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

Marcus Møller Larsen, Timo Seppälä, Jyrki Ali-Yrkkö

Research output: Contribution to journalJournal articleResearchpeer-review

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.
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.
LanguageDanish
JournalIndustry and Innovation
Volume25
Issue number7
Pages675-698
Number of pages24
ISSN1366-2716
DOIs
StatePublished - 2018

Keywords

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

Cite this

@article{ccee3e2a4af746acb542c0e0bda34203,
title = "The Changing Geography and Ownership of Value Creation: Evidence from Mobile Telecommunications",
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.",
keywords = "Offshoring, Outsourcing, Value creation, Nokia, Trade-in-task case study, Offshoring, Outsourcing, Value creation, Nokia, Trade-in-task case study",
author = "{M{\o}ller Larsen}, Marcus and Timo Sepp{\"a}l{\"a} and Jyrki Ali-Yrkk{\"o}",
year = "2018",
doi = "10.1080/13662716.2017.1329086",
language = "Dansk",
volume = "25",
pages = "675--698",
journal = "Industry and Innovation",
issn = "1366-2716",
publisher = "Routledge",
number = "7",

}

The Changing Geography and Ownership of Value Creation : Evidence from Mobile Telecommunications. / Møller Larsen, Marcus; Seppälä, Timo; Ali-Yrkkö, Jyrki.

In: Industry and Innovation, Vol. 25, No. 7, 2018, p. 675-698.

Research output: Contribution to journalJournal articleResearchpeer-review

TY - JOUR

T1 - The Changing Geography and Ownership of Value Creation

T2 - Industry and Innovation

AU - Møller Larsen,Marcus

AU - Seppälä,Timo

AU - Ali-Yrkkö,Jyrki

PY - 2018

Y1 - 2018

N2 - 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.

AB - 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.

KW - Offshoring

KW - Outsourcing

KW - Value creation

KW - Nokia

KW - Trade-in-task case study

KW - Offshoring

KW - Outsourcing

KW - Value creation

KW - Nokia

KW - Trade-in-task case study

UR - https://sfx-45cbs.hosted.exlibrisgroup.com/45cbs?url_ver=Z39.88-2004&url_ctx_fmt=info:ofi/fmt:kev:mtx:ctx&ctx_enc=info:ofi/enc:UTF-8&ctx_ver=Z39.88-2004&rfr_id=info:sid/sfxit.com:azlist&sfx.ignore_date_threshold=1&rft.object_id=954925280617

U2 - 10.1080/13662716.2017.1329086

DO - 10.1080/13662716.2017.1329086

M3 - Tidsskriftartikel

VL - 25

SP - 675

EP - 698

JO - Industry and Innovation

JF - Industry and Innovation

SN - 1366-2716

IS - 7

ER -