Do domestic firms need to learn from MNCs to export? : evidence from Swiss manufacturing industry

Ben Hamida, Lamia (Haute école de gestion Arc, HES-SO // Haute Ecole Spécialisée de Suisse Occidentale)

Our paper attempts to examine how domestic firms manage to benefit from the export activities of large multinational corporations (MNCs). We analyze export spillovers from MNCs, in which export specific knowledge of MNCs that are experienced on foreign markets may spill over to domestic firms, improving their export performance. Multinational firm has a significant advantage over domestic firm since it can benefit from the existing international network of the entire corporation to start export operations and overcome the fixed costs induced by these activities (Blomstrom and Kokko, 1998). The contacts of domestic firms with export oriented MNCs provide both knowledge about the product and process technologies and international market conditions and access to foreign marketing and distribution networks - for example, foreign preferences regarding design, packaging, and product quality - raising the export and productivity performances in domestic firms through export spillovers. The export activities of MNCs may benefit domestic firms when the export specific knowledge that MNCs are experienced on foreign markets may spill over to domestic firms, allowing them to reduce the cost of access to these markets. By learning from MNCs, domestic SMEs are likely to raise their export propensity or intensify their export volume.


Keywords:
Conference Type:
extended abstract
Faculty:
Economie et Services
School:
HEG Arc
Institute:
Institut du Management et des Systèmes d'Information
Subject(s):
Economie/gestion
Publisher:
Virtual conference, 9-10 September 2020
Date:
2020-09
Virtual conference
9-10 September 2020
Pagination:
Pp. 1278-1281
Published in:
Proceedings of the 13th Annual Conference of the EuroMed Academy of Business
ISSN:
2547-8516
ISBN:
978-9963-711-89-5
External resources:
Appears in Collection:



 Record created 2020-11-11, last modified 2020-11-11

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