Technological learning in MNC subsidiaries operating in regional integration processes: a case study on an automotive company in MERCOSUR

Martín Obaya

No 2015-02, Globelics Working Paper Series from Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management

Abstract: In the last three decades, multinational corporations (MNC) have undergone a far-reaching reorganisation that resulted, firstly, in a reorganisation of their business activities around regional areas, and secondly, in an increasing decentralisation of their knowledge-creating activities. As a result of this evolution, some subsidiaries in developing countries have benefited from this process and been able to accumulate technological capabilities. Through the examination of an automotive MNC operating in MERCOSUR, this article examines how innovation activities are organised among subsidiaries operating in a regional integration agreement among developing countries, and what are the driving forces shaping this process. Empirical findings show that a highly hierarchical division between the subsidiaries has been established by the parent company and that knowledge-creating activities are geographically concentrated in one single country.

Keywords: Automotive industry; Product development, MERCOSUR; Innovation management (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-cse and nep-knm
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