IDEAS home Printed from https://ideas.repec.org/p/aal/glowps/2015-02.html
   My bibliography  Save this paper

Technological learning in MNC subsidiaries operating in regional integration processes: a case study on an automotive company in MERCOSUR

Author

Listed:
  • Martín Obaya

Abstract

In the last three decades, multinational corporations (MNC) have undergone a far-reaching reorganisation that resulted, firstly, in a reorganisation of their business activities around regional areas, and secondly, in an increasing decentralisation of their knowledge-creating activities. As a result of this evolution, some subsidiaries in developing countries have benefited from this process and been able to accumulate technological capabilities. Through the examination of an automotive MNC operating in MERCOSUR, this article examines how innovation activities are organised among subsidiaries operating in a regional integration agreement among developing countries, and what are the driving forces shaping this process. Empirical findings show that a highly hierarchical division between the subsidiaries has been established by the parent company and that knowledge-creating activities are geographically concentrated in one single country.

Suggested Citation

  • Martín Obaya, 2015. "Technological learning in MNC subsidiaries operating in regional integration processes: a case study on an automotive company in MERCOSUR," Globelics Working Paper Series 2015-02, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management.
    • Handle: RePEc:aal:glowps:2015-02
    as

    Download full text from publisher

    File URL: https://papers.globelics.org/wp-content/uploads/2018/07/GWP2015.02.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ruy Quadros & Flavia Consoni, 2009. "Innovation capabilities in the Brazilian automobile industry: a study of vehicle assemblers' technological strategies and policy recommendations," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 2(1/2), pages 53-75.
    2. Jean-Bernard Layan & Yannick Lung, 2004. "The Dynamics of Regional Integration in the European Car Industry," Palgrave Macmillan Books, in: Jorge Carrillo & Yannick Lung & Rob Tulder (ed.), Cars, Carriers of Regionalism?, chapter 4, pages 57-74, Palgrave Macmillan.
    3. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
    4. Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Global production networks: realizing the potential," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 271-295, May.
    5. Mario Cimoli & Jorge Katz, 2003. "Structural reforms, technological gaps and economic development: a Latin American perspective," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(2), pages 387-411, April.
    6. Hobday, Michael & Rush, Howard, 2007. "Upgrading the technological capabilities of foreign transnational subsidiaries in developing countries: The case of electronics in Thailand," Research Policy, Elsevier, vol. 36(9), pages 1335-1356, November.
    7. Davide Castellani & Antonello Zanfei, 2006. "Multinational Firms, Innovation and Productivity," Books, Edward Elgar Publishing, number 3709.
    8. Andrés López (coordinador) & Valeria Arza & Andrés López & Mariano Laplane & Fernando Sarti & Gustavo Bittencourt & Rosario Domingo & Nicolás Reig Lorenzi & Red MERCOSUR, 2008. "La industria automotríz en el MERCOSUR," Serie Red MERCOSUR, Red Mercosur, edition 1, volume 1, number 10 edited by Red MERCOSUR, Spring.
    9. Jorge Carrillo & Yannick Lung & Rob Tulder (ed.), 2004. "Cars, Carriers of Regionalism?," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-52385-2.
    10. Robert Pearce & Marina Papanastassiou, 2009. "Subsidiaries, Innovation and the Strategic Development of Multinationals," Palgrave Macmillan Books, in: The Strategic Development of Multinationals, chapter 1, pages 1-20, Palgrave Macmillan.
    11. -, 1994. "Open regionalism in Latin America and the Caribbean: economic integration as a contribution to changing production patterns with social equity," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37868 edited by Eclac.
    12. Henry Wai‐Chung Yeung, 2009. "Transnational Corporations, Global Production Networks, and Urban and Regional Development: A Geographer's Perspective on Multinational Enterprises and the Global Economy," Growth and Change, Wiley Blackwell, vol. 40(2), pages 197-226, June.
    13. Yannick Lung & Jorge Carrillo & Rob van Tulder, 2004. "Cars, Carriers of regionalism?," Post-Print hal-00248180, HAL.
    14. Marina Papanastassiou & Robert Pearce, 2009. "The Strategic Development of Multinationals," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-25048-2.
    15. Ernst, Dieter & Kim, Linsu, 2002. "Global production networks, knowledge diffusion, and local capability formation," Research Policy, Elsevier, vol. 31(8-9), pages 1417-1429, December.
    16. Martín Obaya, 2014. "Geographical distribution of product development capabilities in the automobile industry: towards a hierarchical division of labour in Mercosur," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 14(2), pages 102-120.
    17. Marcos Amatucci & Fábio Luiz Mariotto, 2012. "The internationalisation of the automobile industry and the roles of foreign subsidiaries," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 12(1), pages 55-75.
    18. Paulo N. Figueiredo, 2011. "The Role of Dual Embeddedness in the Innovative Performance of MNE Subsidiaries: Evidence from Brazil," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 417-440, March.
    19. Peter Dicken & Anders Malmberg, 2001. "Firms in Territories: A Relational Perspective," Economic Geography, Taylor & Francis Journals, vol. 77(4), pages 345-363, October.
    20. -, 1994. "Open regionalism in Latin America and the Caribbean: economic integration as a contribution to changing production patterns with social equity," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37868 edited by Eclac.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Petr Pavlínek, 2012. "The Internationalization of Corporate R&D and the Automotive Industry R&D of East-Central Europe," Economic Geography, Clark University, vol. 88(3), pages 279-310, July.
    2. Vincent FRIGANT & Martin ZUMPE, 2014. "Are automotive Global Production Networks becoming more global? Comparison of regional and global integration processes based on auto parts trade data," Cahiers du GREThA (2007-2019) 2014-09, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    3. Figueiredo, Paulo N. & Larsen, Henrik & Hansen, Ulrich E., 2020. "The role of interactive learning in innovation capability building in multinational subsidiaries: A micro-level study of biotechnology in Brazil," Research Policy, Elsevier, vol. 49(6).
    4. Vincent FRIGANT & Martin ZUMPE, 2014. "The persistent heterogeneity of trade patterns: A comparison of four European Automotive Global Production Networks," Cahiers du GREThA (2007-2019) 2014-24, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    5. Lema, Rasmus & Quadros, Ruy & Schmitz, Hubert, 2015. "Reorganising global value chains and building innovation capabilities in Brazil and India," Research Policy, Elsevier, vol. 44(7), pages 1376-1386.
    6. 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.
    7. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    8. Dohse, Dirk & Hassink, Robert & Klaerding, Claudia, 2012. "Emerging multinationals, international knowledge flows and economic geography: A research agenda," Kiel Working Papers 1776, Kiel Institute for the World Economy (IfW Kiel).
    9. Jan Fagerberg & Bengt-Åke Lundvall & Martin Srholec, 2018. "Global Value Chains, National Innovation Systems and Economic Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 533-556, July.
    10. Jean-Bernard LAYAN & Jean-Bernard LAYAN, 2007. "Les Nouvelles Configurations De L Espace Automobile Méditerranéen," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 25, pages 157-176.
    11. Jean-Bernard LAYAN & Yannick LUNG, 2008. "Attractiveness and agglomeration of automotive industry in Morocco and Tunisia: A comparative analysis (In French)," Cahiers du GREThA (2007-2019) 2008-20, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    12. Vincent FRIGANT & Stéphane MIOLLAN, 2014. "La restructuration de la géographie de l’industrie automobile en Europe durant les années 2000," Cahiers du GREThA (2007-2019) 2014-02, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    13. Collinson, Simon C. & Wang, Rowena, 2012. "The evolution of innovation capability in multinational enterprise subsidiaries: Dual network embeddedness and the divergence of subsidiary specialisation in Taiwan," Research Policy, Elsevier, vol. 41(9), pages 1501-1518.
    14. Vincent Frigant & Stéphane Miollan, 2014. "The Geographical Restructuring of the European Automobile Industry in the 2000s," Working Papers hal-02150630, HAL.
    15. Rajneesh Narula & John Dunning, 2010. "Multinational Enterprises, Development and Globalization: Some Clarifications and a Research Agenda," Oxford Development Studies, Taylor & Francis Journals, vol. 38(3), pages 263-287.
    16. 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.
    17. Yannick LUNG (E3i, IFREDE-GRES & GERPISA), 2004. "The Challenges of the European Automotive Industry at the Beginning of the 21st Century. Summary of the main findings of the CoCKEAS project," Cahiers du GRES (2002-2009) 2004-08, Groupement de Recherches Economiques et Sociales.
    18. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 833-872, Elsevier.
    19. Igor Gurkov & Sergey Filippov, 2013. "Innovation processes in the Russian manufacturing subsidiaries of MNCs – an integrated view from case studies," HSE Working papers WP BRP 11/MAN/2013, National Research University Higher School of Economics.
    20. Balcet Giovanni & Ruet Joël, 2011. "From Joint Ventures to National Champions or Global Players? Alliances and Technological Catching-up in Chinese and Indian Automotive Industries," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201109, University of Turin.

    More about this item

    Keywords

    Automotive industry; Product development; MERCOSUR; Innovation management;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aal:glowps:2015-02. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gert Villumsen (email available below). General contact details of provider: https://edirc.repec.org/data/globeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.