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Emerging versus advanced country MNEs investing in Europe: A typology of subsidiary global–local connections

Elisa Giuliani (), Sara Gorgoni, Christina Günther and Roberta Rabellotti ()

International Business Review, 2014, vol. 23, issue 4, 680-691

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) (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1016/j.ibusrev.2013.06.002

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