IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i13p5259-d377697.html
   My bibliography  Save this article

Sustaining Innovation through Joining Global Supply Chain Networks: The Case of Manufacturing Firms in Thailand

Author

Listed:
  • Tieng Kimseng

    (School of Knowledge Science, Japan Advanced Institute of Science and Technology, Ishikawa 923-1211, Japan
    School of Management Technology, Sirindhorn International Institute of Technology, Thammasat University, Pathum Thani 12120, Thailand)

  • Amna Javed

    (School of Knowledge Science, Japan Advanced Institute of Science and Technology, Ishikawa 923-1211, Japan)

  • Chawalit Jeenanunta

    (School of Management Technology, Sirindhorn International Institute of Technology, Thammasat University, Pathum Thani 12120, Thailand)

  • Youji Kohda

    (School of Knowledge Science, Japan Advanced Institute of Science and Technology, Ishikawa 923-1211, Japan)

Abstract

Joining global supply chain networks helps firms to enhance innovation performance as firms need to satisfy various standard requirements from overseas customers. From the global value chain theory, there is no evidence on what types of supply chain ownership structures help firms to achieve more innovation. This deficiency led us to investigate types of supply chain ownership structures, i.e., Pure Domestic Chain, Pure Joint Venture (JV) Chain, Pure Multinational Corporation (MNC) Chain, Export Chain, and Import Chain, that can help firms to achieve more innovation. One-way ANOVA is used to analyze 856 responses collected from the Thai manufacturing industry during 2012–2017. The results indicate that firms in the Pure MNC Chain have the highest levels of product and process innovation. There is less innovation for the Pure JV Chain, Export Chain, Import Chain, and Pure Domestic Chain, in decreasing order. This means that firms in global supply chain networks tend to have better innovation performance than firms in local supply chain networks. The innovation capabilities of local firms can be enhanced through knowledge transfer and knowledge co-creation by joining global supply chain networks.

Suggested Citation

  • Tieng Kimseng & Amna Javed & Chawalit Jeenanunta & Youji Kohda, 2020. "Sustaining Innovation through Joining Global Supply Chain Networks: The Case of Manufacturing Firms in Thailand," Sustainability, MDPI, vol. 12(13), pages 1-17, June.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:13:p:5259-:d:377697
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/13/5259/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/13/5259/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Masatsugu Tsuji & Hiroki Idota & Yasushi Ueki & Hidenori Shigeno & Teruyuki Bunno, 2016. "Connectivity in the Technology Transfer Process among Local ASEAN Firms," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 10(3), September.
    2. Hyojin Kim & Daesik Hur & Tobias Schoenherr, 2015. "When Buyer-Driven Knowledge Transfer Activities Really Work: A Motivation–Opportunity–Ability Perspective," Journal of Supply Chain Management, Institute for Supply Management, vol. 51(3), pages 33-60, July.
    3. Scaringella, Laurent & Burtschell, François, 2017. "The challenges of radical innovation in Iran: Knowledge transfer and absorptive capacity highlights — Evidence from a joint venture in the construction sector," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 151-169.
    4. Ikujiro Nonaka & Ryoko Toyama & Toru Hirata & Susan J. Bigelow & Ayano Hirose & Florian Kohlbacher, 2008. "Managing Flow," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-58370-2.
    5. Olivier Cattaneo & Gary Gereffi & Cornelia Staritz, 2010. "Global Value Chains in a Postcrisis World : A Development Perspective," World Bank Publications - Books, The World Bank Group, number 2509, December.
    6. Tsang, Eric W. K., 1999. "The knowledge transfer and learning aspects of international HRM: an empirical study of Singapore MNCs," International Business Review, Elsevier, vol. 8(5-6), pages 591-609, October.
    7. Iordanis Petsas & Christos Giannikos, 2005. "Process versus Product Innovation in Multiproduct Firms," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 4(3), pages 231-248, December.
    8. Vincent Mangematin & Nadine Mandran, 2001. ""Do non-R&D intensive industries benefit of spillovers from public research? The case of the Agro-food industry," Post-Print hal-00424286, HAL.
    9. Vincent Mangematin & Nadine Mandran, 2001. ""Do non-R&D intensive industries benefit of spillovers from public research? The case of the Agro-food industry," Grenoble Ecole de Management (Post-Print) hal-00424286, HAL.
    10. Giuliani, Elisa & Pietrobelli, Carlo & Rabellotti, Roberta, 2005. "Upgrading in Global Value Chains: Lessons from Latin American Clusters," World Development, Elsevier, vol. 33(4), pages 549-573, April.
    11. Toke Reichstein & Ammon Salter, 2006. "Investigating the sources of process innovation among UK manufacturing firms," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 15(4), pages 653-682, August.
    12. Yasushi Ueki & Masatsugu Tsuji, 2019. "The Roles of ICTs in Product Innovation in Southeast Asia," The Review of Socionetwork Strategies, Springer, vol. 13(1), pages 79-95, June.
    13. Chengqi Wang & Li Yu, 2007. "Do spillover benefits grow with rising foreign direct investment? An empirical examination of the case of China," Applied Economics, Taylor & Francis Journals, vol. 39(3), pages 397-405.
    14. Nooteboom, Bart, 1999. "Innovation and inter-firm linkages: new implications for policy," Research Policy, Elsevier, vol. 28(8), pages 793-805, November.
    15. D Minbaeva & T Pedersen & I Björkman & C F Fey & H J Park, 2003. "MNC knowledge transfer, subsidiary absorptive capacity, and HRM," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 586-599, November.
    16. Andrea Mantovani, 2006. "Complementarity between product and process innovation in a monopoly setting," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(3), pages 219-234.
    17. Daniela Bragoli & Flavia Cortelezzi & Giovanni Marseguerra, 2016. "R&D, capital structure and ownership concentration: evidence from Italian microdata," Industry and Innovation, Taylor & Francis Journals, vol. 23(3), pages 223-242, April.
    18. Boeing, Philipp & Mueller, Elisabeth & Sandner, Philipp, 2016. "China's R&D explosion—Analyzing productivity effects across ownership types and over time," Research Policy, Elsevier, vol. 45(1), pages 159-176.
    19. Toke Reichstein & Ammon Salter & David Gann, 2008. "Break on Through: Sources and Determinants of Product and Process Innovation among UK Construction Firms," Industry and Innovation, Taylor & Francis Journals, vol. 15(6), pages 601-625.
    20. Ying Qu & Ying Yu & Andrea Appolloni & Mengru Li & Yue Liu, 2017. "Measuring Green Growth Efficiency for Chinese Manufacturing Industries," Sustainability, MDPI, vol. 9(4), pages 1-18, April.
    21. Contractor, F. J. & Lorange, P., 2002. "The growth of alliances in the knowledge-based economy," International Business Review, Elsevier, vol. 11(4), pages 485-502, August.
    22. Jeffrey H. Dyer & Kentaro Nobeoka, 2000. "Creating and managing a high‐performance knowledge‐sharing network: the Toyota case," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 345-367, March.
    23. Ghauri, Pervez N. & Yamin, Mo, 2009. "Revisiting the impact of multinational enterprises on economic development," Journal of World Business, Elsevier, vol. 44(2), pages 105-107, April.
    24. Jingtao Yi & Yan Chen & Chengqi Wang & Mario Kafouros, 2015. "Spillover Effects of Foreign Direct Investment: How do Region-Specific Institutions Matter?," Management International Review, Springer, vol. 55(4), pages 539-561, August.
    25. Hong, Jacky F.L. & Snell, Robin Stanley, 2015. "Knowledge development through co-opetition: A case study of a Japanese foreign subsidiary and its local suppliers," Journal of World Business, Elsevier, vol. 50(4), pages 769-780.
    26. Stephanie BARRIENTOS & Gary GEREFFI & Arianna ROSSI, 2011. "Economic and social upgrading in global production networks: A new paradigm for a changing world," International Labour Review, International Labour Organization, vol. 150(3-4), pages 319-340, December.
    27. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    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


    Cited by:

    1. Javier Muñoz de Prat & María Escriva-Beltran & Roberto Gómez-Calvet, 2020. "Joint Ventures and Sustainable Development. A Bibliometric Analysis," Sustainability, MDPI, vol. 12(23), pages 1-24, December.
    2. Ying Wang & Xiangyu Mao & Hashim Zameer, 2022. "Designing benefit distribution driven innovation strategy for local enterprises under the global value chain system," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2358-2373, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marion Werner & Jennifer Bair & Victor Ramiro Fernández, 2014. "Linking Up to Development? Global Value Chains and the Making of a Post-Washington Consensus," Development and Change, International Institute of Social Studies, vol. 45(6), pages 1219-1247, November.
    2. Gary Gereffi, 2019. "Global value chains and international development policy: Bringing firms, networks and policy-engaged scholarship back in," Journal of International Business Policy, Palgrave Macmillan, vol. 2(3), pages 195-210, September.
    3. Charlotte Keijser & Michiko Iizuka, 2018. "Looking Beyond Global Value Chains in Capacity Development: The Case of the IT-Enabled Service (ITES) Sector in South Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 442-461, July.
    4. Matias Ramirez & Ian Clarke & Laurens Klerkx, 2018. "Analysing intermediary organisations and their influence on upgrading in emerging agricultural clusters," Environment and Planning A, , vol. 50(6), pages 1314-1335, September.
    5. Carlo Pietrobelli & Cornelia Staritz, 2018. "Upgrading, Interactive Learning, and Innovation Systems in Value Chain Interventions," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 557-574, July.
    6. Debapriya Bhattacharya & Khondaker Golam Moazzem, 2013. "Least Developed Countries (LDCs) in the Global Value Chain (GVC): Trends, Determinants and Challenges," CPD Working Paper 104, Centre for Policy Dialogue (CPD).
    7. Navas-Alemán, Lizbeth, 2011. "The Impact of Operating in Multiple Value Chains for Upgrading: The Case of the Brazilian Furniture and Footwear Industries," World Development, Elsevier, vol. 39(8), pages 1386-1397, August.
    8. Ponte, Stefano & Kelling, Ingrid & Jespersen, Karen Sau & Kruijssen, Froukje, 2014. "The Blue Revolution in Asia: Upgrading and Governance in Aquaculture Value Chains," World Development, Elsevier, vol. 64(C), pages 52-64.
    9. F. Colozza & R. Boschma & A. Morrison & C. Pietrobelli, 2021. "The importance of global value chains and regional capabilities for the economic complexity of EU-regions," Papers in Evolutionary Economic Geography (PEEG) 2139, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2021.
    10. Eunkyung Park & Martin Kang’ethe Gachukia, 0. "The Role of the Local Innovation System for Inclusive Upgrading in the Global Value Chain: The Case of KenyaGAP in the Kenyan Horticultural Sector," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 0, pages 1-26.
    11. Eunkyung Park & Martin Kang’ethe Gachukia, 2021. "The Role of the Local Innovation System for Inclusive Upgrading in the Global Value Chain: The Case of KenyaGAP in the Kenyan Horticultural Sector," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(3), pages 578-603, June.
    12. Sebastián Escobar & Margareth Santander & Pilar Useche & Carlos Contreras & Jader Rodríguez, 2020. "Aligning Strategic Objectives with Research and Development Activities in a Soft Commodity Sector: A Technological Plan for Colombian Cocoa Producers," Agriculture, MDPI, vol. 10(5), pages 1-32, April.
    13. Choksy, Umair Shafi & Ayaz, Muhammad & Al-Tabbaa, Omar & Parast, Mahour, 2022. "Supplier resilience under the COVID-19 crisis in apparel global value chain (GVC): The role of GVC governance and supplier’s upgrading," Journal of Business Research, Elsevier, vol. 150(C), pages 249-267.
    14. Rory Horner, 2022. "Global value chains, import orientation, and the state: South Africa’s pharmaceutical industry," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 68-87, March.
    15. Tolentino-Zondervan, Frazen & Berentsen, Paul & Bush, Simon & Idemne, Joseph & Babaran, Ricardo & Lansink, Alfons Oude, 2016. "Comparison of Private Incentive Mechanisms for Improving Sustainability of Filipino Tuna Fisheries," World Development, Elsevier, vol. 83(C), pages 264-279.
    16. Pipkin, Seth & Fuentes, Alberto, 2017. "Spurred to Upgrade: A Review of Triggers and Consequences of Industrial Upgrading in the Global Value Chain Literature," World Development, Elsevier, vol. 98(C), pages 536-554.
    17. Gary Gereffi & Xubei Luo, 2015. "Risks and Opportunities of Participation in Global Value Chains," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 2(4), pages 51-63, June.
    18. Valentina De Marchi & Matthew Alford, 2022. "State policies and upgrading in global value chains: A systematic literature review," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 88-111, March.
    19. Golini, Ruggero & De Marchi, Valentina & Boffelli, Albachiara & Kalchschmidt, Matteo, 2018. "Which governance structures drive economic, environmental, and social upgrading? A quantitative analysis in the assembly industries," International Journal of Production Economics, Elsevier, vol. 203(C), pages 13-23.
    20. Roman Jurowetzki & Rasmus Lema & Bengt-Åke Lundvall, 2018. "Combining Innovation Systems and Global Value Chains for Development: Towards a Research Agenda," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 364-388, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:13:p:5259-:d:377697. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.