Multinational firms, global value chains and the organization of knowledge transfer

By Federica Saliola, Antonello Zanfei. 2009

245 citations recorded by the source corpus.

This paper combines insights from different streams of literature to develop a more comprehensive framework for the analysis of knowledge transfer via value chain relationships. We integrate the existing literature in three ways. First, we consider value chain relationships as a multi-facet process of interaction between buyers and suppliers, involving different modes of knowledge transmission and development. Second, we assess whether and to what extent value chain relationships are associated with the presence of multinationals and with their embeddedness in the host economy. Third, we take into account the capabilities of local firms to handle the technology as a factor influencing knowledge transfer through value chain relationships. Using data on 1385 firms active in Thailand in 2001-2003, we apply a multinomial logit model to test how the nature and intensity of multinational presence and the competencies of local firms affect the organization of international knowledge transfer. We find that knowledge intensive relationships, which are characterized by a significant transmission of technical and organizational competencies along the value chains, are positively associated with the presence of global buyers in the local market, with the efforts of MNCs to adapt technology to local contexts, and with the technical capabilities of domestic firms. By contrast, the age of subsidiaries and the share of inputs purchased locally appear to increase the likelihood of value chain relationships with a lower technological profile.

Subfields: Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/9780690ce77ad617e1495b0f04898d0640ce0f5e

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Citations in the corpus

Linkages and spillovers in global production networks: firm-level analysis of the Czech automotive industry (2016, background): “In such a situation, even a long-term presence of foreign firms in host countries may not lead to the increase in linkages with domestic firms (Saliola and Zanfei, 2009).”
Knowledge Spillovers in the Supply Chain: Evidence from the High Tech Sectors (2015, background): “Local productivity improvements are considered to be a sign of learning from foreign investors (Almeida, 1996; Görg and Strobl, 2001; Havranek and Irsova, 2011; Javorcik, 2004; Meyer and Sinani, 2009) and trade (Antràs and Helpman, 2004; Saliola and Zanfei, 2009; Sturgeon et al., 2008).”
MNE linkages in international business: A framework for analysis (2009, background): “Direct spillovers induce improvement in quality and efficiency of local firms, such as in the case of suppliers, by creating demands to attain economies of scale and providing access to advanced resources (Saliola & Zanfei, 2009: p. 371).”