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Absorptive Capacity as a Mediator

Innovation of Handicraft Exporters in Yogyakarta, Indonesia

Bibliographic Data

ID10832976
AuthorsJan Fransen (0000-0003-1127-7307, Institute of Housing and Urban Development Studies (IHS) Erasmus University Rotterdam, PO Box 1935, 3000 BX Rotterdam The Netherlands, corresponding author), A H J Helmsing (0000-0002-2339-1900, International Institute of Social History, corresponding author), A H J Bert Helmsing (International Institute of Social Studies (ISS) Erasmus University Rotterdam, P.O. Box 29776, 2502 LT The Hague the Netherlands)
Year2017
Volume108
Issue6
Pages737-752
Publication date2017-12-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueTijdschrift voor Economische en Sociale Geografie (JOURNAL)
Journal identifiersISSN: 0040-747X • E-ISSN: 1467-9663
PublisherWiley (PUBLISHER • GB)
DOI10.1111/tesg.12212
OpenAlexW2521855226
LanguageEN
Citations received7
References cited34

Innovation processes in emerging economies tend to differ from those in developed countries in that a larger share of firms absorb existing knowledge. The paper assesses how firms’ absorptive capacity mediates the impact of global value chains on the innovation of handicraft exports in Yogyakarta, Indonesia. The study draws three conclusions. First, the incremental innovation of craft exporters demands specific but rather mundane absorptive capacities of firms, such as language abilities and capable departments. Second, and contrary to what might be expected, the study finds that the governance modes of global value chains do not significantly affect the level of innovation. Third, a group of traders have the highest level of innovation, the highest level of absorptive capacity, and they positively affect the innovation of suppliers. Overall, the findings show that knowledge diffusion is furthered within an emerging local innovation system

Absorptive capacity · Affect (linguistics · Business · Corporate governance · Craft · Economic geography · Economics · Emerging markets · Handicraft · Industrial organization · Value (mathematics · Global trade and economics · Global trade, sustainability, and social impact · International Business and FDI

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Unique citing works7
Citations per year0.78
Citation span2017 - 2026 (10)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 7

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