We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Do Multinationals Transplant their Business Model?
- Authors
Marin, Dalia; Rousová, Linda; Verdier, Thierry
- Abstract
What determines whether or not multinational firms transplant the 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 of multinational firms about transplanting the mode of organisation to other countries. We test the theory with original and matched parent and affiliate data on the level of decentralisation of 660 Austrian and German multinational firms and 2,200 of their affiliate firms in Eastern Europe. We find that market competition in both home and host markets is an important driver of organisational transfer to host countries: an increase in competition in the home (host) market by ten percentage points lowers (increases) the probability of transplanting by nine (seven) percentage points.
- Subjects
EASTERN Europe; BUSINESS models; TRANSPLANTATION of organs, tissues, etc.; MONOPOLISTIC competition
- Publication
Economic Journal, 2021, Vol 131, Issue 634, p899
- ISSN
0013-0133
- Publication type
Article
- DOI
10.1093/ej/ueaa108