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Foreign Direct Investment Entry Modes, Development and Technological Spillovers

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Álvarez González, Isabel and Marín Sanz, Raquel and Santos Arteaga, Francisco Javier (2015) Foreign Direct Investment Entry Modes, Development and Technological Spillovers. The Manchester School, 83 (5). pp. 568-603. ISSN 14636786

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Official URL: http://dx.doi.org/10.1111/manc.12074



Abstract

This paper illustrates how wholly owned entry modes of multinational companies (MNCs) are jointly determined by both the strategic objectives of the MNC and the local firms’ assets in the creation of value. In particular, the entry mode chosen is based on the potential reciprocal technological spillovers between local firms and MNC subsidiaries. M&As are preferred when host countries exhibit a certain level of development in their local systems of innovation, especially for technologically leading MNCs. Otherwise, for technological laggard MNCs, greenfield investments prevail and M&As may be carried out for meeting demand motives in developing local systems of innovation.


Item Type:Article
Uncontrolled Keywords:Foreign investments; International business enterprises; Technological innovations; Economics; Developing countries
Subjects:Social sciences > Economics > Economic development
Social sciences > Economics > World economy
Social sciences > Economics > Business enterprises
ID Code:60559
Deposited On:19 May 2020 13:00
Last Modified:19 May 2020 13:00

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