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Managing FDI technology spillovers: A challenge to TNCs in emerging markets

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  • Tian, Xiaowen

Abstract

Prior studies on foreign direct investment (FDI) technology spillovers have offered little guidance to transnational corporations (TNCs) on how to protect and exploit technology across borders. The present paper argues that TNCs can manage technology spillovers through selection of entry modes, selection of technologies, and selection of investment priorities in the affiliates they establish in foreign markets. A number of hypotheses are derived from theoretical analyses and are tested against firm-level data from China. The findings of the paper have significant implications for TNCs that face fierce competition from local firms in emerging markets.

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  • Tian, Xiaowen, 2010. "Managing FDI technology spillovers: A challenge to TNCs in emerging markets," Journal of World Business, Elsevier, vol. 45(3), pages 276-284, July.
    • Handle: RePEc:eee:worbus:v:45:y:2010:i:3:p:276-284
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    Cited by:

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    2. Sajid Anwar & Sizhong Sun, 2015. "Foreign direct investment in R&D and domestic entrepreneurship in China's manufacturing industries," Applied Economics, Taylor & Francis Journals, vol. 47(16), pages 1633-1651, April.
    3. Thuy Do & Frédéric Le Roy & Thuy Seran, 2021. "Cooperation between global and local firms in emerging markets: a coopetition approach The case in Vietnam," Post-Print hal-03215229, HAL.
    4. Jue Wang & Yingqi Wei & Xiaming Liu & Chengang Wang & Hua Lin, 2014. "Simultaneous Impact of the Presence of Foreign MNEs on Indigenous Firms’ Exports and Domestic Sales," Management International Review, Springer, vol. 54(2), pages 195-223, April.
    5. Rui Guo & Lutao Ning & Kaihua Chen, 2022. "How do human capital and R&D structure facilitate FDI knowledge spillovers to local firm innovation? a panel threshold approach," The Journal of Technology Transfer, Springer, vol. 47(6), pages 1921-1947, December.
    6. Felix Haifeng Liao & Yehua H Dennis Wei, 2013. "Tncs' Technology Linkages with Domestic Firms: An Investigation of the Ict Industry in Suzhou, China," Environment and Planning C, , vol. 31(3), pages 460-474, June.
    7. Chen, Jianxun & Zhan, Wu & Tong, Zhaodi & Kumar, Vikas, 2020. "The effect of inward FDI on outward FDI over time in China: A contingent and dynamic perspective," International Business Review, Elsevier, vol. 29(5).
    8. Li, Dan & Miller, Stewart R. & Eden, Lorraine & Hitt, Michael A., 2012. "The Impact of Rule of Law on Market Value Creation for Local Alliance Partners in BRIC Countries," Journal of International Management, Elsevier, vol. 18(4), pages 305-321.
    9. Tian, Xiaowen & Slocum, John W., 2014. "What determines MNC subsidiary performance? Evidence from China," Journal of World Business, Elsevier, vol. 49(3), pages 421-430.

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