Do MNCs' high quality and standard requirements matter? A channel for vertical spillovers

Abd Rahim Jaguli, Marlin M. Malek, Mohd Rizal Palil

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This study attempts to investigate how Multinational Corporations (MNC) transfer their knowledge and technology to local firms through backward linkages established between both of firms. The objective was to fill a research gap, where the channels through which technology and knowledge were transferred remained unexplored in the existing Foreign Direct Investment (FDI) spillover literature. A case study method was adopted as it is appropriate for exploring the complex process of technology transfer. It would have been effective in order to conduct in-depth analysis on the effect of linkages, which would have been difficult to achieve using quantitative analysis. The findings highlight that FDI and innovation activities from MNCs may represent a source of knowledge and technology know-how. Hence, local suppliers may gain a number of advantages from establishing linkages with MNCs. The findings not only provide benefit to the academic circle but also to local businesses, especially small and medium industries, as well as policy makers. The managerial and policy implications derived from the findings are relevant, not only to Malaysia, but also to other developing countries, particularly Malaysia's neighbouring countries.

Original languageEnglish
Pages (from-to)127-150
Number of pages24
JournalInternational Journal of Business and Society
Volume15
Issue number1
Publication statusPublished - 2014

Fingerprint

Foreign direct investment
Linkage
Malaysia
Spillover
Small business
Backward linkages
Politicians
Case study method
Knowledge transfer
Policy implications
Media industry
Local suppliers
Quantitative analysis
Investment activity
Transfer of technology
Developing countries
Innovation activities
Multinational corporations
Technology transfer

Keywords

  • Backward linkages
  • FDI spillovers
  • Malaysia
  • MNC
  • Technology and knowledge transfer

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance
  • Strategy and Management
  • Business and International Management

Cite this

Do MNCs' high quality and standard requirements matter? A channel for vertical spillovers. / Jaguli, Abd Rahim; Malek, Marlin M.; Palil, Mohd Rizal.

In: International Journal of Business and Society, Vol. 15, No. 1, 2014, p. 127-150.

Research output: Contribution to journalArticle

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