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1 – 10 of over 71000Mouhoub Hani and Giovanni-Battista Dagnino
Studies on inter-firm relationships have recently shifted their attention from dyadic networks to more globally driven network structures. This condition occurs because…
Abstract
Purpose
Studies on inter-firm relationships have recently shifted their attention from dyadic networks to more globally driven network structures. This condition occurs because embeddedness in global network structures may improve firm innovation and performance. In addition, the improvement of firm innovativeness and performance seems higher when globally networked firms both compete and cooperate between and among them. In this paper, we categorize the simultaneous interplay of cooperation and competition in the global arena as global network coopetition (GNC). Under GNC, multinational enterprises act jointly with their global partners-rivals to improve performance, at the same time by sharing complementary resources (cooperation side) and by undertaking independent actions to enhance their own performance (competition side). This paper aims to expand existing research on network and global coopetition by shedding light on the effects of coopetition between and among firms belonging to global network structures on value capture and innovation performance.
Design/methodology/approach
Using a sample of 100 firms belonging to 14 industries organized in 47 global networks of different sizes, the authors conducted a longitudinal empirical study over the period 2000-2014 covering 1,098 observations, 1,717 interfirm relationships and 78 inter-networks linkages. A multiple regression model on panel data with random effects was conducted on the sample of 1,098 observations related to the global automotive industry to test the research hypotheses.
Findings
Findings show that GNC enhances firm performance and innovation outcomes. In addition to GNC, structural characteristics such as network size, network position and network diversity have significant positive or negative effects on innovation and performance outcomes of firms belonging to these global network structures.
Research limitations/implications
Our research offers a contribution to the literature dealing with global networked structures’ effects on firm innovation performance. In fact, it effectively complements prior work on outcomes of coopetition between firms embedded in complex network structures. It also advances research in the area by introducing the notion of GNC as a network by which firms can enhance their innovation performance and, therefore, their global innovation performance. This study has some limitations. First, we acknowledge that it is focused only on 14 global coopetitive networks. It could be promising to extend the scope to integrate other networks. Second, our measures of firm actions as based on a content analysis of news reports related to firms. It would be important to complement this data collection by conducting a qualitative analysis (interviews). Atlast, it could be promising to include the study of customer needs in the new product development process.
Practical implications
Our study also offers some insights into the management of coopetition. In fact, by taking into account the existence of a context in which global coopetition networks play a role, managers may be better positioned to effectively deal with the paradox of being a partner of their direct rivals to improve their firms’ innovativeness and, consequently, achieve good performance, on the one hand, and to maintain relationships within several networks by taking into account their structural properties such as centrality and diversity, on the other hand.
Originality/value
We contribute to extant network coopetition literature in two ways. First, we introduce the notion of GNC to detect coopetition occurrence in global network structures. GNC refers to a context where actors in various networks belonging to different industries and geographies cooperate in a one (or more) innovative project/s, while simultaneously keeping on competing within and between their networks. Second, we contribute to network coopetition by analyzing specific GNC effects on firm innovation performance. In so doing, we can provide a deeper analytical understanding of GNC performance effects on firms operating in global network contexts.
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Jessica Salmon, Salma Zaman, Emine Beyza Satoglu, Fernando Sanchez-Henriquez and Andres Velez-Calle
This paper examines the role of co-inventor collaboration with China and/or the USA on a country's increase in centrality in global knowledge networks. It also explores the role…
Abstract
Purpose
This paper examines the role of co-inventor collaboration with China and/or the USA on a country's increase in centrality in global knowledge networks. It also explores the role of specific institutional factors – corruption and intellectual property rights (IPR) protection – on this relationship.
Design/methodology/approach
In the study, co-inventor data from the United States Patent and Trademark Office (USPTO) applications have been used to construct networks of technological knowledge collaboration at the country level over the years 2002–2015. Using eigenvector centrality as the dependent variable, the study uses fixed effect regression analyses on a panel of 171 countries, contributing to recent debates on knowledge networks and international cooperation.
Findings
Building on research in economic development, innovation and social network theory, this research finds that co-patenting with Chinese inventors is positively related to a country's centrality in global knowledge networks and that this relationship is negatively moderated by collaboration with the current most central knowledge network – namely that of the USA – suggesting a substitution effect. It also finds a partial substitution between institutional factors, IPRs protection and transparency, and collaboration with China on a country's knowledge centrality.
Practical implications
Regarding policymakers, the findings can be used to encourage international collaboration for increased access to new sources of knowledge that fosters innovation while keeping a close eye on local institutions, especially emerging economies that want to increase their international knowledge network centrality.
Originality/value
This study creates a unique panel data set and extends the social networks approach in international business literature, focusing on institutional characteristics related to participation in knowledge networks.
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Fei Li, Yan Chen and Yipeng Liu
This paper aims to examine how integration modes impact the acquirer knowledge diffusion capacity of overseas mergers and acquisitions (M&As) effected by emerging market firms and…
Abstract
Purpose
This paper aims to examine how integration modes impact the acquirer knowledge diffusion capacity of overseas mergers and acquisitions (M&As) effected by emerging market firms and the role played by the global innovation network position of the acquiring firms in affecting this relationship.
Design/methodology/approach
Through the use of structural equation modelling and bootstrap testing, the hypotheses are tested by drawing upon a sample of 102 overseas M&As effected by listed Chinese manufacturing companies.
Findings
The results show that acquirers from emerging countries are unable to increase the knowledge diffusion capacity unless they choose the right post-merger integration mode. This paper also finds that the relationship between integration mode and knowledge diffusion is channelled through the centrality and structural holes of acquirers in the global innovation networks. When considering the combinations of different resource similarities and complementarities of the acquired firms, differences emerge in the integration model and network embedded path of acquirers in emerging countries.
Practical implications
Emerging market multinational enterprises should consider post-merger integration as a crucial facilitator to the crafting of global innovation network positions that promote knowledge diffusion. The choices of integration mode and brand management autonomy should be matched with the resource similarities and complementarities that exist between the acquirer and target firms.
Originality/value
Based on the resource orchestration theory and by focussing on network centrality and structural hole as the crucial links, this study provides a nuanced understanding of the relationship between post-merger integration and knowledge diffusion and sheds light on latecomer firms from emerging countries.
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Aihie Osarenkhoe and Daniella Fjellström
The paper aims to illuminate the platform created by a cluster organization to facilitate its internationalization and thereby enhance its regional innovation system partners'…
Abstract
Purpose
The paper aims to illuminate the platform created by a cluster organization to facilitate its internationalization and thereby enhance its regional innovation system partners' competitiveness by providing access to global value chains and boosting innovativeness.
Design/methodology/approach
The study draws upon the interaction approach, focusing on the interaction process, interaction partners, relationship atmosphere, and relationship environment. A qualitative study was conducted at Future Position X, a Swedish cluster organization. A total of 58 interviews were conducted, including 48 face-to-face in-depth interviews between 2017 and 2019 with six key informants at FPX, representatives from 28 SMEs, ten members of regional innovation systems to which FPX belongs, and four process leaders of regional and local networks, in addition to online interviews with ten members of the regional innovation systems conducted via Microsoft Teams in March 2021. The time span of the study provides a longitudinal perspective.
Findings
The FPX cluster collaborates with actors in the quadruple helix, maintaining a mindset that has led to a number of new partner agreements in the global arena to secure the resources and expertise necessary for cluster activities, and thereby ensuring firms in FPX networks access to platforms for international expansion. Internationalization thus expands the cluster's knowledge base beyond the traditional environment of its member firms.
Research limitations/implications
Very few innovations arise from the isolated work of a lone genius. Instead, most innovation is achieved through complex, interactive, iterative and cumulative learning processes in which a variety of actors are involved. The FPX cluster organization's internationalization platform is therefore vital to the internationalization of its partners since cluster actors lack the time, resources, knowledge, experience, and networks required to break into international markets singlehandedly.
Practical implications
This study suggests that, for practitioners and researchers alike, the growing importance and relevance of the regional innovation system cannot be overemphasized. It also holds policy and societal implications in that FPX's global network helps regional SMEs to internationalize, in addition to inspiring international firms to establish operations in the Gävleborg region, thereby helping to strengthen the overall GIS environment. Internationalization also expands the FPX cluster's knowledge base beyond the traditional environment of its firms, an example of this being the construction start of a Microsoft data centre in the region in 2020.
Social implications
FPX is financed through taxation and grant funding. By initiating projects, creating relationships and building collaborations, FPX thus contributes to collaboration between business, academia and the public sector. FPX also contributes to knowledge development of new technology by creating meeting places and networks around digital issues, such as GIS, AI, the IoT and blockchain technology.
Originality/value
While earlier research has concentrated on endogenous gaps critical to cluster dynamics, comparatively little attention has been paid to exogenous gaps, i.e. linkages between regional clusters and innovation partners elsewhere in the world. This study showcases the richness of interactions in the cluster against the background of wider, global innovation interactions. Future research should examine other vital questions that remain unanswered, e.g. by measuring and exploring the extent to which regional innovation systems can contribute to long-term economic growth for society.
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The last few decades have seen the rapid emergence of two transformative streams in large firms. The first is the development of project management, aimed at improving the…
Abstract
Purpose
The last few decades have seen the rapid emergence of two transformative streams in large firms. The first is the development of project management, aimed at improving the performance of innovation management, while the second, the internationalization of innovation organizations and processes in response to strategies of redeployment toward emerging countries. Both streams have been closely analyzed in the fields of project management and international management, respectively. However, the links between the two have been less studied. The purpose of this paper is to consider the hypothesis that a firm’s projectification might have an important impact on its pattern of internationalization in innovation.
Design/methodology/approach
First, we present the models of internationalization of innovation processes used in the multinational corporation literature. This field essentially focuses on the components of permanent organizations: global internationalization strategy and legacy, R&D footprint, characterization of local subsidiaries and the role of central head offices. Projects figure only as a context in which those elements operate, not as a structuring variable of the global innovation process pattern. The authors challenge this view by exploring whether the specificities of the firm’s projectification pattern can influence how it builds its global innovation process. The paper is based on a longitudinal case where the authors analyze the organizational transition within the Renault group, an emblematic case of a multinational that implemented a spectacular internationalization transition in the 2000s.
Findings
Our results demonstrate project organizing’s major impact on the internationalization patterns of innovation processes within the firm. They show how the deployment of a polycentric innovation footprint has been the consequence of a specific projectification transition, giving the project and program functions the autonomy to transgress centralized product development norms to adapt their project to the local environment; use the initial breakthrough project as the foundation for a new and specific global product development network through a lineage logic; and sustain this innovation global network as a permanent process of the firm.
Research limitations/implications
The paper demonstrates the importance of the organization’s projectification characteristics as an important vector for successfully implementing the most advanced internationalization strategies (i.e. reverse innovation) and innovation processes models (i.e. integrated networks).
Practical implications
The paper characterizes project management related conditions that can govern the success of innovation strategies in high-growth emerging countries: the autonomy and empowerment of project functions; colocation and integration of teams; existence of a program function; and HR policies capable of supporting lineage management and project-to-project learning processes.
Originality/value
Bridging project management literature with multinational management literature. Demonstrate the key impact of projectification on internationalization pattern of the firm. Longitudinal analysis of a firm internationalization transition on a ten-year period.
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Feiqiong Chen, Wenjing Wang and Jieru Zhu
Post-merger integration (PMI) is driven by coevolving processes. This paper examines the coevolution of dynamic integration strategy and network reconstruction and explores how…
Abstract
Purpose
Post-merger integration (PMI) is driven by coevolving processes. This paper examines the coevolution of dynamic integration strategy and network reconstruction and explores how these processes systematically enable emerging market acquirers to upgrade innovation capabilities.
Design/methodology/approach
This paper conducts a multi-case study based on four Chinese overseas acquisitions of manufacturing firms. The data were collected from interviews and archival documentation.
Findings
This study develops a coevolutionary framework of dynamic integration strategy and network reconstruction to explain processes and mechanisms of an acquirer’s innovation capability upgrading. This framework identifies three network motivations, namely, network access, network connection and network synergy. Under different network motivations, dynamic transitions of the acquirer’s integration strategy coevolve with multi-level reconstruction of its networks. Collectively, they are important mechanisms driving innovation capability moves from imitation innovation to asportation and reimitation innovation and then to independent innovation.
Originality/value
This paper responds to a recent call for more insights into the dynamics of PMI and contributes to the research on emerging market multinational corporations’ post-acquisition integration. By integrating the M&A and networks literature, the paper provides evidence of unexplored mechanism of network changes during PMI. It reveals that how acquirers manage the dynamics of PMI to gradually achieve multi-level reconstruction of their networks. Based on a coevolutionary framework, the paper provides a process perspective on how the coevolution of PMI and network reconstruction promotes the upgrading of innovation capabilities.
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Ekaterina Turkina and Nasrin Sultana
The purpose of this paper is to understand the relationship between foreign direct investment (FDI) and cities and how the relationship between multinational enterprise (MNEs) and…
Abstract
Purpose
The purpose of this paper is to understand the relationship between foreign direct investment (FDI) and cities and how the relationship between multinational enterprise (MNEs) and local firms facilitates regional cleantech innovation.
Design/methodology/approach
Using a combination of social network analysis, regression analysis and interview analysis, the authors map and analyze a cleantech cluster to investigate the relationship between MNEs and local firms and the resulting effects on cleantech innovation.
Findings
The findings of the paper indicate that FDI plays a crucial role in cities and their local clusters by acting as a broker between a diverse set of actors: firms, institutions, universities, financial and other intermediaries. Additionally, connectedness to MNEs improves local firms’ innovation.
Research limitations/implications
This study is not free of limitations, mainly, because of the aspects that the analysis is based on one city and one cleantech hub. Further research could verify whether the findings of this paper hold in other cities and industries.
Practical implications
The findings, elucidating the connection between MNEs and local firms, as well as MNEs being important brokers in the local system, and the resulting impact, will help policymakers to take appropriate actions and support the local cleantech innovation. It is important to not only attract high-quality FDI into local clusters, but also to create and support collaborations between foreign firms and local actors, because colocation does not automatically leads to positive spillovers and a lot depends on how MNEs are integrated into the local milieu.
Social implications
The present paper argues that FDI plays an important role in local cleantech innovation and it is important to integrate foreign firms in local social networks.
Originality/value
The authors analyze FDI patterns in an emerging industry at the city and local cluster level using a unique database containing the information on relationships between MNEs and local firms, as well as interview data.
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Lei Wang, Jun Li and Shaoqing Huang
The purpose of this paper is to develop and empirically test a theoretical framework examining how local network ties and global network ties affect firms’ innovation performance…
Abstract
Purpose
The purpose of this paper is to develop and empirically test a theoretical framework examining how local network ties and global network ties affect firms’ innovation performance via their absorptive capacities.
Design/methodology/approach
The conceptual framework is empirically tested in a field study with multi-source data collected from a sample of 297 manufacturing firms located in four. Manufacturing clusters in the south-eastern Yangtze River Delta of China. Hypotheses were tested with the use of path analysis with maximum likelihood robust estimates through the structural equation modelling approach.
Findings
The asymmetry between local network ties (LNT) and global network ties (GNT) in terms of influences on firms’ innovation performance is confirmed by empirical tests. LNT not only significantly and positively contribute to firms’ innovation performance directly but also enhance it indirectly via absorptive capability, whereas GNT exhibit only marginal influence on innovation performance. GNT are shown to boost innovation performance (IP) only indirectly via firms’ absorptive capacities. Knowledge heterogeneity and the difference between domestic and multinational firms’ institutional environment are considered to be the main causes of the asymmetric effects.
Originality/value
While the previous literature either focused on the mediating role of firms’ knowledge absorptive capacities or investigated the effects of social networks separately, this study incorporates both mechanisms into a single analytical framework to better account for the interactions between network effects and absorptive capacities. The results challenge some previous studies positing that GNT are stronger determinants than LNT in shaping a local firm’s innovation capacity in emerging economies, and the findings emphasize the importance of absorptive capacity in helping local enterprises to leverage external linkages to enhance firm’s innovation performance.
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Elisangela Lazarou Tarraço, Roberto Carlos Bernardes, Felipe Mendes Borini and Dennys Eduardo Rossetto
Is the development of local innovation capabilities enough for foreign subsidiaries in emerging markets to be able to integrate into global R&D projects? The authors argue that it…
Abstract
Purpose
Is the development of local innovation capabilities enough for foreign subsidiaries in emerging markets to be able to integrate into global R&D projects? The authors argue that it is not. The purpose of this paper is to show the central role of R&D capacities when it comes to inserting foreign subsidiaries in emerging markets into global R&D projects.
Design/methodology/approach
The study investigated 131 foreign multinational subsidiaries operating in Brazil. For each subsidiary, the authors surveyed two to five directors or C-level executives from innovation, R&D, engineering, product development and projects. the authors used structural equation modeling for analysis.
Findings
The results indicate that product and process innovations alone do not guarantee the insertion of the emerging market subsidiaries into global innovation projects. Such insertion depends on the subsidiary’s accumulation of R&D capacities.
Practical implications
The results reinforce the central issue of building product and process innovation capabilities as the first step toward a blueprint for global projects. However, the effort is not limited to these initiatives. Product and process innovation efforts need be reverted in headquarters’ eyes in order for subsidiaries to gain R&D center status. To achieve this, subsidiaries must align their technological innovations with multinational corporations’ innovation strategies.
Originality/value
In authors’ view, this study contributes to the literature in three main areas: the evolutionary process of innovation capability in subsidiaries, the reverse innovation debate and the discussion of subsidiaries’ initiatives.
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Alexander Degelsegger-Márquez, Svend Otto Remøe and Rudie Trienes
The purpose of this paper is to discuss the prospects of a Southeast Asian knowledge economy in light of regional integration processes and the participation of Southeast Asia in…
Abstract
Purpose
The purpose of this paper is to discuss the prospects of a Southeast Asian knowledge economy in light of regional integration processes and the participation of Southeast Asia in global innovation networks.
Design/methodology/approach
The evidence base is a combination of quantitative data on R&D investments, patent applications and publications, with qualitative data from 40 semi-structured expert interviews conducted with innovation experts, research managers and policymakers in six ASEAN Member States.
Findings
Despite economic growth and increases in R&D inputs and outputs in individual ASEAN Member States, innovation policy at regional ASEAN level remains weak. In addition, the economic integration of the ASEAN Economic Community is progressing slowly. In this environment, evidence is presented for a certain level of regional integration when it comes to the exploitation of knowledge produced within and outside of ASEAN. While a regional market for knowledge exploitation is conceivable, this is not accompanied by the regional integration of knowledge production.
Practical implications
The main practical implication of this argument is the need for ASEAN policymakers to appreciate the disconnection between regional knowledge production and exploitation. This paper offers conceptual tools to engage in ASEAN-level policy discussions on this issue that can help facilitate the best possible regional outcome.
Originality/value
Despite several studies on the ASEAN Economic Community process, there has been no contribution so far that combines a discussion of the economic integration process with a look at the regional knowledge economy and innovation systems. This perspective does not only contribute to innovation systems literature, but also entails important policy lessons.
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