Upgrading to lead firm position via international acquisition: learning from the global biomass power plant industry

Ulrich Elmer Hansen, Niels Fold, Teis Hansen

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    This article examines the case of a Chinese firm that has upgraded to lead firm position in the global biomass power plant industry mainly through acquisitions of technological frontier firms in Denmark. Sustaining the lead firm position was, however, challenged by difficulties in developing innovative capability. Drawing on the literature on (i) firm-level technological capability and (ii) knowledge transfer in international acquisitions, we explain the reasons for insufficient innovative capability building. Based on these empirical findings, we suggest maintaining the existing upgrading framework but applying it analytically in a more flexible manner that avoids linearity, hierarchy and segmentation while stressing the co-existence of and inter-relationships between the different types of upgrading.
    Original languageEnglish
    JournalJournal of Economic Geography
    Volume16
    Issue number1
    Pages (from-to)131-153
    Number of pages23
    ISSN1468-2702
    DOIs
    Publication statusPublished - 2016

    Keywords

    • Global value chains
    • Industrial upgrading
    • Mergers and acquisitions
    • Technological capability
    • Biomass power plant industry
    • China

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