Book•
The Rise of "The Rest": Challenges to the West from Late-Industrializing Economies
18 Jan 2001-
TL;DR: A great divide had developed within "the rest", the lines drawn according to prewar manufacturing experience and equality in income distribution by 2000 as mentioned in this paper, and a select number of countries outside Japan and the West had built their own national manufacturing enterprises that were investing heavily in R&D.
Abstract: After World War II a select number of countries outside Japan and the West-those that Alice Amsden calls "the rest"-gained market share in modern industries and altered global competition. By 2000, a great divide had developed within "the rest", the lines drawn according to prewar manufacturing experience and equality in income distribution. China, India, Korea and Taiwan had built their own national manufacturing enterprises that were investing heavily in R&D. Their developmental states had transformed themselves into champions of science and technology. By contrast, Argentina, Brazil and Mexico had experienced a wave of acquisitions and mergers that left even more of their leading enterprises controlled by multinational firms. The developmental states of Mexico and Turkey had become hand-tied by membership in NAFTA and the European Union. Which model of late industrialization will prevail, the "independent" or the "integrationist," is a question that challenges the twenty-first century.
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TL;DR: In this article, the advantages and disadvantages of developing-country multinational enterprises (MNEs) in comparison with developed-country MNEs are analyzed in the least developed countries (LDCs) with poorer regulatory quality and lower control of corruption.
Abstract: We analyze the advantages and disadvantages of developing-country multinational enterprises (MNEs) in comparison with developed-country MNEs. Developing-country MNEs tend to be less competitive than their developed-country counterparts, partly because they suffer the disadvantage of operating in home countries with underdeveloped institutions. We argue that this disadvantage can become an advantage when both types of MNE operate in countries with “difficult” governance conditions, because developing-country MNEs are used to operating in such conditions. The empirical analysis shows that, although developing-country MNEs rarely appear among the largest MNEs in the world, they are more prevalent among the largest foreign firms in the least developed countries (LDCs), especially in LDCs with poorer regulatory quality and lower control of corruption.
1,166 citations
TL;DR: The authors assesses the achievements and limitations of commodity chain research as it has evolved over the last decade and conclude that closer attention to the larger institutional and structural environments in which commodity chains are embedded is needed in order to more fully inform our understanding of the uneven social and developmental dynamics of contemporary capitalism at the global-local nexus.
Abstract: This paper assesses the achievements and limitations of commodity chain research as it has evolved over the last decade. The primary objectives are two-fold. First, I highlight an important but generally unacknowledged break between the original world-systemsinspired tradition of commodity chain research and two subsequent chain approaches, the global commodity chain (GCC) and global value chain (GVC) frameworks. Second, I argue that contra the macro and holistic perspective of the world-systems approach, much of the recent chains literature, and particularly the more economistic GVC variant, is increasingly oriented in its analytical approach towards the meso level of sectoral logics and the micro level objective of industrial upgrading. I conclude that closer attention to the larger institutional and structural environments in which commodity chains are embedded is needed in order to more fully inform our understanding of the uneven social and developmental dynamics of contemporary capitalism at the global-local nexus.
779 citations
TL;DR: In this article, the case of latecomer firms from the Asia-Pacific region breaking into knowledge-intensive industries such as semiconductors is used to illustrate the issues involved and the resource-targeting strategies utilized.
Abstract: The resource-based view of the firm provides a satisfactory account of how firms go about sustaining their existing competitive advantages, but it is less successful in accounting for how firms create such advantages in the first place, or overcome incumbent advantages, when the firms start with few resources. The paper utilizes the case of latecomer firms from the Asia-Pacific region breaking into knowledge-intensive industries such as semiconductors, to illustrate the issues involved and the resource-targeting strategies utilized. This results in a strategic theory of the overcoming of competitive disadvantages through linkage, resource leverage, and learning. The dynamic capabilities of such firms are enhanced through repeated applications of linkage and leverage. The resources strategically targeted are characterized as being those most amenable to such linkage and leverage, namely those that are least rare and most imitable and transferable, i.e. as positive versions of the criteria utilized in the conventional resource-based view of the firm. It is argued that this adaptation of the RBV is potentially of wide applicability, and is the needed amendment that makes it of prime significance in accounting for latecomer success within the conceptual framework of strategic management.
721 citations
TL;DR: The authors examine the relationship between good governance and economic development and find that there is far more reason to believe that growth and development spur improvements in governance than vice versa. But they also suggest that the dominant measures of governance are problematic, suffering from perceptual biases, adverse selection in sampling, and conceptual conflation with economic policy choices.
Abstract: The regnant scholarly consensus linking good governance—the quality of public administration—to economic development has undergone surprisingly little empirical scrutiny. We examine the relationship by asking two questions: How confident are we in our cross-national measures of good governance? How solid are the empirical foundations of the growth-governance causal linkage? Our results suggest that the dominant measures of governance are problematic, suffering from perceptual biases, adverse selection in sampling, and conceptual conflation with economic policy choices. Within the limits of somewhat problematic measures, the evidence suggests that there is far more reason to believe that growth and development spur improvements in governance than vice versa. The policy implications are profound, for international organizations and governments are beginning to condition developmental aid on problematic measures of administrative performance.
559 citations
TL;DR: In this article, a new political explanation for the origins of "developmental states" is proposed, in which expert and coherent bureaucratic agencies collaborate with organized private sectors to spur national economic transformation.
Abstract: Scholars of development have learned a great deal about what economic institutions do, but much less about the origins of such arrangements. This article introduces and assesses a new political explanation for the origins of “developmental states”—organizational complexes in which expert and coherent bureaucratic agencies collaborate with organized private sectors to spur national economic transformation. Conventional wisdom holds that developmental states in South Korea, Taiwan, and Singapore result from “state autonomy,” especially from popular pressures. We argue that these states' impressive capacities actually emerged from the challenges of delivering side payments to restive popular sectors under conditions of extreme geopolitical insecurity and severe resource constraints. Such an interactive condition of “systemic vulnerability” never confronted ruling elites in Indonesia, Malaysia, the Philippines, or Thailand—allowing them to uphold political coalitions, and hence to retain power, with much less ambitious state-building efforts.Authors listed alphabetically. We are grateful to the following for helpful comments: Cliff Carrubba, Eric Hershberg, Dave Kang, Stephan Haggard, Linda Lim, Greg Noble, Kristen Nordhaug, John Ravenhill, Eric Reinhardt, Dani Reiter, Tom Remington, Michael Ross, Randy Strahan, Judith Tendler, and two anonymous reviewers. Special thanks to David Waldner, whose book inspired this article and who graciously provided important insights.
477 citations
References
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Book•
01 Jan 1990
TL;DR: The Need for a New Paradigm as discussed by the authors is the need for a new paradigm for the competitive advantage of companies in global industries, as well as the dynamics of national competitive advantage.
Abstract: The Need for a New Paradigm - PART I: FOUNDATIONS - The Competitive Advantage of Firms in Global Industries - Determinants of National Competitive Advantage - The Dynamics of National Advantage - PART II: INDUSTRIES - Four Studies in National Competitive Advantage - National Competitive Advantage in Services - PART III: NATIONS - Patterns of National Competitive Advantage: The Early Postwar Winners - Emerging Nations in the 1970s and 1980s - Shifting National Advantage - The Competitive Development of National Economies - PART IV: IMPLICATIONS - Company Strategy - Government Policy - National Agendas - Epilogue - Appendices - References
22,660 citations
TL;DR: In this paper, the authors explore the usefulness of analyzing firms from the resource side rather than from the product side, in analogy to entry barriers and growth-share matrices, the concepts of resource position barrier and resource-product matrices are suggested.
Abstract: Summary The paper explores the usefulness of analysing firms from the resource side rather than from the product side. In analogy to entry barriers and growth-share matrices, the concepts of resource position barrier and resource-product matrices are suggested. These tools are then used to highlight the new strategic options which naturally emerge from the resource perspective.
18,677 citations
"The Rise of "The Rest": Challenges ..." refers background in this paper
...Because knowledge-based assets are proprietary, intangible and hence difficult to copy, they lead to above-normal profits and earn their owners monopoly rents (Wernerfelt 1984)....
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Book•
01 Jan 1942
TL;DR: In this paper, the authors present a history of the first half of the 20th century, from 1875 to 1914, of the First World War and the Second World War.
Abstract: Introduction. Part I: The Marxian Doctrine. Prologue. I. Marx the Prophet. II. Marx the Sociologist. III. Marx the Economist. IV Marx the Teacher. Part II: Can Capitalism Survive? Prologue. V. The Rate of Increase of Total Output. VI. Plausible Capitalism. VII. The Process of Creative Destruction. VIII. Monopolistics Practices. IX. Closed Season. X. The Vanishing of Investment Opportunity. XI. The Civilization of Capitalism. XII. Crumbling Walls. XIII. Growing Hostility. XIV. Decomposition. Part III: Can Socialism Work? XV. Clearing Decks. XVI. The Socialist Blueprint. XVII. Comparison of Blueprints. XVIII. The Human Element. XIX. Transition. Part IV: Socialism and Democracy. XX. The Setting of the Problem. XXI. The Classical Doctrine of Democracy. XXII. Another Theory of Democracy. XXIII. The Inference. Part V: A Historical Sketch of Socialist Parties. Prologue. XXIV. The Nonage. XXV. The Situation that Marx Faced. XXVI. From 1875 to 1914. XXVII. From the First to the Second World War. XXVIII. The Consequences of the Second World War. Preface to the First Edition, 1942. Preface to the Second Edition, 1946. Preface to the Third Edition, 1949. The March Into Socialism. Index.
16,667 citations
"The Rise of "The Rest": Challenges ..." refers background in this paper
...In the mid- and high-technology industries in which the North Atlantic predominated, Schumpeterian ‘‘gales of creative destruction’’ did not, contrary to theory, blow entry barriers down (Schumpeter 1942)....
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TL;DR: In this paper, the authors assume that firms invest in R&D not only to generate innovations, but also to learn from competitors and extraindustry knowledge sources (e.g., university and government labs).
Abstract: The authors assume that firms invest in R&D not only to generate innovations, but also to learn from competitors and extraindustry knowledge sources (e.g., university and government labs). This argument suggests that the ease of learning within an industry will both affect R&D spending, and condition the influence of appropriability and technological opportunity conditions on R&D. For example, they show that, contrary to the traditional result, intraindustry spillovers may encourage equilibrium industry R&D investment. Regression results confirm that the impact of appropriability and technological opportunity conditions on R&D is influenced by the ease and character of learning. Copyright 1989 by Royal Economic Society.
7,980 citations
TL;DR: The process of industrialization engenders increasing income inequality as the labor force shifts from low-income agriculture to the high income sectors as mentioned in this paper, and on more advanced levels of development inequality starts decreasing and industrialized countries are again characterized by low inequality due to the smaller weight of agriculture in production and income generation.
Abstract: The process of industrialization engenders increasing income inequality as the labor force shifts from low-income agriculture to the high income sectors. On more advanced levels of development inequality starts decreasing and industrialized countries are again characterized by low inequality due to the smaller weight of agriculture in production (and income generation).
7,636 citations