Industrial Dynamics Beyond the Lead Firms: Evidence From the Wind Energy Industry in China

Stine Jessen Haakonsson, Dmitrij Slepniov

    Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

    Abstract

    Since the turn of the millennium, China has developed into a core location for the wind energy industry and is today the largest market for wind turbines. These developments have caught attention among scholars. However, most research is on the development of the market and the lead firm strategies for market access or on innovation, capability building and technology transfer in the industry. The main objective of this paper is to look ‘beyond the lead firms’. We seek to advance the understanding of how the recent changes in the industry affect producers of key components and their role in the industry. The paper employs a qualitative methodology, which draws on explorative case studies of sub-suppliers in the wind turbine industry in China. A special empirical focus is on the first tier sub-suppliers. As the Western lead firms establish themselves in China, the sub-suppliers also have to develop new strategies, which involve internationalization. Our initial findings suggest that sub-suppliers get an initial impetus for internationalization from the lead firms. However, over time the sub-suppliers strategy changes as get more independent and driven by new business opportunities in China and link up with domestic lead firms. In pursuing the principal objectives of the paper, we combine two analytical frameworks for the outside-in perspectives of economic geography with the more inside-out perspective from international business and organizational studies. On the one hand, this combination allows for a better understanding of the changing geography of suppliers and their role as technology leaders. On the other hand, we can elucidate the challenges faced by the supplier firms who are not experienced in internationalizing activities but for whom such internationalization is a determining factor for competitiveness.
    Since the turn of the millennium, China has developed into a core location for the wind energy industry and is today the largest market for wind turbines. These developments have caught attention among scholars. However, most research is on the development of the market and the lead firm strategies for market access or on innovation, capability building and technology transfer in the industry. The main objective of this paper is to look ‘beyond the lead firms’. We seek to advance the understanding of how the recent changes in the industry affect producers of key components and their role in the industry. The paper employs a qualitative methodology, which draws on explorative case studies of sub-suppliers in the wind turbine industry in China. A special empirical focus is on the first tier sub-suppliers. As the Western lead firms establish themselves in China, the sub-suppliers also have to develop new strategies, which involve internationalization. Our initial findings suggest that sub-suppliers get an initial impetus for internationalization from the lead firms. However, over time the sub-suppliers strategy changes as get more independent and driven by new business opportunities in China and link up with domestic lead firms. In pursuing the principal objectives of the paper, we combine two analytical frameworks for the outside-in perspectives of economic geography with the more inside-out perspective from international business and organizational studies. On the one hand, this combination allows for a better understanding of the changing geography of suppliers and their role as technology leaders. On the other hand, we can elucidate the challenges faced by the supplier firms who are not experienced in internationalizing activities but for whom such internationalization is a determining factor for competitiveness.
    LanguageEnglish
    Title of host publicationProceedings of CICALICS Workshop 2013 : Endogenous Innovation in a Global Dynamic Context. A National, Regional, Industry/sector and Firm Perspective, 24. - 25. August 2013
    Number of pages12
    Place of PublicationBeijing
    PublisherSino-Danish Center (SDC)
    Date2013
    StatePublished - 2013
    EventThe Annual CICALICS Workshop and Academy 2013 - Sino-Danish Center (SDC) and University of Chinese Academy of Sciences (UCAS), Beijing, China
    Duration: 22 Aug 201328 Aug 2013
    http://www.globelics.org/regional-lics/cica-lics/

    Workshop

    WorkshopThe Annual CICALICS Workshop and Academy 2013
    LocationSino-Danish Center (SDC) and University of Chinese Academy of Sciences (UCAS)
    CountryChina
    CityBeijing
    Period22/08/201328/08/2013
    Internet address

    Bibliographical note

    CBS Library does not have access to the material

    Keywords

      Cite this

      Haakonsson, S. J., & Slepniov, D. (2013). Industrial Dynamics Beyond the Lead Firms: Evidence From the Wind Energy Industry in China. In Proceedings of CICALICS Workshop 2013: Endogenous Innovation in a Global Dynamic Context. A National, Regional, Industry/sector and Firm Perspective, 24. - 25. August 2013 Beijing: Sino-Danish Center (SDC).
      Haakonsson, Stine Jessen ; Slepniov, Dmitrij. / Industrial Dynamics Beyond the Lead Firms : Evidence From the Wind Energy Industry in China. Proceedings of CICALICS Workshop 2013: Endogenous Innovation in a Global Dynamic Context. A National, Regional, Industry/sector and Firm Perspective, 24. - 25. August 2013. Beijing : Sino-Danish Center (SDC), 2013.
      @inproceedings{52a8602d98fa47e4b6006404ef041f18,
      title = "Industrial Dynamics Beyond the Lead Firms: Evidence From the Wind Energy Industry in China",
      abstract = "Since the turn of the millennium, China has developed into a core location for the wind energy industry and is today the largest market for wind turbines. These developments have caught attention among scholars. However, most research is on the development of the market and the lead firm strategies for market access or on innovation, capability building and technology transfer in the industry. The main objective of this paper is to look ‘beyond the lead firms’. We seek to advance the understanding of how the recent changes in the industry affect producers of key components and their role in the industry. The paper employs a qualitative methodology, which draws on explorative case studies of sub-suppliers in the wind turbine industry in China. A special empirical focus is on the first tier sub-suppliers. As the Western lead firms establish themselves in China, the sub-suppliers also have to develop new strategies, which involve internationalization. Our initial findings suggest that sub-suppliers get an initial impetus for internationalization from the lead firms. However, over time the sub-suppliers strategy changes as get more independent and driven by new business opportunities in China and link up with domestic lead firms. In pursuing the principal objectives of the paper, we combine two analytical frameworks for the outside-in perspectives of economic geography with the more inside-out perspective from international business and organizational studies. On the one hand, this combination allows for a better understanding of the changing geography of suppliers and their role as technology leaders. On the other hand, we can elucidate the challenges faced by the supplier firms who are not experienced in internationalizing activities but for whom such internationalization is a determining factor for competitiveness.",
      keywords = "Suppliers, Lead firms, Wind energy, Emerging markets, China, Case studies",
      author = "Haakonsson, {Stine Jessen} and Dmitrij Slepniov",
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      booktitle = "Proceedings of CICALICS Workshop 2013",
      publisher = "Sino-Danish Center (SDC)",
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      }

      Haakonsson, SJ & Slepniov, D 2013, Industrial Dynamics Beyond the Lead Firms: Evidence From the Wind Energy Industry in China. in Proceedings of CICALICS Workshop 2013: Endogenous Innovation in a Global Dynamic Context. A National, Regional, Industry/sector and Firm Perspective, 24. - 25. August 2013. Sino-Danish Center (SDC), Beijing, Beijing, China, 22/08/2013.

      Industrial Dynamics Beyond the Lead Firms : Evidence From the Wind Energy Industry in China. / Haakonsson, Stine Jessen; Slepniov, Dmitrij.

      Proceedings of CICALICS Workshop 2013: Endogenous Innovation in a Global Dynamic Context. A National, Regional, Industry/sector and Firm Perspective, 24. - 25. August 2013. Beijing : Sino-Danish Center (SDC), 2013.

      Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

      TY - GEN

      T1 - Industrial Dynamics Beyond the Lead Firms

      T2 - Evidence From the Wind Energy Industry in China

      AU - Haakonsson,Stine Jessen

      AU - Slepniov,Dmitrij

      N1 - CBS Library does not have access to the material

      PY - 2013

      Y1 - 2013

      N2 - Since the turn of the millennium, China has developed into a core location for the wind energy industry and is today the largest market for wind turbines. These developments have caught attention among scholars. However, most research is on the development of the market and the lead firm strategies for market access or on innovation, capability building and technology transfer in the industry. The main objective of this paper is to look ‘beyond the lead firms’. We seek to advance the understanding of how the recent changes in the industry affect producers of key components and their role in the industry. The paper employs a qualitative methodology, which draws on explorative case studies of sub-suppliers in the wind turbine industry in China. A special empirical focus is on the first tier sub-suppliers. As the Western lead firms establish themselves in China, the sub-suppliers also have to develop new strategies, which involve internationalization. Our initial findings suggest that sub-suppliers get an initial impetus for internationalization from the lead firms. However, over time the sub-suppliers strategy changes as get more independent and driven by new business opportunities in China and link up with domestic lead firms. In pursuing the principal objectives of the paper, we combine two analytical frameworks for the outside-in perspectives of economic geography with the more inside-out perspective from international business and organizational studies. On the one hand, this combination allows for a better understanding of the changing geography of suppliers and their role as technology leaders. On the other hand, we can elucidate the challenges faced by the supplier firms who are not experienced in internationalizing activities but for whom such internationalization is a determining factor for competitiveness.

      AB - Since the turn of the millennium, China has developed into a core location for the wind energy industry and is today the largest market for wind turbines. These developments have caught attention among scholars. However, most research is on the development of the market and the lead firm strategies for market access or on innovation, capability building and technology transfer in the industry. The main objective of this paper is to look ‘beyond the lead firms’. We seek to advance the understanding of how the recent changes in the industry affect producers of key components and their role in the industry. The paper employs a qualitative methodology, which draws on explorative case studies of sub-suppliers in the wind turbine industry in China. A special empirical focus is on the first tier sub-suppliers. As the Western lead firms establish themselves in China, the sub-suppliers also have to develop new strategies, which involve internationalization. Our initial findings suggest that sub-suppliers get an initial impetus for internationalization from the lead firms. However, over time the sub-suppliers strategy changes as get more independent and driven by new business opportunities in China and link up with domestic lead firms. In pursuing the principal objectives of the paper, we combine two analytical frameworks for the outside-in perspectives of economic geography with the more inside-out perspective from international business and organizational studies. On the one hand, this combination allows for a better understanding of the changing geography of suppliers and their role as technology leaders. On the other hand, we can elucidate the challenges faced by the supplier firms who are not experienced in internationalizing activities but for whom such internationalization is a determining factor for competitiveness.

      KW - Suppliers

      KW - Lead firms

      KW - Wind energy

      KW - Emerging markets

      KW - China

      KW - Case studies

      M3 - Article in proceedings

      BT - Proceedings of CICALICS Workshop 2013

      PB - Sino-Danish Center (SDC)

      CY - Beijing

      ER -

      Haakonsson SJ, Slepniov D. Industrial Dynamics Beyond the Lead Firms: Evidence From the Wind Energy Industry in China. In Proceedings of CICALICS Workshop 2013: Endogenous Innovation in a Global Dynamic Context. A National, Regional, Industry/sector and Firm Perspective, 24. - 25. August 2013. Beijing: Sino-Danish Center (SDC). 2013.