Role of Multinationals on Productivity of Firms Essay

Role of Multinationals on Productivity of Firms - Essay ExampleA benchmark model to contrast income from local and multinational corporations is an insight to the contribution of multinational corporations on engineering science spillovers that benefit local firms. However, results from the case studys contribution of multinationals on growth of firms atomic number 18 quite confusing with both(prenominal) positive and negative contributions. Pertinent questions on the issue of technological advancements attributed to multinationals perturb the numerous stakeholders in this field. Uncertainties dissimulation on whether the engineering can be used effectively, competition and the market success of the new technology (Kafouros, 2008). There is evidence of recent appraisal for multinationals with hostilities based on factors such as globalization (Gorg and Greenway, 2004). The forethought of bipartite connection of multinationals and positive effectuate is always present. Some auth ors state that these are just effects from subsidiary factors such as inflation tax, currency stability and difficulties by most communities to embrace convince (Reinert, Tajan & Glass, 2008). Technology transfer and multinationals Theoretically, the fact that competitive edge given by technological superiority non only improves a firms productivity, but also its general economic per kindance is wide accepted. Kafouros (2008) looks at technology transfer to encompass techniques involving the use of better machinery. This definition is quite constrictive and does not give better insight to the varied advantages of multinationals in technology transfer. A more knowledgeable and pedagogic approach interfaces this concept with innovative organizational, technological, managerial as well as more efficient fruit processes. More striking, is its recent contribution to globalization and an increase in demand for better produce by consumers. Technology in this context can be looked at in the essence of a form of embodiment. It can be looked at as general info, specific information, practice and hardware. General information involves abstract know how on a method of operation or system. For example learning how to operate machinery. peculiar(prenominal) information is just as the title explains it involves details on the whole process of a technology. For instance, information on what a software is made of, how it operates, in what instances it is used and for what purpose. Procedures are codified instructions in the operations of a certain technology. Lastly, hardware involves information in physical form for example a piece of equipment originating from the source of technology. These technology transfers are usually obtained from spill over channels (Gorg & Greenway, 2004). Imitation, competition, exports and skills acquisition from multinationals are said to be ways of improving productivity. Imitation was successfully used in most Asiatic countries and Lati n America in the manufacturing industry (Aitken & Harrison, 1999, 618). This is more of the transfer of knowledge and should not be humiliated with replication (Gorg & Greenway, 2004). As noted by Freeman and Shaw (2009), the complexity of a process in concomitant with duration of exposure, greatly determine imitation. Research done by Freeman and Shaw (2009) shows that the presence of multinationals in lacquer was an insight to the countrys initial engagement in exportation. The sentiments are shared by other(a) scholars such as Grog & Greenway (2004) who state