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Author: | Pearce, R. |
Title: | Multinationals' strategies and the economic development of small economies: a tale of two transitions |
Journal: | Management International Review
2009 : VOL 49:1 p. 81-94 |
Index terms: | exports transition economies cluster analysis ECONOMIC CONDITIONS globalization |
Freeterms: | MNE |
Language: | eng |
Abstract: | The study examines the development of small economies and explores the processes of globalisation to find new potentials for MNE participation. The MNEs goal is to achieve global competitiveness. This is based on a range of strategic motivations. The cost-effective inputs of small economies advantage efficiency seeking operations of MNEs and activate the export potentials. The findings reveal that there exist three factors that emphasize the role for MNEsÂ’ participation in the competitive development of a small economy. The three factors are opening up the exporting, the adoption of global-network strategies and the natural overlap between the development needs of MNEs and the small economies. |
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