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Article
Publication date: 27 July 2022

Harald Bathelt, Maximilian Buchholz and John A. Cantwell

While conventional views of foreign investment activity primarily relate to efficiency-seeking investments, the authors argue that most other outward foreign direct investments…

Abstract

Purpose

While conventional views of foreign investment activity primarily relate to efficiency-seeking investments, the authors argue that most other outward foreign direct investments (OFDIs) likely have positive effects on income development in the home region. Data on the US urban system not only illustrates this but also shows that this impact is not equal in all city-regions. The purpose of this paper is to develop an explanation as to why high- and low-income cities are associated with self-reinforcing cycles of OFDI activity that have different home-region impacts.

Design/methodology/approach

Conventional views assume that inward foreign direct investments (IFDIs) have a positive impact on target regions, while OFDIs are often treated as the flip side of this story, being seen as having negative effects by shifting jobs and income abroad. This paper counters this logic by developing a conceptual argument that systematically distinguishes different types of OFDIs and relates them to economic development effects in the home (investing) region.

Findings

Using a co-evolutionary conceptualization, this paper suggests that many high-income cities are characterized by a virtuous cycle of development where high, successful OFDI activity generates both positive income effects as well as incentives to engage in further OFDIs in the future, thus leading to additional income increases. In contrast, it is suggested that low-income cities are characterized by what we refer to as vicious cycles of development with low OFDI activity, few development impulses and a lack of incentives and capabilities for future investments.

Originality/value

This paper develops a counter-perspective to conventional views of OFDI activity, arguing that these investments have a positive impact on regional income levels. The authors develop a spatially sensitive explanation which acknowledges that OFDIs do not trigger a linear process but are associated with diverging inter-urban development paths and may contribute to higher levels of intra-urban inequality. From these findings, the authors derive conclusions for future research and public policy.

Details

Competitiveness Review: An International Business Journal , vol. 33 no. 3
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 7 July 2021

Pedro Mendonça Silva, Victor Ferreira Moutinho and Vera Teixeira Vale

The purpose of this paper is to examine the relationship between product innovation and network and their export performance, particularly in trade fair context. Moreover, this…

Abstract

Purpose

The purpose of this paper is to examine the relationship between product innovation and network and their export performance, particularly in trade fair context. Moreover, this paper conducts a comparative study among services/industrial small and medium-sized enterprises (SMEs) and considers the home-country context. Innovation and internationalization are stagnant themes in the recent literature on trade fairs, so they require to be renewed.

Design/methodology/approach

The empirical study includes a survey with 341 SMEs’ respondents separated into both industrial/producer and service/other. A conceptual model was developed and examined from three different perspectives: Model A encompasses all surveyed SMEs, Model B includes only industrial/producer SMEs and Model C comprises service/other SMEs. Data analysis happened in two steps. The first step included the structural equation model (SEM) and the assessment of hypotheses (from three different perspectives). Thus, it was possible to make a comparative analysis between the models. In the second step, the ordered logit model (OLM) is used to study relationships between control variables and the criteria variable export performance.

Findings

The SEM’s results confirm a conceptual model about a dynamic trajectory that SMEs, mainly industrial/producer, can take advantage of: innovate to networking and networking to export. The results allowed to verify when comparing services/industrial SMEs that the tangibility which characterizes the innovation of industrial SMEs' products contributed significantly to the performance of business networks and exports. The study also reveals, through the OLM, two catalysts for the success of the SME’s export performance: export experience and continued participation in trade fairs. The OLM results also reveal that the size of the companies is not relevant, so trade fairs are marketing tools accessible to any company, regardless of their size. Finally, the study considered home-country context of the surveyed SMEs, which allowed additional interpretations to be drawn.

Research limitations/implications

The study does not reflect the individual's personality in his network capacity and the export performance was measured based on the level of satisfaction and not on real sales results. However, the study provides relevant practical implications and can support future studies.

Practical implications

The study offers important implications for SME. The results reveal that presenting product innovations at trade fairs is a useful tool for SMEs to create networks, which facilitates their export performance, especially for industrial SMEs residing in small economies such as Portugal. This study is also relevant for business associations of industrial SMEs and/or public or semi-public SME promotion agencies.

Originality/value

This paper contributes to the literature on trade fairs, suggesting a new innovation, networking, export (INE) framework to reflect on the participation in international trade fairs. So, this research especially combines product INE performance in a particular context – international trade fairs for SME. It also considers the home-country context of the SMEs, which adds depth to the study. Finally, the comparative study also provides insightful implications for industrial SMEs on how to improve the export performance from trade fairs by leveraging innovation and networking.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 3
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 8 June 2012

Harald Pechlaner, Marcus Herntrei, Sabine Pichler and Michael Volgger

In South Tyrol, Italy, and in other alpine destinations, the role of publicly financed tourism destination management has traditionally a strong focus on image promotion. In South…

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Abstract

Purpose

In South Tyrol, Italy, and in other alpine destinations, the role of publicly financed tourism destination management has traditionally a strong focus on image promotion. In South Tyrol, three further regional public management organisations have recently been founded with the aim of developing the location by expanding its innovation and export capabilities, especially for small to medium‐sized enterprises (SMEs). All four public organisations aim to increase the competitiveness of local companies through creating a more efficient management of destination and location. The cooperation between the four organisations and further public and private regional stakeholders might be regarded as a regional innovation system (RIS). This paper aims to analyse and discuss within the frame of a case study, the structure of the cooperation between the four public organisations and if it can be regarded as a developing South Tyrolean regional innovation system. The paper aims to focus on the roles of the four organisations, possible synergies and implications for regional governance.

Design/methodology/approach

Four qualitative interviews were conducted with the directors of the four organisations, based on four open questions. The interviews were analysed using the GABEK technique and WinRelan software. These combined techniques helped to visualise the processes within and between social organisations. Further, they helped to show, structure and organise respondents' experiences and opinions, and enabled the researchers to identify opportunities and difficulties, even in such complex structures.

Findings

The results of the study show there exists a cooperation of semi‐private organisations in South Tyrol, which shows characteristics of being a central part of a developing regional innovation system. The four analysed organisations work on different tasks and positions in the promotion and management of the region under a set of common goals. The destination management organisation takes a central and important part in the regional innovation system. Its umbrella brand is an integrating element for the entire cooperation. Nevertheless, the analysed organisations have unrealised potential for further cooperation. The realisation of synergies, and a clearer definition of responsibilities by the regional government, are seen as the bases for better regional governance and for the implementation of an effective regional innovation system in South Tyrol.

Research limitations/implications

This study has some limitations, including that further research on this approach is needed in order to characterize the whole regional innovation system. Furthermore a comparative study with other regions should be conducted.

Originality/value

The processes behind the development of an integrated regional management and marketing can be observed in several alpine regions (such as Graubünden, Tyrol) and major cities (for example, Zürich, Bern). South Tyrol underwent a long process of umbrella brand development – the basis for the integration of economic and tourist promotion. Through the integration and development of the product, other facets were enhanced, including marketing, innovation, the establishment of new enterprises and exports, which together can be regarded as regional innovation systems. This case study shows the synergies of the different regional actors, as well as implications for the governance of such regional innovation systems. In this way, the paper adds value to the discussion, how regional innovation processes can be initiated and governed, considering the role of the destination management organisation.

Article
Publication date: 16 October 2017

Xinlu Qiu, Marcelo Cano-Kollmann and Ram Mudambi

The purpose of this paper is to explore how firms achieve competitiveness by implementing design-driven innovation.

Abstract

Purpose

The purpose of this paper is to explore how firms achieve competitiveness by implementing design-driven innovation.

Design/methodology/approach

This paper is a detailed longitudinal analysis of the design innovation underpinning the Norwegian furniture industry. Using a data set spanning 40 years (1976-2015) of design patents by both Norwegian firms and inventors, the authors map the coinventor connectivity of the design-innovation clusters of Norway, both within the country and with foreign locations.

Findings

Using network analysis, the authors find that most of the rise of co-inventor connectivity within Norwegian furniture industry’s design innovation is occurring within the country. More surprisingly, the leading firms and star inventors are less likely to collaborate internationally, i.e. they are characterized by greater innovative “lock-in”.

Research limitations/implications

The exploration of all the potential reasons for the “lock-in” in design innovation of the Norwegian furniture industry is beyond the scope of this paper. A particularly interesting avenue for future research would be to compare the coinventor connectivity of traditional sectors like furniture with more high technology sectors within Norway.

Originality/value

By assessing a detailed and historical context of the evolution of Norwegian furniture industry, the paper provides a fairly comprehensive study of design innovation as a source of firms’ competitiveness, which has been rarely explored. The authors suggest that innovative “lock-in” may be more likely to arise in the traditional sectors of an economy and the forces may be particularly strong for those firms and individuals that have the highest domestic connectedness and status.

Details

Competitiveness Review: An International Business Journal, vol. 27 no. 5
Type: Research Article
ISSN: 1059-5422

Keywords

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