Service multinational enterprises and linkages development in Pakistan

Abstract

The development of various types of linkages is key to understanding the impact of multinational enterprises (MNEs) on the economic development of host markets. Using a qualitative research approach, we investigate the linkages created by IT MNEs in Pakistan. The findings suggest that these MNEs have created management, technological, diversification, and financial linkages, among others. Their creation is contingent and co‐determined by the MNEs' investment motives, their mandates, and embeddedness in the host market as well as the local technical capability. We highlight the contributions and implications of these linkages. Copyright © 2017 ASAC. Published by John Wiley & Sons, Ltd.

Service sector subsidiary performance in emerging markets: is it who or what you know?

“…For instance, certain call center functions could be in a host country that might not demand those services at all (Kleibert, 2016). It is therefore expected that intraorganizational network relationships remain crucial for subsidiary performance especially for those located in emerging markets in which local firms might not be able to achieve comparable quality standards (Khan et al, 2018;Miozzo et al, 2012).…”

“…In addition, some argue that inter-organizational relationships do not play a huge role in determining subsidiary performance directly in emerging markets because such relationships might be rather limited (Khan et al, 2018;Miozzo et al, 2012). In emerging markets those external relationships might be confined to nearby located subsidiaries of other MNEs (Gleich et al, 2017).…”

“…Contrary to those developments, service sector subsidiaries have so far mostly been pictured as heavily dependent on headquarters due to their desire to standardize services (Lee et al, 2011;Miozzo et al, 2012) although this has not been supported unconditionally (e.g. Khan et al, 2018;Ndubisi et al, 2015). However, so far only few studies have been undertaken to understand how different types of networks influence service sector subsidiary performance.…”

“…In addition, some argue that inter-organizational relationships do not play a huge role in determining subsidiary performance directly in emerging markets because such relationships might be rather limited (Khan et al. , 2018; Miozzo et al.…”

Top management team international experience and strategic decision-making

“…We collected the data for this study from international small-and medium-sized software firms from Pakistan during the summer of 2014 via a questionnaire. This industry is MBR 26,1 growing despite of the fact that it has to face difficult domestic environmental conditions such as domestic turmoil, geopolitical tensions with neighbors, and a lack of venture capital and entrepreneurial ecosystems (Khan et al, 2017;Khan and Lew, 2018). This industry generates revenues in range of $2.8bn; the revenues from foreign sales are $1.6bn (Khan and Lew, 2018).…”