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The contribution of foreign subsidiaries to host country national competitiveness

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  • O'Donnell, Sharon
  • Blumentritt, Timothy

Abstract

In this article, we develop a conceptual model of national competitiveness, focusing on the influence of foreign subsidiaries on the competitiveness of their host countries. Essentially, we view foreign subsidiaries as potential sources of resources important to a nation in developing and maintaining its international competitiveness. We argue that there is a set of subsidiary characteristics that enables a foreign subsidiary to contribute to the national competitiveness of its host country. These characteristics include the strategic role of the subsidiary, the level of technology employed in the subsidiary's processes, the type of training provided by the parent company, and the degree to which the subsidiary is part of an interdependent network of international subunits of the firm. National policy implications are discussed.

Suggested Citation

  • O'Donnell, Sharon & Blumentritt, Timothy, 1999. "The contribution of foreign subsidiaries to host country national competitiveness," Journal of International Management, Elsevier, vol. 5(3), pages 187-206.
    • Handle: RePEc:eee:intman:v:5:y:1999:i:3:p:187-206
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    2. Padilla, Ramon & Vang, Jan & Chaminade, Cristina, 2008. "RIS and Developing Countries: Linking firm technological capabilities to regional systems of innovation," Papers in Innovation Studies 2008/13, Lund University, CIRCLE - Centre for Innovation Research.
    3. Jindra, Björn & Giroud, Axèle & Scott-Kennel, Joanna, 2009. "Subsidiary roles, vertical linkages and economic development: Lessons from transition economies," Journal of World Business, Elsevier, vol. 44(2), pages 167-179, April.
    4. Ángel Calvo, 2022. "Japanese ICT multinationals in Southern Europe by the end of the twentieth century: Fujitsu in Spain," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 1341-1373, June.
    5. Bamiatzi, Vassiliki & Efthyvoulou, Georgios & Jabbour, Liza, 2017. "Foreign vs domestic ownership on debt reduction: An investigation of acquisition targets in Italy and Spain," International Business Review, Elsevier, vol. 26(5), pages 801-815.
    6. Padilla-Pérez, Ramón, 2008. "A regional approach to study technology transfer through foreign direct investment: The electronics industry in two Mexican regions," Research Policy, Elsevier, vol. 37(5), pages 849-860, June.
    7. Zhang, Tingting (Grace) & You, Yu, 2021. "Scale or efficiency? Performance shortfall and engagement in production activities of foreign subsidiaries in China," Journal of International Management, Elsevier, vol. 27(1).
    8. Gupta, Suraksha & Malhotra, Naresh K. & Czinkota, Michael & Foroudi, Pantea, 2016. "Marketing innovation: A consequence of competitiveness," Journal of Business Research, Elsevier, vol. 69(12), pages 5671-5681.
    9. Diana Barros, Aurora A.C. Teixeira, 2021. "The technology balance of payments and international competitiveness: a panel data analysis of southern European countries, 2000-2017," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 18(1), pages 105-136, June.
    10. Iammarino, Simona & Padilla-Pérez, Ramon & von Tunzelmann, Nick, 2008. "Technological Capabilities and Global-Local Interactions: The Electronics Industry in Two Mexican Regions," World Development, Elsevier, vol. 36(10), pages 1980-2003, October.
    11. Mariachiara Barzotto & Giancarlo Corò & Ilaria Mariotti & Marco Mutinelli, 2016. "The impact of Inward FDI on host country labour markets. A counterfactual analysis on Italian manufacturing companies," Working Papers 1612, c.MET-05 - Centro Interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.
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