Increasing the competitiveness of local suppliers of multinational companies in emerging countries – a knowledge transfer perspective

Scope

The main objective of this research is to offer a deeper insight into the knowledge transfer process between manufacturing MNCs and supplier companies located in emerging countries with the aim to improve the performance of local suppliers, and through that the competitiveness of the whole economy.

Abstract

Multinational companies (MNCs) operate networks of manufacturing subsidiaries dispersed in different countries to improve their competitiveness on the global market. This project focuses on the role of manufacturing MNC subsidiaries located in emerging countries. These subsidiaries have access to a significant amount of knowledge residing within the internal network of the MNC, that can also be shared with local suppliers operating in emerging countries. The main objective of this research project is to identify organizational methods that can enhance the knowledge transfer process from MNC subsidiaries located in emerging countries towards their local suppliers, thereby improving the competitiveness of local firms. The project applies an interdisciplinary perspective, integrating knowledge from the fields of operations management, knowledge management, international business and strategic management. To reach the purpose of this project we apply a mixed-methodology: in-depth case studies carried out at subsidiaries of manufacturing MNCs and their local suppliers are intended to discover firm-level practices that can facilitate the knowledge spillover process. Then, based on the results of the case studies, a survey study carried out on a larger international sample is intended to generalize case study findings. From a theoretical perspective, organizational-level practices that can contribute to the knowledge transfer towards local suppliers of MNC subsidiaries in emerging countries still represent an under-researched area in the scientific literature. From a practical perspective, results should provide guidance for managers of MNC subsidiaries and supplier companies located in emerging countries on what practices can best contribute to the improvement of the knowledge transfer process between the two actors. These practices aim to improve the competitiveness of local suppliers in emerging economies, thereby contributing to the development of the host economies.

Project Information

Project: "Research projects to stimulate young independent teams", code: PN-III-P1-1.1-TE-2016-0502

Financing institution: UEFISCDI Romania (Executive Agency for Higher Education, Research, Development and Innovation Funding)

More information: www.uefiscdi.ro