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From blind spots to hotspots: How knowledge services clusters develop and attract foreign investment

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  • Manning, Stephan
  • Ricart, Joan E.
  • Rosatti Rique, Maria Soledad
  • Lewin, Arie Y.

Abstract

This paper explores local and global dynamics underlying the development of knowledge services clusters, which we define as new geographic concentrations of technical talent and service providers offering upstream technical and knowledge-intensive business services to regional and global clients. Taking a co-evolutionary perspective on the development of knowledge services clusters in Latin America, based on data from the Offshoring Research Network (ORN), we find that cluster growth results from intersecting trajectories: the emergence of local talent pools and capabilities initially serving local and regional demand; broadening global search for talent and expertise by multinational corporations; and internationalization strategies of service providers competing to serve global clients. Findings suggest that increasing commoditization of knowledge services opens up windows of opportunity for new clusters, but also involves challenges for sustainable growth. Results may stimulate future research on global sourcing and cluster development.

Suggested Citation

  • Manning, Stephan & Ricart, Joan E. & Rosatti Rique, Maria Soledad & Lewin, Arie Y., 2010. "From blind spots to hotspots: How knowledge services clusters develop and attract foreign investment," Journal of International Management, Elsevier, vol. 16(4), pages 369-382, December.
  • Handle: RePEc:eee:intman:v:16:y:2010:i:4:p:369-382
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Niccolò Pisani & Joan Enric Ricart, 2016. "Offshoring of Services: A Review of the Literature and Organizing Framework," Management International Review, Springer, vol. 56(3), pages 385-424, June.
    2. Karla Paola Jiménez Almaguer. & José Melchor Medina Quintero. & Nazlhe Faride Cheín Schekaibán, 2013. "The search for the development of clusters in Tamaulipas, Mexico: A case study," Economía: teoría y práctica, Universidad Autónoma Metropolitana, México, pages 89-117.
    3. Martin Falk, 2012. "Determinants of Greenfield Investment in Knowledge Intensive Business Services," FIW Research Reports series IV-002, FIW.
    4. Upadhyayula, Rajesh S. & Dhandapani, Karthik & Karna, Amit, 2017. "The Role of Cluster Presence and Quality Certification in Internationalization and Performance of Offshore Service Providers," Journal of International Management, Elsevier, pages 72-86.
    5. repec:spr:manint:v:51:y:2011:i:3:d:10.1007_s11575-011-0081-4 is not listed on IDEAS
    6. repec:eee:touman:v:61:y:2017:i:c:p:451-464 is not listed on IDEAS
    7. Manning, Stephan, 2013. "New Silicon Valleys or a new species? Commoditization of knowledge work and the rise of knowledge services clusters," Research Policy, Elsevier, pages 379-390.
    8. Manning, Stephan, 2014. "Mitigate, tolerate or relocate? Offshoring challenges, strategic imperatives and resource constraints," Journal of World Business, Elsevier, pages 522-535.
    9. repec:wsr:ecbook:2010:i:iv-002 is not listed on IDEAS
    10. repec:zbw:espost:168356 is not listed on IDEAS
    11. Upadhyayula, Rajesh & Karthik, D. & Karna, Amit, 2015. "Role of Clusters and Certification in the Internationalization of Offshoring Service Providers from Emerging Markets: A Study of Indian IT firms," IIMA Working Papers WP2015-03-35, Indian Institute of Management Ahmedabad, Research and Publication Department.
    12. Schmeisser, Bjoern, 2013. "A Systematic Review of Literature on Offshoring of Value Chain Activities," Journal of International Management, Elsevier, pages 390-406.

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