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Business Linkages and Resilience of SMEs during the East Asian Crisis: The Role of Networks and Trust between TNCs and Local Suppliers

In: Trust and Antitrust in Asian Business Alliances

Author

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  • Philippe Régnier

Abstract

The World Investment Report 2001 published by the United Nations Conference on Trade and Development under the title ‘Promoting Linkages’ was devoted entirely to the study of business linkages (UNCTAD, 2001). Since the 1990s, the international community seems to have become more aware of the importance of such linkages, especially, but not exclusively, between transnational corporations (TNCs) and local suppliers. Linkages can be strategic within the development of global chains of production supported by foreign direct investment (FDI), and other types of financial andtechnological arrangements, either among OECD nations or between them, and/or large or smaller suppliers (SMEs). The main focus of the international discussion tends to concentrate on backward linkages (outsourcing to local suppliers and sub-contractors) and to a lesser extent on forward linkages (business links with various intermediaries and final customers).

Suggested Citation

  • Philippe Régnier, 2004. "Business Linkages and Resilience of SMEs during the East Asian Crisis: The Role of Networks and Trust between TNCs and Local Suppliers," Palgrave Macmillan Books, in: John Kidd & Frank-Jürgen Richter (ed.), Trust and Antitrust in Asian Business Alliances, chapter 8, pages 196-208, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-52357-9_8
    DOI: 10.1057/9780230523579_8
    as

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