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Formation of Foreign Direct Investment Clustering-A New Path to Local Economic Development? The Case of Qingdao

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  • Jun Yeup Kim
  • Le-Yin Zhang

Abstract

Jun Yeup Kim and Le-Yin Zhang Formation of foreign direct investment clustering - a new path to local economic development? The case of Qingdao, Regional Studies. This paper investigates the clustering of Chinese electronics manufacturers, large and small, alongside established foreign producers in Qingdao, North China. It examines how the supplier-buyer linkages between foreign invested enterprises (FIEs) and local firms have driven the development of a successful electronic industry cluster around development zones established by the local authority, underpinning the success of the large domestic firms both at home and abroad. It also analyses how FIEs' collaboration with local firms fosters local economic development in Qingdao. By integrating the theoretical perspectives of the hub-and-spoke model from economic geography and flagship-and-five partner's model in the science of strategic management, it develops its own theoretical lens to investigate the inter-firm network between the FIEs and local firms. The secret of the success of the Chinese electronic producers lies in their ability to drive, rather than being subordinate to, this network. [image omitted] Jun Yeup Kim et Le-YIN Zhang L'agglomeration de l'IDE - un nouveau sentier a suivre vers le developpement economique local? Etude de cas de Qingdao, Regional Studies. Cet article cherche a examiner l'agglomeration des entreprises industrielles electroniques en Chine, a la fois grandes et petites, a cote des constructeurs etrangers etablis a Qingdao, en Chine du Nord. On examine comment le rapport fournisseur-acheteur entre les entreprises a capital etranger et les entreprises locales a conduit l'agglomeration reussie d'entreprises industrielles electroniques autour des zones de developpement delimitees par l'administration locale, etayant le succes des grandes entreprises nationales, a la fois dans le pays et a l'etranger. On analyse aussi comment la collaboration des entreprises a capital etranger avec les entreprises locales encourage le developpement economique local a Qingdao. En integrant les perspectives theoriques du modele 'moyeu-rayon' de la geographie economique et celles du modele 'vedette-cinq partenaires' de la science de la gestion strategique, on developpe un objectif theorique par lequel on peut examiner le reseau interentreprise d'entreprises a capital etranger et locales. La reussite de l'industrie electronique chinoise reside dans sa capacite a conduire le reseau plutot que d'en etre la subalterne. Investissement direct etranger Agglomeration industrielle Rapport acheteur-fournisseur Chine Industrie electronique Jun Yeup Kim und Le-Yin Zhang Clusterbildung bei auslandischen Direktinvestitionen - ein neuer Pfad zur lokalen Wirtschaftsentwicklung? Der Fall Qingdao, Regional Studies. In diesem Beitrag wird die Clusterbildung unter den grossen und kleinen Elektronikherstellern Chinas sowie den etablierten auslandischen Produzenten im nordchinesischen Qingdao untersucht. Wir analysieren, wie die Lieferanten-Kaufer-Verknupfungen zwischen Unternehmen mit Auslandsinvestitionen und einheimischen Firmen in der Umgebung der von den ortlichen Behorden eingerichteten Entwicklungszonen zur Entwicklung eines erfolgreichen Elektronikindustrie-Clusters gefuhrt haben, was den Erfolg der grossen einheimischen Firmen sowohl zu Hause als auch im Ausland gestarkt hat. Ebenso untersuchen wir, wie die Zusammenarbeit zwischen den Unternehmen mit Auslandsinvestitionen und den einheimischen Firmen die lokale Wirtschaftsentwicklung in Qingdao gefordert hat. Durch eine Integration der theoretischen Perspektiven eines Naben- und Speichenmodells aus der Wirtschaftsgeografie und eines 'Flagship-and-Five-Partner'-Modells in der Wissenschaft des strategischen Managements entwickeln wir unser eigenes theoretisches Objektiv zur Untersuchung des Netzwerks zwischen Unternehmen mit Auslandsinvestitionen und einheimischen Firmen. Das Erfolgsgeheimnis der chinesischen Elektronikproduzenzten liegt in ihrer Fahigkeit, dieses Netzwerk anzutreiben statt sich ihm unterzuordnen. Auslandische Direktinvestitionen Industrie-Cluster Kaufer-Lieferanten-Verknupfungen China Elektronikindustrie Jun Yeup Kim y Le-Yin Zhang Formacion de aglomeraciones de las EIE. Una nueva ruta hacia el desarrollo economico local? El caso de Qingdao, Regional Studies. En este ensayo investigamos las aglomeraciones de empresas electronicas chinas, pequenas y grandes, y de los productores extranjeros establecidos en Qingdao, al norte de China. Examinamos como los vinculos de suministradores-compradores entre empresas de inversion extranjera (EIE) y las sociedades locales han impulsado el desarrollo de una aglomeracion de prosperas industrias electronicas en zonas de desarrollo establecidas por la autoridad local, respaldando el exito de grandes empresas nacionales tanto en el pais como en el extranjero. Tambien analizamos en que medida la colaboracion de las EIE con empresas locales fomenta el desarrollo economico local en Qingdao. Al integrar las perspectivas teoricas del modelo hub-and-spoke (nodo y derivacion) de la geografia economica y el modelo de insignia y cinco socios en la ciencia de la gestion estrategica, desarrollamos nuestro propio objetivo teorico para investigar la red empresarial entre las EIE y las empresas locales. El secreto del exito en los productores electronicos en China radica en su capacidad para dirigir esta red mas que ser subordinados por ella. Inversion directa extranjera Aglomeracion industrial Vinculos de suministradores-compradores China Industria electronica

Suggested Citation

  • Jun Yeup Kim & Le-Yin Zhang, 2008. "Formation of Foreign Direct Investment Clustering-A New Path to Local Economic Development? The Case of Qingdao," Regional Studies, Taylor & Francis Journals, vol. 42(2), pages 265-280.
  • Handle: RePEc:taf:regstd:v:42:y:2008:i:2:p:265-280
    DOI: 10.1080/00343400601145186
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    Citations

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    Cited by:

    1. Emanuele Bacchiocchi & Massimo Florio & Anna Giunta, 2012. "Internationalisation and the agglomeration effect in the global value chain: the case of Italian automotive suppliers," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 5(3), pages 267-290.
    2. Tattara, Giuseppe, 2012. "From competitive advantage to dynamic capabilities: small and medium-sized multinationals in Asia," MPRA Paper 39364, University Library of Munich, Germany.
    3. Felix Haifeng Liao & Yehua H Dennis Wei, 2013. "Tncs' Technology Linkages with Domestic Firms: An Investigation of the Ict Industry in Suzhou, China," Environment and Planning C, , vol. 31(3), pages 460-474, June.
    4. Gould, David M. & Tan, Congyan & Emamgholi, Amir S. Sadeghi, 2013. "Attracting foreign direct investment : what can South Asia's lack of success teach other developing countries ?," Policy Research Working Paper Series 6696, The World Bank.
    5. Baliamoune-Lutz, Mina & Basuony, Mohamed A. K. & Lutz, Stefan & Mohamed, Ehab K. A., 2022. "International ownership and SMEs in Middle Eastern and African economies," Working Paper Series 22, Frankfurt University of Applied Sciences, Faculty of Business and Law.
    6. David M. Gould & Congyan Tan & Amir S. Sadeghi Emamgholi, 2014. "Attracting Foreign Direct Investment," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 15(2), pages 133-174, September.
    7. Y. H. Dennis Wei, 2015. "Network Linkages and Local Embeddedness of Foreign Ventures in China: The Case of Suzhou Municipality," Regional Studies, Taylor & Francis Journals, vol. 49(2), pages 287-299, February.
    8. World Bank, 2013. "Trends and Determinants of Foreign Direct Investment in South Asia," World Bank Publications - Reports 16522, The World Bank Group.

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