Win-win strategies for firms operating in resource-abundant countries: Technological spillovers and a collaborative diversification policy

Abstract

This paper responds to the growing need to be aware of the opportunities presented by technology spillovers resulting from value co-creation supported by diversification policies in resource-abundant host countries. It examines the effects of such a policy on both the local market strategies of multinational enterprises (MNEs) and on technological upgrades of local companies, where such policies require international oil and gas companies to build linkages to induce spillover. We argue that the effects of the policy with regard to spillovers can depend on the actors’ approach to collaboration. To suggest a theoretical foundation for such a collaborative approach, we integrate the value co-creation perspective with the concept of spillovers. The resulting approach is based on win-win strategies: the internationalization of the resource sector, and a shift towards the provision of service-based economy aid in an attempt to develop opportunities for sustainable operations on the part of multinationals in resource-abundant host countries. The development of local capabilities resulting from technological spillovers can enable local businesses to have access to international expertise in technology, create strategic opportunities and introduce long-term benefits for both local and international companies. This study adopts an abductive method as the basis for logical reasoning, employing an analysis of multilevel longitudinal case studies based on interviews with experts and multiple sources of industry documentation.