Institutional Differences, Foreign Ownership Modes, Marketing Capabilities and Domestic Technological Catch-up: Evidence from India

SONG, Yang, KONWAR, Ziko and BERGER, Ron (2019). Institutional Differences, Foreign Ownership Modes, Marketing Capabilities and Domestic Technological Catch-up: Evidence from India. Science, Technology and Society, 24 (2), 338-364.

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Official URL: https://journals.sagepub.com/doi/full/10.1177/0971...
Link to published version:: https://doi.org/10.1177/0971721819842010
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    Abstract

    © 2019 SAGE Publications. This research examines FDI-mediated domestic firms’ technological catch-up by considering institutional differences between home and host countries, the role of marketing capabilities, and the joint effects of institutional differences and the degree of foreign ownership. Using firm-level panel data for Indian manufacturing industries, we find that FDI-mediated technological catch-up in domestic firms is conditional on institutional differences between the home and host country of multinational enterprises and the level of marketing capabilities of foreign-owned affiliates. In addition, we find that technological catch-up in domestic firms is likely to be positively influenced by the presence of wholly foreign-owned firms from institutionally close countries, whereas we find some evidence that the presence of minority foreign-owned firms may have a negative effect on domestic technological catch-up, regardless of institutional differences. We also provide theoretical and policy implications of our findings.

    Item Type: Article
    Uncontrolled Keywords: Foreign ownership modes; India; institutional differences; marketing capabilities; technological catch-up; Foreign ownership modes; India; institutional differences; marketing capabilities; technological catch-up; 1608 Sociology; Science Studies
    Identification Number: https://doi.org/10.1177/0971721819842010
    Page Range: 338-364
    SWORD Depositor: Symplectic Elements
    Depositing User: Symplectic Elements
    Date Deposited: 11 Oct 2019 10:28
    Last Modified: 11 Oct 2019 10:30
    URI: http://shura.shu.ac.uk/id/eprint/25204

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