Trade in tasks and the organization of firms

Marin, Dalia; Schymik, Jan; Tarasov, Alexander

doi:10.1016/j.euroecorev.2018.06.001

Cited by 14 publications

(9 citation statements)

References 31 publications

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“…Expatriate staff plays an important role in transplanting management practices across international borders. Marin et al (2014) mention that 43% of eastern European affiliates of German and Austrian multinationals had at least one manager sent from the headquarters. The average number of expatriate managers per affiliate was 2.63.…”

Section: Interpretation Of the Findingsmentioning

confidence: 99%

Former Foreign Affiliates: Cast Out and Outperformed?

Javorcik

Poelhekke

2017

Journal of the European Economic Association

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The literature has documented a positive effect of foreign ownership on firm performance. But is this effect due to a one-time knowledge transfer or does it rely on continuous injections of knowledge? To shed light on this question we focus on divestments, that is, foreign affiliates that are sold to local owners. To establish a causal effect of the ownership change we combine a difference-in-differences approach with propensity score matching. We use plant-level panel data from the Indonesian Census of Manufacturing covering the period 1990-2009. We consider 157 cases of divestment, where a large set of plant characteristics is available two years before and three years after the ownership change and for which observationally similar control plants exist. The results indicate that divestment is associated with a drop in total factor productivity accompanied by a decline in output, markups as well as export and import intensity. The findings are consistent with the benefits of foreign ownership being driven by continuous supply of headquarter services from the foreign parent.

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Section: Interpretation Of the Findingsmentioning

confidence: 99%

Former Foreign Affiliates: Cast Out and Outperformed?

Javorcik

Poelhekke

2017

Journal of the European Economic Association

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“… Expatriate staff plays an important role in transplanting management practices across international borders. Marin, Schymik, and Tarasov () mention that 43% of eastern European affiliates of German and Austrian multinationals had at least one manager sent from the headquarters. The average number of expatriate managers per affiliate was 2.63. …”

mentioning

confidence: 99%

Transplanting corporate culture across international borders: Foreign direct investment and female employment in Japan

2018

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This paper examines the effect of foreign ownership on gender‐related employment outcomes and work practices in Japan. The data indicate that the proportion of females among workers, managers, directors and board members is higher in foreign affiliates than in domestic firms of comparable size operating in the same industry. Foreign affiliates are also more likely to offer flexible working arrangements, telecommuting and childcare subsidies as well as employ foreign workers. These effects are visible almost exclusively in older affiliates. The analysis of foreign acquisitions combining propensity score matching with a difference in differences suggests that increase in the female labour share takes place a few years after the ownership change. All these patterns are in line with the view that it takes time to transplant corporate culture to an overseas affiliate.

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“…Almost half (45.4%) of the total foreign investments of German companies is outsourced to Central and Eastern Europe. In Romania 63.7% of the German foreign investments are processes that were outsourced to our country (Marin, Schymik, and Tarasov 2018).…”

Section: Introduction a Globalized Economymentioning

confidence: 99%

The Economy of Cluj. Cluj-Napoca and the Cluj Metropolitan Area: The development of the Local Economy in the 2008-2018 decade

Petrovici¹,

Codruta²,

Moldovan³

2021

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Over the last decade, globalization processes have intensified, and as such, global organizations relocated their secondary processes to new spaces specialized in operations (Peck 2018; Oshri, Kotlarsky, and Willcocks 2015). Most of the processes that are being externalized are Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO) (Oshri, Kotlarsky, and Willcocks 2015). The global outsourcing hotspots are India, China and the Philippines, that concentrate over 80% of outsourced processes. At European level, Central and Eastern Europe has capitalized most of the outsourcing in the West, particularly in regards to German capital (Marin 2018; Dustmann et al. 2014). Almost half (45.4%) of the total foreign investments of German companies is outsourced to Central and Eastern Europe. In Romania 63.7% of the German foreign investments are processes that were outsourced to our country (Marin, Schymik, and Tarasov 2018). As Peck (2018) points out, the logic behind the process is finding the cheapest labor force pools. Initially, outsourcing was focused on industrialized labor, however, now it is mostly skilled and highly skilled workforce that is being outsourced (Pavlínek 2019). Even if it is work performed by white collars, it has a high level of repetitiveness; however, in sectors such as IT there are also R&D operations (Oshri, Kotlarsky, and Willcocks 2015). Cluj is an example of a city whose local economy and workforce composition changed dramatically after the 2008-2010 financial crisis. The city is one of the Central and Eastern European hubs that benefited from the globalization of outsourcing operations. In particular, Cluj-Napoca excels in four transnational fields: Information & Communications Technology, Business Support Services, Engineering, Research & Development and Financial Services. In 2018, Cluj-Napoca was one of the most developed cities in the European Union in the GDP per capita group 19.000 – 27.000 at Purchasing Power Parity, cities that made a credible commitment at European level to promote knowledge, culture and creativity. In particular, participation in global production chains has generated the emergence of two types of internal markets: An internal market for the well-paid labor force employed in internationalized sectors that consumes a series of dedicated products and services: hospitality (restaurants, cafes, bars), food stuffs (meat products, pastries, premium alcoholic products), lifestyle services (hair salons , spas, gyms), cultural services (festivals, theatres, operas), location services (real estate services, interior design services, furniture manufacturing services). A set of markets that serve the global capital in reproducing their location (cleaning services, security, construction of type A office buildings, human resources). Both domestic and internationalized markets are responsible for the impressive development of the city between 2008 and 2018. The GDP of the Cluj Metropolitan Area and the private revenues of companies have doubled in the last decade.

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Trade in tasks and the organization of firms

Cited by 14 publications

References 31 publications

Former Foreign Affiliates: Cast Out and Outperformed?

Former Foreign Affiliates: Cast Out and Outperformed?

Transplanting corporate culture across international borders: Foreign direct investment and female employment in Japan

The Economy of Cluj. Cluj-Napoca and the Cluj Metropolitan Area: The development of the Local Economy in the 2008-2018 decade

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