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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.

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

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