How Export and Import Platforms Drive Industry Upgrading

Five Facts about Emerging Multinationals from Southeast Asia

Masami Ishida, Tomohiro Machikita, Yasushi Ueki

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    This paper presents five facts of industry upgrading of emerging multinationals with and without foreign affiliates. This paper studies product and process innovation and investment in technologies and management practices as industry upgrading. Firm-level evidence from Indonesia, Thailand, the Philippines, and Vietnam suggests that there are not significant differences in innovation and investment between firms with foreign affiliates and firms without foreign affiliates, but there are sizable differences in organizational changes across locations of foreign affiliates. Firms’ self-reported buyer and supplier data also suggest spillover effects between downstream and upstream firms within a single global or local production chain. We establish five facts about intra-firm management practices and inter-firm relationships in production networks within southeast Asia as follows: (1) Firms are more likely to extend the geographic scope of their foreign platforms if they run both exporting and importing; (2) firm size and R&D sales ration play a role of foreign platforms in ASEAN, Europe, and the USA, but these have no effects on foreign platforms in east Asia; (3) emerging multinationals do not achieve product development if they have foreign platforms in east Asia while they achieve product development if they establish foreign platforms in Europe and the USA and (4) the type of organizational process improvements vary with locations of foreign platforms, i.e. foreign platforms in Europe and the USA can deliver knowledge about higher quality products instead of prohibiting new intermediate inputs; (5) emerging multinationals are more likely to share information with supplier for quality control within a production chain if they have foreign affiliates in Japan. These facts first serve as a basis of the intra- and inter-firm managerial practices of a global production chain in emerging markets.
    Original languageDanish
    JournalAsian Journal of Technology Innovation
    Volume21
    Issue numberSupplement 1
    Pages (from-to)4-24
    Number of pages21
    ISSN1976-1597
    DOIs
    Publication statusPublished - 2013

    Cite this

    Ishida, Masami ; Machikita, Tomohiro ; Ueki, Yasushi. / How Export and Import Platforms Drive Industry Upgrading : Five Facts about Emerging Multinationals from Southeast Asia. In: Asian Journal of Technology Innovation. 2013 ; Vol. 21, No. Supplement 1. pp. 4-24.
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    title = "How Export and Import Platforms Drive Industry Upgrading: Five Facts about Emerging Multinationals from Southeast Asia",
    abstract = "This paper presents five facts of industry upgrading of emerging multinationals with and without foreign affiliates. This paper studies product and process innovation and investment in technologies and management practices as industry upgrading. Firm-level evidence from Indonesia, Thailand, the Philippines, and Vietnam suggests that there are not significant differences in innovation and investment between firms with foreign affiliates and firms without foreign affiliates, but there are sizable differences in organizational changes across locations of foreign affiliates. Firms’ self-reported buyer and supplier data also suggest spillover effects between downstream and upstream firms within a single global or local production chain. We establish five facts about intra-firm management practices and inter-firm relationships in production networks within southeast Asia as follows: (1) Firms are more likely to extend the geographic scope of their foreign platforms if they run both exporting and importing; (2) firm size and R&D sales ration play a role of foreign platforms in ASEAN, Europe, and the USA, but these have no effects on foreign platforms in east Asia; (3) emerging multinationals do not achieve product development if they have foreign platforms in east Asia while they achieve product development if they establish foreign platforms in Europe and the USA and (4) the type of organizational process improvements vary with locations of foreign platforms, i.e. foreign platforms in Europe and the USA can deliver knowledge about higher quality products instead of prohibiting new intermediate inputs; (5) emerging multinationals are more likely to share information with supplier for quality control within a production chain if they have foreign affiliates in Japan. These facts first serve as a basis of the intra- and inter-firm managerial practices of a global production chain in emerging markets.",
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    How Export and Import Platforms Drive Industry Upgrading : Five Facts about Emerging Multinationals from Southeast Asia. / Ishida, Masami; Machikita, Tomohiro; Ueki, Yasushi.

    In: Asian Journal of Technology Innovation, Vol. 21, No. Supplement 1, 2013, p. 4-24.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - How Export and Import Platforms Drive Industry Upgrading

    T2 - Five Facts about Emerging Multinationals from Southeast Asia

    AU - Ishida, Masami

    AU - Machikita, Tomohiro

    AU - Ueki, Yasushi

    PY - 2013

    Y1 - 2013

    N2 - This paper presents five facts of industry upgrading of emerging multinationals with and without foreign affiliates. This paper studies product and process innovation and investment in technologies and management practices as industry upgrading. Firm-level evidence from Indonesia, Thailand, the Philippines, and Vietnam suggests that there are not significant differences in innovation and investment between firms with foreign affiliates and firms without foreign affiliates, but there are sizable differences in organizational changes across locations of foreign affiliates. Firms’ self-reported buyer and supplier data also suggest spillover effects between downstream and upstream firms within a single global or local production chain. We establish five facts about intra-firm management practices and inter-firm relationships in production networks within southeast Asia as follows: (1) Firms are more likely to extend the geographic scope of their foreign platforms if they run both exporting and importing; (2) firm size and R&D sales ration play a role of foreign platforms in ASEAN, Europe, and the USA, but these have no effects on foreign platforms in east Asia; (3) emerging multinationals do not achieve product development if they have foreign platforms in east Asia while they achieve product development if they establish foreign platforms in Europe and the USA and (4) the type of organizational process improvements vary with locations of foreign platforms, i.e. foreign platforms in Europe and the USA can deliver knowledge about higher quality products instead of prohibiting new intermediate inputs; (5) emerging multinationals are more likely to share information with supplier for quality control within a production chain if they have foreign affiliates in Japan. These facts first serve as a basis of the intra- and inter-firm managerial practices of a global production chain in emerging markets.

    AB - This paper presents five facts of industry upgrading of emerging multinationals with and without foreign affiliates. This paper studies product and process innovation and investment in technologies and management practices as industry upgrading. Firm-level evidence from Indonesia, Thailand, the Philippines, and Vietnam suggests that there are not significant differences in innovation and investment between firms with foreign affiliates and firms without foreign affiliates, but there are sizable differences in organizational changes across locations of foreign affiliates. Firms’ self-reported buyer and supplier data also suggest spillover effects between downstream and upstream firms within a single global or local production chain. We establish five facts about intra-firm management practices and inter-firm relationships in production networks within southeast Asia as follows: (1) Firms are more likely to extend the geographic scope of their foreign platforms if they run both exporting and importing; (2) firm size and R&D sales ration play a role of foreign platforms in ASEAN, Europe, and the USA, but these have no effects on foreign platforms in east Asia; (3) emerging multinationals do not achieve product development if they have foreign platforms in east Asia while they achieve product development if they establish foreign platforms in Europe and the USA and (4) the type of organizational process improvements vary with locations of foreign platforms, i.e. foreign platforms in Europe and the USA can deliver knowledge about higher quality products instead of prohibiting new intermediate inputs; (5) emerging multinationals are more likely to share information with supplier for quality control within a production chain if they have foreign affiliates in Japan. These facts first serve as a basis of the intra- and inter-firm managerial practices of a global production chain in emerging markets.

    KW - Foreign Affiliates

    KW - Trade

    KW - Supply Chains

    KW - Emerging Multinationals

    KW - Innovation

    U2 - 10.1080/19761597.2013.819231

    DO - 10.1080/19761597.2013.819231

    M3 - Tidsskriftartikel

    VL - 21

    SP - 4

    EP - 24

    JO - Asian Journal of Technology Innovation

    JF - Asian Journal of Technology Innovation

    SN - 1976-1597

    IS - Supplement 1

    ER -