MNC Strategies and Linkage Effects in Developing Countries

38 Pages Posted: 2 May 2007

See all articles by Michael Wendelboe Hansen

Michael Wendelboe Hansen

Copenhagen Business School

Torben Pedersen

Copenhagen Business School - Department of Strategic Management and Globalization

Björn Preuss

Copenhagen Business School

Date Written: March 2007

Abstract

The paper addresses the question of which implications MNC strategies have to FDI linkage effects in developing countries. Two contrasting MNC strategies reflecting an integration-responsiveness dichotomy are scrutinized as to their job effects on local linkage partners in developing countries. It is hypothesized that compared to investments undertaken by MNCs following strategies of global integration, investments of MNCs pursuing local responsiveness create more jobs but imply less job upgrading in developing countries. The hypotheses are tested on a sample of Danish MNCs with extensive investments in developing countries.

Keywords: Multinational corporations, strategy, linkages, developing countries

Suggested Citation

Hansen, Michael Wendelboe and Pedersen, Torben and Preuss, Björn, MNC Strategies and Linkage Effects in Developing Countries (March 2007). Available at SSRN: https://ssrn.com/abstract=982829 or http://dx.doi.org/10.2139/ssrn.982829

Michael Wendelboe Hansen

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Torben Pedersen

Copenhagen Business School - Department of Strategic Management and Globalization ( email )

Porcelænshaven 24
Frederiksberg, 2000
Denmark
+45 3815 3030 (Phone)
+45 3815 3035 (Fax)

HOME PAGE: http://www.cbs.dk/staff/tp

Björn Preuss (Contact Author)

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

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