In this paper, not only do we posit that the presence of a multinational corporation may entail significant benefits for the host economy and local firms’ performance, but also that these benefits can be actively sought and dynamically reinforced by local firms through the development of intense, embedded customer–supplier relationships. Building on the relational view, we argue that this may happen through the commitment of resources to relation-specific investments. Our hypotheses find support in a sample of SMEs suppliers of ST Microelectronics, the fourth largest producer of microelectronic components in the world. We show that by making relationspecific investments, local firms can grow quantitatively and qualitatively, improve their innovativeness, and acquire new clients.

Taking actively advantage of MNCs’ presence / Di Guardo, Chiara; Valentini, Giovanni. - In: SMALL BUSINESS ECONOMICS. - ISSN 0921-898X. - 28:1(2007), pp. 55-68.

Taking actively advantage of MNCs’ presence

Giovanni, Valentini
2007

Abstract

In this paper, not only do we posit that the presence of a multinational corporation may entail significant benefits for the host economy and local firms’ performance, but also that these benefits can be actively sought and dynamically reinforced by local firms through the development of intense, embedded customer–supplier relationships. Building on the relational view, we argue that this may happen through the commitment of resources to relation-specific investments. Our hypotheses find support in a sample of SMEs suppliers of ST Microelectronics, the fourth largest producer of microelectronic components in the world. We show that by making relationspecific investments, local firms can grow quantitatively and qualitatively, improve their innovativeness, and acquire new clients.
Relational View, Spillovers, Firm Growth, Effects of FDI
Taking actively advantage of MNCs’ presence / Di Guardo, Chiara; Valentini, Giovanni. - In: SMALL BUSINESS ECONOMICS. - ISSN 0921-898X. - 28:1(2007), pp. 55-68.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11385/221606
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