Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-in
Two questions persist regarding global value chains (GVCs): First, what are the strategies and pathways through which multinational enterprises (MNEs) integrate and navigate GVCs? Second, what are the characteristics of GVCs in which MNEs participate? An analysis of these questions leads to inside–o...
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| Format: | Article |
| Language: | English |
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Elsevier
2024-10-01
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| Series: | Journal of Innovation & Knowledge |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2444569X24001422 |
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| author | Lina Yu Zenghui Guo Jing Ning |
| author_facet | Lina Yu Zenghui Guo Jing Ning |
| author_sort | Lina Yu |
| collection | DOAJ |
| description | Two questions persist regarding global value chains (GVCs): First, what are the strategies and pathways through which multinational enterprises (MNEs) integrate and navigate GVCs? Second, what are the characteristics of GVCs in which MNEs participate? An analysis of these questions leads to inside–out and outside–in perspectives on GVCs. The literature on MNEs mostly focuses on the quantity and quality of foreign direct investment rather than on the differences in MNEs’ production activities and structure of GVCs. This study examines the effects of MNEs’ participation in simple and complex GVCs on domestic innovation. We find that the positive effects are mainly driven by MNEs’ downstream participation in simple GVCs. The mechanism tests indicate that MNEs’ upstreamness within simple GVCs negatively affects domestic firms’ absorption capacity and internal R&D and that within simple and complex GVCs negatively affects domestic firms’ export resilience. |
| format | Article |
| id | doaj-art-c6e2463d6fa04a5086d9e257e286da16 |
| institution | Kabale University |
| issn | 2444-569X |
| language | English |
| publishDate | 2024-10-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Innovation & Knowledge |
| spelling | doaj-art-c6e2463d6fa04a5086d9e257e286da162024-12-08T06:11:37ZengElsevierJournal of Innovation & Knowledge2444-569X2024-10-0194100603Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-inLina Yu0Zenghui Guo1Jing Ning2School of Economics, Ocean University of China, 238 Songling Road, Laoshan District, Qingdao, Shandong Province, 266100, ChinaSchool of Economics, Ocean University of China, 238 Songling Road, Laoshan District, Qingdao, Shandong Province, 266100, ChinaSchool of Management, Ocean University of China, 238 Songling Road, Laoshan District, Qingdao, Shandong Province, 266100, China; Corresponding author.Two questions persist regarding global value chains (GVCs): First, what are the strategies and pathways through which multinational enterprises (MNEs) integrate and navigate GVCs? Second, what are the characteristics of GVCs in which MNEs participate? An analysis of these questions leads to inside–out and outside–in perspectives on GVCs. The literature on MNEs mostly focuses on the quantity and quality of foreign direct investment rather than on the differences in MNEs’ production activities and structure of GVCs. This study examines the effects of MNEs’ participation in simple and complex GVCs on domestic innovation. We find that the positive effects are mainly driven by MNEs’ downstream participation in simple GVCs. The mechanism tests indicate that MNEs’ upstreamness within simple GVCs negatively affects domestic firms’ absorption capacity and internal R&D and that within simple and complex GVCs negatively affects domestic firms’ export resilience.http://www.sciencedirect.com/science/article/pii/S2444569X24001422O31O32O33 |
| spellingShingle | Lina Yu Zenghui Guo Jing Ning Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-in Journal of Innovation & Knowledge O31 O32 O33 |
| title | Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-in |
| title_full | Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-in |
| title_fullStr | Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-in |
| title_full_unstemmed | Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-in |
| title_short | Foreign multinational global value chain participation and domestic innovation: Viewing GVCs inside-out and outside-in |
| title_sort | foreign multinational global value chain participation and domestic innovation viewing gvcs inside out and outside in |
| topic | O31 O32 O33 |
| url | http://www.sciencedirect.com/science/article/pii/S2444569X24001422 |
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