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Article
Publication date: 11 November 2019

Feng Zhang

With considerable attention paid to the motives and process of idiosyncratic internationalization trajectory of multinationals from emerging economies (EMNCs), little is known on…

Abstract

Purpose

With considerable attention paid to the motives and process of idiosyncratic internationalization trajectory of multinationals from emerging economies (EMNCs), little is known on whether, and if so how, new competitive advantages of EMNCs are created and accumulated over time. MNC and EMNC literature agrees on the importance of external and internal knowledge linkages in technological competence creation. By building upon this framework, this paper aims to evaluate EMNCs’ external and internal knowledge flow patterns by benchmarking their counterparts from mature industrialized countries (MMNCs).

Design/methodology/approach

This study analyzes US patents granted between 2000 and 2014 to leading innovation-oriented EMNCs from China and India, and their matched MMNCs. Being the first to use the US patent and citation data in studying leading innovation-oriented EMNCs, the authors use a descriptive statistical method.

Findings

The findings offer empirical insights of the scale, scope and quality of EMNC technological competence creation. Moreover, in contrast to existing EMNC literature, it is found that EMNC parents have been the most important center of EMNC technological knowledge generation. The matched group comparisons of external and internal knowledge flows further reveal detailed similarities and differences of competence creation between EMNCs and MMNCs, and among EMNCs.

Originality/value

This study represents one of the first attempts to investigate the post-internationalization technological competence creation of EMNCs by using a novel data source. This study sets the foundation to deepen the understanding of EMNC technological competence creation. The findings suggest interesting propositions and offer important implications for future researches.

Details

Multinational Business Review, vol. 28 no. 1
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 18 August 2020

Feng Zhang

Considerable attention has been paid to the motives and process of idiosyncratic internationalization trajectory of Multinational Corporations from emerging economies (EMNCs)…

Abstract

Purpose

Considerable attention has been paid to the motives and process of idiosyncratic internationalization trajectory of Multinational Corporations from emerging economies (EMNCs). Yet, the ability to undertake strategic asset-seeking foreign direct investments (FDIs) is not the same as the ability to achieve subsequent investment success (Buckley, 2018). Since an ultimate goal of strategic asset-seeking FDIs is to tap advanced knowledge in host locations to accelerate EMNC competence creation, and the current study aims to shed light on the question of whether, and if so how, EMNCs have been able to build competences after strategic asset-seeking motivated FDIs.

Design/methodology/approach

This study tests the US patent and citation data from 2000 to 2014 of leading innovation-oriented MNCs from China and India, complemented with data from LexisNexis Directory of Corporate Affiliations and Mergent Online databases. Wilcoxon rank sum test is employed to compare EMNCs with control group MNCs from mature industrialized countries to identify key technological competence creation mechanisms of EMNCs. Negative binomial regression technique is then employed to test the relationship between the key mechanisms and EMNC innovative performance in terms of quantity and quality of patented inventions.

Findings

In contrast to the extant EMNC literature, the author finds that EMNC parents adopt a hands-on and less of an orchestrating approach. They are playing critical roles in accessing and transferring knowledge from international host locations. The empirical analyses indicate an absence of reverse transfers of knowledge from subsidiaries to the parent. Instead, EMNC parents directly access and absorb explicit knowledge from external sources in subsidiary host locations, which significantly contributes to EMNC innovative performance. Meanwhile, the author finds that the employment of intra-firm and inter-unit inventor teams and associated internal tacit knowledge access and transfer significantly contribute to EMNC innovative performance.

Originality/value

This study investigates the post-internationalization performance of EMNCs and contributes to the reconciliation of theoretical debates, as well as the generation of a comprehensive understanding of the MNC. Managerial implications are also discussed.

Details

International Journal of Emerging Markets, vol. 16 no. 8
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 1 March 2021

Feng Zhang

This study aims to analyze the subsequent investment success of EMNCs after their strategic asset-seeking foreign direct investments (FDIs), while internationalization…

Abstract

Purpose

This study aims to analyze the subsequent investment success of EMNCs after their strategic asset-seeking foreign direct investments (FDIs), while internationalization trajectories of multinational corporations from emerging economies (EMNCs) have been extensively studied, Post-internationalization investment success of EMNCs is defined as extensive technological knowledge access and transfer for knowledge combination. This paper focuses on EMNC explicit knowledge access and transfer.

Design/methodology/approach

This study analyzes US patents granted between 2000 and 2014 to leading innovation-oriented EMNCs from China and India as well as to their key competitors from mature industrialized countries (MMNCs). Wilcoxon Rank Sum Test is used to compare the explicit technological knowledge access and transfer patterns of EMNCs and MMNCs. With MMNCs as the benchmark, the comparison allows to imply the patterns and extent of technological knowledge access and transfer of EMNCs.

Findings

While subsidiary reverse knowledge transfer is largely missing, EMNCs adopt a parent-centric approach in which the parent directly accesses and transfers explicit knowledge from the external environment of host locations. In doing so, EMNCs at least partially achieve the knowledge access and transfer goals of strategic asset-seeking FDIs.

Originality/value

This study contributes to an in-depth understanding of EMNCs by empirically testing key predictions in extant EMNC literature, namely, the strategic asset-seeking in host locations and the systematic integration of accessed knowledge and resources with home country activities. This study also pioneers the use of the US patent and citation data to empirically study EMNCs.

Article
Publication date: 30 December 2020

Pooja Thakur-Wernz and Christian Wernz

While the phenomenon of R&D offshoring has become increasingly popular, scholars have mostly focused on R&D offshore outsourcing from the point of view of the client firms, who…

Abstract

Purpose

While the phenomenon of R&D offshoring has become increasingly popular, scholars have mostly focused on R&D offshore outsourcing from the point of view of the client firms, who are often from an advanced country. By examining vendor firms, in this paper the authors shift the focus to the second party in the dyadic relationship of R&D offshore outsourcing. Specifically, the authors compare vendor firms with nonvendor firms from the same emerging economy and industry to look at whether vendor firms from emerging economies can improve their innovation performance by learning from their clients. The authors also look at the role of depth and breadth of existing technological capabilities of the vendor firm in its ability to improve its innovation performance.

Design/methodology/approach

This study is based on firm-level data from the Indian biopharmaceutical industry between 2005 and 2016. The authors use the Heckman two-stage model to control for self-selection by firms. The authors compare the innovation performance of vendor firms with nonvendor biopharmaceutical firms (group vs nongroup analysis) as well as innovation performance across vendor firms (within group comparison).

Findings

The authors find that, compared to nonvendor firms, R&D offshore outsourcing vendor firms from emerging economies have higher innovation performance. The authors argue that this higher innovation performance among vendor firms is due to learning from their clients. Among vendor firms, the authors find that the innovation gains are contingent upon the two factors of depth and breadth of the vendor firms' technological capabilities.

Research limitations/implications

This paper makes three contributions: First, the authors augment the nascent stream of research on innovation from emerging economy firms. The authors introduce a new mechanism for emerging economy firms to learn and upgrade their capabilities. Second, the authors contribute to the literature on global value chains, by showing that vendor firms are able to learn from their clients and upgrade their capabilities. Third, by examining the innovation by vendor firms, the authors contribute to the R&D offshore outsourcing, which has largely focused on the client.

Practical implications

The study findings have important implications for both clients and vendors. For client firms, the authors provide evidence that knowledge spillovers do happen, and R&D offshore outsourcing can turn vendors into potential competitors. This research helps firms from emerging economies by showing that becoming vendors for R&D offshore outsourcing is a viable option to learn from foreign firms and improve innovation performance. Going outside geographic boundaries may be a large hurdle for these resource-strapped, emerging economy firms. Providing offshore outsourcing services for narrow slices of R&D activities may be a starting point for these firms to upgrade their capabilities.

Originality/value

This paper is among the first to quantitatively study the innovation performance of vendor firms from emerging economies. The authors also contribute to the nascent literature on innovation in emerging economy firms by showing that providing R&D offshore outsourcing services to client firms from advanced countries can improve firms' innovation performance.

Article
Publication date: 1 April 2003

Georgios I. Zekos

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…

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Abstract

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Details

Managerial Law, vol. 45 no. 1/2
Type: Research Article
ISSN: 0309-0558

Keywords

Article
Publication date: 26 January 2021

Usman Ali, Yanxi Li, Jian-Jun Wang and Zhen Chen

Prior research demonstrated that China's Outward FDI (OFDI) is aimed at sustaining long-term economic growth by promoting industrialization and technological upgrading in the…

Abstract

Purpose

Prior research demonstrated that China's Outward FDI (OFDI) is aimed at sustaining long-term economic growth by promoting industrialization and technological upgrading in the country. However, empirical evidence on the effectiveness of this strategy remains scarce. This study intends to fill this gap by exploiting endogenous changes in industrial productivity stemming from OFDI to examine if China's new strategy to spur OFDI is economically beneficial for the industries involved.

Design/methodology/approach

The authors employed the two-step system-GMM and pooled mean group approaches on a panel dataset of 18 Chinese industries over the 2004–2017 period. The industrial sectors are further classified into the state dominated and non-state dominated ones to evaluate whether the productivity growth impact of OFDI varies by the level of ownership structure. Besides, the dataset is further decomposed into the ex ante and ex-post BRI era to test if this initiative has altered the underlying relationship.

Findings

The results provide robust evidence that China's OFDI through reverse spillover effects promotes productivity growth in the domestic industries, and such productivity gains are greater for the non-state dominated industries, and the OFDI in the BRI era. The findings suggest that OFDI can act as a catch-up strategy to release excess capacity and acquire technology and smart business practices.

Originality/value

This study is the first attempt to highlight the reverse productivity spillovers associated with OFDI at the industrial level. The study's findings guide the government officials and the practitioners of foreign investment to better understand the implications of their investment projects in terms of technology improvements and to optimize market opportunities.

Details

International Journal of Emerging Markets, vol. 17 no. 8
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 24 January 2023

Andrés J. Navarro-Paule, M. Mercedes Romerosa-Martínez and Francisco Javier Lloréns-Montes

This paper aims to explain how small- and medium-sized firms (SMEs) create information technology (IT) business value through blended IT outsourcing (ITO). The explanatory…

Abstract

Purpose

This paper aims to explain how small- and medium-sized firms (SMEs) create information technology (IT) business value through blended IT outsourcing (ITO). The explanatory framework it proposes enables SMEs to replicate IT capability outcomes (i.e. enhance their economic, strategic and technological competences, namely, ITO success) by endorsing an ITO strategy catalyzed by IT vendor integration.

Design/methodology/approach

This study uses covariance-based structural equation modeling to test the proposed research model. Data are collected from 251 knowledge-intensive business SMEs located in Science and Technology Parks in Spain.

Findings

The results demonstrate empirically that SMEs can replicate IT capability benefits (i.e. enhance their non-IT competences) through blended ITO in which IT, conceptualized as a transversal supporting activity, is outsourced to an IT vendor while the value creation process remains with the buyer. The integration (i.e. process integration and information sharing) of an IT-proficient vendor catalyzes ITO success. More specifically, the results show that, although process integration is not directly related to competence enhancement, fosters information sharing, which directly facilitates ITO success. The results also show that IT vendor proficiency accounts for ex ante trust.

Practical implications

Managers should think of transformational ITO as a strategy to enhance firm competences. For blended ITO strategies to succeed, managers must have a comprehensive understanding of the business they run, as it is important to create conditions that foster inter-firm information sharing. To achieve these conditions, managers should take special care in selecting boundary spanners, who are the pivotal links in competence enhancement.

Originality/value

While most research focuses on ongoing trust (i.e. trust develops as ITO evolves), this study focuses on initial (i.e. ex ante) trust and analyzes IT vendor proficiency (expert, experienced and reputed) to examine trust as an antecedent of ITO. This study also draws on previous conceptualizations of vendor integration to develop and analyze a two-step integration model to explain how IT vendor integration (i.e. process integration and information sharing) catalyzes enhancement of the buyer’s non-IT competences. This study focuses on SMEs, which are often neglected in ITO studies.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 10
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 22 August 2022

María Esmeralda Lardón-López, Rodrigo Martín-Rojas and Víctor Jesús García-Morales

The purpose of this study is to deepen understanding of the effects of using social media technologies to acquire technological knowledge and organizational learning competences

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Abstract

Purpose

The purpose of this study is to deepen understanding of the effects of using social media technologies to acquire technological knowledge and organizational learning competences, of technological knowledge competences on organizational learning and finally of organizational learning on organizational performance.

Design/methodology/approach

The study was performed by analyzing data from a sample of 197 technology firms located in Spain. The hypotheses were tested using a structural equations model with the program LISREL 8.80.

Findings

This study’s conceptual framework is grounded in complexity theory – along with dynamic capabilities theory, which complements the resource-based view. The study contributes to the literature by proposing a model that reflects empirically how business ecosystems that use social media technologies enable the development of interorganizational and social collaboration networks that encourage learning and development of technological knowledge competences.

Research limitations/implications

It would be interesting for future studies to consider other elements to conceptualize and measure social media technologies, including (among others) significance of the various tools used and strategic integration. The model might also analyze other sectors and another combination of variables.

Practical implications

The results of this study have several managerial implications: developing social media technologies and interorganizational social collaboration networks not only enables the organizational learning process but also encourages technological knowledge competences. Through innovation processes, use of social media technologies also contributes to strengthening companies’ strategic positioning, which ultimately helps to improve firms’ organizational performance.

Social implications

Since social media technologies drive information systems in contemporary society (because they enable interaction with numerous agents), the authors highlight the use of complexity theory to develop a conceptual framework.

Originality/value

The study also deepens understanding of the connections by which new experiential learning contributes to the generation of coevolutionary adaptive business ecosystems and digital strategies that enable development of interorganizational and social collaborative networks through technological knowledge competences. Only after examining the impact of social media technologies on organizational performance in prior literature, did the authors underscore that both quantity and frequency of social media technology use are positively related to improvement in knowledge processes that lead to employees’ creation and acquisition of new metaknowledge.

Details

Journal of Knowledge Management, vol. 26 no. 11
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 25 January 2008

Stefanie Bröring and L. Martin Cloutier

This paper seeks to shed some light on value‐creation in new product development (NPD) projects within the context of industry convergence and to explore alternative types of…

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Abstract

Purpose

This paper seeks to shed some light on value‐creation in new product development (NPD) projects within the context of industry convergence and to explore alternative types of projects characterised by different buyer‐seller relationships.

Design/methodology/approach

There has been much research on value‐creation in general, but limited emphasis on value‐creation in NPD projects addressing new industry segments emerging from industry convergence (for example, the segment of nuctraceuticals and functional foods (NFF) products that is positioned between the food and the pharmaceutical industries). Based on a multi‐case study approach, this paper pursues an exploratory research strategy and investigates 54 NPD projects drawn from a Quebec (Canada) NFF foods cluster.

Findings

In the context of convergence a new value chain is emerging between two formerly separated sectors. Value‐creation networks spread across industries and reinforce trends of convergence. Firms face competence gaps in NPD and seek to close these by choosing alternative forms of collaboration. Different types of NPD projects involve alternative forms of buyer‐seller relationships and their approach of value‐creation is analysed.

Research limitations/implications

A typology of different approaches to NPD in converging value chains is presented along with type‐specific implications for value‐creation for the required buyer‐seller relationship.

Originality/value

This paper provides a unique insight into value‐creation in NPD in the emerging NFF sector, in particular, and for converging industries, in general.

Details

British Food Journal, vol. 110 no. 1
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 4 September 2023

Maria Borbely and Margit Némethi-Takács

As part of the EFOP-3.3.3-VEKOP-16–2016-00001 “Museum and Library Development for All” project, a national representative digital literacy survey was conducted in Hungary's public…

Abstract

Purpose

As part of the EFOP-3.3.3-VEKOP-16–2016-00001 “Museum and Library Development for All” project, a national representative digital literacy survey was conducted in Hungary's public libraries at the end of 2019. The aim of the present study is to provide a deeper analysis of the data collected during the survey to answer the question of the role of gender and age in the development of digital skills amongst librarians working in public libraries. This study was designed to answer the following four research questions: Are there levels of proficiency defined by DigComp 2.1 that are more specific to men or more specific to women? Are there areas of competence and competences that are clearly perceived as stronger or weaker for men or women? Are there areas of competence that are clearly influenced by age and others that are not or only moderately influenced by age? Which competences are clearly age-related, and which are not or only slightly affected by age?

Design/methodology/approach

The main target group of the study were library professionals working in county libraries. The survey, based on the DigComp 2.1 (Gomez et al., 2017) framework, was conducted using an online questionnaire in the form of a self-assessment and explored four levels of digital literacy. A 30-question questionnaire was completed by 1,868 respondents. The sampling procedure was essentially stratified sampling. The large number of respondents and the sampling procedure combined with the representativeness of the sample meant that the results of the survey can be considered as generalisable to the whole Hungarian public library sector.

Findings

Of the five competency areas assessed by the DigComp framework, librarians were found to be most competent in information and data literacy, and least competent in content development, according to the proportion of those with basic skills. 32 percent of women and 22 percent of men working in libraries rated their digital skills as basic, and both groups were weak or less weak in the same skills, with a few exceptions. At the intermediate level, there is a predominance of women. In the information and communication competency areas and in the content development and integrating and re-elaborating digital content in the content creation area, a high proportion of women consider their digital skills to be medium. Relatively few men rate their own competence in these areas as average. They are most likely to have advanced and highly specialised skills. The advanced level in DigComp2.1 implies, in addition to strong digital skills, the willingness and ability to help others, while the highly specialised level requires innovative and creative use of digital technology and knowledge transfer. These top two skill levels are more common amongst men. 34 per cent of men and 27 per cent of women have advanced skills, while 13 per cent of men and 6 per cent of women have highly specialised’s level. The age of librarians has only a minimal influence in certain areas of competence and for certain competences. Skills in the information and data literacy competency area are less age sensitive. For the data management competency, which requires more technological skills, a stronger correlation between age and skill levels is observed, especially for basic and highly specialised skills. In the communication competence area, the youngest age group of librarians has the highest percentage of advanced and the lowest percentage of basic level. The proportion of advanced learners decreases steadily as age groups progress and the proportion of basic learners increases at a similar steady rate. The effect of age on the content creation is much more modest than expected. Age clearly has an impact on the safety competence area. As age increases, the proportion of those at advanced level decreases and the proportion at basic level increases. Age also has a significant effect on the problem-solving competence area. One in two librarians in the 50 and 60s have only basic level skills, compared to one in four in the youngest age group and one in three in the 40s.

Originality/value

Using the DigComp 2.1 framework, a digital competence survey of a whole professional group of library professionals working in public libraries in Hungary was carried out. The study provides new insights into the impact of gender and age as variables on digital competence.

Details

Performance Measurement and Metrics, vol. 24 no. 3/4
Type: Research Article
ISSN: 1467-8047

Keywords

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