MNC strategies and linkage effects in developing countries |
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| Authors: | Michael W Hansen Torben Pedersen Bent Petersen |
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| Institution: | 1. Department of Strategic Management, Fox School of Business, USA;2. Department of Strategic Management and Globalization, Copenhagen Business School, Denmark;3. School of Business, Society, and Engineering, Mälardalen University, Sweden;1. German Development Institute/Deutsches Institut für Entwicklungspolitik (DIE), Tulpenfeld 6, 53113 Bonn, Germany;2. Centre for International Business (CIBUL), Leeds University Business School, Maurice Keyworth Building, The University of Leeds, LS2 9JT, UK;1. Université de Neuchâtel, Faculty of Economics and Business, Production and Logistics Management, Avenue du 1er-Mars 26, 2000 Neuchâtel, Switzerland;2. Universität Kassel, Department of Sustainability Management, Untere Königsstraße 71, 34117 Kassel, Germany;3. Universität Kassel, Department of Supply Chain Management, Untere Königsstraße 71, 34117 Kassel, Germany;1. Centre for International Business, Leeds University Business School, University of Leeds, Leeds LS2 9JT, United Kingdom;2. Auckland University of Technology, Auckland, New Zealand;3. University of Exeter Business School, Exeter EX4 4PU, United Kingdom;4. James E. Lynch India and South Asia Business Centre, Leeds University Business School, University of Leeds, Leeds LS2 9JT, United Kingdom |
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| Abstract: | The study addresses the implications MNC strategies have for linkage effects in developing countries. Two contrasting MNC strategies, which reflect an integration-responsiveness dichotomy, are scrutinized in terms of their effects on jobs among local linkage partners in developing countries. It is hypothesized that the investments of MNCs pursuing local responsiveness create more jobs among local linkage partners, but imply less job upgrading, when compared to investments undertaken by MNCs following strategies of global integration. The hypotheses are tested on a sample of Danish MNCs with extensive investments in developing countries. |
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