Strategy and structure of service multinationals and their impact on linkages with local firms

Marcela Miozzo; Mo Yamin; Pervez N. Ghauri

doi:10.1080/02642069.2012.662492

Strategy and structure of service multinationals and their impact on linkages with local firms

Marcela Miozzo, Mo Yamin, Pervez N. Ghauri

Research output: Contribution to journal › Article › peer-review

15 Citations (Scopus)

Abstract

Drawing on case studies of two leading UK service firms in five host countries (Argentina, Brazil, China, Korea and Malaysia), we examine how the strategy and organization of service multinationals shape the development of linkages with local firms in host economies. We find that there is reduced autonomy of subsidiaries to engage with local firms as a result of relatively centralized strategies of multinationals. Because of global policies ensuring consistency of services or global sourcing policies to reduce costs, service multinationals tend to prefer global suppliers. Backward linkages occur in a few cases when the relationship can be a vehicle for market expansion for the multinational in a particular host market. Local governments play an important role in the cases where backward linkages are developed. © 2012 Copyright Taylor and Francis Group, LLC.

Original language	English
Pages (from-to)	1171-1191
Number of pages	21
Journal	SERVICE INDUSTRIES JOURNAL
Volume	32
Issue number	7
DOIs	https://doi.org/10.1080/02642069.2012.662492
Publication status	Published - 28 Mar 2012

Keywords

Asia, Latin America, linkages, multinational strategy, service multinationals

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10.1080/02642069.2012.662492

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Strategy and structure of service multinationals and their impact on linkages with local firms

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Keywords

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