The relationship among competitive advantage, catch-up, and linkage effects: a comparative study on ICT industry between South Korea and India

Abstract

This study examined the relationship among competitive advantage, catch-up, and linkage effects using Input–Output (IO) data of the information and communications technology (ICT) industry between South Korea and India. ICT industry was classified into ICT manufacturing and ICT service sectors on the basis of the taxonomic definitions provided by Organisation for Economic Co-operation and Development (OECD). Data were collected from World Input–Output Database (WIOD) ranging from 2000 to 2014 in order to quantitatively estimate the forward linkage (FL) and backward linkage (BL) effects. This study then used Leontief’s IO models to compute the FL and BL effects of ICT manufacturing and ICT service of Korea and India. Thereafter, four separate univariate analyses of variance were performed to statistically test the research hypotheses developed based on literature review and conceptual framework. The results of the study revealed that (1) an industry with competitive advantage had a higher FL effect and (2) a catch-up growing industry had a higher BL effect. In conclusion, ICT manufacturing and service sectors between Korea and India have very different characteristics and effects on each national economy.