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Technological intensities in East and Southeast Asian electronics firms: Does network strength matter?

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  • Rajah Rasiah

Abstract

This paper examines the importance of network strength (NS) on the technological intensities (TI) of electronics firms. TI was disentangled into the categories of human resource (HR), process technology (PT) and R&D (RD) intensities, and the differences between foreign and local firms. The results show that firms in Korea and Taiwan endowed with superior NS enjoy significantly higher skill intensity, TI and RD than firms in Malaysia and Thailand, which have inferior NS. There were no obvious differences in HR practices between foreign and local firms in the four countries. Local firms enjoyed higher TI and RD than foreign firms in Taiwan. There was no statistical difference involving all the technological categories between foreign and local firms in Korea. Foreign firms in Malaysia enjoyed statistically superior TI compared with local firms. Local firms in Thailand showed higher TI and PT than foreign firms. TI and RD of firms are strongly correlated with NS, which showed a stronger impact on TI and RD among local rather than foreign firms. The superior NS of Korea and Taiwan has helped firms participate in higher technological activities and pay higher wages than firms in Malaysia and Thailand.

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  • Rajah Rasiah, 2004. "Technological intensities in East and Southeast Asian electronics firms: Does network strength matter?," Oxford Development Studies, Taylor & Francis Journals, vol. 32(3), pages 433-455.
    • Handle: RePEc:taf:oxdevs:v:32:y:2004:i:3:p:433-455
    DOI: 10.1080/1360081042000260610
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    Cited by:

    1. Rajah Rasiah & Yap Xiao Shan & Yap Su Fei, 2015. "Sticky Spots on Slippery Slopes: The Development of the Integrated Circuits Industry in Emerging East Asia," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 7(1), pages 52-79, April.
    2. Rasiah, Rajah & Shahrivar, Rafat Beigpoor & Yap, Xiao-Shan, 2016. "Institutional support, innovation capabilities and exports: Evidence from the semiconductor industry in Taiwan," Technological Forecasting and Social Change, Elsevier, vol. 109(C), pages 69-75.
    3. Lee, Woocheol, 2022. "Domestic Share of Value-Added and the Development of Production Capabilities of Local Firms within Global Value Chains," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(2), pages 81-99, June.
    4. Rajah Rasiah & Ashish Kumar, 2008. "Foreign Ownership, Technological Intensities and Economic Performance of Automotive Parts Firms in India," Asia Pacific Business Review, Taylor & Francis Journals, vol. 14(1), pages 85-102.
    5. Xin Xin KONG & Miao ZHANG & Santha Chenayah RAMU, 2015. "China's Semiconductor Industry in Global Value Chains," Working Papers DP-2015-15, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. Rajah Rasiah & Shujaat Mubarik & Xiao-Shan Yap, 2017. "Financing Technological Upgrading in East Asia," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 22(Special E), pages 153-182, September.
    7. Rajah Rasiah, 2010. "Industrialization in the Second-tier NIEs," Chapters, in: Rajah Rasiah & Johannes Dragsbaek Schmidt (ed.), The New Political Economy of Southeast Asia, chapter 2, Edward Elgar Publishing.
    8. The Editors, 2008. "Special Issue: Multinationals, Technology and Localization in the Automotive Industry in Asia," Asia Pacific Business Review, Taylor & Francis Journals, vol. 14(1), pages 1-12.
    9. Rajah Rasiah & Nazia Nazeer, 2015. "The State of Manufacturing in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(Special E), pages 205-224, September.
    10. Rajah Rasiah, 2008. "Conclusions and Implications: The Role of Multinationals in Technological Capability Building and Localization in Asia," Asia Pacific Business Review, Taylor & Francis Journals, vol. 14(1), pages 165-169.
    11. Rajah Rasiah & Nik Rosnah Wan Abdullah & Makmor Tumin, 2011. "Markets and Healthcare Services in Malaysia: Critical Issues," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(3), pages 467-486, October.
    12. Goedhuys, Micheline, 2005. "Learning, Product Innovation and Firm Heterogeneity in Tanzania," UNU-INTECH Discussion Paper Series 2005-07, United Nations University - INTECH.
    13. Rajah Rasiah & Nazia Nazeer, 2016. "Comparing Industrialization in Pakistan and the East Asian Economies," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 167-192, September.

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