An Institutional perspective on production and upgrading : The electronics industry in Hong Kong and the Pearl River Delta

Production and upgrading processes in emerging economies are studied by geographers and economists for many years. However, the relevance of institutions, in particular the informal ones, has not yet been fully understood. The institutional perspective of this book is relevant because regional production and innovation are embedded within multi-layered institutional settings which are enforced by actors at different spatial scales, e.g. local stakeholders, national policy makers, and multinational firms. This book analyses the electronics industry of the mega-urban region of Hong Kong and the Pearl River Delta which is the world s most important production cluster of the industry. A conceptual discussion on the institutional approach to informality and an overview of methods to measure it set the scene for five empirical chapters. The description of the spatial and organisational transition of the electronics industry in the region is followed by a thorough analysis of the role of personal relations for doing business. Finally, the most important issue for the long-term competitiveness of the region is discussed: upgrading and innovation. CONTENTS CHAPTER A. INTRODUCTION 1. THE RELEVANCE OF THE INSTITUTIONAL PERSPECTIVE 2. AIM, SCOPE AND CONTRIBUTION 3. POSITIONING THE THESIS WITHIN A LARGER RESEARCH PROJECT 4. ACKNOWLEDGEMENTS PART I: CONCEPT AND MEASUREMENT OF INFORMALITY CHAPTER B. INFORMAL DYNAMICS OF ECONOMIC PROCESSES – CONCEPTUAL REMARKS ON INFORMALITY AND AGILITY IN EMERGING ECONOMIES 1. THE CONCEPT OF INFORMALITY FROM AN INSTITUTIONAL PERSPECTIVE 2. AGILITY: SUSTAINED COMPETITIVE ADVANTAGE BY COMBINING INFORMALITY AND FLEXIBILITY 3. REGIONAL ASPECTS OF INFORMALITY AND AGILITY: UPGRADING AND RESILIENCE 4. CONCLUSION CHAPTER C. MEASURING INFORMALITY AND FLEXIBILITY – AN OVERVIEW OF DATA AND METHODS USED FOR THE EMPIRICAL ANALYSIS 1. COMPANY SURVEYS 2. QUALITATIVE INTERVIEWS 3. MEASURING THE IMPORTANCE OF PERSONAL NETWORKS AND OTHER FACETS OF INFORMALITY 4. DISCUSSION OF STRENGTHS AND POTENTIAL WEAKNESSES OF THE DATASETS AND INDICATORS PART II: INFORMAL ORGANISATION OF BUSINESS ACTIVITIES CHAPTER D. SPATIAL AND ORGANISATIONAL TRANSITION OF AN EAST ASIAN HIGH-GROWTH REGION: THE ELECTRONICS INDUSTRY IN THE GREATER PEARL RIVER DELTA 1. INTRODUCTION 2. CONCEPTUALISING SPATIAL AND ORGANISATIONAL TRANSITION IN HIGH-GROWTH REGIONS 3. EMPIRICAL RESULTS ON SPATIAL TRANSITIONS 4. EMPIRICAL RESULTS ON ORGANISATIONAL TRANSITIONS 5. DISCUSSION AND CONCLUSION CHAPTER E. PERSONALISATION OF BUSINESS RELATIONS IN HONG KONG AND THE PEARL RIVER DELTA: AN INSTITUTIONAL NECESSITY OR A STRATEGIC OPPORTUNITY? 1. INTRODUCTION 2. THE RATIONALE BEHIND PERSONALISATION OF BUSINESS RELATIONS 3. DESCRIPTIVE RESULTS ON THE IMPORTANCE OF PERSONAL NETWORKS 4. EXPLANATION OF PERSONALISATION PATTERNS 5. DISCUSSION OF QUALITATIVE EVIDENCE 6. SUMMARY AND CONCLUSION PART III: INFORMAL ASPECTS OF UPGRADING AND INNOVATION CHAPTER F. THE ROLE OF FOREIGN AND DOMESTIC FIRMS IN REGIONAL INNOVATION SYSTEMS OF LATECOMER COUNTRIES: EMPIRICAL EVIDENCE FROM THE ELECTRONICS INDUSTRY IN THE PEARL RIVER DELTA 1. INTRODUCTION 2. CONCEPTUAL CONSIDERATIONS ON THE UPGRADING OF TECHNOLOGICAL CAPABILITIES AND INNOVATION IN DEVELOPING COUNTRIES 3. OVERVIEW OF THE ELECTRONICS INDUSTRY IN THE GUANGDONG PROVINCE 4. INNOVATION AND UPGRADING ACTIVITIES OF DOMESTIC AND NON-DOMESTIC ELECTRONICS FIRMS 5. DISCUSSION AND CONCLUSION CHAPTER G. THE IMPACT OF GOVERNANCE AND STRATEGY ON CORPORATE INNOVATION ACTIVITIES AND FIRM PERFORMANCE IN EMERGING ECONOMIES 1. INTRODUCTION 2. CORPORATE GOVERNANCE, STRATEGY AND INNOVATION IN EMERGING ECONOMIES 3. EMPIRICAL RESULTS ON THE IMPACT OF CORPORATE GOVERNANCE AND STRATEGY ON INNOVATION 4. DISCUSSION 5. CONCLUSION CHAPTER H. UPGRADING STRATEGIES OF FIRMS FROM EMERGING ECONOMIES IN GLOBAL VALUE CHAINS: THREE CASES FROM THE ELECTRONICS INDUSTRY IN HONG KONG 1. INTRODUCTION 2. IDENTIFICATION OF DETERMINANTS FOR UPGRADING ON THREE LEVELS 3. THE REGIONAL PRODUCTION AND INNOVATION SYSTEM OF HONG KONG AND THE PEARL RIVER DELTA 4. THE CASE STUDIES 5. DISCUSSION AND CONCLUSION CHAPTER I. SUMMARY AND CONCLUSION 1. SUMMARY OF THE MAJOR FINDINGS 2. MAJOR FINDINGS WITH RESPECT TO INFORMAL DYNAMICS 3. POLICY IMPLICATIONS 4. RESEARCH IMPLICATIONS LIST OF REFERENCES ANNEX