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Cultural Proximity and Local Firms’ catch up with Multinational Enterprises

Wang, J.
; 
Liu, X.
; 
Wei, Yingqi
; 
Wang, Chengang
Publication Date
2014-08
End of Embargo
Supervisor
Keywords
Catch-up, China, Culture, New growth theory, Resource-based views, Technology gap hypothesis
Rights
© 2014 Elsevier. Reproduced in accordance with the publisher's self-archiving policy. This manuscript version is made available under the CC-BY-NC-ND 4.0 license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Peer-Reviewed
Yes
Open Access status
openAccess
Accepted for publication
23/02/2014
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Department
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Management and Law Publications
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Abstract
Integrating and extending new growth theory and resource-based views, this paper provides a theoretical foundation for the catch-up hypothesis. It examines the role of technology gap, technological capability, and cultural proximity in local firms’ catch-up with MNEs. Hypotheses are developed and tested with a dynamic model on a large firm-level panel dataset from Chinese manufacturing. The results confirm that catch-up is positively related to technology gap and technological capability. Furthermore, in the presence of cultural proximity, the speed of local Chinese firms’ catch-up with MNEs from Hong Kong, Macau, and Taiwan is not significantly lower than that with other MNEs.
URI
http://hdl.handle.net/10454/8912
Version
Accepted Manuscript
Citation
Wang J, Liu X, Wei Y and Wang C (2014) Cultural proximity and local firms’ catch up with multinational enterprises. World Development. 60: 1-13.
Link to publisher’s version
Link to published version
Link to Version of Record
https://doi.org/10.1016/j.worlddev.2014.02.010
Type
Article
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