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Host-site Support, Foreign Ownership, Regional Linkages and Technological Capabilities: Evidence from Automotive Firms in Indonesia

Author

Listed:
  • Rajah RASIAH

    (Development Studies Department, University of Malaya)

  • Rafat Beigpoor SHAHRIVAR

    (Development Studies Department, University of Malaya)

  • Abdusy Syakur AMIN

    (Facutlty of Engineering, University of Pasundan)

Abstract

This study analyses the influence of host-site institutional support, foreign ownership and regional production linkages on firm-level technological capabilities using data from automotive firms in Indonesia. The results show that host-site institutional support and foreign ownership are positively correlated with technological capabilities. In addition, regional linkages show a significant and positive link on technological capabilities. However, regional linkages and foreign ownership explain more strongly technological capabilities than host-site institutional support in automotive firms in Indonesia. This evidence suggests that the supporting high tech environment require further strengthening to stimulate higher technological capabilities in the automotive industry in Indonesia.

Suggested Citation

  • Rajah RASIAH & Rafat Beigpoor SHAHRIVAR & Abdusy Syakur AMIN, 2015. "Host-site Support, Foreign Ownership, Regional Linkages and Technological Capabilities: Evidence from Automotive Firms in Indonesia," Working Papers DP-2015-08, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2015-08
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    References listed on IDEAS

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    Cited by:

    1. Esquivias, Miguel Angel & Purwono, Rudi & Sugiharti, Lilik & Heriqbaldi, Unggul & Handoyo, Rossanto Dwi, 2020. "Value Chains, Production Networks and Regional Integration: The Case of Indonesia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(1), pages 135-151.
    2. Altaf, Aqsa & Hassan, Ibn e & Batool, Sana, 2019. "The role of ORIC in the evolution of the triple helix culture of innovation: The case of Pakistan," Technology in Society, Elsevier, vol. 56(C), pages 157-166.
    3. Rajah Rasiah & Nazia Nazeer, 2016. "Comparing Industrialization in Pakistan and the East Asian Economies," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 167-192, September.

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    More about this item

    Keywords

    automotive firms; institutional support; Indonesia; regional linkages; technological capabilities;
    All these keywords.

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • 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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