Oct 21, 2016 - The flying geese paradigm is a model for international division of labor in East Asian countries based on dynamic comparative advantage. LG.
Serial study: International technology management
INTERNATIONAL TECHNOLOGY DIFFUSION AND
INTERNATIONAL BUSINESS International School of Technology and Management, Feng Chia University, Taichung, Taiwan OCT, 21, 2016
Lawrenzo H.C. Huang Ph.D.
Globalization has highlighted changes in national technological capabilities. Blyde (2001) Keller (2004)
Productivity
Employment Population 21th 20th
19th 1776/7/4
Primary sector
18th
17th 13th
Cold War WW II:1939~1945 WW I:1914~1918 International Business
14th
15th
Rinascimento
16th 1492
1602
The era of “ Multidomestic Company ” The era of “ East India Company ”
1519~1522
Time
The economic sector change I
Primary sector
II
Secondary sector
Employment
Time
III
Tertiary sector
Nature Technique Plant +
Nature Material
+ Technique
Industry
Community Land
Labor
Exchange System
Technique
Nature Power
Specific Artificial Power
Industry
Row Material
TECHNIQUE
Mass Production
Direct Export
Intermediate Export
Product Export
Community Land
Exchange System
Labor Technique Nature Power
Under
“Developing”
Specific
Industry
Artificial Power
“Developed”
The Internationalization Pattern Wholly Owned Subsidiary mode, WOS Merge and Acquisition, M&A
Stage
International Joint Venture mode, IJV
FDI
License or Franchise mode
Export mode
Internationalization
Pre-FDI
IB appear? Firms
Domestic Firms International Firms
Non-multinational Corporations Multinational Corporations
Multidomestic Companies Global Companies
Market Place DEMAND versus SUPPLY
Administration Localization (indigenous) versus Globalization
Typology for MNCs HIGH
Cost pressures LOW
Bartlett & Ghoshal Model of International Strategy, 1989
Global Strategy
Transnational Strategy
International Strategy
Multinational Strategy
Pressure for local responsiveness
HIGH
Flying Geese Paradigm Akamatsu,1962 TTec echhno nolo loggy y
ThaiCo
LG
SONY
TECHO
yy g o Haier ool log n cchhn e TTe an advanced technology from a leading country moves from country to country and from value segment to value segment. The flying geese paradigm is a model for international division of labor in East Asian countries based on dynamic comparative advantage. Hung-Chun Huang (2014, May). Exploring the structure of international technology diffusion. foresight, 16(3).
International product life cycle theory, IPLC Vernon,1966
Introduction Innovation
Technology Growth
Te chn ology effec t
Technology diffusion
Developed Country
Technology Maturity
Technology diffusion
Other Developed Countries
Other Developing Countries
Time
Hung-Chun Huang (2014, May). Exploring the structure of international technology diffusion. foresight, 16(3).
Geographic localization of international technology diffusion Keller (2002) ∞ Diffusion Utility
0
Distance
∞
Hung-Chun Huang (2014, May). Exploring the structure of international technology diffusion. foresight, 16(3).
Pervious Perspective Flying geese paradigm Akamatsu,1962
TTec echhno nolo loggy y
International product life cycle, IPLC Vernon,1966 y g o l o n h c e T
Introduction Innovation
Technology Growth
Technology Maturity
Cascade-like diffusion Technology diffusion
Developed Country
gyy oolo log n chhn TTeec
Technology diffusion
Other Developed Countries
Other Developing Countries
Time
∞
Diffusion Utility
Geographic localization of international technology diffusion, Keller (2002)
0 0
Distance
∞
Hung-Chun Huang (2014, May). Exploring the structure of international technology diffusion. foresight, 16(3).
Cascade-like diffusion TT ee cc hh nn oo lo gg lo yy
y g o l o n h c e T
Flying geese pattern
Developed Country
Global Network
Time
IPLC
Akamatsu,1962
Global Supply chain, Global outsourcing , Global R&D
Technology diffusion
Other Developed Countries
Vernon,1966
?
Other Developing Countries
∞ Diffusion Utility
Technology diffusion
gyy olo log hhnno c TTeec
Technology Maturity
Technology Growth
Introduction Innovation
0 0
Distance
∞
Geographic localization ITD, Keller (2002)
Globalization! What structure has the technology diffusion been existed?
interactive network models Cohesive subgroup
Centralized
Hierarchy
Transitivity
Center-periphery
Ideal image map
1 0 0 0
0 0 0 1 0 0 0 1 0 0 0 1
1 1 1 1
0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0
1 0 0 0 1 0 0 0 1 0 0 0
0 0 0 0
1 0 0 0
1 1 0 0
1 1 1 0
1 1 1 1
1 1 1 0 0 0 0 0 0 0 0 0
Reduce graph
Instruction:
represent as a block
represent as a block with reflexive
Source: The images map is redrawn for Wasserman and Faust, 1994
represent as directive linkage
represent as bi-directive linkage
Results 1 0 0 0
0 0 0 1 0 0 0 1 0 0 0 1
Cohesive subgroup
0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0
1 1 1 1
Centralized
1 1 1 0 1 1 0 0 1 0 0 0
Transitivity Instruction:
represent as a block represent as a block with reflexive
Source: Adapt for Wasserman and Faust (1994)
0 0 0 0
1 0 0 0 1 0 0 0 1 0 0 0
Hierarchy
1 1 1 1
1 1 1 0 0 0 0 0 0 0 0 0
Center-periphery represent as directive linkage represent as bi-direction linkage
Embodied
A
B
C
D
A
1
1
1
1
B
1
1
1
0
C
1
1
0
0
D
0
0
0
0
Disembodied
A
B
C
D
A
1
1
1
1
B
1
1
1
0
C
1
1
0
0
D
0
0
0
0
Center-periphery patterns Core Generator
Coordinator
Follower
Absorber
Periphery
Cascade-like
vs. Radial-like
Cascade-like diffusion y g lo o n h c e T
∞ Introduction Innovation
Technology Growth
Technology diffusion
y loggy noolo chhn TTeec
Developed Country
Technology Maturity
Diffusion Utility
TTec echhn noololog gyy
Technology diffusion
Other Developed Countries Time
Other Developing Countries
0 0
Distance
Generator
Coordinator
Follower
Absorber
∞
Radial-like diffusion
Core
Periphery
Radial-like
Diffusion
Generator
Coordinator
Follower
Absorber
Radial-like
Diffusion
BORN GLOBAL • No regional boundaries
• Quickly diversify into global markets • Large audience can be reached • Focus is set on employment and sales • Profitability is not a concern in the beginning, it is made up in the long run
BORN GLOBAL
BORN GLOBAL Travis Kalanick
International Technology Diffusion and International Business
Thanks
Radial-like diffusion Core
Generator
Follower
Coordinator
Absorber
Periphery
