Regional and Firm Competitiveness in the Service‐based Economy: Combining Economic Geography and International Business Theory

Abstract

This paper argues the case for combining international business theory and economic geography theory in order to understand the new rules of competition for both multinational corporations (MNCs) and regions in the globalising knowledge-based economy. Sweden serves as a case study to illustrate the shifts of sectors and people skills that have paved the way for the transformation of the Swedish economy that has occurred over the last 15 years. Combining international business theory with that of economic geography produces the possibility of developing a conceptual framework for explaining the new dynamics and interaction that are occurring between people-place-firm. The enhanced importance of people and place, shifting pace, complex networks of production, and new balances of power together lead to changing practices and strategic implications for both MNCs and regions competing in the globalising knowledge-based economy. Copyright (c) 2010 by the Royal Dutch Geographical Society KNAG.

Services Offshoring: Location Choice and Subnational Regional Advantages in China

“…Figure 5 portrays the 'people-place-firm' model as proposed by Ström and Wahlqvist (2010). They suggest that: (1) specific characteristics of a place attract companies to locate their offshoring activities there; (2) in consequence, the industrial structure at the place changes, which may have an impact on the structure of the workforce; (3) the changing workforce and their skills are a part of the location characteristics which again impact on offshoring activities (Ström and Wahlqvist 2010). Yet, we believe that the relationships among place, people, and firm are more complex than the linear and one-way circle as shown earlier in Fig.…”

“…It is well recognized that comparative advantages across nations and places may change over time, which influence and are influenced by offshoring activities at the location. Economic geographers, Ström and Wahlqvist (2010), argue that the dynamic feature of the interaction between location and offshoring activities may be even more relevant to the service sector. Figure 5 portrays the 'people-place-firm' model as proposed by Ström and Wahlqvist (2010).…”

“…Economic geographers, Ström and Wahlqvist (2010), argue that the dynamic feature of the interaction between location and offshoring activities may be even more relevant to the service sector. Figure 5 portrays the 'people-place-firm' model as proposed by Ström and Wahlqvist (2010). They suggest that: (1) specific characteristics of a place attract companies to locate their offshoring activities there; (2) in consequence, the industrial structure at the place changes, which may have an impact on the structure of the workforce; (3) the changing workforce and their skills are a part of the location characteristics which again impact on offshoring activities (Ström and Wahlqvist 2010).…”

Internationalization strategies of emerging market-based multinationals: integration of Indian ICT-ITES companies on the Dutch service outsourcing market

“…The literature on internationalization strategies of firms is largely based on the experience of firms from developed countries (Buckley & Hashai, 2014;Govindarajan & Ramamurti, 2011;Ström & Wahlqvist, 2010). Dunning's OLI (ownership, location and internalization) paradigm has for many researchers served as reference on why firms engage in crossborder value-added activities (Dunning, 1988(Dunning, , 1998.…”

“…Whether international expansion of EMNCs follows extant Western patterns and theories on international firm expansion (e.g. Dunning, 1988Dunning, , 1998 or, considering their latecomer disadvantages, requires a rethinking of core concepts in firm internationalization theory (Buckley & Hashai, 2014;Luo & Tung, 2007;Sinkovics et al, 2014;Ström & Wahlqvist, 2010) is a key debate in economic geography and international business literature that this paper aims to contribute to. It will do so by providing a better understanding of the rationale and strategies behind outgoing foreign direct investments (FDI) from EMNCs in a sector that is associated with the relocation of work by Western multinationals to lower cost countries rather than EMNCs entering Western markets.…”