Transnational Corporations, Technology and Economic Development: Backward Linkages and Knowledge Transfer in South-East Asia (original) (raw)

It is always exciting when a doctoral work is published, especially when comprehensive treatment of a topic is long overdue. Transnational Corporations, Technology and Economic Development: Backward Linkages and Knowledge Transfer in South East Asia takes a refreshingly 'hands-on' approach to an issue that has been around as long as multinationals themselves; that is, their impact on the host countries/industries in which they operate. The focus of this work is the electrical and electronics sector in Malaysia. The purpose of the book is twofold: first, to assess the extent of knowledge transfer from foreign subsidiaries via backward linkages with suppliers; and second, to determine the factors that influence the degree to which this knowledge is transferred. In contrast to most previous research viewing spillovers from backward linkages at a macro level, this book takes a firm-level approach. The book begins by giving a brief background to the research, highlighting the importance of understanding the impact of foreign direct investment (FDI) on a case-by-case (country-by-country) basis, and emphasizing the need to study emerging economies in Asia. Chapter Two presents the theoretical framework, drawing on a number of complementary research streams and disciplines. Chapter Three provides the reader with an overview of the extant literature on the impact of FDI, by region, focussing on the impacts resulting from backward linkages. It also carefully considers the evidence relating to the determinants of knowledge transfer via backward linkages. A number of research propositions guiding the study are put forward in this chapter. Chapter Four looks specifically at the Malaysian context, discussing the use of policy as a tool for encouraging beneficial linkage formation. General trends in inward and outward investment for Malaysia are presented, before the discussion turns more specifically to the electrical and electronics sector. Chapter Five presents the research questions and methodology, while Chapters Six and Seven present the data from the survey and interviews conducted in Malaysia, and Chapter Eight concludes. The book makes a number of commendable contributions. First, the study recognizes from the outset that although previous research has shown a