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Abstract

Italian firms have recently engaged in direct investment abroad through the establishment of production facilities in China and India. Using data gathered from interviews conducted in those countries in 2009 with 16 Italian predominantly small and medium-sized firms, this article explores: the motivations behind Italian parent companies’ decisions to create subsidiaries in Asia; relations between the newly established production facilities and their local suppliers and markets; any subsequent organizational adaptations; and the cultural and administrative difficulties the enterprises have encountered. The article provides a novel perspective on how predominantly small and medium-sized manufacturing firms achieve cost and differentiation advantages by leveraging their dynamic capabilities.

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File URL: http://mpra.ub.uni-muenchen.de/39364/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39364.

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Date of creation: 2012
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Handle: RePEc:pra:mprapa:39364

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Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
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Related research

Keywords: Strategic management of multinational firms; Value chains; Capability-based strategies;

Find related papers by JEL classification:

• L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
• F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
• F14 - International Economics - - Trade - - - Empirical Studies of Trade

This paper has been announced in the following NEP Reports:

• NEP-ALL-2012-06-25 (All new papers)
• NEP-CSE-2012-06-25 (Economics of Strategic Management)

References

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