Discussion Paper Details
Please find the details for DP9500 in an easy to copy and paste format below:
Title: Do Multinationals Transplant their Business Model?
Author(s): Dalia Marin, Linda RousovŠ and Thierry Verdier
Publication Date: June 2013
Keyword(s): organisational economics of multinational firms, organisational transfer between countries, the theory of the firm and trade and organisations
Programme Area(s): Industrial Organization and International Trade and Regional Economics
Abstract: What determines whether or not multinational firms transplant their mode of organisation to other countries? We embed the theory of knowledge hierarchies in an industry equilibrium model of monopolistic competition to examine how the economic environment may affect the decision to transplant the business organization. We test the theory with original data of 660 multinational firms and 2200 of their affiliates. Three factors stand out: a competitive host market, the corporate culture of the multinational firm, and the transfer of an innovative technology. These factors increase the respective probabilities of organisational transfer by 9, 18, and 27 percentage points.
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Marin, D, RousovŠ, L and Verdier, T. 2013. 'Do Multinationals Transplant their Business Model?'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9500