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Taking Actively Advantage of MNCs’ Presence

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  • Chiara Guardo

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  • Giovanni Valentini

    ()

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    Abstract

    In 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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    File URL: http://hdl.handle.net/10.1007/s11187-005-6708-8
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    Bibliographic Info

    Article provided by Springer in its journal Small Business Economics.

    Volume (Year): 28 (2007)
    Issue (Month): 1 (January)
    Pages: 55-68

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    Handle: RePEc:kap:sbusec:v:28:y:2007:i:1:p:55-68

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    Web page: http://www.springerlink.com/link.asp?id=100338

    Related research

    Keywords: Relational View; Spillovers; Firms; Growth; Effects of FDI; F23; L14; M10;

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    References

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