Taking Actively Advantage of MNCs’ Presence
AbstractIn this paper, not only do we posit that the presence of a multinational corporation may entail significant benefits for the host economy and local firms’ performance, but also that these benefits can be actively sought and dynamically reinforced by local firms through the development of intense, embedded customer–supplier relationships. Building on the relational view, we argue that this may happen through the commitment of resources to relation-specific investments. Our hypotheses find support in a sample of SMEs suppliers of ST Microelectronics, the fourth largest producer of microelectronic components in the world. We show that by making relation-specific investments, local firms can grow quantitatively and qualitatively, improve their innovativeness, and acquire new clients. Copyright Springer 2007
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Bibliographic InfoArticle provided by Springer in its journal Small Business Economics.
Volume (Year): 28 (2007)
Issue (Month): 1 (January)
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Web page: http://www.springerlink.com/link.asp?id=100338
Relational View; Spillovers; Firms; Growth; Effects of FDI; F23; L14; M10;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- M10 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - General
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