Spatial development of technological knowledge and the evolution of international business activity across technological paradigms

Abstract

How has the spatial structure of the development of technological knowledge in international business (IB) shifted over time, moving between paradigms for IB and society? To answer this research question, we use the method of historical analysis and attempt to synthesize literature streams on international business history and technological paradigms to trace this evolution. Drawing insights from this synthesis and building on evolutionary theoretical approaches in IB, we argue that three elements - (i) technological (T), (ii) global institutional (G), and (iii) local institutional (L) – are key to understanding the spatial development of technological knowledge in IB, as these elements enable, expedite, or constrain technological and organizational change in MNEs within a paradigm and during periods of paradigmatic shifts. We conclude with a case illustration of a firm founded in the 1700s to assess its responses to (and actions that may have prompted) the shifts in the T, G, and L elements across the three technological paradigms – mechanical (1780–1880), electromechanical (1880–1980), and digital (1980-present).