SUPPLIER UPGRADING IN SUPPORTING INDUSTRIES UNDER GLOBAL SUPPLY CHAIN RESTRUCTURING: THE ROLE OF SUBNATIONAL INSTITUTIONAL QUALITY, FDI LINKAGES AND FIRM ABSORPTIVE CAPACITY – EVIDENCE FROM VIETNAM
DOI:
https://doi.org/10.62985/j.huit_ojs.vol26.no3E.556Từ khóa:
FDI linkages, absorptive capacity, supporting industries.Tóm tắt
This research is to examine supplier upgrading in supporting industries under global supply chain restructuring, focusing on the interaction between subnational institutional quality, FDI linkages, and firm absorptive capacity. Moving beyond approaches that treat these factors independently, the study conceptualizes upgrading as a context-specific configuration shaped by their interdependent relationships. An exploratory qualitative design is adopted, combining document analysis and semi-structured interviews to identify underlying mechanisms. The findings show that institutional quality influences not only the business environment but also the embeddedness of FDI and the effectiveness of policy implementation. FDI linkages create access to knowledge and standards, but upgrading outcomes remain uneven and contingent on firms’ absorptive capacity. Importantly, absorptive capacity is partially conditioned by institutional support and policy usability. The study identifies a triple interaction mechanism in which institutions shape linkage quality, linkages generate learning opportunities, and absorptive capacity determines knowledge conversion into upgrading. By integrating institutional and capability-based perspectives at the subnational level, the study provides a contextualized explanation for heterogeneous upgrading trajectories in emerging economies.
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