Innovation capability building and learning mechanisms in latecomer firms: recent empirical contributions and implications for research

Learning and technological capability building in emerging economies: The case of the biomass power equipment industry in Malaysia

“…Lewis 2007Lewis , 2011Mizuno, 2007;Marigo et al, 2010). At a more general level, this supports the argument put forward in Kim (1997), Mathews (2002), and Bell and Figueiredo (2012) that significant advances in technological capability formation in latecomer firms is often related to learning through networks of foreign and more advanced technology partners. However, following Fu and Gong (2011), this also speaks to a broader discussion about internal (or indigenous) learning and innovation, on the one hand, versus foreign technology, on the other hand, as the main sources of technological capability formation in latecomer firms (see also Fu and Zhang, 2011).…”

“…Externally mediated learning, on the other hand, involves a number of ways whereby knowledge is acquired and internalised into the organisation from sources outside the firm (Bell and Figueiredo, 2012). In this paper, particular attention is paid to learning processes facilitated through dyadic relationships between firms, as opposed to other types of external influences, such as linkages with local universities or recruitment of employees from sources outside the firm.…”

“…It should be noted, however, that, as Bell and Figueiredo (2012) argue, the boundary between production and innovation capabilities is often fuzzy and not straightforward. Whereas other taxonomies, such as those elaborated in Ariffin (2000) and Figueiredo (2001), comprise indicators to assess the level of technological capability across a number of technical functions in the firm (such as process, product, equipment, or investment-related), this paper focuses exclusively on the product side.…”

“…Learning in the second sense thus requires conscious, costly, and concerted efforts through the allocation of necessary financial and human resources with the explicit purpose of building innovative capabilities. Following Bell and Figueiredo (2012), this paper focuses on learning understood in the latter sense -as deliberate processes by which additional technical skills and knowledge are acquired by individuals, and through them by organisations, potentially varying according to how explicitly deliberate these processes are and how much time and money is invested in them.…”

“…Level of persistence and human and financial resources devoted to leverage learning from external sources Source: Adapted from Figueiredo (2001;2003) (c) The importance of different learning mechanisms Based on the conceptualisation above, one may distinguish between learning mechanisms that are either internal or external (local or foreign) to the firm (Bell and Figueiredo, 2012). Viotti (2002) stresses that technological learning in latecomer firms is largely confined to the absorption of existing technologies acquired from foreign, more technologically advanced firms.…”