The Potentials for Technology Transfer via Foreign Direct Investment in Central East Europe - Results of a Field Study (p.19-41) |
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Johannes Stephan, Halle Institute for Economic Research Halle (IWH) (Germany) |
Judit Hamar, Kopint-Datorg Budapest (Hungary) |
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Keywords : Foreign direct investment, technology transfer, Central East Europe |
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JEL classification : D21, F23, P52 |
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Abstract |
Foreign direct investment plays a particularly crucial role in the processes of technological catch-up in Central East Europe. Whilst most countries of this region have received considerable direct investment, the composition of kinds of subsidiaries is different between countries and hence will the prospects for intense technology transfer will also differ between countries. This contribution aims to compare the potentials for internal and external technology transfer across countries of Central East Europe by analysing the management-relationship between subsidiaries and their parents and the market-relationships between subsidiaries and their host economy. For this, a firm-level database of some 458 subsidiaries in Estonia, Poland, the Slovak Republic, Hungary, and Slovenia is analysed empirically. |
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A strategy view on knowledge in the MNE – Integrating Subsidiary Roles and Knowledge Flows (p.43-72) |
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Björn Jindra, Halle Institute for Economic Research Halle (IWH) (Germany) |
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Keywords : Knowledge flows, multinational corporations, subsidiaries |
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JEL classification : D20 F23 L20 O30 |
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Abstract |
We assume knowledge inflows endogenous to subsidiary roles. Integrating organisational and knowledge-based views we propose a new subsidiary typology based on MNE integration-subsidiary capability. We hypothesise that both dimensions are positively associated with knowledge inflows into the focal subsidiary. This prediction is tested with data for 425 subsidiaries. The key findings were: (a) the extent for knowledge inflows differs significantly across all subsidiary roles; (c) it diminishes in a anti-clockwise direction starting in the high integration-high capability quadrant of the IC taxonomy; thus (b) both MNE integration and subsidiary capability drive knowledge inflows, although, the balance shifts more towards integration. |
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Productivity Growth and Functional Upgrading in Foreign Subsidiaries in the Slovenian Manufacturing Sector (p.73-100) |
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Jaklič Andreja, University of Ljubljana |
Majcen Boris, Institute for Economic Research (Ljubljana) |
Radošević Slavo, University College London, School of Slavonic and East European Studies |
Rojec Matija, University of Ljubljana and Institute of Macroeconomic Analysis and Development (Ljubljana) |
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Keywords : Foreign subsidiaries, Slovenia, productivity, functional upgrading, control pattern |
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JEL classification : D20, F20, L20, O40 |
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Abstract |
The paper discusses the determinants of productivity growth in manufacturing foreign subsidiaries in Slovenia. Special attention is given to the impact of control pattern. We show that productivity growth is significantly and positively correlated with the level of foreign parent companies' control of marketing and strategic business functions. Larger subsidiaries and subsidiaries with higher exports to sales ratio also experience higher changes in the productivity level. Subsidiaries in high technology intensity sectors exhibit significantly lower change in productivity than subsidiaries in other sectors. |
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The Role of Country, Industry and Firm Specific Effects on the Autonomy of a Multinational Corporation’s Subsidiary in Central and East European Countries (p.101-133) |
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Hannula Helena, Faculty of Economics and Business Administration, University of Tartu (Estonia) |
Männik Katrin, Faculty of Economics and Business Administration, University of Tartu (Estonia) |
Varblane Urmas, Faculty of Economics and Business Administration, University of Tartu (Estonia) |
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Keywords : subsidiary strategy, MNC subsidiary autonomy, multidimensionality of subsidiary autonomy, Central and East Europe |
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JEL classification : F23, O30, O57 |
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Abstract |
This paper examines the country, industry and firm specific effects on the autonomy of multinational corporation’s subsidiaries across business functions in Estonia, Hungary, Poland, Slovakia and Slovenia. The novelty of the paper is in the deeper opening of the multidimensionality of the autonomy. Using the method of principal component four factors of autonomy are obtained: technology, marketing, management and finance. To analyse the country, industry and firm specific effects on the autonomy the analysis of variance (ANOVA) and multivariate analysis of variance (MANOVA) is used. Multivariate analyses helped us to show that autonomy of foreign subsidiaries is positively dependent on the level of economic development level of the host country. Also, subsidiaries in high technology intensity sectors are more closely engaged in corporate networks and are less autonomous. |
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Industry level Technology Gaps and Complementary Knowledge Stocks as Determinants of intra-MNC Knowledge Flows (p.135-156) |
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Jindra Björn, Halle Institute for Economic Research Halle (IWH) (Germany) |
Klugert Ingmar, Viadrina University (Frankfurt/Oder, Germany) |
Stephan Johannes, Halle Institute for Economic Research Halle (IWH) (Germany) |
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Keywords : multinational corporations, foreign direct investment, technology transfer, productivity gap, absorptive capacity |
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JEL classification : F23, D83, O33 |
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Abstract |
Pursuing a subsidiary level analysis, we this paper tests the ‘technology gap’ hypothesis in the context of intra-MNC knowledge flows. Furthermore, it introduces complementary knowledge stocks into the concept of absorptive capacity. A set of hypotheses is tested in a sample of 434 foreign subsidiaries based in Central and East Europe. We find partial support for the ‘technology gap’ hypothesis applied at industry level. Furthermore, subsidiaries’ complementary knowledge stocks increase the probability for corresponding knowledge inflows from the foreign parent. |
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