Theories on FDI spillovers: Have we really fully covered?
Main Article Content
Abstract
This paper sets the theoretical foundations for the future study of FDI spillovers. The reviewed FDI spillovers literature is well developed, with a widely acknowledged theory of three channels for FDI spillovers of competition, demonstration, and employee mobility. This paper is to revisit and systematize different economic, business, and management theories to build a solid background for future FDI spillover studies, bridging the gap between the real nature of FDI spillovers and current studies in this field. The paper covers fully theoretical background of FDI spillovers.
Article Details
Keywords
FDI spillovers, internalization theory, eclectic paradigm, dynamic capability, industrial organisation economics, exploration – exploitation framework
References
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37. Zhang, Y., Li, H., Li, Y. & Zhou, L. (2010). FDI spillovers in an emerging market: the role of foreign firms’ country origin diversity and domestic firms’ absorptive capacity. Strategic Management Journal, 31, 969–989
2. Aitken, B. & Harrison, A. (1999). Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela, American Economic Review, 89(3), 605-18
3. Amit, R., & Schoemaker, P.J.H. (1993). Strategic assets and organizational rent. Strategic Management Journal. 14(1), 33–46.
4. Barbosa, N. & Eiriz, V. (2009). Linking corporate productivity to foreign direct investment: An empirical assessment. International Business Review, 18, 1–13.
5. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
6. Blalock, G. & Gertler, P. (2004). Firm Capabilities and Technology Adoption: Evidence from Foreign Direct Investment in Indonesia. Unpublished paper, available online at: www.aem. cornell.edu/faculty_sites/gb78/wp/blalock_firmcap_062104.pdf
7. Blalock, G. & Simon, D. (2009). Do all firms benefit equally from downstream FDI? The moderating effect of local suppliers’ capabilities on productivity gains. Journal of International Business Studies, 40(7), 1095-1112.
8. Blomström, M. (1989). Foreign investment and spillovers. London: Routledge
9. Buckley, P.J. & Casson, M.C. (1976). The Future of the Multinational Enterprise, Macmillan:
London.
10. Buckley, P.J. (2009). Internalisation thinking: from the multinational enterprise to the global factory. International Business Review, 18, 224-235.
11. Chen, S.S. (2005). Extending internalisation theory: a new perspective on international technology transfer and its generalisation. Journal of International Business Studies, 36, 231245.
12. Dierickx, I. & Cool, K. (1989). Asset stock accumulation and sustainability of competitive advantage. Management Science, 35(12), 1504-1511.
13. Dosi. G., Teece, D.J. & Winter, S. (1989). Toward a theorv of corporate coherence: Preliminary remarks, Unpublished paper. Center for Research in Management University of California at Berkeley 1989.
14. Dunning, J. (1970). Studies in International Investment. London
15. Dunning, J. (1981). International Production and the Multinational Enterprise, George Allen & Unwin: London.
16. Eapen, A. (2012). Social structure and technology spillovers from foreign to domestic firms, Journal of International Business Studies, 43(3), 244-263.
17. Fosfuri, R., Motta, M. & Ronde, T. (2001). Foreign Direct Investment and spillovers through workers’ mobility. Journal of International Economics, 53, 205-22.
18. Katz, J.M. (1987). Technology Generation in Latin American Manufacturing Industries. New York, St. Martens Press.
19. Lavie, D. (2006). The competitive advantage of interconnected firms: an extension of the Resource-Based View. Academy of Management Review, 31(3), 638-658.
20. Liu, X., Wang, C. & Wei, Y. (2009). Do local manufacturing firms benefit from transactional linkages with multinational enterprises in China? Journal of International Business Studies, 40, 1113–1130.
21. M. (1990). The Competitive Advantage of Nations, Macmillan, London
22. Mansfield, E. & Romeo, A. (1980). Technology Transfer to Overseas Subsidiaries by U.S.based Firms, Quarterly Journal of Economics, 95, 737-750.
23. March, J. G. (1991). Exploration and exploitation in organizational learning. Organization Science, 2, 71–87.
24. Merlevede, B. & Schoors, K. (2005). Conditional spillovers from FDI within and between sectors: evidence from Romania. Department of Economics and CERISE, University of Ghent, October.
25. Meyer, K. & Sinani, E. (2009). When and where does foreign direct investment generate positive spillovers? A meta-analysis. Journal of International Business Studies, 40(7), 1075-1094.
26. Meyer, K. (2004). Perspectives on multinational enterprises in emerging economies. Journal of InternationalBusiness Studies, 35, 259–276.
27. Penrose, E. (1959). The theory of growth of the firm. New York: John Wiley and Sons.
28. Peteraf, M.A. (1993). The cornerstones of competitive advantage: a resource-based view. Strategic Management Journal, 14(3), 179-191.
29. Porter, M. (1990). The Competitive Advantage of Nations, Macmillan, London
30. Rodrıguez-Clare, A. (1996). Multinationals, linkages, and economic development. American Economic Review, 86(4), 852–873.
31. Schoors, K. & Van Der Tol,B. (2002). Foreign direct investment spillovers within and between sectors: Evidence from Hungarian data, Ghent University, Belgium, Working paper D/2002/7012/32
32. Schumpeter, J. (1942). Capitalism, Socialism, and Democracy. Harper, New York
33. Spencer J.W. (2008). The impact of multinational enterprise strategy on indigenous enterprises: horizontal spillovers and crowding out in developing countries. Academy of Management Review, 33, 341–361.
34. Teece, D. J., Pisano, G. & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18, 509 –533.
35. Wang, C., Deng, Z., Kafouros, M. & Chen, Y. (2012). Reconceptualizing the spillover effects of foreign direct investment: A process-dependent approach. International Business Review, 21(3), 452-464.
36. Wang, C., Hong, J., Kafouros, K., & Boateng, A. (2012). What drives outward FDI of Chinese firms? Testing the explanatory power of three theoretical frameworks. International Business Review, 21, 425–438.
37. Zhang, Y., Li, H., Li, Y. & Zhou, L. (2010). FDI spillovers in an emerging market: the role of foreign firms’ country origin diversity and domestic firms’ absorptive capacity. Strategic Management Journal, 31, 969–989