The Impact Of Trade Policy Regimes On Firms' Learning For Innovation From Suppliers
Using data on the textile-based Mauritius export processing zone (MEPZ) collected just prior to the demise of the preferential trade agreement (PTA) with Europe, we compare the acquisition and absorption of innovative technological capabilities (ITCs) of domestic firms and Asian-owned subsidiaries through domestic, Asian and European-based supplier linkages. Our results show that there are significant differences in learning for innovation from suppliers by MEPZ domestic firms and Asian-owned subsidiaries. The study firstly reveals that domestic supplier firms in a developing sub-Saharan African country like Mauritius can be an important source of ITCs to both domestic firms and foreign subsidiaries. Secondly, despite the presence of appropriate policies and institutions, Asian-owned subsidiaries did not fully harness learning opportunities and absorb acquired ITCs through supplier linkages in order to create new technology locally. We conjecture that their learning strategy was dictated by their foreseen exit from the MEPZ due to the anticipated end of the PTA. Thirdly, domestic firms exhibited a higher commitment to the acquisition and absorption of ITCs through supplier linkages and to the development of local ITCs. We infer that their learning strategy is a consequence of their need to continue to thrive and expand post-PTA.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 15 (2011)
Issue (Month): 01 ()
|Contact details of provider:|| Web page: http://www.worldscinet.com/ijim/ijim.shtml|
|Order Information:|| Email: |
When requesting a correction, please mention this item's handle: RePEc:wsi:ijimxx:v:15:y:2011:i:01:p:29-68. 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: (Tai Tone Lim)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.