How does overseas labour quality affect multinational performance? A global value chain perspective

Strange, Roger and Yang, Yong (2016) How does overseas labour quality affect multinational performance? A global value chain perspective. In: Strategic Management Society (SMS) 35th Annual International Conference, 3-6 Oct 2015, Denver, Colorado.

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Abstract

We test empirically for the existence of ‘reverse knowledge transfer’ effects using a firm-level panel of more than 1,600 manufacturing MNCs and over 2,400 overseas affiliates, covering 30 home and host countries. We find that highly-skilled labour in overseas affiliates has a significant impact upon the productivity of parent companies, suggesting the existence of a strong reverse knowledge transfer effect. We also establish that this knowledge transfer effect is greater (1) when the overseas affiliates are in related, rather than unrelated, industries; (2) when the overseas affiliates are downstream, rather than upstream, in the MNCs global value chains; (3) when the overseas affiliates involve horizontal, rather than vertical, FDI; and (4) when the overseas affiliates are wholly owned subsidiaries, rather than joint ventures.

Item Type: Conference or Workshop Item (Paper)
Additional Information: Conference theme: Strategy expanding: making sense of shifting field and firm boundaries
Schools and Departments: School of Business, Management and Economics > Business and Management
Depositing User: Stacey Goldup
Date Deposited: 31 Oct 2016 13:16
Last Modified: 31 Oct 2016 13:16
URI: http://sro.sussex.ac.uk/id/eprint/65147
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