The Technological Capability Building Processes of Clustered Firms in Developing Countries: Their Characteristics and Driving Powers A Multiple Case Study Based on Capability Matrix

Purpose The purpose of this paper is to explore the characteristics of TC building processes of clustered firms in developing countries. The driving effects of joint action and OEM based extra-cluster knowledge linkages on the TC building process will also be analyzed deeply. Design/methodology/approach The paper is a multiple case study involving TC building processes of clustered producers in two developing countries. The comprehensive analytical tool and research framework of Capability Matrix is adopted while the collective efficiency theory and the GVC theory being integrated together to achieve the research purpose of this paper. Findings The results of this study show: first, the TC building process of the clustered firms in developing countries has the characteristic of being multi-path and the innovation degree of TCs being promoted gradually; second, for the TC building process of clustered firms in developing countries, joint action is an important cluster-level driving force and can play crucial driving effects on it; third, the driving effects of OEM based extra-cluster knowledge linkages upon TC building process of clustered firms in developing countries have certain limitations. In spite of this, through utilizing extra-cluster knowledge linkages of this kind to learn aggressively and proactively, the clustered firms could break through these limitations and overcome the obstacles set up by the leading firms in GVC, building up TCs with higher innovation degree in wider functional areas. Originality/value This research is, to the best of the author's knowledge, one of the first attempts to bring together the collective efficiency theory, the GVC theory and the comprehensive research framework of Capability Matrix in the research domain of IC building processes at the clustered firm level. It not only provides structural analysis framework for our profound understanding the TC building processes of clustered firms in developing countries, but also have certain realistic directive significance for the clustered firms in developing countries to build up TCs with higher innovation degree in wider functional areas by means of engaging in joint actions and extra-cluster knowledge linkages in the context of globalization.