This study shows that upgrading sales operations in host countries towards production allows MNCs to perform global arbitrage in their networks of foreign subsidiaries and thereby contributes to a strategy of reaping the benefits of multinationality. We predict and find that operation upgrades follow opportunities of improving resource flows in the subsidiary network to exploit the advantages of host countries in tax rates, investment incentives, and technological knowledge across borders. Performance effects on the level of the MNC network give evidence of these benefits from global arbitrage.
|Journal||Long Range Planning|
|Publication status||Published - 2019|
Austrian Classification of Fields of Science and Technology (ÖFOS)
- 502052 Business administration
- 502003 Foreign trade
- 502014 Innovation research