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Capability Matrix : A Framework for Analyzing Capabilities in Value Chains

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  • Sato, Yuri
  • Fujita, Mai

Abstract

This paper develops a Capability Matrix for analyzing capabilities of developingcountry firms that participate in global and national value chains. This is a genericframework to capture firm-level knowledge accumulation in the context of globaland local industrial constellations, by integrating key elements of the global valuechain (GVC) and technological capabilities (TC) approaches. The framework canvisually portray characteristics of firms’ capabilities, and highlight a relativelyoverlooked factor in the GVC approach: local firms’ endogenous learning efforts invarieties of relationship with lead firms.

Suggested Citation

  • Sato, Yuri & Fujita, Mai, 2009. "Capability Matrix : A Framework for Analyzing Capabilities in Value Chains," IDE Discussion Papers 219, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper219
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    References listed on IDEAS

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    1. Norlela Ariffin & Paulo Figueiredo, 2004. "Internationalization of innovative capabilities: counter-evidence from the electronics industry in Malaysia and Brazil," Oxford Development Studies, Taylor & Francis Journals, vol. 32(4), pages 559-583.
    2. Dahlman, Carl J. & Ross-Larson, Bruce & Westphal, Larry E., 1987. "Managing technological development: Lessons from the newly industrializing countries," World Development, Elsevier, vol. 15(6), pages 759-775, June.
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    Cited by:

    1. Sinkovics, Noemi & Liu, Chia-Ling (Eunice) & Sinkovics, Rudolf R. & Mudambi, Ram, 2021. "The dark side of trust in global value chains: Taiwan’s electronics and IT hardware industries," Journal of World Business, Elsevier, vol. 56(4).
    2. Magdolna Sass & Andrea Szalavetz, 2013. "Crisis and Upgrading: The Case of the Hungarian Automotive and Electronics Sectors," Europe-Asia Studies, Taylor & Francis Journals, vol. 65(3), pages 489-507.
    3. Andrea Elteto & Andrea Szalavetz & Gabor Tury & Aniko Magashazi, 2015. "Upgrading of Hungarian subsidiaries in machinery and automotive global value chains," IWE Working Papers 217, Institute for World Economics - Centre for Economic and Regional Studies.
    4. Yoshimichi Murakami & Keijiro Otsuka, 2017. "A Review of the Literature on Productivity Impacts of Global Value Chains and Foreign Direct Investment: Towards an Integrated Approach," Discussion Paper Series DP2017-19, Research Institute for Economics & Business Administration, Kobe University, revised Aug 2019.
    5. Fujita, Mai, 2013. "The Japanese and Chinese models of industrial organisation : fighting for supremacy in the Vietnamese motorcycle industry," IDE Discussion Papers 420, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    6. Yoshimichi Murakami & Keijiro Otsuka, 2020. "Governance, Information Spillovers, and Productivity of Local Firms: Toward an Integrated Approach to Foreign Direct Investment and Global Value Chains," The Developing Economies, Institute of Developing Economies, vol. 58(2), pages 134-174, June.

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    More about this item

    Keywords

    Developing Countries; Industrial Management; Business Enterprises; Capability Matrix; Capabilities; Value Chains; Lead Firms; Local Firms;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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