Acquiring and Utilizing Knowledge in Global Value Chains by Emerging Economy Firms
Creators: name: Soontornthum, Tanyaporn
Publisher: name: The Australian National University
Year: 2018
Subjects: Emerging Economy Firms Learning
Global Value Chain (GVC) linkages
Knowledge Transfer
Network embeddedness
Absorptive capacity (ACAP)
Resource dependence theory (RDT)

description: 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.