 Do Multinationals Transplant their Business Model?Dalia Marin, Linda Rousová and Thierry Verdier PSE-Ecole d'économie de Paris (Postprint) from HAL Abstract: What determines whether or not multinational firms transplant the 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 of multinational firms about transplanting the mode of organisation to other countries. We test the theory with original and matched parent and affiliate data on the level of decentralisation of 660 Austrian and German multinational firms and 2,200 of their affiliate firms in Eastern Europe. We find that market competition in both home and host markets is an important driver of organisational transfer to host countries: an increase in competition in the home (host) market by ten percentage points lowers (increases) the probability of transplanting by nine (seven) percentage points. Date: 2021-02 Published in The Economic Journal, 2021, 131 (634), pp.899-945. ⟨10.1093/ej/ueaa108⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:halshs-03325904 DOI: 10.1093/ej/ueaa108 Access Statistics for this paper More papers in PSE-Ecole d'économie de Paris (Postprint) from HAL |
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