Capability Matrix: A Framework for Analyzing Capabilities in Value Chains

Yuri Sato and Fujita Mai

No 219, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper develops a Capability Matrix for analyzing capabilities of developingcountry firms that participate in global and national value chains. This is a genericframework to capture firm-level knowledge accumulation in the context of globaland local industrial constellations, by integrating key elements of the global valuechain (GVC) and technological capabilities (TC) approaches. The framework canvisually portray characteristics of firms’ capabilities, and highlight a relativelyoverlooked factor in the GVC approach: local firms’ endogenous learning efforts invarieties of relationship with lead firms.

Keywords: Developing Countries; Industrial Management; Business Enterprises; Capability Matrix; Capabilities; Value Chains; Lead Firms; Local Firms (search for similar items in EconPapers)
JEL-codes: B41 L22 L60 O31 (search for similar items in EconPapers)
Date: 2009-12-01
New Economics Papers: this item is included in nep-cse
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Citations: View citations in EconPapers (6)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 219. 2009-12-01

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