Foreign MNCs Research Articles

Market Warnings : Learning from the Short-Term Impact of COVID-19 on Stock Market Constituents

Purpose : The paper investigated the short-term impact of the lockdown announcement due to COVID-19 on various industries in India using firms’ stock returns and credit ratings. Design/Methodology : The paper used event study methodology to analyze abnormal returns on stocks and credit rating changes of firms following the lockdown to understand the impact on the debt servicing of firms. Findings : The paper found a heterogeneous impact of lockdown on various industries. Pharmaceuticals, chemicals, FMCGs, and telecom sectors saw positive abnormal returns, while textiles, financial services, construction, services, cement, and automobile sectors were the worst affected. The paper also found that smaller companies were more susceptible to the effects of such lockdowns. Indian subsidiaries of foreign MNCs and Central Government-owned firms fared better than privately-owned domestic firms. The debt servicing ability of firms was unimpacted due to the debt relief package announced to mitigate the impact of the lockdown. Practical Implications : The paper's findings have implications for investors and managers who can make informed decisions in advance to reduce the risk to their investment if such a black swan event is expected. The paper's findings could help policymakers identify sectors that require immediate support due to the disruption from such an event. Originality : The paper is unique in investigating the impact of the lockdown due to COVID-19 on companies across different industries, with different ownership groups and sizes. We have not come across such a detailed study investigating the impact of COVID-19 on various industries in India.

A Study of Innovative Human Resource Practices of Indian Companies

Human resource practises that are well-organized are required for a successful strategic change. Human resource management is critical in redefining new strategies to fit the changing environment scenario. HRM can sometimes be more than just a component of a new strategy; it can also be the deciding and defining factor in pursuing a specific strategy. To keep up with the ever-changing business environment, Indian and foreign MNCs have revamped their HR strategic practises. This paper discusses the innovative strategies that Indian HR practises employ.

Don't Worry, I Know What I'm Doing: Talent Management Practices between South Korean and Foreign-Owned Firms

It is frequently argued that Talent Management (TM) has been derived from Western, and there are gaps between spread westernized TM format and contexts of non-western countries when TM is adopted and practiced in a business daily basis. The cultural and institutional gaps to adopt TM are analyzed in this paper through comparing the differences in TM practices between foreign owned subsidiaries and local firms in South Korea using an institutional theory lens. A mixed method approach including 55 semi-structured interviews from South Korean and non-South Korean employees and 155 survey responses is employed. This paper results revealed the clear distinctions that indigenous firms practice inclusive and implicit TM, whereas foreign firms practice global standard exclusive TM program South Korean firms are developing very specific approaches within their traditional cultures such as collectivism and Confucianism to manage talent, and also local employees evaluate this tailored TM approach is effective like other foreign MNCs’ exclusive TM approach. Firms experience and respond to the external exigencies in very different ways and tendencies for isomorphism cannot be assumed.

Multinationals, Capital Export, and the Inclusive Development Debate in Developing Countries: The Nigerian Insight

In this paper, we employed a blend of multiple and historical case study design, and a mix of institutional, behavioral, resource-based, and multinational theories, to examine the nature of multinational companies’ (MNC) engagements in local economic development and capital export practices in an African context. Evidence from our Nigerian case analysis (FrieslandCampina, Nigerian Breweries Plc. and Dangote Cement) confirms the proposition that, faced with a similar degree of uncertainty and constrained institutional environment and laying claims to differing sources of competitive advantage, both local and foreign MNCs would repatriate profits and limit exposures to local value chains (LVCs) mainly as a strategy for mitigating country risks and preserving corporate value. Such limited exposures detach MNCs, especially the foreign ones, from the LVCs, and by doing so push them to deeper reliance on the global value chains (GVCs). Linking local businesses to the GVCs is central in the inclusive development (ID) debate essentially because it allows for the redistribution of economic benefits, helps in building a complementary (rather than competitive) relationship between MNCs and local businesses, and facilitates local businesses’ access to international markets. We, therefore, recommend that in pursuit of the inclusive and sustainable development projects in Africa, industrial policies need to be tailored toward stabilizing the policy environment, protecting investments from risk of expropriation, and incentivizing MNCs’ participation in the LVCs.

Local–global interface as a key factor in the catching up of regional innovation systems: Fast versus slow catching up among Taipei, Shenzhen, and Penang in Asia

• Why economic performance and growth trajectories differ among Taipei, Shenzhen, and Penang. • Taipei show the highest and increasing level of intra- and inter-regional localization of knowledge. • Shenzhen replicates this trajectory of Taipei more closely than Penang. • Ownership of innovation in Taipei have shifted from foreign MNCs to indigenous firms. • A catching-up RIS: increase in intra-regional localization and local ownership, and diversification. This study raises the question of why economic performance and growth trajectories differ among three Asian regions, namely, Taipei, Shenzhen, and Penang. Among them, Taipei the most developed, whereas Penang is the least developed. The question is also why Shenzhen is catching up fast with Taipei, whereas the catching-up speed of Penang is slow. From a Schumpeterian perspective, this study addresses these questions based on the divergent nature of regional innovation systems (RIS) in the three regions by focusing on the local–global interface. Results reveal that Taipei show the highest and increasing level of intra- and inter-regional localization of knowledge and a low and decreasing level of internationalization (the degree of relying on foreign knowledge). Shenzhen replicates this trajectory of Taipei more closely than Penang that continue to be dependent upon foreign knowledge sources. Penang also increases very slowly its intra- or inter-regional localization of knowledge. Second, the main carrier and ownership of innovation in Taipei have shifted from foreign MNCs to indigenous firms. Shenzhen closely replicates this phenomenon, but Penang continuously relies on foreign MNCs. Third, Taipei has an increasing and high value of technological diversification, which is closely followed by Shenzhen but not by Penang. These findings help us identify a dynamically catching-up RIS, which can be characterized by a steady increase in intra-regional localization, a decrease in internationalization, an increase in local innovation ownership, and an increase in technological diversification. Its implication for policies is the importance of eventually increasing the localization of innovation and its ownership after these regions learn from foreign knowledge sources.

Corporate Nationality and Capital Structure Decisions - Evidence from India

This paper examines the Capital Structure of companies classified based on nationality over two-time phases as 2008-09 to 2012-13 and 2013-14 to 2017-18 covering ten years. For each category of companies, the mean of three gearing ratios i.e., Total debt to Net worth ratio, Long term debt to Net worth ratio and Short term debt to Net worth ratio is assessed. The analysis is based on a randomized sample of 206 companies obtained from BT-500 (December, 2017) which are subcategorized on the basis of nationality as Indian Domestic Companies, Indian MNCs operating abroad and Foreign MNCs operating in India. The findings reveal that Domestic Indian companies are more inclined towards debt relative to Indian MNCs and Foreign MNCs over both the time phases. This signifies the importance of the nationality factor which must be contemplated while planning Capital Structure. Statistically significant differences in total and long-term debt ratios of Domestic Indian Companies and Indian MNCs between Phase I and Phase II highlight the significance of the time factor which should also be kept in mind before taking leverage decisions. Overall, the paper suggests the corporations to have beady eyes on the institutional environment of geographical territories in which they operate as well as the time variations before planning their debt structure. The disparities in the debt ratios across nationality and time warrant an empirical investigation of the causes behind them, so examining the determinants of Capital Structure of DCs and MNCs would be an interesting area of research in the future.

Role of foreign MNCs in technological activities of India’s IT services industry: an analysis from patent granted data

ABSTRACT India has now become one of the biggest sourcing countries for engineers and scientists. More than 25 per cent of all worldwide patent sourcing by the US companies has at least one inventor from India or China. This paper is a fresh attempt to discuss different aspects of measuring technological activities of Indian IT services industry with the help of detailed patent granted data, particularly first name inventor (FNI). The Indian IT industry has experienced several transformations. After the economic reforms of 1991, the presence of foreign MNCs in this industry started rising. Presently, the industry is dominated by foreign MNCs in terms of patent applications, the patent granted, and software exports. The study found that more than 50 per cent of patents granted to IT companies by the USPTO has at least one First Name Inventor from India. Results also show that the industry has become the world’s largest sourcing destination for foreign MNCs. Today, almost all big foreign MNCs from all over the world, including IBM, Apple, Qualcomm, Samsung and Nokia have established their subsidiary in India. Bangalore has become the most desired destinations for foreign MNCs.

How Family Firms from Emerging Economies are Responding to Inward Foreign Direct Investments

Family firms abound in emerging markets and they often compete with foreign MNCs for growth and sustenance. Despite years of scholarly interest in understanding the dynamics of family firms two important questions remain unaddressed: (a) how do family firms in emerging markets respond to competition arising from foreign MNC investments, and (b) what factors cause variation in such response? In this study we begin to address these questions. Drawing on international business and family firm literatures and employing willingness and ability framework (De Massis et al. 2014, 2015, 2018), this study empirically examines a large sample of Indian family firms over a six-year time-period. Results suggest that family firms increase their outward FDI (OFDI) in response to inward FDI announcements by foreign MNCs. Results also demonstrate that OFDI-growth response varies across firms and is shaped by heterogeneity in management type (professional/family-based), extent of foreign institutional ownership (high/low), and family CEO’s international exposure (possessed/not possessed). These findings are new to the literature. We conclude by discussing the theoretical and managerial implications of our findings and highlighting fertile avenues of future research.

Disclosure Regulation & Competition from MNCs: Evidence from Canadian Oil Investment

What is the role of the information environment in foreign investment? Do foreign multinationals gain from host-country transparency regulation? This paper explores the informational aspects of liability of foreignness, taking advantage of a natural experiment in the petroleum industry. Canadian securities regulations since 2004 mandate that oil and gas companies include the estimated size and value of underground reserves in their financial reporting. Using gas and oil field acquisition data, the paper examines whether this change affects the asset valuations of reserve acquirers, and whether the valuation effect is different between foreign and domestic firms. Analysis of 2299 oil reserve deals finds that greater transparency has a positive effect on valuation, and the effect is stronger for domestic investment than for FDI, suggesting that domestic firms gained in competition with foreign MNCs for supply sources. The paper draws on economic theories of adverse selection and knowledge perspectives on economic geography to explain its findings.

New Measurement and Interpretation of the Vulnerability of Chinese Manufacturing International Competitiveness： In-depth Perspective Based on Firm Level Micro-data

Under the influence of trade disputes between China and the US and the spread of COVID-19 epidemic, the turmoil in the global economy will inevitably shake the stability of the international competitiveness of Chinese manufacturing industry. Especially when firms’ boundaries have spanned national boundaries and become the core subject of measuring a country’s industrial international competitiveness, the stability of the competitiveness of indigeous firms will directly determine the resilience of the Chinese manufacturing industry shocked by the epidemic.Based on the above, this paper focuses on the comparative advantages of the “industrial country” dimension and the core assets of the “indigenous firm” dimension, and defines the international competitiveness vulnerability of Chinese manufacturing industry as that the international competitiveness of foreign invested firms is statistically significantly higher than that of indigenous firms. Clarifying the transmission mechanism of industrial international competitiveness based on firms, this paper innovatively constructs the “double-dimension and three-level” evaluation system on international competitiveness vulnerability, with 84,482 Chinese manufacturing firms from 2000 to 2013 as the sample, to locate the fragile links and analyze the causes.The findings indicate that the international competitiveness vulnerability of Chinese manufacturing industry mainly exists in the competitiveness essence and performance level of high-tech industry, while the vulnerability in the competitiveness performance level of medium- and low-tech industry is gradually alleviated, and also in a stable state in the essence and result level. In the high-tech industry, the improvement of Chinese industry upstreamness and the enhancement of foreign MNCs’ control on R&D are the reasons for the vulnerability of the competitiveness essence and performance. The increase in industry upstreamness will also make indigenous firms face potential risks in competitiveness result. In medium- and low-tech industry, foreign MNCs’ advantages in marketing and global resource integration are the reasons for the vulnerability of competitiveness performance. The industry upstreamness consolidates the advantage of indigenous firms’ competitiveness essence, but also weakens the advantage of competitiveness result.The academic value of this paper is mainly reflected in three aspects. Firstly, it enriches the theoretical connotation of industrial international competitiveness research, tests the practice of international trade theory evolution in China, and deeply analyzes the composition of industrial international competitiveness from the internal structure. Secondly, it assesses the international competitiveness based on the perspective of value-added and a large number of firm data. Thirdly, it locates the links and digs the causes of competitiveness vulnerabilities, helping to discover the shortcomings of Chinese manufacturing industry and accordingly formulate strategies to enhance international competitiveness.

SPATIAL CRITERIA TO NOMINATE EGYPTIAN GOVERNORATES TO ADOPT MODERN GLOBAL AGRICULTURAL DEVELOPMENT APRROACHES TO MAXIMIZE THE DEVELOPMENTAL REVENUES OF THEIR LAND RECLAMATION PROJECTS

Egypt has begun adopting the policy of horizontal agricultural expansion since 1954 so far through establishing 74 land reclamation projects aiming to reclaim more than 4.043 million acres in the period 1954 to 2019. This policy is intended to achieve myriad objectives comprising; the economic sectoral objectives for agriculture economic sector (to secure the national food security through more agricultural expansion and bridging the national food gap); the Social objectives to generate more jobs and land-ownerships for the poor farmers and fresh graduates; and the spatial planning objectives including (to achieve the anticipated balanced spatial development by spreading the urban expansion in the desert areas outside the valley and the delta, to absorb rural and urban overspills, to establish new urban settlements, reducing rural poverty and unemployment, and to generate more job opportunities). However, Most of these projects are still far behind achieving any of their socio-economic and spatial objectives. Paradoxically, these projects have not created the proper investment milieu to lure either domestic or global agro- commercial business or agro-industrial business. Moreover, they have failed to engage in globally Agro - Business value / supply chains and it is unable to adopt the recent global approaches of planning the agro- land reclamation projects. Therefore, this research assumes that in order to leverage the positive impacts and developmental revenues of these projects, they have to be more engaged and integrated with the global network of agricultural value/supply chains that are controlled by a limited number of multinational global companies combined with increasing their competitiveness to attract more foreign direct investment and MNCs. This in turn entails to adopt new farming methods particularly the contracting agricultural method. Given the fact that most of these policy transformations will be occurred in the space /spatial context, which in turn has raised the question about the readiness of the Egyptian governorates to adopt such policy directions and on what basis the first priority governorates will be selected. Thus, this research will contribute to the local Egyptian context by formulating the most proper spatial criteria which are able to gauge the readiness of the Egyptian governorates to adopt these recent global policy directions. Moreover, it will deduce the key affecting factors which are able to explain the disparities among Egyptian governorates’ readiness. The research concluded that the most ready Egyptian governorates to employ and adopt these modern global agricultural policy approaches are those located in West Delta belt, particularly Beheira Governorate and Alexandria, followed by Aswan governorate (Toshka mega project the most receipt of agricultural FDI), then those located in the auspice of Sues Canal region, especially Port Said and North Sinai (alongside Al-Salam or peace Canal) and finally the governorates of the national mega project to reclaim 1.5 million acres comprising of Matruh governorate (Al-Mughara), Menyia governorate (West Minya Plain) and New Valley governorate (Farafra project). The results affirmed the existence of four ruling and key factors which are able to explain 92% of the variation in the capabilities and readiness of the Egyptian governorates to adopt these modern global agricultural development approaches. The first leading factor is the availability of future land reclamation expansion areas which are well served and equipped with all elements of agricultural infrastructure particularly the provision of advanced irrigation system, while the second factor is the readiness to engage with global agricultural supply/value chains comprising the variables of; the existing size of agricultural exports, specializing in cultivating export crops, the ability of attracting agricultural FDI, and the size of reclaimed areas adopting currently the contractual farming method with local and global partnerships/MNCs.

International Capital Flow Taxation within the Context of Companies’ Investment Strategies Factors: Developing Countries’ Experience

The subject of the researchis taxation tools for regulation international capital flows of MNCs and instruments of taxation base dilution counteraction used by some countries. Thepurposeof the work is regularity revelation of combination the mentioned above tools in developing countries that are potentially locomotives of the world economic development — Brazil, China, India, Mexico, Russia. It is determined that present-day international taxation in these jurisdictions is based on the same instruments as in the developed countries, but it has its own specificity corresponding with the national tax system, as well as the instruments combination which is conditioned by the particular features of socio-economic, political and legal mode of the state. All the countries under study experience significant withdrawal of capital and consequently keenly need domestic and foreign investments. At the same time they lack tax yield, which makes them build similarly less attractive in international sphere tax treatment than the developed economies and keep for themselves predominant share of foreign MNCs’ profits under the terms of international agreements. The ways to struggle tax revenue leakage differ in details both within these countries and with the similar mechanisms in developed economies. The authors stress the importance of forming tax treatment of international capital flow to stimulate keeping capitals within the country. To achieve this, the countries should define more exactly the existing mechanism of international capital flow investment taxation and the combination of regulation tools used.

Spatial Distance Construal Perspectives on Cause-Related Marketing: The Importance of Nationalism in Russia

Consumers around the globe expect firms to contribute to environmentally and socially responsible causes. Using construal level theory with a spatial distance lens, we examine effects of spatial proximity of the firm (domestic firm vs. foreign multinational corporation [MNC]), cause (domestic vs. global), and consumer cultural identity (locally oriented: nationalism and consumer ethnocentrism; distantly oriented: global identity and global citizenship through global brands) on consumer attitudes toward the firm. Across three studies with a focus on Russia and environmental causes, we consistently find that nationalism moderates consumer attitudes, whereas consumer ethnocentrism, global identity, and global citizenship through global brands do not. When firms engage in cause-related marketing and focus on proximal causes, nationalistic consumers are more favorable toward domestic firms (vs. foreign MNCs). When firms are not engaged in cause-related marketing, consumers with stronger nationalism are more favorable toward domestic firms, and consumers with weaker nationalism are more favorable toward foreign MNCs. Importantly, the effects of nationalism are mitigated when foreign MNCs and domestic firms engage with global causes. Product involvement, environmental concerns, and marketplace skepticism are predictors of attitudes toward the firm. The results highlight the importance of considering the socio-historical-political context of a given country and locally oriented nationalistic beliefs.

Are there export spillovers in manufacturing industry Evidence from Switzerland

Apart from foreign direct investment (FDI), multinationals' (MNCs) export activities are also a valuable source of knowledge for domestic firms (in the home and the host countries). The aim of this paper is to focus in detail on the role of MNCs' export activities in improving the export performance of domestic firms through export spillovers. In particular, we test whether export activities of both Swiss and foreign MNCs located in Switzerland may benefit the Swiss economy when the export specific knowledge that is experienced on foreign markets may spill over to domestic firms, raising their export propensity. We argue that export spillovers do not occur automatically. They depend upon the mechanism by which they take place, the absorptive capacity of domestic firms, the export destination, and the geographical proximity. We found that the probability that domestic firms exports is positively and significantly associated with the presence of MNCs exporters in their sector. Demonstration-imitation is the main mechanism for these benefits. These benefits are larger when specific by destination and when domestic firms are in close proximity to foreign and Swiss MNCs. In addition, domestic firms with high technological capacities benefit more from export spillovers.

Are there export spillovers in manufacturing industry Evidence from Switzerland

Apart from foreign direct investment (FDI), multinationals' (MNCs) export activities are also a valuable source of knowledge for domestic firms (in the home and the host countries). The aim of this paper is to focus in detail on the role of MNCs' export activities in improving the export performance of domestic firms through export spillovers. In particular, we test whether export activities of both Swiss and foreign MNCs located in Switzerland may benefit the Swiss economy when the export specific knowledge that is experienced on foreign markets may spill over to domestic firms, raising their export propensity. We argue that export spillovers do not occur automatically. They depend upon the mechanism by which they take place, the absorptive capacity of domestic firms, the export destination, and the geographical proximity. We found that the probability that domestic firms exports is positively and significantly associated with the presence of MNCs exporters in their sector. Demonstration-imitation is the main mechanism for these benefits. These benefits are larger when specific by destination and when domestic firms are in close proximity to foreign and Swiss MNCs. In addition, domestic firms with high technological capacities benefit more from export spillovers.

Effect of Capital Flight on Foreign Direct Investment: Evidence from Multinational Corporations in Developing African Countries

This study investigates the effect of capital flight on foreign direct investment in developing nations of Africa. Secondary data employed for this study are obtained for Nigeria, Gabon, Botswana, Cameroon and South Africa from 2005-2014. The study adopts ordinary least square regression analysis to test the hypothesis of the study. The result from the regression analysis shows that capital flight has significant impact on foreign direct investment which represents t-statistic of 2.531 with F- statistic = 21.70; R2 = 0.837, and R-2 = 0.701 with the p-value 0.016 < 0.05%. It very well may be concluded from the outcome acquired that the consistent parameter over the long haul is certain. This infers if all the informative factors are held steady, outside direct speculation (FDI) will expand subsequently realizing expanded business age, increment Gross Domestic Product (GDP) of these countries, decline financing costs, sway decidedly on trade rates just as assistance in country working in less created countries. This study concluded that capital flight has a significant impact on foreign direct investment in developing nations of Africa. It therefore, recommends that foreign investors and MNCs should be meant to stop illicit outflows via capital flight through more stringent international tax laws aimed at entrenching transparency on how MNCs file in their tax returns.

Patenting choices for valuable subsidiary inventions created in an uncertain and fast changing environment

Purpose Firms increasingly diversify their technological competencies to achieve different strategic objectives. This study aims to explore the impacts of technological knowledge characteristics on patenting choices for inventions created by subsidiaries in an uncertain and fast changing environment. Design/methodology/approach The data used in this study are patents granted to the world largest firms by the USPTO for inventions attributable to their subsidiaries in China between 1996 and 2005. In addition, the patent data from State Intellectual Property Office (SIPO) of China are used for the matching in terms of filing patent applications in both USA and China for a same piece of technology. A discrete Logit model is used to examine the effects of technological distance and categories on Chinese patent application and international priority. Findings The findings suggest that firms have priority to seek international patent protection, instead of host country protection, for valuable subsidiary inventions in their background and marginal technological fields. In addition, a firm may seek host country legal protection simultaneously for inventions built upon knowledge from technologically distant fields. Research limitations/implications As we are more interested in protecting technological knowledge, the protection of other types of knowledge, such as organizational knowledge, deserves further research attentions. Moreover, future research may expand current study by including small and medium firms, as well as firms in other developing economies. Practical implications While the economic and legal environment in China may have evolved since studied period, the results have practical implications for firms in other developing countries that are at an early stage of catching-up or those in a host location featuring a similar uncertain and fast changing environment. In particular, the study suggests that foreign firm managers would have more strategic choices of patenting than local firms in the host country. For strategically important inventions bridging complex knowledge from different technological areas, firms could seek protection in multiple countries simultaneously, including both home country and other major markets. Furthermore, managers could choose whether or not to protect a particular category of technologies in host country depending on value of the technology to the firm and the IPR protection of host country. Finally, the approach of looking at knowledge-level characteristics, which can be easily measured through readily available intra-firm information, provides managers with a practical and useful tool to make these strategic decisions. Originality/value This study represents an effort to extend the understanding on how foreign MNCs could generate and appropriate valuable technologies in an uncertain and fast-changing environment. In particular, the authors focus on how MNCs could use different international patenting patterns to benefit from subsidiary inventions. Whereas previous literature mainly focuses on country-level and firm-level determinants, this study approaches the topic through the lens of knowledge-level factors. By studying how knowledge characteristics determine firm strategic behaviors, the authors offer additional justifications of the knowledge-based view of the firm. Meanwhile, the findings enrich our understanding of an important component of MNC’s global strategies in managing their technologies through selectively patenting in different locations. Firms pursue diversified technologies for different strategic objectives. As subsidiary inventions become a very important source of firm competitiveness, MNCs have to face the trade-off between higher patenting costs and the appropriability of subsidiary generated knowledge. The findings suggest that it is not necessary for MNCs to protect all subsidiary inventions in host countries.

The Senate Introduced a Pragmatic and Geopolitically Savvy Inbound Base Erosion Rule

The Base Erosion and Anti-Abuse Tax (BEAT) is a surprising and innovative part of the Senate’s proposed international tax reform package. The BEAT helps level the playing field between U.S.-headquartered and foreign-headquartered companies. It raises enough revenue so that the outbound minimum tax rate is probably lower than it would otherwise need to be given revenue constraints. Both the House and Senate tax reform bills include significant rules to limit inbound base erosion. Therefore, the BEAT also functions as the Senate’s answer to section 4303 of the House Tax Cuts and Jobs bill. This article compares the BEAT with the House inbound base erosion proposal along various dimensions. It focuses in particular on issues associated with administrability and potential foreign responses. I conclude that the BEAT – unlike the House approach to inbound reform – represents a pragmatic, administrable, and geopolitically savvy policy that helps level the playing field between U.S. and foreign MNCs.

A research and development decision model for pharmaceutical industry: case of China

This paper evaluates prospective technology areas, development strategies, and various innovation resources in China's pharmaceutical sector through the use of a hierarchical decision model. The results indicate that although domestic SMEs are the major preferred innovation alternative, it is followed closely by foreign MNCs. The sensitivity analysis indicates that the effectiveness of policy decisions are influenced by certain high technology areas. Recombinant therapeutic proteins, recombinant vaccines, and monoclonal antibody technologies are identified as the major areas that will influence the priority of innovation resources. The research crafts a research framework to formulate innovation strategies in dealing with the uncertainties of technology development and policy decisions in the biopharmaceutical industry.

Political Strategies of Chinese Firms in Germany. An Institutionalist Perspective

While investment of foreign MNCs is mostly welcomed by host countries, Chinese OFDI often causes negative public responses. An important instrument of Chinese MNCs to overcome these concerns is the...