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1 – 3 of 3The aim of this paper is to analyse the influence of a multinational company (MNC) on its local supplier's network. In particular, how the MNC influences the performance of…
Abstract
Purpose
The aim of this paper is to analyse the influence of a multinational company (MNC) on its local supplier's network. In particular, how the MNC influences the performance of supplier as well as non‐supplier local companies.
Design/methodology/approach
The paper studies a local productive system involved in the manufacturing of lighting systems for automobiles, and made up of small and medium sized companies and led by a single multinational corporation which contracts out to the local industry. The analysis includes both suppliers to the multinational as well as non‐suppliers.
Findings
The study shows how the existence of knowledge transfer influences productivity through the productive linkage established with local suppliers and their hiring of MNC former managers. Direct local suppliers experience higher productivity than do local suppliers from lower levels of the supply chain. Similarly, local suppliers hiring MNC former managers show higher productivity than those who have hired only local managers.
Research limitations/implications
One of the limitations of this paper is the size of the population studied. This paper focuses on one local supplier's network, and it only shows a very local experience. Another limitation is the difficulty in measuring the intensity of every channel of knowledge transfer. Thus, in the case of direct suppliers, it is very difficult to separate the effects of the knowledge transfer derived from the productive link and the effects derived from workers' mobility.
Originality/value
This paper identifies the key factors that influence the performance of the knowledge transfer into multinational corporation suppliers' networks related with the productitivy of local companies.
Details
Keywords
The purpose of this paper is to analyze the transference of managerial skills from the multinational corporation (MNC) to local companies related to the exporting process. In…
Abstract
Purpose
The purpose of this paper is to analyze the transference of managerial skills from the multinational corporation (MNC) to local companies related to the exporting process. In particular, small‐ and medium‐sized companies.
Design/methodology/approach
A local productive system was selected, involved in the manufacturing of lighting systems for automobiles (main and auxiliary headlamps and rear lighting), and made up of small‐ and medium‐sized companies led by a single MNC which contracts out to the local industry. The analysis includes both suppliers to the multinational as well as non‐suppliers.
Findings
This paper shows that the existence of knowledge transfer of intangible resources and the existence of organizational learning are associated with the nature of the vertical network in a system of suppliers, and a horizontal network with an industrial agglomeration. The volume of knowledge transferred depends on the quality of the channels of communication which exist within the network, the geographical proximity, the frequency of exchange of ideas in the network, and the spatial proximity, among others.
Originality/value
This paper identifies the key factors that influence the performance of the knowledge transfer into MNC supplier's networks.
Details