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MNC strategies and linkage effects in developing countries

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  • Hansen, Michael W.
  • Pedersen, Torben
  • Petersen, Bent

Abstract

The study addresses the implications MNC strategies have for linkage effects in developing countries. Two contrasting MNC strategies, which reflect an integration-responsiveness dichotomy, are scrutinized in terms of their effects on jobs among local linkage partners in developing countries. It is hypothesized that the investments of MNCs pursuing local responsiveness create more jobs among local linkage partners, but imply less job upgrading, when compared to investments undertaken by MNCs following strategies of global integration. The hypotheses are tested on a sample of Danish MNCs with extensive investments in developing countries.

Suggested Citation

  • Hansen, Michael W. & Pedersen, Torben & Petersen, Bent, 2009. "MNC strategies and linkage effects in developing countries," Journal of World Business, Elsevier, vol. 44(2), pages 121-130, April.
  • Handle: RePEc:eee:worbus:v:44:y:2009:i:2:p:121-130
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    References listed on IDEAS

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    Cited by:

    1. Giroud, Axèle & Scott-Kennel, Joanna, 2009. "MNE linkages in international business: A framework for analysis," International Business Review, Elsevier, vol. 18(6), pages 555-566, December.
    2. Amol Gore & Pekka Kess, 2014. "Treading the Risks in International Management," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 3(1), pages 125-141.
    3. Kubny, Julia & Voss, Hinrich, 2014. "Benefitting from Chinese FDI? An assessment of vertical linkages with Vietnamese manufacturing firms," International Business Review, Elsevier, vol. 23(4), pages 731-740.
    4. repec:spr:manint:v:55:y:2015:i:3:d:10.1007_s11575-014-0227-2 is not listed on IDEAS
    5. Kragelund, Peter, 2017. "The making of local content policies in Zambia's copper sector: Institutional impediments to resource-led development," Resources Policy, Elsevier, vol. 51(C), pages 57-66.
    6. Simona, Gentile-Lüdecke & Axèle, Giroud, 2012. "Knowledge Transfer from TNCs and Upgrading of Domestic Firms: The Polish Automotive Sector," World Development, Elsevier, vol. 40(4), pages 796-807.
    7. Lema, Rasmus & Quadros, Ruy & Schmitz, Hubert, 2012. "Shifts in Innovation Power to Brazil and India: Insights from the Auto and Software Industries," MPRA Paper 49591, University Library of Munich, Germany.
    8. Giroud, Axèle & Jindra, Björn & Marek, Philipp, 2012. "Heterogeneous FDI in Transition Economies – A Novel Approach to Assess the Developmental Impact of Backward Linkages," World Development, Elsevier, vol. 40(11), pages 2206-2220.
    9. Perri, Alessandra & Andersson, Ulf & Nell, Phillip C. & Santangelo, Grazia D., 2013. "Balancing the trade-off between learning prospects and spillover risks: MNC subsidiaries’ vertical linkage patterns in developed countries," Journal of World Business, Elsevier, vol. 48(4), pages 503-514.
    10. Kostova, Tatiana & Marano, Valentina & Tallman, Stephen, 2016. "Headquarters–subsidiary relationships in MNCs: Fifty years of evolving research," Journal of World Business, Elsevier, vol. 51(1), pages 176-184.
    11. Petr Pavlínek & Pavla Žížalová, 2016. "Linkages and spillovers in global production networks: firm-level analysis of the Czech automotive industry," Journal of Economic Geography, Oxford University Press, vol. 16(2), pages 331-363.

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