Global Supply Chains as Drivers of Innovation in China

2021 ◽  
pp. 553-572
Author(s):  
Michael Murphree ◽  
Dan Breznitz

China’s manufacturing and innovation capabilities are directly related. Availability of complementary resources in rapid prototyping, test production, and components and the ability to deploy innovations at scale increasingly lead high-technology firms, including startups, to consider China as a developmental base across sectors from big data to cloud computing, smart grid, renewable energy, and alternative energy vehicles. Entry into global value chains (GVCs) has led to vast transfers of knowledge, creating human resource capabilities that continuously facilitate the upgrading of Chinese firms. China’s most advanced industries were all those characterized by active participation in GVCs. China’s entry into GVCs has differed significantly from the experiences of other emerging economies, arguably affording China greater innovation benefits. This is directly related to China’s institutional environment of “structured uncertainty.” Structured uncertainty shaped the pattern and impact of entry into GVCs, dictating which regions entered GVCs, when, and how, with long-term knowledge transfer effects.

Author(s):  
Davide Rigo

Abstract International trade has long been considered a channel of technology transfer. This paper draws from the World Bank’s Enterprise Surveys to provide a sample of 18 developing and emerging economies to investigate whether global value chains (GVCs) are a vehicle for the transfer of technology. It focuses on one specific channel for technology transfer, namely, the licensing of foreign technology. To control for the possible endogeneity of technology licensing, propensity score matching is combined with a difference-in-differences approach. The results show a positive effect of being involved in two-way trading on the licensing of foreign technology. Firms that become two-way traders are significantly more likely to use foreign-licensed technology than firms starting to export or import. This evidence suggests that the complexity associated with the mode of internationalisation determines the licensing of foreign technology. GVC participation also appears to foster firms’ performance, reflecting my findings that the acquisition of foreign technology leads to significant productivity improvements.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kedwadee Sombultawee ◽  
Prasopchai Pasunon

Purpose The purpose of this study is to explore an integrative model of supplier success, using a case study of the Thai high-technology firms. The study focuses on buyer-supplier relationships of information systems (IS), including bundles of hardware, software and services because these relationships are dependent on both immediate performance quality of the IS and long-term maintenance of a strong buyer-supplier relationship. Design/methodology/approach The research used an integrative model that incorporated the DeLone and McLean (2003) IS success model, representing system quality and Clauss and Tangpong’s (2018) impregnable exchange relationship model, representing relationship quality. Exploratory mixed methods study incorporated interviews with supplier relationship managers at five Thai high-technology firms (n = 15) and a quantitative survey of buyer firms (n = 393). Findings Results supported the integrative system-supplier success model. The most significant limitation is that the study was only conducted in a single industry (high tech) when the IS buyer-supplier relationships modeled here are ubiquitous in modern business. Research limitations/implications Despite this limitation, the research contributes to the literature by developing and testing a long-term buyer-supplier relationship success model that incorporates both the characteristics of an IS and the supplier characteristics that lead to positive outcomes. Originality/value This study makes intuitive sense and being demonstrated statistically – the fact that the overall quality of an IS, coupled with a well-liked, non-substitutable supplier with a history of good performance, would be considered to be a successful supplier relationship is not especially controversial. The value of the study lies in the integration of the two models to represent different aspects of supplier performance, which could have a different effect on the buyer-supplier relationship in the long-term.


2011 ◽  
Vol 14 (2) ◽  
pp. 9-17 ◽  
Author(s):  
Mark Simon ◽  
Chanel Stachel ◽  
Jeffrey G. Covin

The relationship between entrepreneurial orientation (EO) and performance is often moderated by different factors. Specifically, scholars have called for research examining whether commitment to long-term objectives improves EOʼs effectiveness, believing that commitment may help firms overcome obstacles associated with EO. In response, we collected survey data from executives in 126 small, high-technology firms, and found that EO and commitment to objectives enhanced sales growth. In addition, the study determined that commitment to objectives was associated with greater increased sales growth of companies high in EO, as compared to those low in EO.


10.1068/a3279 ◽  
2000 ◽  
Vol 32 (5) ◽  
pp. 891-908 ◽  
Author(s):  
Donald Lyons

The author seeks to contribute to the debate on embeddedness, milieu, and innovation in industrial districts through a case study of high-technology firms in Richardson, an inner-ring suburban city of the Dallas–Fort Worth Metropolitan area. Richardson is important because it can be clearly defined as an industrial district, with over 600 high-technology firms and 70 000 employees. The results suggest that the district is robust and highly innovative with considerable capacity for self-sustaining growth. The firms are well integrated, locally and nationally. Despite extensive formal connections, firms' relationships are not very embedded locally. The link between embeddedness and innovation is subtle at best, and is confined to a small set of the most highly innovative firms. Similarly, evidence of a well-established industrial milieu was not forthcoming, although it may be emerging. The relationship between milieu and innovation was vague and was confined to the most innovative firms. The long-term viability of the district is closely tied to the economic health of the metropolitan economy, suggesting that development strategies focused on the district per se are likely to meet with limited success.


1987 ◽  
Vol 40 (3) ◽  
pp. 373-391
Author(s):  
JOSEPH J. CORDES ◽  
HARRY S. WATSON ◽  
J. SCOTT HAUGER

2020 ◽  
Vol 16 (5) ◽  
pp. 1084-1113
Author(s):  
Jianjun Zhang ◽  
Pei Sun ◽  
Kunyuan Qiao

ABSTRACTManagerial networking with political actors has long been recognized as a crucial co-option strategy to navigate the challenging institutional environment in emerging economies. However, we know much less about what drives the variation of political networking investment by private ventures. Drawing on resource dependence theory, we unpack the dyadic business-government relations and identify the key organizational and environmental factors that shape the power dependence relationships between private ventures and the government. By examining power imbalance and mutual dependence in this dyadic relationship and considering both the necessity and the capability of political networking, we develop hypotheses regarding the ways in which size-, connection-, and location-based dependencies affect firms’ political networking intensity. These hypotheses are tested through a unique survey of Chinese private ventures. Our study finds that political networking intensity (1) has an inverted U-shaped relationship with firm size, (2) is negatively associated with the presence of embedded political ties while positively associated with that of achieved political connections, and (3) is smaller when the focal firm is located in business development zones. This research bears rich implications for our understanding of corporate political activity in emerging economies from a resource dependence lens.


2002 ◽  
Vol 66 (3) ◽  
pp. 61-81 ◽  
Author(s):  
Kwaku Atuahene-Gima ◽  
Haiyang Li

There is a strong normative bias toward the inherent value of trust among both marketing researchers and practitioners. Yet there is little empirical evidence of a positive impact of trust on performance. Indeed, scholars suggest that the sources of trust may provide opportunities for its abuse. Following this line of thinking, the authors investigate the dual roles of sales controls and supervisor behaviors as antecedents of salespeople's belief in the benevolence of the supervisor (i.e., supervisee trust). The authors then examine these antecedents as moderators of the relationship between supervisee trust and sales performance in the context of selling new products. Data on field salespeople from high-technology firms in China and the United States suggest that factors such as supervisor accessibility engender supervisee trust but do not necessarily enhance its impact on sales performance. In the Chinese sample, supervisee trust enhances sales performance when output control is adopted, when the supervisor has a higher level of achievement orientation style, and when the salesperson has higher role ambiguity. Furthermore, the results suggest that the supervisee trust–sales performance relationship is negative when supervisor accessibility is high. With the exception of achievement orientation and supervisor accessibility, these effects are negative or nonexistent in the U.S. sample. The authors discuss theoretical and practical implications of the study's findings.


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