The local co-evolution of firms and governments in the Information Age

Loading...
Thumbnail Image

Access rights

openAccess

URL

Journal Title

Journal ISSN

Volume Title

A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä

Date

2020-12

Major/Subject

Mcode

Degree programme

Language

en

Pages

13

Series

Journal of International Business Studies

Abstract

The governance structures of the value-creating activities of MNEs have evolved towards more networked forms that are geographically highly concentrated and involve partnering with diverse actors. The experimentation that takes place within these corporate networks has a parallel on the government side, where subnational governments, and particularly cities as hubs of economic activity, have increased their profile and level of cooperative activity. We argue that engagement in these partnerships is an essential way in which firms and governments co-evolve and create the basis for sustainable economic growth in the Information Age. While the origins of this collaborative form of governance reside in the increasing knowledge intensity of value creation, its implications go far beyond MNE value creation and capture, extending to issues of global governance such as climate change and sustainable development goals. We examine the implications of this process of co-evolution both in terms of the costs of developing the requisite corporate capabilities as well as the legitimacy of these efforts as part of a deliberative democracy.

Description

Keywords

business–government interaction, economic geography, knowledge transfer and innovation, multi-party cooperation, theory of FDI and the MNE

Other note

Citation

Lundan, S & Cantwell, J 2020, ' The local co-evolution of firms and governments in the Information Age ', Journal of International Business Studies, vol. 51, no. 9, pp. 1516-1528 . https://doi.org/10.1057/s41267-020-00373-3