Do Multinationals Transplant their Business Model?

Dalia Marin, Thierry Verdier and Linda Rousová

No 9500, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: What determines whether or not multinational firms transplant their mode of organisation to other countries? We embed the theory of knowledge hierarchies in an industry equilibrium model of monopolistic competition to examine how the economic environment may affect the decision to transplant the business organization. We test the theory with original data of 660 multinational firms and 2200 of their affiliates. Three factors stand out: a competitive host market, the corporate culture of the multinational firm, and the transfer of an innovative technology. These factors increase the respective probabilities of organisational transfer by 9, 18, and 27 percentage points.

Keywords: Organisational economics of multinational firms; Trade and organisations; The theory of the firm; Organisational transfer between countries (search for similar items in EconPapers)
JEL-codes: D23 F12 F23 F61 (search for similar items in EconPapers)
Date: 2013-06
New Economics Papers: this item is included in nep-bec, nep-cse and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Do Multinationals Transplant their Business Model? (2021)
Working Paper: Do Multinationals Transplant their Business Model? (2021)
Working Paper: Do Multinationals Transplant their Business Model? (2021)
Working Paper: Do Multinationals Transplant Their Business Model? (2019)
Working Paper: Do Multinationals Transplant their Business Model? (2013)
Working Paper: Do Multinationals Transplant their Business Model? (2013)
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