From competitive advantage to dynamic capabilities: small and medium-sized multinationals in Asia
AbstractItalian 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 39364.
Date of creation: 2012
Date of revision:
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:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Iuzzolino Giovanni & Menon Carlo, 2011. "Industrial Agglomeration in the North East: Signals of Discontinuity in Two Thousand Years," L'industria, Società editrice il Mulino, issue 4, pages 615-654.
- Jamuna Agarwal, 1980. "Determinants of foreign direct investment: A survey," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 116(4), pages 739-773, December.
- Martha Prevezer, 2008. "The emergence of markets and capabilities, dynamic transaction costs and institutions: effects on organizational choices in offshored and outsourced business services in China," Working Papers 25, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
- Kimura, Fukunari & Ando, Mitsuyo, 2005. "Two-dimensional fragmentation in East Asia: Conceptual framework and empirics," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 317-348.
- John Humphrey & Hubert Schmitz, 2008. "Inter-firm relationships in global value chains: trends in chain governance and their policy implications," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(3), pages 258-282, January.
- Tattara, Giuseppe, 2005.
"Il diverso modo in cui le piccole imprese misurano il loro successo,"
24, University Library of Munich, Germany.
- Tattara, Giuseppe, 2005.
"Il Diverso Modo In Cui Le Piccole Imprese Misurano Il Loro Successo
[How Do Small Firms Growth?]," MPRA Paper 10783, University Library of Munich, Germany.
- Tattara, Giuseppe, 2005. "Il Diverso Modo In Cui Le Piccole Imprese Misurano Il Loro Successo
- Tattara, Giuseppe & Campagnol, Desirée, 2008.
"Delocalizzazione Produttiva E Ammortizzatori Sociali. La Tessitura Monti Spa
[Internationalization and redundancies: the case of Monti Textile Group Spa]," MPRA Paper 10357, University Library of Munich, Germany.
- Giuseppe Tattara & Desirèe Campagnol, 2008. "Delocalizzazione produttiva e ammortizzatori sociali. La Tessitura Monti Spa," ECONOMIA E SOCIETÀ REGIONALE, FrancoAngeli Editore, vol. 2008(2).
- Richard N. Langlois, 2002.
"The Vanishing Hand: the Changing Dynamics of Industrial Capitalism,"
2002-21, University of Connecticut, Department of Economics.
- Richard N. Langlois, 2003. "The vanishing hand: the changing dynamics of industrial capitalism," Industrial and Corporate Change, Oxford University Press, vol. 12(2), pages 351-385, April.
- Richard N. Langlois, 2001. "The Vanishing Hand: the Changing Dynamics of Industrial Capitalism," Economic History 0110001, EconWPA.
- Tattara, Giuseppe, 2010.
"Choosing between foreign investment and subcontracting: Strategies of Italian firms in Romania,"
23787, University Library of Munich, Germany.
- Tattara, Giuseppe, 2011. "Choosing between foreign investment and subcontracting: Strategies of Italian firms in Romania," MPRA Paper 29174, University Library of Munich, Germany.
- Jan Johanson & Jan-Erik Vahlne, 2009. "The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership," Journal of International Business Studies, Palgrave Macmillan, vol. 40(9), pages 1411-1431, December.
- Klaus E. Meyer & Ram Mudambi & Rajneesh Narula, 2011. "Multinational Enterprises and Local Contexts: The Opportunities and Challenges of Multiple Embeddedness," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 235-252, 03.
- Kaplinsky, Raphael & Terheggen, Anne & Tijaja, Julia, 2010. "What happens when the market shifts to China ? the Gabon timber and Thai cassava value chains," Policy Research Working Paper Series 5206, The World Bank.
- Alan M Rugman & Alain Verbeke, 2004.
"A perspective on regional and global strategies of multinational enterprises,"
Journal of International Business Studies,
Palgrave Macmillan, vol. 35(1), pages 3-18, January.
- Alan M. Rugman & Alain Verbeke, 2004. "A Perspective on Regional and Global Strategies of Multinational Enterprises," Working Papers 2004-19, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
- Danis, Wade M. & De Clercq, Dirk & Petricevic, Olga, 2011. "Are social networks more important for new business activity in emerging than developed economies? An empirical extension," International Business Review, Elsevier, vol. 20(4), pages 394-408, August.
- Françoise Lemoine & Deniz Ünal-Kesenci, 2002. "China's Outward-Oriented Industries: a Source of Technological Dependency or a Means to Catch-Up?," La Lettre du CEPII, CEPII research center, issue 213.
- Hatani, Faith, 2009. "The logic of spillover interception: The impact of global supply chains in China," Journal of World Business, Elsevier, vol. 44(2), pages 158-166, April.
- Saul Estrin & Martha Prevezer, 2010.
"The Role of Informal Institutions in Corporate Governance: Brazil, Russia, India and China Compared,"
31, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
- Saul Estrin & Martha Prevezer, 2011. "The role of informal institutions in corporate governance: Brazil, Russia, India, and China compared," Asia Pacific Journal of Management, Springer, vol. 28(1), pages 41-67, March.
- Sea-Jin Chang, 1998. "Industry and Regional Patterns in Sequential Foreign Market Entry," Journal of Management Studies, Wiley Blackwell, vol. 35(6), pages 797-821, November.
- Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan, vol. 8(1), pages 23-32, March.
- Philip McCann & Ram Mudambi, 2004. "The Location Behavior of the Multinational Enterprise: Some Analytical Issues," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 35(4), pages 491-524.
- Paolo regstdtanello & Giuseppe Tattara, 2011. "Industrial Clusters and the Governance of the Global Value Chain: The Romania-Veneto Network in Footwear and Clothing," Regional Studies, Taylor and Francis Journals, vol. 45(2), pages 187-203.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.