusters, through cluster initiatives, for the sake of CSV and how clusters may enhance CSV of firms.

Details

Competitiveness Review: An International Business Journal , vol. 29 no. 1
Type: Research Article
ISSN: 1059-5422

Keywords

Open Access
Article
Publication date: 28 May 2020

Alessandro Pagano, Elisa Carloni, Serena Galvani and Roberta Bocconcelli

This paper aims to provide a contribution on the diffusion of Industry 4 (I4.0)-related knowledge in industrial districts (IDs). The main goal is to examine the…

1106

Abstract

Purpose

This paper aims to provide a contribution on the diffusion of Industry 4 (I4.0)-related knowledge in industrial districts (IDs). The main goal is to examine the dissemination of I4.0 knowledge, exploring the main mechanisms for its spreading and highlighting the main factors shaping such processes. Focus is on dissemination processes in IDs active in traditional industries, which could represent the “periphery” of I4.0 application context.

Design/methodology/approach

The methodology is qualitative. Notably, this paper presents a case study of the Pesaro ID specialized in furniture/woodworking machinery sector. A total of 18 in-depth one-to-one interviews have been conducted with relevant informants from a variety of organizations within the cluster: companies, institutions and universities.

Findings

The complexity of I4.0 requires a combination of traditional mechanisms with innovative ones within IDs characterized by the emergence of new players, activities and resources. These changes led to three main evolving patterns: the horizon of I4.0 upgrading shows blurred boundaries in terms of sectors and geographic location, the I4.0 diffusion appears fragmented in terms of initiatives and projects by both firms and institutions and the dissemination of I4.0 knowledge pushes ID firms and institutions to pursue deliberate initiatives leading to innovative forms of “collective” cooperation.

Originality/value

This paper contributes to both theory and practice. From the theoretical point of view, this paper contributes to the literature on innovation in IDs and clusters on two interrelated grounds. First, it provides further research on I4.0 and IDs and clusters. Second, it contributes to the stream of research on knowledge creation and diffusion in IDs and clusters, providing empirically based insights over emerging local learning processes in IDs. Moreover, relevant managerial and policy implications stem from the analysis.

Details

Competitiveness Review: An International Business Journal , vol. 31 no. 1
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 22 February 2021

Sridevi Yerrabati

The study aims to examine the non-linear relationship between self-employment and economic growth (growth) in the context of developing countries.

Abstract

Purpose

The study aims to examine the non-linear relationship between self-employment and economic growth (growth) in the context of developing countries.

Design/methodology/approach

Data from a sample of 83 developing countries covering a period 2002–2015 is used. The empirical analysis is based on the dynamic panel data estimation, and the results are estimated using the two-step system GMM technique. Non-linearity between self-employment and growth is validated using Sasabuchi (1980) and Lind and Mehlum (2010) (SLM) test.

Findings

The empirical analysis suggests a non-linear and a U-shaped relationship between self-employment and growth, confirmed by the SLM test. The threshold levels for total self-employment, female self-employment and male self-employment are 57.49%, 58.86 and 55.81%. The findings are also robust to alternate estimation technique and alternate measure of the dependent variable.

Practical implications

Policy implications of the findings include the need for policies that foster and channel self-employment properly as the higher level of self-employment is found to benefit growth.

Originality/value

This study is the first attempt to examine the empirical relationship between self-employment and growth. As such, it makes a novel contribution to the extant literature on the relationship between the two variables.

Details

Journal of Economic Studies, vol. 49 no. 2
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 21 January 2022

Sridevi Yerrabati

With self-employment providing earning opportunities to many working poor in developing countries, the study examines its role in alleviating poverty.

Abstract

Purpose

With self-employment providing earning opportunities to many working poor in developing countries, the study examines its role in alleviating poverty.

Design/methodology/approach

A five-year average of 56 developing countries from 1995–2019 is used. The empirical analysis is based on the dynamic two-step system GMM approach. While poverty is measured in terms of incidence, depth and severity; self-employment is used in three forms – total, male and female.

Findings

In line with the theoretical prediction, evidence suggests that self-employment in developing countries reduces poverty, albeit smaller magnitude. However, the poverty-reducing effects of self-employment differed based on poverty measure and threshold. The poverty-reducing effects are more prominent in poverty severity than incidence and intensity, and the magnitude of the impact is largest when poverty is measured at $1.90 a day as against $3.20 and $5.50 a day. Finally, the poverty-reducing effects of female self-employment are lower than their counterparts.

Practical implications

First, poverty-mitigating strategies in developing countries are advised to recognise self-employment as an essential tool to alleviate poverty. Consequently, alongside supporting the existing self-employed, policy focus should be on creating more and better self-employment opportunities for the poor. Second, rather than using generic measures to mitigate poverty, interventions specific to poverty measures and thresholds might ensure the maximum impact of such interventions. Third, gender-specific rather than gender-neutral labour market policies in addressing poverty are advised.

Originality/value

To the best of the author’s knowledge, this is the first study to examine the empirical relationship between self-employment and poverty. As such, it makes novel contributions to both labour and development economics.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 28 December 2020

Cristina Fróes de Borja Reis, André Barroso de Souza, Eliane Cristina Araujo and Knut Blind

This paper aims to investigate if the world top manufacturing corporations' cost structures are moving from tangible to intangible activities and their impact on profitability.

Abstract

Purpose

This paper aims to investigate if the world top manufacturing corporations' cost structures are moving from tangible to intangible activities and their impact on profitability.

Design/methodology/approach

The theoretical approach is interdisciplinary, combining global value chains, international manufacturing networks, cost management literatures. The empirical approach has a sample out of financial statements' data from 220 multinational corporations between 2006 and 2017, grouping them by technological intensity. It is created the “COGS-share” indicator – the ratio between the costs of goods sold and overall costs and expenses – as a proxy for the firms' expenses of tangible and intangible value chain activities. It is tested as an explanatory variable for the companies' profits through dynamic panel data econometric models.

Findings

The results show that the cost structure still is very concentrated in tangibles. Though costs of both tangible and intangible activities negatively impact profits, they affect value generation differently: the higher the share of intangible in comparison to tangible activities in overall cost and expenses, the greater the profits in most manufacturing groups, regardless of their technological intensity.

Research limitations/implications

The empirical analysis simplifies the composition of value chains per activity because financial statements data are aggregates, preventing detailed analysis by markets, business units or products. Stocks' levels are assumed to be at the desired level during the time series. The dataset does not allow value curves to be drawn because direct wages' data and more precise information on cost (especially deferred assets and wages) are missing.

Practical implications

The presented approach, particularly the COGS-share indicator, contribute to assess value generation from activities for improving corporate strategies and public policies on operations and cost management of global value chains.

Social implications

Supporting upgrading decisions that impact value production, allocation and distribution between workers, firms and countries.

Originality/value

Interdisciplinary theoretical and empirical assessment of the manufacturing companies' cost structures and profits based on financial statements data for the better understanding of value generation from tangible and intangible activities.

Details

Journal of Manufacturing Technology Management, vol. 32 no. 6
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 17 February 2021

Ming-Lang Tseng, Tat-Dat Bui, Ming K. Lim, Feng Ming Tsai and Raymond R. Tan

Sustainable supply chain finance (SSCF) is a fascinated consideration for both academics and practitioners because the indicators are still underdeveloped in achieving…

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Abstract

Purpose

Sustainable supply chain finance (SSCF) is a fascinated consideration for both academics and practitioners because the indicators are still underdeveloped in achieving SSCF. This study proposes a bibliometric data-driven analysis from the literature to illustrate a clear overall concept of SSCF that reveals hidden indicators for further improvement.

Design/methodology/approach

A hybrid quantitative and qualitative approach combining data-driven analysis, fuzzy Delphi method (FDM), entropy weight method (EWM) and fuzzy decision-making trial and evaluation laboratory (FDEMATEL) is employed to address the uncertainty in the context.

Findings

The results show that blockchain, cash flow shortage, reverse factoring, risk assessment and triple bottom line (TBL) play significant roles in SSCF. A comparison of the challenges and gaps among different geographic regions is provided in both advanced local perspective and a global state-of-the-art assessment. There are 35 countries/territories being categorized into five geographic regions. Of the five regions, two, Latin America and the Caribbean and Africa, show the needs for more improvement, exclusively in collaboration strategies and financial crisis. Exogenous impacts of wars, natural disasters and disease epidemics are implied as inevitable attributes for enhancing the sustainability.

Originality/value

This study contributes to (1) boundary SSCF foundations by data driven, (2) identifying the critical SSCF indicators and providing the knowledge gaps and directions as references for further examination and (3) addressing the gaps and challenges in different geographic regions to provide advanced assessment from local viewpoint and to diagnose the comprehensive global state of the art of SSCF.

Details

Industrial Management & Data Systems, vol. 121 no. 3
Type: Research Article
ISSN: 0263-5577

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