Template-type: ReDif-Paper 1.0 
Author-Name: Keijzer, Charlotte
Author-Email: keijzer@merit.unu.edu
Author-workplace-name: UNU-MERIT, and Maastricht University
Author-Name: Iizuka, Michiko
Author-Email: iizuka@merit.unu.edu
Author-workplace-name: UNU-MERIT, and Maastricht University
Title: Pathways for capacity building in heterogeneous value chains: Evidence from the 
	 case of IT-enabled services in South Africa
Abstract: The global value chain (GVC) approach has stressed that inter-firm 
	 linkages within GVCs can create new opportunities for capabilities 
	 formation in developing countries. However, little is known about how 
	 firms from developing countries engage and benefit from participation in 
	 GVCs of services. Using data collected from 44 interviews of IT-enabled 
	 service providers in South Africa, this paper explores how service 
	 providers in developing countries build service delivery competence 
	 critical to their performance, focusing specifically on the development 
	 of human resource management capabilities and domain expertise. Results 
	 show that participation in GVCs triggers learning processes for firms 
	 that are crucial in building service delivery competence, especially in 
	 the absence of a strong national system of innovation. Nevertheless, 
	 interactions between actors and institutions within the country, as well 
	 as internal firm resources are critical to acquire and adapt 
	 foreign-sourced knowledge to the local context. Finally, we find local 
	 and regional value chains of IT-enabled services offer additional 
	 learning avenues for capability formation and potential pathways into 
	 GVCs for domestic firms.
Keywords: Global value chains, regional value chains, system of innovation, human
	 resource development, organisational learning, IT-enabled services, South Africa 
Classification-JEL: D83, O14, O15, O33, O38 
Series: UNU-MERIT Working Papers
Creation-Date: 20170217
Number: 2017-012
File-URL: https://unu-merit.nl/publications/wppdf/2017/wp2017-012.pdf
File-Format: application/pdf
File-Size: 275 kb
Handle: RePEc:unm:unumer:2017012