Entrepreneurship and performance around MNC affiliates.

Abstract

The aim of this study is the analysis of the influence of a multinational company (MNC) on its local suppliers network within the host territory. We have particularly focused on how the MNC influences the performance of supplier as well as non-supplier local companies. Our study has shown the how the existence of knowledge transfer influences productivity through the productive linkage established with local suppliers and their hiring of MNC former managers. Direct local suppliers have been shown to experience higher productivity than do local suppliers from lower levels of the supply chain. Similarly, local suppliers hiring MNC former managers have shown higher productivity than those who have hired only local managers. In addition, no significant differences in productivity have been found between strategic and non-strategic suppliers.