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Upgrading to lead firm position via international acquisition: learning from the global biomass power plant industry.

Hansen, Ulrich Elmer; Fold, Niels and Hansen, Teis LU (2016) In Journal of Economic Geography 16(1). p.131-153
Abstract
This article examines the case of a Chinese firm that has upgraded to lead firm position in the global biomass power plant industry mainly through acquisitions of technological frontier firms in Denmark. Sustaining the lead firm position was, however, challenged by difficulties in developing innovative capability. Drawing on the literature on (i) firm-level technological capability and (ii) knowledge transfer in international acquisitions, we explain the reasons for insufficient innovative capability building. Based on these empirical findings, we suggest maintaining the existing upgrading framework but applying it analytically in a more flexible manner that avoids linearity, hierarchy and segmentation while stressing the co-existence of... (More)
This article examines the case of a Chinese firm that has upgraded to lead firm position in the global biomass power plant industry mainly through acquisitions of technological frontier firms in Denmark. Sustaining the lead firm position was, however, challenged by difficulties in developing innovative capability. Drawing on the literature on (i) firm-level technological capability and (ii) knowledge transfer in international acquisitions, we explain the reasons for insufficient innovative capability building. Based on these empirical findings, we suggest maintaining the existing upgrading framework but applying it analytically in a more flexible manner that avoids linearity, hierarchy and segmentation while stressing the co-existence of and inter-relationships between the different types of upgrading. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
mergers and acquisitions, technological capability, biomass power plant industry, China, industrial upgrading, global value chains
in
Journal of Economic Geography
volume
16
issue
1
pages
131 - 153
publisher
Oxford University Press
external identifiers
  • wos:000374189600006
  • scopus:84965070475
ISSN
1468-2702
DOI
10.1093/jeg/lbu050
language
English
LU publication?
yes
id
04178bcc-1be7-46f0-833e-8037380912e4 (old id 4810684)
date added to LUP
2014-11-21 14:32:37
date last changed
2017-07-05 13:37:35
@article{04178bcc-1be7-46f0-833e-8037380912e4,
  abstract     = {This article examines the case of a Chinese firm that has upgraded to lead firm position in the global biomass power plant industry mainly through acquisitions of technological frontier firms in Denmark. Sustaining the lead firm position was, however, challenged by difficulties in developing innovative capability. Drawing on the literature on (i) firm-level technological capability and (ii) knowledge transfer in international acquisitions, we explain the reasons for insufficient innovative capability building. Based on these empirical findings, we suggest maintaining the existing upgrading framework but applying it analytically in a more flexible manner that avoids linearity, hierarchy and segmentation while stressing the co-existence of and inter-relationships between the different types of upgrading.},
  author       = {Hansen, Ulrich Elmer and Fold, Niels and Hansen, Teis},
  issn         = {1468-2702},
  keyword      = {mergers and acquisitions,technological capability,biomass power plant industry,China,industrial upgrading,global value chains},
  language     = {eng},
  number       = {1},
  pages        = {131--153},
  publisher    = {Oxford University Press},
  series       = {Journal of Economic Geography},
  title        = {Upgrading to lead firm position via international acquisition: learning from the global biomass power plant industry.},
  url          = {http://dx.doi.org/10.1093/jeg/lbu050},
  volume       = {16},
  year         = {2016},
}