It is proposed that Orange Electric Plc.’s absorptive capacity, its ability to …show more content…
Yet, their strategic value to the company will naturally erode over time (Judge& Ferris, 2009) as substitutes appear and new competitive problems emerge. Orange Electric Plc. can apply three methods for learning new external knowledge; passive, active, and interactive, and each provides a different type of knowledge. It is important to note that the very fact that the knowledge Orange Electric Plc. provide is articulable (observable) means that it is no longer rare, imperfectly traded, or costly to …show more content…
Typically, relocation could be the “removal” of a production unit to a low production cost country via outward FDI in Finland. Otherwise, it could be that the relocated production is contracted out to a foreign subcontractor without any FDI or removal of a production unit. Further, international production relocation can affect not only industrial plants but also services production, in particular those services the production of which requires some industrial goods such as electrical products