Making the most of FDI for development: “New” industrial policy and FDI deepening for industrial upgrading

Buzdugan, Stephen; Tüselmann, Heinz

doi:10.18356/bffcf4a5-en

Cited by 12 publications

(11 citation statements)

References 25 publications

(36 reference statements)

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“…Finally, if HCMs seek to promote OFDI, as well as potentially inward FDI (Buzdugan & Tüselmann, 2018), as a means to enhance domestic companies' competitiveness by enabling them to tap into resources abroad that are not available at home (Ibeh, 2018), policymakers and managers need to be aware of the challenges that operating across multiple sites will create within one organization (Whitley, 2010b). Integrating and coordinating activities that are geographically dispersed, to create and sustain competencies within a single organization, an MNE, is likely to pose significant organizational and managerial challenges (Gilmore, Andersson & Memar, 2018;Narula, 2014;Rugman & Verbeke, 1993;Whitley, 2005b).…”

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

Home-country measures to support outward foreign direct investment: variation and consequences

Becker-Ritterspach¹,

Allen²,

Lange³

et al. 2019

Transnational Corporations

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The state, especially in emerging economies, plays a key role in influencing firm behaviour, including outward foreign direct investment (OFDI). Often literature on the state's influence on OFDI stresses direct state ownership. However, the state can influence OFDI in several ways, including policy support and subsidies; the literature has largely overlooked these effects. We build on key insights from the comparative capitalisms literature to put forward a series of propositions on how home-country measures-in both emerging and developed economies-to boost OFDI will influence, inter alia, the volume, location and mode of firms' investments abroad. We thus contribute to the literature by showing how government policies across a wide range of countries influence an important aspect of firm behaviour that has economic, social and environmental implications.

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Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

Home-country measures to support outward foreign direct investment: variation and consequences

Becker-Ritterspach¹,

Allen²,

Lange³

et al. 2019

Transnational Corporations

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“…A main take-away from this investigation is that policy makers need a good understanding of the organizational systems used in internationalization processes within TNCs. These systems enable them to deliver good performance and to contribute to overall TNC objectives, competitiveness and performance (Gilmore, Andersson and Nemar, 2008;Buzdugan and Tüselmann, 2018). Good performance by subsidiaries encourages TNCs to expand and develop in host locations and good intra-organizational network relationships enhance the innovation activities of TNCs in host locations.…”

Section: Policy Implicationsmentioning

confidence: 99%

How TNC subsidiaries shine in world cities: Policy implications of autonomy and network connections

McDonald

Gammelgaard

Tüselmann

et al. 2020

Transnational Corporations

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The study examines the relationship between performance and patterns of autonomy and the network relationships used by the foreign subsidiaries of transnational corporations (TNCs) in world cities compared to those subsidiaries outside these locations. This is done by exploring if these patterns differ in foreign subsidiaries in Greater Copenhagen compared to elsewhere in Demark. The indings reveal that there are important differences in the relationships between performance and the autonomy and network structures in foreign subsidiaries. These indings are discussed and policy implications distilled. The study inds that the scope of inward foreign direct investment (FDI) policy could be usefully extended to encompass urban development thereby helping cities develop assets, institutional support and infrastructure that can enhance agglomeration beneits and global connectivity. The indings indicate policies, aimed at helping subsidiaries embed in host location networks and incorporate these networks into other parts of the parent company, could be beneicial. The paper also discusses economic and social inequality that can stem from network patterns and the inclination of subsidiaries to operate autonomously in world cities. It proposes policy options that can lead subsidiaries to undertake high-value activities and innovation in world cities.

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“…Source: compiled by the author based on data [7][8][9][10][11] There are two directions of development of the company with the use of the costs of specific benefits, which is contained in R & D. In the first direction, there is an increase and profit recording relative to the cost of technological equipment, while the other shows the growth and dependence of TNCs on these investments..…”

Section: Fig 3 Impact Of R and D Expenditures On Corporate Profitsmentioning

confidence: 99%

“…In addition, researchers note the stimulation of R & D diversification within the corporation, as technological attachment leads to the spread of knowledge from one product to another. The flow of technological innovation, especially in rapidly changing industries, ultimately determines the growth rate at the firm level [7,[9][10][11]. The lack of constant and systematic replenishment of technological knowledge, based on investment in R & D, will significantly limit the growth of the corporation, even in spite of the existence of other specific competitive opportunities.…”

Section: Fig 3 Impact Of R and D Expenditures On Corporate Profitsmentioning

confidence: 99%

The Current State of the Transnationalization of the Economy and Aspects of the Transnational Corporation’s Growth

Shapoval¹

2019

Innovative Technologies and Scientific Solutions for Industries

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The subject matter of the article is the theoretical and practical aspects of growth, expansion, and functioning of the transnational corporations against the backdrop of the modern transnationalization of the economy. The aim of the work is to research the transnationalization of the economy and to identify the main factors of growth and development of modern transnational corporations. The following tasks were solved in the article: analysis of the level of transnationalization of the economy; definition of modern geographical diversification of TNCs; research the theoretical foundations of corporate growth; creation of practical evidence of a theoretical basis on modern databases; analysis of the influence of the elements of the expansion of TNCs on their profitability. The following methods are used: the graphic method, the statistical method, the comparative method, the index method. The following results were obtained: the level of transnationalization of the world economy in dynamics over the past years has been revealed, which is characterized by a stagnant situation from 2014. The study of the transnationalization of individual economies shows a certain approach of the leaders to the more similar indicators. This trend demonstrates the importance of geographical diversification for TNCs. The relationship between the profit and the using of various specific expenses was discovered. It has been revealed that R & D, as a component cannot independently provide the sufficient competitive advantages to the ever-growing technological solution of global competitors. The need for the existence of specific capabilities of the company due to the proper management in the geographical structure is confirmed. It is noted about the change in the local position of both the parent companies and affiliates of TNCs, which leads to transnational competition between countries. The need of simultaneous use of multiple methods of growth is noted. Conclusions: the studied at the work theoretical and practical aspects demonstrate the importance of each element of the TNCs. The expenses of corporations are necessary for the development and expansion of activities. Marketing costs, migration force, R & D costs, geographic diversification management make it possible to use the potential of companies more widely while simultaneously using different methods. Practical consideration has allowed to determine that the maximum result is achieved by a combination of several elements of growth, thereby creating so-called "profitable giants".

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Making the most of FDI for development: “New” industrial policy and FDI deepening for industrial upgrading

Cited by 12 publications

References 25 publications

Home-country measures to support outward foreign direct investment: variation and consequences

Home-country measures to support outward foreign direct investment: variation and consequences

How TNC subsidiaries shine in world cities: Policy implications of autonomy and network connections

The Current State of the Transnationalization of the Economy and Aspects of the Transnational Corporation’s Growth

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