Knowledge Acquisition: Lessons from Local and Global Interaction in the Indonesian Consumer Electronics Sector
AbstractKnowledge acquisition plays an important role for firms, particularly those in developing countries, helping them keep up with process and product innovation and also to effectively compete in the domestic and export markets. Foreign direct investment is often regarded as the major source of knowledge acquisition for local firms in developing countries. The global value chain (GVC) framework provides an analytical tool for understanding knowledge transfer and acquisition in the context of governance. Based on empirical evidence within the Indonesian consumer electronics sector, this paper explores knowledge transfer and acquisition in the context of governance of value chains in which Indonesian manufacturing firms are engaged. Different forms of GVC governance have an impact on knowledge transfer and learning mechanisms within the chains. In captive value chains, Indonesian firms acquire production knowledge and capability from global lead firms by satisfying product and process specifications imposed by the global lead firms. In hierarchical structures, Indonesian firms learn from their joint venture partners not only production capability, but also design and product engineering. Within market-based structures, Indonesian firms acquire production and non-production knowledge through their own efforts in accessing external knowledge sources other than global lead electronics firms.
Download InfoIf 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.
Bibliographic InfoArticle provided by Faculty of Economics and Administration, University of Malaya in its journal Institutions and Economies.
Volume (Year): 4 (2012)
Issue (Month): 2 (July)
global value chain; governance structure; knowledge acquisition;
Find related papers by JEL classification:
- L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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.:
- repec:ner:leuven:urn:hdl:123456789/120517 is not listed on IDEAS
- Dieter Ernst, 2000. "Catching-Up and Post-Crisis Industrial Upgrading: Searching for New Sources of Growth in Korea's Electronics Industry," Economics Study Area Working Papers 02, East-West Center, Economics Study Area.
- repec:dgr:unuint:200405 is not listed on IDEAS
- Blomstrom, Magnus & Sjoholm, Fredrik, 1999.
"Technology transfer and spillovers: Does local participation with multinationals matter?1,"
European Economic Review,
Elsevier, vol. 43(4-6), pages 915-923, April.
- Magnus Blomstrom & Fredrik Sjoholm, 1998. "Technology Transfer and Spillovers? Does Local Participation with Multinationals Matter?," NBER Working Papers 6816, National Bureau of Economic Research, Inc.
- Blomström, Magnus & Sjöholm, Fredrik, 1998. "Technology, Transfer and Spillovers: Does Local Participation With Multinationals Matter?," CEPR Discussion Papers 2048, C.E.P.R. Discussion Papers.
- Blomström, Magnus & Sjöholm, Fredrik, 1998. "Technology Transfer and Spillovers: Does Local Participation with Multinationals Matter?," Working Paper Series in Economics and Finance 268, Stockholm School of Economics.
- Kokko, Ari, 1994. "Technology, market characteristics, and spillovers," Journal of Development Economics, Elsevier, vol. 43(2), pages 279-293, April.
- Takii, Sadayuki, 2005. "Productivity spillovers and characteristics of foreign multinational plants in Indonesian manufacturing 1990-1995," Journal of Development Economics, Elsevier, vol. 76(2), pages 521-542, April.
- Dieter Ernst, 2001. "Global Production Networks and Industrial Upgrading - A Knowledge-Centered Approach," Economics Study Area Working Papers 25, East-West Center, Economics Study Area.
- Thee Kian Wie, 2010. "Technology and Indonesiaâ€™s Industrial Competitiveness," Working Papers id:3295, eSocialSciences.
- C. Pietrobelli & R. Rabellotti, 2009. "Innovation Systems and Global Value Chains," Working Papers Prin 003, Dipartimento Scienze Economiche, Universita' di Bologna.
- Haddad, Mona & Harrison, Ann, 1993. "Are there positive spillovers from direct foreign investment? : Evidence from panel data for Morocco," Journal of Development Economics, Elsevier, vol. 42(1), pages 51-74, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Professor Dr. Rajah Rasiah).
If references are entirely missing, you can add them using this form.