Organizational culture change by HRM techniques in British corporations
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Abstract
This study develops a theoretical framework that explains the interaction between firms in the manufacturing and service sectors, and the role of such interactions in influencing FDI spillovers and the performance of indigenous firms. We test our framework using a firm-level panel dataset of 1230 UK firms. We find strong evidence indicating that the performance of firms operating in manufacturing industries is a function of the external knowledge generated by foreign investors in the service industries (and vice versa). We demonstrate that the performance effects of inward FDI are not limited within a given sector (manufacturing or services) but manifest themselves across sectors. This points to the importance of distant knowledge in improving performance and provides an explanation as to how the right balance between manufacturing and services sectors may improve firm performance within a given economy and accelerate the effects of inward investment.
Article Details
Keywords
manufacturing-service interaction, FDI spillovers, technology transfer, servitisation
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