Sino-Danish Center Research Project: Value Chain Innovation

The project focuses on multiple systemic linkages between R&D, production and services networks of firms. Unraveling these linkages is crucial for advancing our understanding of value creation and management in the global context. In order to yield richer insights into how value chains can be organised on the global scale, this project will reach beyond the traditional functional split and will reflect not only on the developments within functional networks but also on how they relate to each other. How are production, R&D and service footprints interrelated? How can Danish and Chinese firms innovate interfaces between these value chain activities? How and why do production and service domains matter for innovation capabilities? These are among the key questions addressed in this research initiative.
Despite the empirical focus on Danish and Chinese firms in this study, there are some generalizable parallels with firms beyond Sino-Danish context, e.g. China-Europe, emerging economies-Europe, etc. However, before attempting to generalize to a wider array of contexts, we will approach China and Denmark as the main research context for the study.
The project is based on multiple in-depth case studies of Chinese and Danish companies. Special focus will be given to the cases representing industries that are particularly susceptible to the interdependency between production, R&D and services areas (e.g., highly innovative and emerging industries).

Expected theoretical and managerial contributions:
The existing literature on fragmentation and global dispersion of value chains do not necessarily adequately address the complex interplay between co-evolving production, innovation and service networks. By relating the development of these networks, we attempt to bridge the existing gap in the literature.
Based on the findings of this research initiative we attempt to develop tools and recommendations designed for managers dealing with organizing interfaces between functional areas directly or indirectly affected by globalization and fragmentation of value chains.