How Early Entrants Impact Cluster Emergence: MNEs vs. Local Firms in the Bangalore Digital Creative Industries

Lorenzen, Mark

doi:10.1017/mor.2018.53

Cited by 9 publications

(12 citation statements)

References 94 publications

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“…As a final example, and in line with Lorenzen (2018), we, in 2016–2017, notice a substantial increase in the number of animation and video-related patents created in Bengaluru, which nonetheless remain relatively rare in India's most famous cluster. One of the firms that is responsible for this rise in animation-based patents is Samsung.…”

Section: Resultssupporting

confidence: 71%

“…It is thus surprising that research on the ‘New Silicon Valleys’ in India have paid little attention to the role of local inter-firm networks on their economic success. Studies that have analyzed the rise of ICT service clusters in Bengaluru and Mumbai have almost exclusively focused on the importance of these locations’ external connectivity to developed countries through MNE-subsidiary linkages and diaspora-based relationships (Lorenzen & Mudambi, 2012; Lorenzen, 2018; Manning, 2013). Several studies have attributed the inception of India's ICT clusters to the founding of foreign subsidiaries such as Texas Instruments in Bengaluru, which became key sources of foreign knowledge and skills to the clusters (Basant, 2008; Karna, Täube, & Sonderegger, 2013; Patibandla & Petersen, 2002).…”

Section: Introductionmentioning

confidence: 99%

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An Anatomy of Bengaluru's ICT Cluster: A Community Detection Approach

Turkina

Assche

2019

Manag. Organ. Rev.

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We use community detection analysis to investigate the structure of Bengaluru's ICT cluster's inter-organizational network during the period 2015–2017. Building on the knowledge sourcing literature, we conjecture that cluster firms primarily build knowledge-seeking horizontal linkages with technologically similar companies, and that this splits the network into multiple technological communities within which firms are tightly connected, but between which linkages are scarce. We further propose that community-spanning firms which build horizontal linkages that bridge technological communities are more likely to conduct radical innovation than their peers. We finally argue that no relation exists between technological proximity and community formation in the network of vertical buyer-supplier relations. Using a voltage-based algorithm for community discovery, we draw empirical support for these predictions. We discuss the implications of our findings for Bengaluru's upgrading potential.

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Section: Resultssupporting

confidence: 71%

Section: Introductionmentioning

confidence: 99%

An Anatomy of Bengaluru's ICT Cluster: A Community Detection Approach

Turkina

Assche

2019

Manag. Organ. Rev.

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“…The first article, ‘How Early Entrants Impact Cluster Emergence: MNEs vs. Local Firms in the Bangalore Digital Creative Industries’, by Lorenzen (2019), presents an original exploratory analysis of the emerging digital creative industries (DCI) cluster in Bengaluru. Firms in the industry create animations, video special effects, and electronic games.…”

Section: The Five Contributions To This Special Issuementioning

confidence: 99%

“…The article relies on a manually collected dataset of entrants to the DCI cluster by MNEs and local Indian firms. Like a detective, Lorenzen (2019) pieces together the emergence of the DCI cluster using multiple primary and secondary sources, including 19 extensive interviews with key players. The principal finding of the article is that MNEs develop production and innovation capabilities rapidly and in narrow parts of the value chain but that their activities have very little local spillover to other firms.…”

Section: The Five Contributions To This Special Issuementioning

confidence: 99%

Innovation and Entrepreneurship in India: An Overview

2019

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India began the process of market liberalization that opened it to significant interactions with the world economy in 1991. In this essay, we provide an overarching view of the country's journey toward integration with the global innovation and entrepreneurship network. Major nodes in this global network have two major components that may be metaphorically referred to as ‘pillars and ivy’. Globally connected multinational enterprises (MNEs) form the pillars. Agile startups are the ivy, and their success (metaphorically, the height to which they can climb) depends on their symbiotic connections with the pillar MNEs. Both components are essential and reinforce each other. Without MNEs, the scaling of startups is hampered. Without a vibrant population of startups, MNEs’ interest in a location remains driven by cost, rather than capability and creativity. MNEs (mainly foreign) provided the initial sparks for the formation of the Indian innovation and entrepreneurship ecosystem. We chart the subsequent growth of India's startups. They began in the information technology (IT) sector but now cover a much wider range of industries. Today, India's innovation and entrepreneurship ecosystem is one of the largest in the world, with global integration in terms of technology, financing, human capital, and administration.

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“…In addition, KSC provides an intriguing setting for this study owing to their important positions in global sourcing and locational choice strategies of transnational firms (Rodgers, Khan, Tarba, Nurgabdeshov, & Ahammad, 2019). However, international business literature regards service provider firms as 2 T. N. B. Ngo and S. Thornton subordinate only (Brandl, Jensen, & Lind, 2018;Lorenzen, 2019) and stresses the importance of global sources of knowledge over local sources of knowledge, such as LKS, in the innovation process of knowledge service providers in developing countries (Turkina & Van Assche, 2019). This premise introduces a hitherto unexplored phenomenon into the role of LKS in such innovation processes.…”

Section: Introductionmentioning

confidence: 99%

How Knowledge Services Clustered Firms Leverage Different Channels of Local Knowledge Spillovers for Service Innovation

Ngo

Thornton

2022

Manag. Organ. Rev.

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Built upon configuration theory, this study performs a Qualitative Comparative Analysis (QCA) to delineate alternative and sufficient configurations of local knowledge spillover (LKS) channels, that is, how informal interactions and spinoff, and absorptive capacity are combined to facilitate service innovation. Primary data was collected from the largest software outsourcing cluster in Vietnam in 2018, which provides a sample size of 42 firms. The findings imply that multiple configurations of different channels of LKS in conjunction with absorptive capacity can lead to service innovation. This study makes three important contributions. First, it contributes to the debate over the critical role of LKS and absorptive capacity in innovation by offering a more holistic, yet nuanced understanding of the causal mechanisms underlying service innovation. Second, this study sheds light on viable and equifinal pathways for enhancing innovation capabilities, therefore contributing to the literature on cluster upgrading and global service sourcing. Third, it provides some managerial implications for indigenous spinoff firms in developing countries seeking to innovate through the strategic use of LKS.

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How Early Entrants Impact Cluster Emergence: MNEs vs. Local Firms in the Bangalore Digital Creative Industries

Cited by 9 publications

References 94 publications

An Anatomy of Bengaluru's ICT Cluster: A Community Detection Approach

An Anatomy of Bengaluru's ICT Cluster: A Community Detection Approach

Innovation and Entrepreneurship in India: An Overview

How Knowledge Services Clustered Firms Leverage Different Channels of Local Knowledge Spillovers for Service Innovation

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