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The changing geography and ownership of value creation: Evidence from mobile telecommunications

Larsen, Marcus Møller; Seppälä, Timo; Ali-Yrkkö, Jyrki
Journal article, Peer reviewed
Accepted version
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URI
http://hdl.handle.net/11250/2558357
Date
2018
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  • Publikasjoner fra CRIStin - BI [644]
  • Scientific articles [1334]
Original version
Industry and Innovation, 25(7), 675-698   10.1080/13662716.2017.1329086
Abstract
Through an innovative trade-in-task case study, we explore how Nokia, which is historically one of the most important mobile phone manufacturers in the world, offshored the development and production of three distinct mobile phones at three different points in time. Adjacent to these processes, we find that the value creation in areas such as design and manufacturing knowledge has rapidly shifted away from advanced economies to emerging economies. Moreover, we find that the value added captured by Nokia decreased dramatically over the studied time period. Based on our results, we uss more generally the challenge of multinational corporations to preserve value and how the realisation of the benefits of offshoring must be assessed with respect to the altered requirements for controlling value-adding activities.
Publisher
Taylor & Francis
Journal
Industry and Innovation

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