IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v24y2015i3p353-366.html
   My bibliography  Save this article

Technology transfer within China and the role of location choices

Author

Listed:
  • Kafouros, Mario
  • Wang, Elizabeth Yi

Abstract

We examine how emerging country business groups overcome various technological constraints and succeed in enhancing their performance. Our theoretical contribution lies in showing how the ability of a business unit to benefit from intra-group technology transfer depends on the idiosyncratic manner in which the group geographically configures its network of units. The findings reveal that the geographic dispersion and concentration of the units of a group alter both the ability and willingness of its business units to transfer technologies to (or receive technologies from) other units and subsequently result in different performance outcomes. The location of a business unit also determines whether or not a unit competes with other fellow units and, consequently, influences how much a unit benefits from the technologies held by the group.

Suggested Citation

  • Kafouros, Mario & Wang, Elizabeth Yi, 2015. "Technology transfer within China and the role of location choices," International Business Review, Elsevier, vol. 24(3), pages 353-366.
  • Handle: RePEc:eee:iburev:v:24:y:2015:i:3:p:353-366
    DOI: 10.1016/j.ibusrev.2014.08.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593114001267
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Linda Allen & Christos Pantzalis, 1996. "Valuation of the operating Flexibility of Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 633-653, December.
    2. James D. Adams & Adam B. Jaffe, 1996. "Bounding the Effects of R&D: An Investigation Using Matched Establishment-Firm Data," RAND Journal of Economics, The RAND Corporation, vol. 27(4), pages 700-721, Winter.
    3. Sharon Belenzon & Tomer Berkovitz, 2010. "Innovation in Business Groups," Management Science, INFORMS, vol. 56(3), pages 519-535, March.
    4. Stephen P. Borgatti & Rob Cross, 2003. "A Relational View of Information Seeking and Learning in Social Networks," Management Science, INFORMS, vol. 49(4), pages 432-445, April.
    5. Stein, Jeremy C, 1997. " Internal Capital Markets and the Competition for Corporate Resources," Journal of Finance, American Finance Association, vol. 52(1), pages 111-133, March.
    6. Xiaolan Fu, 2008. "Foreign Direct Investment, Absorptive Capacity and Regional Innovation Capabilities: Evidence from China," Oxford Development Studies, Taylor & Francis Journals, vol. 36(1), pages 89-110.
    7. Gopalan, Radhakrishnan & Nanda, Vikram & Seru, Amit, 2007. "Affiliated firms and financial support: Evidence from Indian business groups," Journal of Financial Economics, Elsevier, vol. 86(3), pages 759-795, December.
    8. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 17-45 National Bureau of Economic Research, Inc.
    9. Koen Frenken & Ron A. Boschma, 2007. "A theoretical framework for evolutionary economic geography: industrial dynamics and urban growth as a branching process," Journal of Economic Geography, Oxford University Press, vol. 7(5), pages 635-649, September.
    10. Fuentelsaz, Lucio & Gómez, Jaime & Palomas, Sergio, 2009. "The effects of new technologies on productivity: An intrafirm diffusion-based assessment," Research Policy, Elsevier, vol. 38(7), pages 1172-1180, September.
    11. Minyuan Zhao, 2006. "Conducting R& D in Countries with Weak Intellectual Property Rights Protection," Management Science, INFORMS, vol. 52(8), pages 1185-1199, August.
    12. Stine Jessen Haakonsson & Peter D. Ørberg Jensen & Susan M. Mudambi, 2013. "A co-evolutionary perspective on the drivers of international sourcing of pharmaceutical R&D to India," Journal of Economic Geography, Oxford University Press, vol. 13(4), pages 677-700, July.
    13. Bernd Ebersberger & Sverre J. Herstad, 2012. "Go abroad or have strangers visit? On organizational search spaces and local linkages," Journal of Economic Geography, Oxford University Press, vol. 12(1), pages 273-295, January.
    14. Robert C. Kloosterman, 2008. "Walls and bridges: knowledge spillover between 'superdutch' architectural firms," Journal of Economic Geography, Oxford University Press, vol. 8(4), pages 545-563, July.
    15. Richard Florida & Charlotta Mellander & Kevin Stolarick & Adrienne Ross, 2012. "Cities, skills and wages," Journal of Economic Geography, Oxford University Press, vol. 12(2), pages 355-377, March.
    16. Arellano, M, 1987. "Computing Robust Standard Errors for Within-Groups Estimators," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(4), pages 431-434, November.
    17. Ann E. Harrison & Brian J. Aitken, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, vol. 89(3), pages 605-618, June.
    18. Kasper, Helmut & Lehrer, Mark & Mühlbacher, Jürgen & Müller, Barbara, 2013. "On the different “worlds” of intra-organizational knowledge management: Understanding idiosyncratic variation in MNC cross-site knowledge-sharing practices," International Business Review, Elsevier, vol. 22(1), pages 326-338.
    19. Ram Mudambi & Pietro Navarra, 2004. "Is knowledge power? Knowledge flows, subsidiary power and rent-seeking within MNCs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 385-406, September.
    20. Tarun Khanna & Krishna Palepu, 2000. "Is Group Affiliation Profitable in Emerging Markets? An Analysis of Diversified Indian Business Groups," Journal of Finance, American Finance Association, vol. 55(2), pages 867-891, April.
    21. Hashai, Niron & Delios, Andrew, 2012. "Balancing growth across geographic diversification and product diversification: A contingency approach," International Business Review, Elsevier, vol. 21(6), pages 1052-1064.
    22. Janice Nadler & Leigh Thompson & Leaf Van Boven, 2003. "Learning Negotiation Skills: Four Models of Knowledge Creation and Transfer," Management Science, INFORMS, vol. 49(4), pages 529-540, April.
    23. Keupp, Marcus Matthias & Friesike, Sascha & von Zedtwitz, Maximilian, 2012. "How do foreign firms patent in emerging economies with weak appropriability regimes? Archetypes and motives," Research Policy, Elsevier, vol. 41(8), pages 1422-1439.
    24. Kafouros, Mario I. & Buckley, Peter J. & Clegg, Jeremy, 2012. "The effects of global knowledge reservoirs on the productivity of multinational enterprises: The role of international depth and breadth," Research Policy, Elsevier, vol. 41(5), pages 848-861.
    25. Szulanski, Gabriel, 2000. "The Process of Knowledge Transfer: A Diachronic Analysis of Stickiness," Organizational Behavior and Human Decision Processes, Elsevier, vol. 82(1), pages 9-27, May.
    26. Stefano Breschi & Francesco Lissoni, 2009. "Mobility of skilled workers and co-invention networks: an anatomy of localized knowledge flows," Journal of Economic Geography, Oxford University Press, vol. 9(4), pages 439-468, July.
    27. Nan Jia & Jing Shi & Yongxiang Wang, 2013. "Coinsurance Within Business Groups: Evidence from Related Party Transactions in an Emerging Market," Management Science, INFORMS, vol. 59(10), pages 2295-2313, October.
    28. Liang, Hsin-Yu & Ching, Yann Peng & Chan, Kam C., 2013. "Enhancing bank performance through branches or representative offices? Evidence from European banks," International Business Review, Elsevier, vol. 22(3), pages 495-508.
    29. Heike Mayer, 2013. "Entrepreneurship in a Hub-and-Spoke Industrial District: Firm Survey Evidence from Seattle's Technology Industry," Regional Studies, Taylor & Francis Journals, vol. 47(10), pages 1715-1733, November.
    30. McGahan, Anita M. & Silverman, Brian S., 2006. "Profiting from technological innovation by others: The effect of competitor patenting on firm value," Research Policy, Elsevier, vol. 35(8), pages 1222-1242, October.
    31. Acs, Zoltan J. & Anselin, Luc & Varga, Attila, 2002. "Patents and innovation counts as measures of regional production of new knowledge," Research Policy, Elsevier, vol. 31(7), pages 1069-1085, September.
    32. Ram Mudambi, 2008. "Location, control and innovation in knowledge-intensive industries," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 699-725, September.
    33. Lingyun Huang & Xiaming Liu & Lei Xu, 2012. "Regional Innovation and Spillover Effects of Foreign Direct Investment in China: A Threshold Approach," Regional Studies, Taylor & Francis Journals, vol. 46(5), pages 583-596, August.
    34. Cassandra C. Wang & George C. S. Lin, 2013. "Dynamics of innovation in a globalizing china: regional environment, inter-firm relations and firm attributes," Journal of Economic Geography, Oxford University Press, vol. 13(3), pages 397-418, May.
    35. Neil M. Coe & Yong-Sook Lee, 2013. "'We've learnt how to be local': the deepening territorial embeddedness of Samsung--Tesco in South Korea," Journal of Economic Geography, Oxford University Press, vol. 13(2), pages 327-356, March.
    36. Steve Wood & Jonathan Reynolds, 2012. "Managing communities and managing knowledge: strategic decision making and store network investment within retail multinationals," Journal of Economic Geography, Oxford University Press, vol. 12(2), pages 539-565, March.
    37. Wang, Yuandi & Zhou, Zhao, 2013. "The dual role of local sites in assisting firms with developing technological capabilities: Evidence from China," International Business Review, Elsevier, vol. 22(1), pages 63-76.
    38. Kafouros, Mario I. & Buckley, Peter J., 2008. "Under what conditions do firms benefit from the research efforts of other organizations?," Research Policy, Elsevier, vol. 37(2), pages 225-239, March.
    39. Leff, Nathaniel H, 1978. "Industrial Organization and Entrepreneurship in the Developing Countries: The Economic Groups," Economic Development and Cultural Change, University of Chicago Press, vol. 26(4), pages 661-675, July.
    40. Yu Zhou & Yifei Sun & Y. H. Dennis Wei & George C. S. Lin, 2011. "De-centering 'spatial fix'--patterns of territorialization and regional technological dynamism of ICT hubs in China," Journal of Economic Geography, Oxford University Press, vol. 11(1), pages 119-150, January.
    41. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics,in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
    42. Steven W. Bradley & Jeffery S. McMullen & Kendall Artz & Edward M. Simiyu, 2012. "Capital Is Not Enough: Innovation in Developing Economies," Journal of Management Studies, Wiley Blackwell, vol. 49(4), pages 684-717, 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. repec:pal:jintbs:v:49:y:2018:i:1:d:10.1057_s41267-017-0129-1 is not listed on IDEAS

    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:eee:iburev:v:24:y:2015:i:3:p:353-366. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.