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From Blind Spots to Hotspots: How Knowledge Services Clusters Develop and Attract Foreign Investment

Journal of International Management, Vol. 16, pp. 369-382, 2010

15 Pages Posted: 30 Jul 2010 Last revised: 18 Apr 2011

Stephan Manning

University of Massachusetts at Boston - College of Management

Joan-Enric Ricart

University of Navarra, IESE Business School

Maria Soledad Rosatti Rique

University of Navarra, IESE Business School

Arie Y. Lewin

Duke University - Fuqua School of Business

Date Written: May 30, 2010

Abstract

This paper explores local and global dynamics underlying the development of knowledge services clusters, which we define as new geographic concentrations of technical talent and service providers offering upstream technical and knowledge-intensive business services to regional and global clients. Taking a co-evolutionary perspective on the development of knowledge services clusters in Latin America, based on data from the Offshoring Research Network (ORN), we find that cluster growth results from intersecting trajectories: the emergence of local talent pools and capabilities initially serving local and regional demand; broadening global search for talent and expertise by multinational corporations; and internationalization strategies of service providers competing to serve global clients. Findings suggest that increasing commoditization of knowledge services opens up windows of opportunity for new clusters, but also involves challenges for sustainable growth. Results may stimulate future research on global sourcing and cluster development.

Keywords: Knowledge Services, Cluster Development, Emerging Economies, Global Sourcing, Location Choices, Service Capabilities, Commoditization

JEL Classification: J23, J24, J44, J31, M51, M53, M54, L14, L21, L22, L24, L84, O14, R11, P45, P48, F59, F21, F22, F23

Suggested Citation

Manning, Stephan and Ricart, Joan-Enric and Rosatti Rique, Maria Soledad and Lewin, Arie Y., From Blind Spots to Hotspots: How Knowledge Services Clusters Develop and Attract Foreign Investment (May 30, 2010). Journal of International Management, Vol. 16, pp. 369-382, 2010. Available at SSRN: https://ssrn.com/abstract=1651186

Stephan Manning (Contact Author)

University of Massachusetts at Boston - College of Management ( email )

100 Morrissey Blvd
Boston, MA 02125
United States

Joan-Enric Ricart

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

Maria Rosatti Rique

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

Arie Lewin

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States
919-660-7832 (Phone)
919-681-6244 (Fax)

HOME PAGE: http://www.fuqua.duke.edu/faculty/alpha/ayl3.htm

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