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From competitive advantage to dynamic capabilities: small and medium-sized multinationals in Asia

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  • Tattara, Giuseppe

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.

Suggested Citation

  • Tattara, Giuseppe, 2012. "From competitive advantage to dynamic capabilities: small and medium-sized multinationals in Asia," MPRA Paper 39364, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:39364
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    More about this item

    Keywords

    Strategic management of multinational firms; Value chains; Capability-based strategies;
    All these keywords.

    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

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