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From blind spots to hotspots: How knowledge services clusters develop and attract foreign investment

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  • Manning, Stephan
  • Ricart, Joan E.
  • Rosatti Rique, Maria Soledad
  • Lewin, Arie Y.

Abstract

This paper explores local and global dynamics underlying the development of knowledge services clusters, which we define as new geographic concentrations of technical talent and service providers offering upstream technical and knowledge-intensive business services to regional and global clients. Taking a co-evolutionary perspective on the development of knowledge services clusters in Latin America, based on data from the Offshoring Research Network (ORN), we find that cluster growth results from intersecting trajectories: the emergence of local talent pools and capabilities initially serving local and regional demand; broadening global search for talent and expertise by multinational corporations; and internationalization strategies of service providers competing to serve global clients. Findings suggest that increasing commoditization of knowledge services opens up windows of opportunity for new clusters, but also involves challenges for sustainable growth. Results may stimulate future research on global sourcing and cluster development.

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  • Manning, Stephan & Ricart, Joan E. & Rosatti Rique, Maria Soledad & Lewin, Arie Y., 2010. "From blind spots to hotspots: How knowledge services clusters develop and attract foreign investment," Journal of International Management, Elsevier, vol. 16(4), pages 369-382, December.
    • Handle: RePEc:eee:intman:v:16:y:2010:i:4:p:369-382
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    Cited by:

    1. Naresh R. Pandit & Gary A. S. Cook & Feng Wan & Jonathan V. Beaverstock & Pervez N. Ghauri, 2018. "The Economies and Diseconomies of Industrial Clustering: Multinational Enterprises versus Uninational Enterprises," Management International Review, Springer, vol. 58(6), pages 935-967, December.
    2. Kostadinović Ivana & Jovanović Violeta & Stanković Sunčica, 2023. "Do Industrial Clusters Contribute to Organizations’ Innovation Performance? Path Analysis," Economic Themes, Sciendo, vol. 61(3), pages 387-406, September.
    3. Stephan Manning & Arie Y. Lewin & Marc Schuerch, 2011. "The Stability of Offshore Outsourcing Relationships," Management International Review, Springer, vol. 51(3), pages 381-406, June.
    4. Niccolò Pisani & Joan Enric Ricart, 2016. "Offshoring of Services: A Review of the Literature and Organizing Framework," Management International Review, Springer, vol. 56(3), pages 385-424, June.
    5. Karla Paola Jiménez Almaguer. & José Melchor Medina Quintero. & Nazlhe Faride Cheín Schekaibán, 2013. "The search for the development of clusters in Tamaulipas, Mexico: A case study," Economía: teoría y práctica, Universidad Autónoma Metropolitana, México, vol. 39(2), pages 89-117, Julio-Dic.
    6. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    7. Marco-Lajara, Bartolomé & Zaragoza-Sáez, Patrocinio del Carmen & Claver-Cortés, Enrique & Úbeda-García, Mercedes & García-Lillo, Francisco, 2017. "Tourist districts and internationalization of hotel firms," Tourism Management, Elsevier, vol. 61(C), pages 451-464.
    8. McWilliam, Sarah E. & Kim, Jung Kwan & Mudambi, Ram & Nielsen, Bo Bernhard, 2020. "Global value chain governance: Intersections with international business," Journal of World Business, Elsevier, vol. 55(4).
    9. Ryan, Paul & Giblin, Majella & Andersson, Ulf & Clancy, Johanna, 2018. "Subsidiary knowledge creation in co-evolving contexts," International Business Review, Elsevier, vol. 27(5), pages 915-932.
    10. Manning, Stephan, 2013. "New Silicon Valleys or a new species? Commoditization of knowledge work and the rise of knowledge services clusters," Research Policy, Elsevier, vol. 42(2), pages 379-390.
    11. Manning, Stephan, 2014. "Mitigate, tolerate or relocate? Offshoring challenges, strategic imperatives and resource constraints," Journal of World Business, Elsevier, vol. 49(4), pages 522-535.
    12. Martin Falk, 2012. "Determinants of Greenfield Investment in Knowledge Intensive Business Services," FIW Research Reports series IV-002, FIW.
    13. Niccolò Pisani & Joan Enric Ricart, 2018. "Offshoring Innovation to Emerging Countries: The Effects of IP Protection and Cultural Differences on Firms’ Decision to Augment Versus Exploit Home-Base-Knowledge," Management International Review, Springer, vol. 58(6), pages 871-909, December.
    14. Guimón, José & Chaminade, Cristina & Maggi, Claudio & Salazar-Elena, Juan Carlos, 2018. "Policies to Attract R&D-related FDI in Small Emerging Countries: Aligning Incentives With Local Linkages and Absorptive Capacities in Chile," Journal of International Management, Elsevier, vol. 24(2), pages 165-178.
    15. repec:wsr:ecbook:2010:i:iv-002 is not listed on IDEAS
    16. Stephan Manning & Cristiano Richter, 2023. "Upgrading against the odds: How peripheral regions can attract global lead firms," Journal of International Business Policy, Palgrave Macmillan, vol. 6(1), pages 1-23, March.
    17. Burger, Peter & Baumohl, Eduard & Vyrostova, Eva, 2017. "Funding Structure of the European and North American Clusters: Results from an Independent Questionnaire," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 65(6), pages 485-504.
    18. Upadhyayula, Rajesh S. & Dhandapani, Karthik & Karna, Amit, 2017. "The Role of Cluster Presence and Quality Certification in Internationalization and Performance of Offshore Service Providers," Journal of International Management, Elsevier, vol. 23(1), pages 72-86.
    19. Upadhyayula, Rajesh & Karthik, D. & Karna, Amit, 2015. "Role of Clusters and Certification in the Internationalization of Offshoring Service Providers from Emerging Markets: A Study of Indian IT firms," IIMA Working Papers WP2015-03-35, Indian Institute of Management Ahmedabad, Research and Publication Department.
    20. Schmeisser, Bjoern, 2013. "A Systematic Review of Literature on Offshoring of Value Chain Activities," Journal of International Management, Elsevier, vol. 19(4), pages 390-406.
    21. Barbieri, Elisa & Di Tommaso, Marco R. & Pollio, Chiara & Rubini, Lauretta, 2020. "Getting the specialization right. Industrialization in Southern China in a sustainable development perspective," World Development, Elsevier, vol. 126(C).

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