Multinational experience and the creation of linkages with local firms: evidence from the electronics industry
AbstractThis paper focuses on multinational companies' creation of linkages with local firms in the electronics industry. Evidence is drawn from a novel data-set, covering international operations of the top European and US electronics companies, over the period 1984--95. Econometric tests are provided to highlight how firms' multinational experience, measured by the extent of their presence in foreign countries, affects cooperative agreements, as opposed to licensing and foreign direct investments. It is highlighted that multinationals' subsidiary accumulation has a positive and significant impact on collaborative linkages with local firms. This contrasts with the transaction cost view underlying most market-entry literature, but is consistent with a dynamic efficiency perspective which emphasises the role of linkages in learning and knowledge accumulation and exploitation. Copyright 2002, Oxford University Press.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Cambridge Journal of Economics.
Volume (Year): 26 (2002)
Issue (Month): 1 (January)
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Other versions of this item:
- Davide CASTELLANI & Antonello ZANFEI, 1998. "Multinational experience and the creation of linkages with local firms. Evidence from the electronics industry," Working Papers 111, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- O23 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
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