IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v122y2017icp215-230.html
   My bibliography  Save this article

Paths of technological capability building in complex capital goods: The case of hydro electricity generation systems in Iran

Author

Listed:
  • Kiamehr, Mehdi

Abstract

This paper investigates the accumulation of technological capability in latecomer suppliers of complex capital goods by exploring the issue in an Iranian supplier of large hydro electricity generation systems. The findings suggest that, contrary to the conventional paths of catch-up in Asian and Latin American mass-producing electronics firms, and instead of starting from early stages of product lifecycle, the technological capabilities in this case were acquired through a non-linear movement within the stages of designing and installing complex capital goods in projects: starting from the middle stage (engineering and realisation of complex goods in projects), moving to the last stage (operation and troubleshooting of complex goods), and eventually coming back to the first stage (conception and design of complex goods). A detailed analysis of learning mechanisms reveals that this path emerged largely due to the nature of “learning by projects” in this industry, engineering intensity of the tasks, and insufficiency of conventional knowledge transfer methods for building design capabilities in complex systems. The paper starts by developing an initial framework of technological capabilities that is then refined through this study and the resulting framework is presented as one of the contributions. Based on the findings, a set of new empirical categories of technological capabilities in complex capital goods is suggested to help future research in this area. Implications of this research are also discussed for global value chains literature. The conclusion touches upon the implications of the study for business strategy and policy.

Suggested Citation

  • Kiamehr, Mehdi, 2017. "Paths of technological capability building in complex capital goods: The case of hydro electricity generation systems in Iran," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 215-230.
    • Handle: RePEc:eee:tefoso:v:122:y:2017:i:c:p:215-230
    DOI: 10.1016/j.techfore.2016.03.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162516000718
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2016.03.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hobday, Mike, 1998. "Product complexity, innovation and industrial organisation," Research Policy, Elsevier, vol. 26(6), pages 689-710, February.
    2. Kim, Linsu, 1980. "Stages of development of industrial technology in a developing country: A model," Research Policy, Elsevier, vol. 9(3), pages 254-277, July.
    3. Chen, Liang-Chih, 2009. "Learning through informal local and global linkages: The case of Taiwan's machine tool industry," Research Policy, Elsevier, vol. 38(3), pages 527-535, April.
    4. Virginia Acha & Andrew Davies & Michael Hobday & Ammon Salter, 2004. "Exploring the capital goods economy: complex product systems in the UK," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(3), pages 505-529, June.
    5. Teubal, Morris, 1984. "The role of technological learning in the exports of manufactured goods: the case of selected capital goods in Brazil," World Development, Elsevier, vol. 12(8), pages 849-865, August.
    6. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
    7. Nebahat Tokatli, 2013. "Toward a better understanding of the apparel industry: a critique of the upgrading literature," Journal of Economic Geography, Oxford University Press, vol. 13(6), pages 993-1011, November.
    8. Michael Hobday, 1995. "Innovation In East Asia," Books, Edward Elgar Publishing, number 226.
    9. Richard S. Rosenbloom, 2000. "Leadership, Capabilities, and Technological Change: The Transformation of NCR in the Electronic Era," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1083-1103, October.
    10. Peter Gammeltoft, 2004. "Development of firm-level technological capabilities," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 9(1), pages 49-69.
    11. Majidpour, Mehdi, 2012. "Heavy duty gas turbines in Iran, India and China: Do national energy policies drive the industries?," Energy Policy, Elsevier, vol. 41(C), pages 723-732.
    12. Yohanes Kadarusman & Khalid Nadvi, 2013. "Competitiveness and Technological Upgrading in Global Value Chains: Evidence from the Indonesian Electronics and Garment Sectors," European Planning Studies, Taylor & Francis Journals, vol. 21(7), pages 1007-1028, July.
    13. Kiamehr, Mehdi & Hobday, Mike & Hamedi, Mohsen, 2015. "Latecomer firm strategies in complex product systems (CoPS): The case of Iran’s thermal electricity generation systems," Research Policy, Elsevier, vol. 44(6), pages 1240-1251.
    14. Paulo N. Figueiredo, 2001. "Technological Learning and Competitive Performance," Books, Edward Elgar Publishing, number 2373.
    15. R. Kaplinsky, 2000. "Globalisation and Unequalisation: What Can Be Learned from Value Chain Analysis?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 117-146.
    16. Rebecca Henderson & Iain Cockburn, 1994. "Measuring Competence? Exploring Firm Effects in Pharmaceutical Research," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 63-84, December.
    17. Oud, Engelbertus, 2002. "The evolving context for hydropower development," Energy Policy, Elsevier, vol. 30(14), pages 1215-1223, November.
    18. Constance E. Helfat & Margaret A. Peteraf, 2015. "Managerial cognitive capabilities and the microfoundations of dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 36(6), pages 831-850, June.
    19. repec:bla:econom:v:46:y:1979:i:182:p:187-96 is not listed on IDEAS
    20. Carlo Pietrobelli, 2008. "Global value chains in the least developed countries of the world: threats and opportunities for local producers," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(4), pages 459-481.
    21. Patel, Pari & Pavitt, Keith, 1997. "The technological competencies of the world's largest firms: Complex and path-dependent, but not much variety," Research Policy, Elsevier, vol. 26(2), pages 141-156, May.
    22. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    23. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    24. Andrew Davies, 2004. "Moving base into high-value integrated solutions: a value stream approach," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(5), pages 727-756, October.
    25. Bagheri Moghaddam, Nasser & Mousavi, Sayyed Moslem & Nasiri, Masoud & Moallemi, Enayat A. & Yousefdehi, Hami, 2011. "Wind energy status of Iran: Evaluating Iran's technological capability in manufacturing wind turbines," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 4200-4211.
    26. Daniel M.G. Raff, 2000. "Superstores and the evolution of firm capabilities in American bookselling," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1043-1059, October.
    27. Choung, Jae-Yong & Hwang, Hye-Ran & Song, Wichin, 2014. "Transitions of Innovation Activities in Latecomer Countries: An Exploratory Case Study of South Korea," World Development, Elsevier, vol. 54(C), pages 156-167.
    28. Brian S. Silverman, 1999. "Technological Resources and the Direction of Corporate Diversification: Toward an Integration of the Resource-Based View and Transaction Cost Economics," Management Science, INFORMS, vol. 45(8), pages 1109-1124, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tarighi, Sina & Shavvalpour, Saeed, 2021. "Technological development of E&P companies in developing countries: An integrative approach to define and prioritize customized elements of technological capability in EOR," Resources Policy, Elsevier, vol. 72(C).
    2. Nanditha Mathew & George Paily, 2022. "STI-DUI innovation modes and firm performance in the Indian capital goods industry: Do small firms differ from large ones?," The Journal of Technology Transfer, Springer, vol. 47(2), pages 435-458, April.
    3. Moghadam, Saman Salehi & Gholamian, Mohammad Reza & Zahedi, Rahim & Shaqaqifar, Maziar, 2024. "Designing a multi-purpose network of sustainable and closed-loop renewable energy supply chain, considering reliability and circular economy," Applied Energy, Elsevier, vol. 369(C).
    4. Qian Ma & Weiwei Wu & Yexin Liu, 2021. "The Fit between Technology Management and Technological Capability and Its Impact on New Product Development Performance," Sustainability, MDPI, vol. 13(19), pages 1-12, October.
    5. Zhongji Yang & Liangqun Qi & Xin Li & Tianxi Wang, 2022. "How Does Successful Catch-Up Occur in Complex Products and Systems from the Innovation Ecosystem Perspective? A Case of China’s High-Speed Railway," Sustainability, MDPI, vol. 14(13), pages 1-22, June.
    6. Han Huang & Jie Xiong & Junfang Zhang, 2021. "Windows of Opportunity in the CoPS’s Catch-Up Process: A Case Study of China’s High-Speed Train Industry," Sustainability, MDPI, vol. 13(4), pages 1-16, February.
    7. Chen, Yanning, 2018. "Comparing North-South technology transfer and South-South technology transfer: The technology transfer impact of Ethiopian Wind Farms," Energy Policy, Elsevier, vol. 116(C), pages 1-9.
    8. Davy, Elder & Hansen, Ulrich E., 2023. "A firm-level perspective on windows of opportunity," Technology in Society, Elsevier, vol. 75(C).
    9. Galati, Francesco & Bigliardi, Barbara & Galati, Roberta & Petroni, Giorgio, 2021. "Managing structural inter-organizational tensions in complex product systems projects: Lessons from the Metis case," Journal of Business Research, Elsevier, vol. 129(C), pages 723-735.
    10. Soltanzadeh, Javad & Rahmani, Soma & Majidpour, Mehdi, 2024. "Technological catch-up in the Iranian steel industry: Integrating regime-based and complex product systems approaches," Resources Policy, Elsevier, vol. 89(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hansen, Ulrich Elmer & Lema, Rasmus, 2019. "The co-evolution of learning mechanisms and technological capabilities: Lessons from energy technologies in emerging economies," Technological Forecasting and Social Change, Elsevier, vol. 140(C), pages 241-257.
    2. Kiamehr, Mehdi & Hobday, Mike & Hamedi, Mohsen, 2015. "Latecomer firm strategies in complex product systems (CoPS): The case of Iran’s thermal electricity generation systems," Research Policy, Elsevier, vol. 44(6), pages 1240-1251.
    3. Emanuele Brancati & Carlo Pietrobelli & Caio Torres Mazzi, 2024. "The Influence of value chain governance on innovation performance: A study of Italian suppliers," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 14(2), pages 319-344, June.
    4. Padmashree Gehl Sampath & Bertha Vallejo, 2018. "Trade, Global Value Chains and Upgrading: What, When and How?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 481-504, July.
    5. Rakesh B. Sambharya & Jooh Lee, 2014. "Renewing Dynamic Capabilities Globally: An Empirical Study of the World’s Largest MNCs," Management International Review, Springer, vol. 54(2), pages 137-169, April.
    6. Andrea Morrison & Carlo Pietrobelli & Roberta Rabellotti, 2006. "Global Value Chains and Technological Capabilities: A Framework to Study Industrial Innovation in Developing Countries," KITeS Working Papers 192, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Dec 2006.
    7. Guo, Yanting & Zheng, Gang, 2019. "How do firms upgrade capabilities for systemic catch-up in the open innovation context? A multiple-case study of three leading home appliance companies in China," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 36-48.
    8. Yoruk, Deniz E., 2019. "Dynamics of firm-level upgrading and the role of learning in networks in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 341-369.
    9. Arasti, Mohammadreza & Khaleghi, Mahdi & Noori, Javad, 2017. "Corporate-level technology strategy and its linkage with corporate strategy in multi-business companies: IKCO case study," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 243-252.
    10. Andrea Morrison & Carlo Pietrobelli & Roberta Rabellotti, 2008. "Global Value Chains and Technological Capabilities: A Framework to Study Learning and Innovation in Developing Countries," Oxford Development Studies, Taylor & Francis Journals, vol. 36(1), pages 39-58.
    11. Gideon Ndubuisi & Solomon Owusu, 2021. "How important is GVC participation to export upgrading?," The World Economy, Wiley Blackwell, vol. 44(10), pages 2887-2908, October.
    12. Tarighi, Sina & Shavvalpour, Saeed, 2021. "Technological development of E&P companies in developing countries: An integrative approach to define and prioritize customized elements of technological capability in EOR," Resources Policy, Elsevier, vol. 72(C).
    13. Ye Jin Lee & Kwangsoo Shin & Eungdo Kim, 2019. "The Influence of a Firm’s Capability and Dyadic Relationship of the Knowledge Base on Ambidextrous Innovation in Biopharmaceutical M&As," Sustainability, MDPI, vol. 11(18), pages 1-17, September.
    14. Mohan Babu, G.N., 1999. "The Determinants of Firm-level Technological Performances - A Study on the Indian Capital Goods Sector," UNU-INTECH Discussion Paper Series 1999-01, United Nations University - INTECH.
    15. Xue, Jinjie & Liu, Junqi & Geng, Zizhen & Yuan, Hongping & Chao, Lei, 2023. "Why and when do paradoxical management capabilities matter to paradoxical pressure? An empirical investigation of the role of coopetition," Technovation, Elsevier, vol. 120(C).
    16. Binz, Christian & Gosens, Jorrit & Hansen, Teis & Hansen, Ulrich Elmer, 2017. "Toward Technology-Sensitive Catching-Up Policies: Insights from Renewable Energy in China," World Development, Elsevier, vol. 96(C), pages 418-437.
    17. Cusmano, Lucia & Morrison, Andrea & Rabellotti, Roberta, 2010. "Catching up Trajectories in the Wine Sector: A Comparative Study of Chile, Italy, and South Africa," World Development, Elsevier, vol. 38(11), pages 1588-1602, November.
    18. Saon Ray & Smita Miglani, 2018. "Upgrading in the Indian automobile sector: The role of lead firms," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 360, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
    19. Constance E. Helfat & Miguel A. Campo-Rembado, 2016. "Integrative Capabilities, Vertical Integration, and Innovation Over Successive Technology Lifecycles," Organization Science, INFORMS, vol. 27(2), pages 249-264, April.
    20. Choi, Mincheol & Lee, Chang-Yang, 2021. "Technological diversification and R&D productivity: The moderating effects of knowledge spillovers and core-technology competence," Technovation, Elsevier, vol. 104(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:122:y:2017:i:c:p:215-230. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.