The Changing Geography and Ownership of Value Creation: Evidence from Mobile Telecommunications

Marcus Møller Larsen, Timo Seppälä, Jyrki Ali-Yrkkö

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Abstract

Through an innovative trade-in-task case study, we explore how Nokia, which is historically one of the most important mobile phone manufacturers in the world, offshored the development and production of three distinct mobile phones at three different points in time. Adjacent to these processes, we find that the value creation in areas such as design and manufacturing knowledge has rapidly shifted away from advanced economies to emerging economies. Moreover, we find that the value added captured by Nokia decreased dramatically over the studied time period. Based on our results, we uss more generally the challenge of multinational corporations to preserve value and how the realisation of the benefits of offshoring must be assessed with respect to the altered requirements for controlling value-adding activities.
Original languageEnglish
JournalIndustry and Innovation
Volume25
Issue number7
Pages (from-to)675-698
Number of pages24
ISSN1366-2716
DOIs
Publication statusPublished - 2018

Keywords

  • Offshoring
  • Outsourcing
  • Value creation
  • Nokia
  • Trade-in-task case study

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