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Multinational experience and the creation of linkages with local firms. Evidence from the electronics industry

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  • Davide CASTELLANI

    ([n.a.])

  • Antonello ZANFEI

    ([n.a.])

Abstract

The paper focuses on multinational companies' creation of linkages with local firms in the electronics industry. Evidence is drawn from a novel data-set, covering international operations of the top European and US electronics companies, over the 1984-1995 period. Econometric tests are provided to highlight how firms’ multinational experience, measured by the extent of their presence in foreign countries, affects cooperative agreements, as opposed to licensing and foreign direct investments. It is highlighted that multinationals' subsidiary accumulation has a positive and significant impact on collaborative linkages with local firms. This contrasts with the predictions of market entry literature, but is consistent with studies on spillovers of inward foreign direct investments. Some implications are drawn both for host economies, particularly LDCs, which are interested in increasing the benefit from multinational presence; and for transnational companies, whose competitiveness in the examined industry largely depends on the ability to develop extensive networks of international collaborations. JEL classification: F23, L22, O33

Suggested Citation

  • Davide CASTELLANI & Antonello ZANFEI, 1998. "Multinational experience and the creation of linkages with local firms. Evidence from the electronics industry," Working Papers 111, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  • Handle: RePEc:anc:wpaper:111
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    References listed on IDEAS

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    Cited by:

    1. Castellani, Davide & Pieri, Fabio, 2013. "R&D offshoring and the productivity growth of European regions," Research Policy, Elsevier, vol. 42(9), pages 1581-1594.
    2. Crescenzi, Riccardo & Gagliardi, Luisa & Iammarino, Simona, 2015. "Foreign multinationals and domestic innovation: Intra-industry effects and firm heterogeneity," Research Policy, Elsevier, vol. 44(3), pages 596-609.
    3. Simona Iammarino & Philip McCann, 2010. "The Relationship between Multinational Firms and Innovative Clusters," Chapters,in: The Handbook of Evolutionary Economic Geography, chapter 8 Edward Elgar Publishing.
    4. Erol Taymaz & Aykut Lenger, 2004. "Multinational Corporations as a Vehicle for Productivity Spillovers in Turkey," DRUID Working Papers 04-09, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    5. 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.
    6. repec:eee:respol:v:47:y:2018:i:2:p:474-486 is not listed on IDEAS
    7. Francesco Di Comite & d’Artis Kancs, 2015. "Macro-Economic Models for R&D and Innovation Policies," JRC Working Papers on Corporate R&D and Innovation 2015-03, Joint Research Centre (Seville site).
    8. Castellani, Davide & Zanfei, Antonello, 2004. "Choosing international linkage strategies in the electronics industry: the role of multinational experience," Journal of Economic Behavior & Organization, Elsevier, vol. 53(4), pages 447-475, April.
    9. Dachs, Bernhard, 2017. "Internationalisation of R&D: A Review of Drivers, Impacts, and new Lines of Research," MPRA Paper 83367, University Library of Munich, Germany.
    10. Grazia Ietto-Gillies, 2011. "The Integration and Fragmentation Roles of Transnational Companies," Chapters,in: International Handbook on the Economics of Integration, Volume III, chapter 3 Edward Elgar Publishing.
    11. Anna Giunta, 2002. "Large Firms and Southern Italy: The Relevance of Salvatore Cafiero’s Position," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 2, June.
    12. Castellani, Davide & Montresor, Sandro & Schubert, Torben & Vezzani, Antonio, 2017. "Multinationality, R&D and productivity: Evidence from the top R&D investors worldwide," International Business Review, Elsevier, vol. 26(3), pages 405-416.
    13. Chen, Tain-Jy, 2006. "Liability of foreignness and entry mode choice: Taiwanese firms in Europe," Journal of Business Research, Elsevier, vol. 59(2), pages 288-294, February.
    14. Grazia Ietto-Gillies, 2012. "The Multinational Firm: Characteristics, Activities and Explanations in Historical Context," Chapters,in: Handbook on the Economics and Theory of the Firm, chapter 14 Edward Elgar Publishing.
    15. Carlo Pietrobelli & Federica Saliola, 2007. "Power Relationships along the Value Chain: Multinational Firms, Global Buyers, and Local Suppliers' Performance," Working Papers 0702, CREI Università degli Studi Roma Tre, revised Jan 2007.

    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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