From competitive advantage to dynamic capabilities: small and medium-sized multinationals in Asia

Giuseppe Tattara

MPRA Paper from University Library of Munich, Germany

Abstract: Italian firms have recently engaged in direct investment abroad through the establishment of production facilities in China and India. Using data gathered from interviews conducted in those countries in 2009 with 16 Italian predominantly small and medium-sized firms, this article explores: the motivations behind Italian parent companies’ decisions to create subsidiaries in Asia; relations between the newly established production facilities and their local suppliers and markets; any subsequent organizational adaptations; and the cultural and administrative difficulties the enterprises have encountered. The article provides a novel perspective on how predominantly small and medium-sized manufacturing firms achieve cost and differentiation advantages by leveraging their dynamic capabilities.

Keywords: Strategic management of multinational firms; Value chains; Capability-based strategies (search for similar items in EconPapers)
JEL-codes: F14 F23 L25 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-cse
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