Advanced Search
MyIDEAS: Login to save this article or follow this journal

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

Contents:

Author Info

  • Manning, Stephan
  • Ricart, Joan E.
  • Rosatti Rique, Maria Soledad
  • Lewin, Arie Y.
Registered author(s):

    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.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/pii/S1075425310000712
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 16 (2010)
    Issue (Month): 4 (December)
    Pages: 369-382

    as in new window
    Handle: RePEc:eee:intman:v:16:y:2010:i:4:p:369-382

    Contact details of provider:
    Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description

    Order Information:
    Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/bibliographic
    Web: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/bibliographic

    Related research

    Keywords: Knowledge services Cluster development Emerging economies Global sourcing Location choices Service capabilities Commoditization;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Mauricio Mesquita Moreira, 2004. "Fear of China: Is there a future for manufacturing in Latin America?," Development and Comp Systems 0412008, EconWPA.
    2. Madhok, Anoop & Liu, Carl, 2006. "A coevolutionary theory of the multinational firm," Journal of International Management, Elsevier, vol. 12(1), pages 1-21, March.
    3. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    4. Effie Kesidou & Henny Romijn, 2006. "Do Local Knowledge Spillovers Matter for Development? An Empirical Study of Uruguay’s Software Cluster," Eindhoven Center for Innovation Studies (ECIS) working paper series 06-11, Eindhoven Center for Innovation Studies (ECIS), revised Oct 2006.
    5. Martin Kenney & Silvia Massini & Thomas P Murtha, 2009. "INTRODUCTIONOffshoring administrative and technical work: New fields for understanding the global enterprise," Journal of International Business Studies, Palgrave Macmillan, vol. 40(6), pages 887-900, August.
    6. Olga Suhomlinova, 2006. "Toward a Model of Organizational Co-Evolution in Transition Economies," Journal of Management Studies, Wiley Blackwell, vol. 43(7), pages 1537-1558, November.
    7. Patibandla, Murali & Petersen, Bent, 2002. "Role of Transnational Corporations in the Evolution of a High-Tech Industry: The Case of India's Software Industry," World Development, Elsevier, vol. 30(9), pages 1561-1577, September.
    8. Jonathan P. Doh, 2005. "Offshore Outsourcing: Implications for International Business and Strategic Management Theory and Practice," Journal of Management Studies, Wiley Blackwell, vol. 42(3), pages 695-704, 05.
    9. Figueiredo, Paulo N., 2008. "Industrial Policy Changes and Firm-Level Technological Capability Development: Evidence from Northern Brazil," World Development, Elsevier, vol. 36(1), pages 55-88, January.
    10. Dossani, Rafiq & Kenney, Martin, 2007. "The Next Wave of Globalization: Relocating Service Provision to India," World Development, Elsevier, vol. 35(5), pages 772-791, May.
    11. Uday M. Apte & Richard O. Mason, 1995. "Global Disaggregation of Information-Intensive Services," Management Science, INFORMS, vol. 41(7), pages 1250-1262, July.
    12. Andrea Morrison & Carlo Pietrobelli & Roberta Rabellotti, 2007. "Global Value Chains and Technological Capabilities: A Framework to Study Learning and Innovation in Developing Countries," Working Papers 117, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
    13. Maryann Feldman & Johanna Francis & Janet Bercovitz, 2005. "Creating a Cluster While Building a Firm: Entrepreneurs and the Formation of Industrial Clusters," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 129-141.
    14. Khalid Nadvi & Gerhard Halder, 2005. "Local clusters in global value chains: exploring dynamic linkages between Germany and Pakistan," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 17(5), pages 339-363, September.
    15. Jenkins, Rhys & Peters, Enrique Dussel & Moreira, Mauricio Mesquita, 2008. "The Impact of China on Latin America and the Caribbean," World Development, Elsevier, vol. 36(2), pages 235-253, February.
    16. Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, , vol. 14(1), pages 15-34, February.
    17. Suma S. Athreye, 2005. "The Indian software industry and its evolving service capability," Industrial and Corporate Change, Oxford University Press, vol. 14(3), pages 393-418, June.
    18. Marleen Dieleman & Wladimir M. Sachs, 2008. "Coevolution of Institutions and Corporations in Emerging Economies: How the Salim Group Morphed into an Institution of Suharto's Crony Regime," Journal of Management Studies, Wiley Blackwell, vol. 45(7), pages 1274-1300, November.
    19. Jonathan P Doh & Kraiwinee Bunyaratavej & Eugene D Hahn, 2009. "Separable but not equal: The location determinants of discrete services offshoring activities," Journal of International Business Studies, Palgrave Macmillan, vol. 40(6), pages 926-943, August.
    20. Altenburg, Tilman & Meyer-Stamer, JORG, 1999. "How to Promote Clusters: Policy Experiences from Latin America," World Development, Elsevier, vol. 27(9), pages 1693-1713, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. repec:wsr:ecbook:2010:i:iv-002 is not listed on IDEAS
    2. 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.
    3. 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.
    4. Martin Falk, 2012. "Determinants of Greenfield Investment in Knowledge Intensive Business Services," FIW Research Reports series IV-002, FIW.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:16:y:2010:i:4:p:369-382. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.