2014
DOI: 10.1007/s11575-013-0195-y
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Simultaneous Impact of the Presence of Foreign MNEs on Indigenous Firms’ Exports and Domestic Sales

Abstract: Incorporating the global production network approach and competitor analysis, this paper establishes an analytical framework with two hypotheses for the role of foreign multinational enterprises (FMNEs) in indigenous firms' exports and domestic sales. First, the presence of FMNEs as a whole is likely to have a negative impact on indigenous firms' domestic sales but a simultaneous positive impact on their exports in an emerging economy like China. Second, the presence of MNEs from Hong Kong, Macau and Taiwan (H… Show more

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Cited by 18 publications
(10 citation statements)
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“…Eng and Spickett-Jones (2009) argue that upgrading hinges on suppliers' ability to simultaneously develop three sets of marketing capabilities: product development, marketing communication, and channel management. Wang, Wei, Liu, Wang and Lin's (2014) study of manufacturing firms in China indicates that the presence of MNEs alone does not guarantee knowledge spillovers, and may in fact have a negative impact on indigenous firms' domestic performance due to increased competition. Hatani (2009) describes barriers to learning by emerging market GVC suppliers.…”
Section: Learningmentioning
confidence: 99%
“…Eng and Spickett-Jones (2009) argue that upgrading hinges on suppliers' ability to simultaneously develop three sets of marketing capabilities: product development, marketing communication, and channel management. Wang, Wei, Liu, Wang and Lin's (2014) study of manufacturing firms in China indicates that the presence of MNEs alone does not guarantee knowledge spillovers, and may in fact have a negative impact on indigenous firms' domestic performance due to increased competition. Hatani (2009) describes barriers to learning by emerging market GVC suppliers.…”
Section: Learningmentioning
confidence: 99%
“…However they do not find statistically significant change in export by these firms. Utilizing firm level data in the period of 2001-02 and 2005-07, Wang et al (2014) find that FDI inflow generates significantly positive impact on exports and significantly negative impact on local sales by domestic firms.…”
Section: Related Literaturementioning
confidence: 99%
“…It also proposes a proactive strategy that considers a wider range of stakeholders and explores the new international business context of product uncertainty. This proactive internationalization strategy is complementary to those proposed by classic IB theories, such as the stage model (Johanson and WiedersheimPaul, 1975;Johanson and Vahlne, 1977), the network approach to internationalization (Chen, 2003;Wang et al, 2014), and international production networks (Dunning, 1988;Shi and Gregory, 1998;Fisch and Zschoche, 2012). In summary, instead of examining Mode 1 knowledge, as most IB research has, this paper addresses Mode 2 knowledge.…”
Section: Introductionmentioning
confidence: 92%