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Author:Scott-Kennel, J.
Title:Foreign direct investment and local linkages: an empirical investigation
Journal:Management International Review
2007 : VOL. 47:1, p.51-77
Index terms:foreign investment
direct investment
multinational companies
competition
suppliers
alliances
Language:eng
Abstract:This paper examines the quantity and quality of indirect, transactional and collaborative linkages between foreign affiliates and domestic firms based in New Zealand. Seven clusters of affiliates are differentiated by linkage formation behaviour. Only 14% of affiliates actively engaged in a broad spectrum of linkages, including alliances. Thirty-nine percent appear limited to demonstration and competition effects. Researchers and policy makers should recognise FDI heterogeneity with regard to impact on domestic industries. The results show that competitive influence, levels of competition, motives for investment, business activity, technology transfer, age and ownership form are significantly associated with linkage clusters.
SCIMA record nr: 264627
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