Introduction
“Subsidiary Roles, vertical linkages and economic development: Lessons from transition economies,” by Bjo¨rn Jindra, Axe le Giroud, and Joanna Scott-Kennel is an interesting article that provides information concerning the vertical supply chains, foreign subsidiaries, as well as, foreign firms (Alfaro & Rodrı´guez-Clare, 2004). According to the authors, technological competencies and subsidiary roles are factors that affect the vertical linkage extents and their respective potentials for technological spillovers.
Main body
In this article, the authors aim at proving that there is a direct linkage between vertical supply chains, foreign subsidiaries, and foreign firms. In a bid to perform their study, the authors have used survey evidence collected from 424 foreign subsidiaries that are transition-economy based. This evidence has been thoroughly tested for the determination of the effects of autonomy of the subsidiaries collected. The initiative, technological capability, external and internal technological embeddedness in terms of the intensities of forwarding as well as backward vertical linkages of the evidence collected have also been tested (Giroud, 2003). The evidence provided by the authors of the article supports their respective arguments as they maintain that technology diffusion potential via vertical linkages depends on the nature and type of subsidiary roles. There is a discussion regarding the implications for the given transition and other developing countries.
The authors of this article are business and economic experts who have done extensive research and produced significant information in their areas of expertise. As a result, the level of qualification of the authors of this article is absolute. This makes the information in the article authentic for consideration and adoption since the readers can be satisfied by the authenticity of the article. In terms of the methodology used for gathering the evidence, the authors of the article have relied on the use of a collection of the survey from 424 economies. Surveys are significant for data collection especially in a situation whereby the data to be collected is from a wide population or concerns many distributions (Hoskisson, Eden, Lau & Wright, 2000). As a result, it can be deduced the decision of the authors to use the survey as the appropriate methodology for data collection is accurate. This is because, the nature of the population that the study handled was large and only the use of surveys could have produced evidence that can be trusted for adoption and consideration in terms of determining conclusions in the study (Gianni, 1990).
The authors collected evidence from different economies of the world that were relevant to the study. The accuracy of the evidence can be proven by the facts and figures presented in the article concerning the source of the information. The vivid display of the evidence as used by the authors is significant in terms of boosting the confidence levels of the readers concerning the credibility of the evidence. Tabular presentations of the data, as well as, mathematical presentations of the means of processing the evidence give credibility to the evidence used by the authors of this article. As a result, based on the evidence used in this study the readers can bear the same conclusions as to the author. Technological competencies and subsidiary roles are factors that affect the vertical linkage extents and their respective potentials for technological spillovers. This is proven by the article.
Building a logical argument is a very important procedure in article presentation. The authors of this article have done a good job to argue their case by the use of credible instruments to increase the credibility of their work. In a bid to build strong arguments the authors of this article have used tabular presentations of the data collected. This presents the data distribution of all the respective economies listed for the study. It is also important to note that logical argumentation has also been fully enhanced by the initial provision of background information concerning the economies to be studied. This increases credibility since the readers are given materials which they can use for determining the credibility and authenticity of the study presented. As a result, it can be noted that the authors of this article have done a good job to argue their case and present logical materials which boost the trust of the readers. In addition, the use of descriptive statistics, as well as, mathematical formulae for the estimation and variable approach is incredible. The mathematical calculations give evidence that the study carried out is authentic and reliable.
However, it should be noted that the authors of this article have failed to provide evidence that can be used to support counter-argument. While it is clear that the authors of this article have done exceptionally well to bring out proper argumentation in a bid to build their case, there is a total failure in terms of exposition of counter-arguments regarding the study. This blocks the readers from carefully testing the vertical linkage extents and their respective potentials for the technological spillovers. As a result, the readers are left to assumptions that though the evidence produced is accurate, various challenges exposed may prove otherwise. This is a weakness in this literary work. The readers are left to total assumptions since the evidence produced cannot be tested for credibility purposes (Rodolphe, 2007).
Another strength exhibited by this article is regarding the validity of the evidence that has been produced by the authors of this article. The evidence is updated and relevant since the material evidence collected is within verifiable dates. To be precise, the authors of this article have gathered material evidence collected between 2000 and 2007. Interestingly, this makes it easy for the readers to determine the credibility of the information that has been presented by the authors of this article. As a matter of verification, the readers can determine the authenticity of the materials used since they were produced just a few years ago. This increases the credibility of this work.
The success in terms of making the point clear to the readers has been achieved clearly by the authors through the reliance on proper information presentation and theoretical explanations given regarding potentials for the technological spillovers. With such excellent presentations, it is possible, as a reader, to clearly and accurately gain a proper understanding of the information presented in the article.
Conclusion
In conclusion, I agree with the conclusion of author that technological competencies and subsidiary roles are factors that affect the vertical linkage extents and their respective potentials for the technological spillovers. This is because vertical linkages are dynamic and the roles of subsidiaries given by the government as well as the technologies used in the process will automatically cause-effect. This literary production is credible and should be used for the stud of economics.
References
- Alfaro, L., & Rodrı´guez-Clare, A. (2004). Multinationals and linkages: An empirical investigation. Economia, 4(2): 113–156.
- Gianni, V. (1990). Postmodern criticism: postmodern critique in David Wood. London: Wiley and Sons.
- Giroud, A. (2003). Transnational corporations, technology and economic development: Backward linkages and knowledge transfer in South East Asia. Cheltenham, Northampton: Edward Elgar.
- Hoskisson, R., Eden, L., Lau, C., & Wright, M. (2000). Strategy in emerging Economies. Academy of Management Journal, 43: 249–267.
- Rodolphe, G. (2007). The honor of thinking: critique, theory, philosophy. New York: Prentice Hall Publishers.