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Emerging versus advanced country MNEs investing in Europe: A typology of subsidiary global–local connections
Institution:1. Department of Economics & Management, University of Pisa, Via Ridolfi 10, 56124 Pisa, Italy;2. Department of International Business and Economics, University of Greenwich Business School, Old Royal Naval College, Park Row, London SE10 9LS, UK;3. Max Planck Institute of Economics, Evolutionary Economics Group, Kahlaische Straße 10, 07745 Jena, Germany;4. Department of Political and Social Sciences, University of Pavia, Corso Strada Nuova 65, 27100 Pavia, Italy;5. WHU – Otto Beisheim School of Management, Burgplatz 2, 56179 Vallendar, Germany;1. Universidad Rey Juan Carlos, Facultad de Ciencias Jurídicas y Sociales, Departamento de Economía de la Empresa (ADO), Paseo de los Artilleros s/n, 28032 Madrid, Spain;2. Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Departamento de Organización de Empresas, Pozuelo de Alarcón, 28223 Madrid, Spain;1. Department of Marketing BI Norwegian Business School, 0442 Oslo Norway;2. College of Business and Management, Saginav Valley State University, MI 48710, USA;3. Department of Marketing, BI Norwegian Business School 0442 Oslo Norway;1. Faculty of Economics and Social Sciences, University of Agder, Postbox 422, 4604 Kristiansand, Norway;2. Faculty of Economics and Business, University of Groningen, Groningen, The Netherlands;3. Faculty of Social Science and Economics, University of Agder, Kristiansand, Norway;1. School of Business, Society and Engineering, Mälardalen University College, Västerås, Sweden;2. Department of Business Studies, Uppsala University, Uppsala, Sweden
Abstract:This paper empirically investigates how subsidiaries of multinationals from both emerging (EMNEs) and advanced (AMNEs) economies investing in Europe learn from the local context and contribute to it as much as they benefit from it. To explore this we classify the behavior of MNE subsidiaries into different typologies on the basis of how knowledge is transferred within the multinational and on the nature of the local innovative connections. The empirical analysis relies on an entirely new, subsidiary-level dataset in the industrial machinery sector in Italy and Germany. Results show that EMNEs and AMNEs undertake different strategies for tapping into local knowledge and for transferring it within the company. We identify a new typology of EMNE subsidiary that contributes through its significant local innovative efforts to development processes in the host country. This result suggests possible win-win situations from which novel policy implications may be drawn.
Keywords:Emerging economies  Innovation  Knowledge transfer  Local development  Multinational enterprise (MNE)
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