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Article
Publication date: 8 August 2008

José María Cubillo‐Pinilla

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…

1397

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

Journal of Small Business and Enterprise Development, vol. 15 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 31 July 2008

José María Cubillo‐Pinilla

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…

1277

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

International Journal of Commerce and Management, vol. 18 no. 2
Type: Research Article
ISSN: 1056-9219

Keywords

Content available
Article
Publication date: 8 August 2008

Harry Matlay

345

Abstract

Details

Journal of Small Business and Enterprise Development, vol. 15 no. 3
Type: Research Article
ISSN: 1462-6004

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