scholarly journals Do Multinational Enterprises Push Up Wages Of Domestic Firms in the Italian Manufacturing Sector?

2012 ◽  
Author(s):  
Rosanna Pittiglio ◽  
Filippo Reganati ◽  
Edgardo Sica
Keyword(s):  
Multinational Enterprises ◽  
Manufacturing Sector ◽  
Domestic Firms ◽  
Push Up

scholarly journals Do Multinational Enterprises Push up the Wages of Domestic Firms in the Italian Manufacturing Sector?

2014 ◽  
Vol 83 (3) ◽  
pp. 346-378 ◽  
Author(s):  
Rosanna Pittiglio ◽  
Filippo Reganati ◽  
Edgardo Sica
Keyword(s):  
Multinational Enterprises ◽  
Manufacturing Sector ◽  
Domestic Firms ◽  
Push Up

scholarly journals Vertical spillovers from multinational enterprises: Does technological gap matter?

2016 ◽  
Vol 63 (3) ◽  
pp. 313-323 ◽  
Author(s):  
Rosanna Pittiglio ◽  
Filippo Reganati ◽  
Edgardo Sica
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Manufacturing Sector ◽  
Spillover Effect ◽  
Empirical Literature ◽  
Foreign Investors ◽  
Technological Gap ◽  
Local Companies ◽  
The Relationship

Foreign direct investment (FDI) from Multinational enterprises (MNEs) can augment the productivity of domestic firms insofar as knowledge ?spills over? from foreign investors to local producers. The capacity of local companies to exploit knowledge from MNEs can be affected by the technology gap between foreign and local enterprises at both horizontal (in the same industry) and vertical (in different industries) level. Whereas most of the empirical literature has focused exclusively on the analysis of horizontal and backward spillovers (i.e. between MNEs and local suppliers), the present paper also examines the relationship between FDI-related spillovers and technological gap in the Italian manufacturing sector at forward level (i.e. between MNEs and local buyers). Results suggest that at both intra-industry and forward level, the technological gap is of considerable importance for the spillover effect, particularly in the case of low-medium gap.

scholarly journals Performance Dissimilarities in European Union Manufacturing: The Effect of Ownership and Technological Intensity

2021 ◽  
Vol 13 (18) ◽  
pp. 10407
Author(s):  
Lucian Belascu ◽  
Alexandra Horobet ◽  
Georgiana Vrinceanu ◽  
Consuela Popescu
Keyword(s):  
European Union ◽  
Multinational Enterprises ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
A Priori ◽  
Categorical Variables ◽  
High Tech ◽  
Personnel Costs ◽  
Technological Level ◽  
Technological Intensity

Our paper addresses the relevance of a set of continuous and categorical variables that describe industry characteristics to differences in performance between foreign versus locally owned companies in industries with dissimilar levels of technological intensity. Including data on manufacturing sector performance from 20 European Union member countries and covering the 2009–2016 period, we used the random forests methodology to identify the best predictors of EU manufacturing industries’ a priori classification based on two main attributes: ownership (foreign versus local) and technological intensity. We found that EU foreign-owned businesses dominate locally owned ones in terms of size, which gives them an edge in obtaining higher profits, cash flow and investments and coping with higher personnel costs. Furthermore, ownership is a more important differentiator of performance at the industry level than the industry’s technological level. The performance of foreign-owned high-tech manufacturing industry units across the EU is the most heterogeneous compared to the other four categories, indicating particularities linked to technological level, ownership, and even location. Our findings suggest that multinational enterprises in high-tech industries transfer to eastern EU countries’ activities and processes with lower technological intensity and higher labour intensity, but also that locally owned businesses, even within high-tech industries, have lower technological levels.

scholarly journals How Domestic Firms Benefit from the Presence of Multinational Enterprises: Evidence from Indonesia and Philippines

Economies ◽  
2019 ◽  
Vol 7 (3) ◽  
pp. 94
Author(s):  
Joshua Akinlolu Olayinka ◽  
Sirinuch Loykulnanta
Keyword(s):  
Panel Data ◽  
Absorptive Capacity ◽  
Multinational Enterprises ◽  
Panel Data Analysis ◽  
Production Model ◽  
Technology Spillover ◽  
Estimation Model ◽  
Worker Mobility ◽  
Domestic Firms ◽  
The Impact

Incentives are provided to attract multinational enterprises (MNEs) to host countries, with the expectation that their technology will spread to domestic firms. The purpose of this study is to examine how domestic firms benefit from the spillover of technology from MNEs. Using balanced panel data obtained from the World Bank Enterprise Survey, this study examined the impact of technology spillover through three channels: demonstration, competition, and worker mobility on productivity of domestic firms in Indonesia and Philippines. This study also explored the importance of domestic firms’ absorptive capacity in capturing benefits from the three spillover channels. The Cobb–Douglas production model was used as the basis for the estimation model. A fixed-effect model for panel data analysis was used to analyze the data. The empirical outcome of this study revealed that worker mobility is the most viable channel of spillover in the two countries. It also showed that firms with high absorptive capacity were found to benefit from all the channels of spillover in both countries, while the firms with low absorptive capacity benefit differently in the two countries. Thus, this study validates the need for domestic firms to develop absorptive capacity in order to benefit from the technology spillover from MNEs.

How Domestic Firms Absorb Spillovers: A Routine-Based Model of Absorptive Capacity View

2018 ◽  
Vol 14 (3) ◽  
pp. 543-576 ◽  
Author(s):  
Cheng-Hua Tzeng
Keyword(s):  
Absorptive Capacity ◽  
Employee Turnover ◽  
Multinational Enterprises ◽  
Business Strategies ◽  
Domestic Firm ◽  
Productivity Change ◽  
Unexpected Finding ◽  
Domestic Firms ◽  
Technology Gaps ◽  
Complementary Assets

ABSTRACTExtant spillover literature explains domestic firms' productivity change mainly by the presence and attributes of foreign direct investment. In contrary, this paper, by adopting a routine-based model of absorptive capacity, intends to explore how domestic firms absorb spillovers over time. Based on a qualitative study of a domestic firm in China's silicone adhesive industry, the findings show that unbounded by geographical constraints, domestic firms enact their external absorptive capacity routines to actively search for spillovers from multinational enterprises (MNEs) at both national and international levels. Moreover, rather than searching for what is available, domestic firms are selective for spillovers that are coherent with their business strategies. The most unexpected finding is that domestic firms diligently acquire spillovers from MNEs and from local competitors in combination. Spillovers acquired from local competitors are used to increase the inferential accuracy of spillovers acquired from MNEs about strategic successes. Further, instead of absorbing spillovers from MNEs which pose moderate technology gaps, domestic firms target at MNEs which exhibit wider technology gaps, and undertake organizational learning and develop complementary assets to enhance their internal absorptive capacity routines. Socially enabling mechanisms are found to facilitate domestic firms' absorption of spillovers by employee turnover.

scholarly journals Globalization and Innovation in Emerging Markets

2010 ◽  
Vol 2 (2) ◽  
pp. 194-226 ◽  
Author(s):  
Yuriy Gorodnichenko ◽  
Jan Svejnar ◽  
Katherine Terrell
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Foreign Firms ◽  
Foreign Competition ◽  
Domestic Firms ◽  
Service Sectors ◽  
Using Data ◽  
The Relationship ◽  
Robust Evidence

Globalization brings opportunities and pressures for domestic firms in emerging markets to innovate and improve their competitive position. Using data from 27 emerging market economies, we estimate the effects of foreign competition and linkages with foreign firms on innovation by domestic firms. We provide robust evidence of a positive relationship between foreign competition and innovation, broadly defined. The supply chain of multinational enterprises and trade are also important channels. There is no evidence for an inverted U relationship between innovation and foreign competition. Moreover, the relationship between globalization and innovation does not differ across the manufacturing and service sectors. (JEL F02, F23, M16, O33)

Differentiating the impact of CSR strengths and concerns on firm performance

2017 ◽  
Vol 36 (3) ◽  
pp. 401-409 ◽  
Author(s):  
Albi Alikaj ◽  
Cau Ngoc Nguyen ◽  
Efrain Medina
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Latent Variables ◽  
Multinational Enterprises ◽  
Content Type ◽  
Future Studies ◽  
Domestic Firms ◽  
Firm Financial Performance ◽  
Individual Effects ◽  
The Impact

Purpose The purpose of this paper is to assess the Kinder, Lydenberg, Domini & Co. (KLD) dimensions by distinguishing between corporate social responsibility (CSR) strengths and concerns and examine their individual effects on firm financial performance. Additionally, the study distinguishes between US domestic firms and multinational enterprises (MNEs) to provide additional insights and explore if any differences exist. Design/methodology/approach Data from the KLD and Compustat databases are analyzed for a sample of 562 US firms, of which 359 are multinational corporations, and 203 operate solely in the USA. A path analysis was used to examine the effect of CSR strengths and concerns on firm financial performance. Findings The findings show that increases in CSR strengths as well reductions in CSR concerns are positively linked to firm financial performance. The results also suggest that addressing concerns would be more beneficial to MNEs as opposed to US domestic firms. Research limitations/implications First, it should be noted that this study is cross-sectional, thus limiting confirmation of causality. Future studies can confirm causality by conducting longitudinal analysis. Also, some country-specific regulations require firms to make certain CSR-related information publicly available. Future studies can focus on countries that have such regulations and make comparisons with countries that allow firms to decide for themselves whether or not to make CSR-related activities publicly available. Originality/value When measuring CSR, previous studies have combined the CSR strengths and concerns latent variables of the KLD database. This can potentially be a problem because CSR strengths and concerns are not meant to measure the same issues. By separating them into two distinct latent variables, the authors can better understand their individual effects on firm performance.

scholarly journals Globalization and Domestic Operations: Applying the JC/JD Method to Japanese Manufacturing Firms

2015 ◽  
Vol 14 (2) ◽  
pp. 1-35 ◽  
Author(s):  
Mitsuyo Ando ◽  
Fukunari Kimura
Keyword(s):  
Direct Investment ◽  
Multinational Enterprises ◽  
Firm Heterogeneity ◽  
Manufacturing Sector ◽  
Job Creation ◽  
Manufacturing Firms ◽  
Outward Foreign Direct Investment ◽  
Micro Data ◽  
Kolmogorov Smirnov ◽  
Smirnov Test

Does outward foreign direct investment accelerate de-industrialization at home or generate domestic jobs and operations? This paper applies the job creation (JC)/destruction (JD) method to micro data of Japanese manufacturing firms and provides a bird's eye view of the dynamism of globalizing firms in terms of domestic employment, domestic establishments, domestic affiliates, exports, and imports. It examines gross and net changes in domestic operations by multinational enterprises (MNEs) that expand operations abroad (expanding MNEs), compared with non-expanding MNEs and local firms, for the periods of 1998–2002, 2002–06, 2006–08, and 2008–10. It also conducts the Kolmogorov-Smirnov test to investigate whether the changes in domestic operations and trade by expanding MNEs are larger than those by other firm types. Major findings are the following: (1) gross changes in domestic employment and domestic operations are much larger than net changes, showing restructuring dynamism and firm heterogeneity; (2) de-industrialization or the shrinkage of the manufacturing sector is not relevant except for the period 1998–2002, though a slight declining trend in manufacturing activities is observed in recent years; (3) expanding multinational small- and medium-sized enterprises (SMEs) tends to enlarge domestic employment and domestic operations, compared with other types of SMEs; (4) expanding MNEs intensify headquarters activities; and (5) expanding multinational SMEs are likely to expand exports and imports more than other types of SMEs.

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