Acquiring and Utilizing Knowledge in Global Value Chains by Emerging Economy Firms
Date
2018
Authors
Soontornthum, Tanyaporn
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Abstract
The program of research presented in this thesis is motivated by
the global value chains (GVCs) phenomenon. The series of three
studies examine the learning of emerging economy (EE) firms
participating in GVCs. The conceptual models developed in these
studies were derived from three different perspectives, namely
network embeddedness, absorptive capacity and resource dependence
theory (RDT). Empirical research was then carried out to reveal
the mechanisms and processes through which knowledge transfer and
learning occur within EE firms. All three studies were conducted
on a sample of Thai manufacturing firms taking part in global
value chains and mainly from six major industries; namely,
consumer electronics and electronics components, machinery and
industrial equipment, automotive parts and motorcycles, furniture
and decor, textile and clothing, gems and jewelry, and other
industries such as chemicals, and iron and steels.
Study 1 (Chapter 3) demonstrates the mediating role of network
embeddedness on the relationship between participation in GVCs
and knowledge transfer benefits. It also takes into account the
moderating roles of historical embeddedness and financial slack
of EE firms. This study finds network embeddedness positively
mediates the association between GVC participation and the amount
of knowledge transferred to EE firms. As expected, the indirect
impact of participation in GVCs on knowledge transfer via network
embeddedness is strengthened by historical embeddedness and
financial slack.
Study 2 (Chapter 4) extends the parallel pathways of the
absorptive capacity model. This study investigates knowledge
characteristics transmitted in GVCs as contingencies which
determine the utilization and effectiveness of the different
pathways within the model. The results support the baseline
hypotheses regarding the parallel pathways of the ACAP model. The
research findings further reveal knowledge specificity
strengthens the relationship between acquisition and
transformation, while knowledge depth weakens the relationship
between assimilation and exploitation, but strengthens that
between transformation and exploitation.
Study 3 (Chapter 5) examines the role of rational embeddedness of
EE firms in GVCs in their learning from global linkages which
leads to future internationalization. The learning contingencies
associated with the learning source’s international dispersion
and the age of the EE firms are also taken into accounted. The
findings reveal product development involvement is positively
related to the subsequent degree of internationalization by EE
firms. Further, geographic dispersion of GVC partners positively
moderates the relationship between product development
involvement and the subsequent degree of internationalization.
Overall, this thesis contributes to enriching the body of
knowledge on EE firms. Study 1 offers an alternative perspective
to partner similarity logic of knowledge transfer by highlighting
legitimacy gained from network embeddedness as a critical
mechanism to access the learning resources available in GVCs.
This study advances current understanding on why the gaining of
knowledge transfer benefits through participating in GVCs is not
automatic. Study 2 highlights that EE firms can achieve learning
through a match between knowledge characteristics transmitted in
GVCs and the information-processing process employed within the
organizations (i.e., either transformation-based or
assimilation-based absorptive capacity). The results clarify how
EE firms decode and exploit external knowledge that is
incongruent with their existing knowledge stock. Study 3
illustrates the way EE firms play value-creation roles and
configure the geographical scope of their partner portfolios in
GVCs, which in turn assists them in sustaining resource exchange
with the partners and, consequently, contributes to their future
internationalization. The study contributes to resource
dependence theory by shifting the focus from mutual dependency
reflected in the magnitude of economic transactions in arm’s
length or trade relationships (transactional embeddedness), to
the mutual dependence that results from product development
involvement in the GVC setting (relational embeddedness). Product
development involvement reflects the relational embeddedness of
EE firms in GVCs, which, to the best of my knowledge, has not
been investigated in the literature on the internationalization
of EE firms.
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Keywords
Emerging Economy Firms Learning, Global Value Chain (GVC) linkages, Knowledge Transfer, Network embeddedness, Absorptive capacity (ACAP), Resource dependence theory (RDT)
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