(3) Relevant group: Firms that are not directly specialized in aerospace industry, but have very close relationship with business functions of the other two groups. 4.3 Control Variables In addition to industrial heterogeneity across multiple chain phases of aerospace industry, in the context of emerging market, geographic location and institutional constraints of firms, duration of market presence as well as embeddedness in various business networks also play a crucial role determining the network positions of firms. In this research, firm’s geographic affiliation is determined by their location of official registration. Those are registered in mainland China are regarded as domestic firms, while the others are labeled as foreign. Foreign firms that are located in one of the Economies” defined “Advanced by IMF World Economic Outlook (2016) are identified from Developed Economies (DE), others are identified from Other Emerging Economies (EE). As for domestic firms, as geographic proximity and knowledge-spill over contributes to the overall network position, firm’s location within significant aerospace industrial cluster is taken into consideration, based on the calculation outcome of location quotient of employment in aerospace industry provided by Civil Aviation Industrial Yearbook 2014. Table: Summary of Firm Distribution in Partnership and Supply Chain Networks Partnership Network Supply Chain Network Firm 488 555 Country of Origin China 279 280 Developed Economies 184 244 Other Emerging Economies 25 31 Value Chain Position Upstream Supplier 125 155 Downstream Supplier 85 86
(3) Relevant group: Firms that are not directly specialized in aerospace industry, but have very close relationship with business functions of the other two groups. 4.3 Control Variables In addition to industrial heterogeneity across multiple chain phases of aerospace industry, in the context of emerging market, geographic location and institutional constraints of firms, duration of market presence as well as embeddedness in various business networks also play a crucial role determining the network positions of firms. In this research, firm’s geographic affiliation is determined by their location of official registration. Those are registered in mainland China are regarded as domestic firms, while the others are labeled as foreign. Foreign firms that are located in one of the “Advanced Economies” defined by IMF World Economic Outlook (2016) are identified from Developed Economies (DE), others are identified from Other Emerging Economies (EE). As for domestic firms, as geographic proximity and knowledge-spill over contributes to the overall network position, firm’s location within significant aerospace industrial cluster is taken into consideration, based on the calculation outcome of location quotient of employment in aerospace industry provided by Civil Aviation Industrial Yearbook 2014. Table: Summary of Firm Distribution in Partnership and Supply Chain Networks Partnership Network Supply Chain Network Firm 488 555 Country of Origin China 279 280 Developed Economies 184 244 Other Emerging Economies 25 31 Value Chain Position Upstream Supplier 125 155 Downstream Supplier 85 86
Yihan-Wang-network-workshop.docx