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Capability Matrix : A Framework for Analyzing Capabilities in Value Chains
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Abstract
This paper develops a Capability Matrix for analyzing capabilities of developing
country firms that participate in global and national value chains. This is a generic
framework to capture firm-level knowledge accumulation in the context of global
and local industrial constellations, by integrating key elements of the global value
chain (GVC) and technological capabilities (TC) approaches. The framework can
visually portray characteristics of firms’ capabilities, and highlight a relatively
overlooked factor in the GVC approach: local firms’ endogenous learning efforts in
varieties of relationship with lead firms.Developing Countries, Industrial Management, Business Enterprises, Capability Matrix, Capabilities, Value Chains, Lead Firms, Local Firms