Abstract
The main purpose of this study is to evaluate whether FDI occurring in the Turkish economy has any effect on domestic firms, especially whether and to what extent it leads to the KTTs by paying attention to the role of multinationals. Findings of the studies on Turkish economy indicate that foreign firms have played a major role especially in the automotive industry through horizontal and backward linkages; hence, this also justifies the aim of this study in terms of choosing the automotive industry as a case study to analyze the transfers at both inter-and intra-firm level. In this context, the study mainly aims to reveal the complex nature of these transfers, in which ways these occur, what these are, what the factors are that give rise to the transfers between firms or lack of it, their impacts on the domestic firms, what the role of the firm characteristics and strategic collaborations between firms in these transfers is. For these aims, a very detailed and comprehensive case study research was conducted at the firm-level in the industry.
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- 1.
For instance, the study of Sönmez and Pamukçu pointed out the importance of foreign presence (especially multinationals) especially in automotive industry which is in the first place among all manufacturing industries in Turkey in terms of number of foreign firms operating (17 %), and their shares in employment (55 %), gross output (80 %) and value added (80 %) values. In addition, authors revealed that the industry has the highest horizontal (50 %) and backward spillovers value (45 %), and also it has the third highest value in forward spillover value (21 %) across all manufacturing industries (for details see Sönmez & Pamukçu, 2012).
- 2.
It should be taken into account that a majority of the firms participating in our survey are direct suppliers (first-tier suppliers) and may have affected these results.
- 3.
In addition, the probability of the customers to realize KTT in terms of both the production process and products to the foreign firms is lower compared to the local ones.
- 4.
Naturally, the AMMs dealing with production under foreign license in Turkey become dependent on the headquarters of the MNCs as foreign partner (the licensor MNC located abroad) in almost all strategic decisions.
- 5.
Such as electrical and hybrid cars, products less harmful to the environment, and active safety assistance systems for driver.
- 6.
For instance, the most important part (hardware) of the electrical vehicles that have been started to be produced by some AMMs with foreign capital in Turkey is battery. It involves intensive knowledge and technology and its cost is very high in the total inputs of the vehicles. This battery is imported from abroad, just as the powertrain parts of other vehicles being produced in Turkey, and assembled into the vehicles. These parts have been developed by a few MNCs as a result of long years of advanced R&D studies that cost billions of dollars; such parts involve extremely intensive knowledge and technology. Therefore, the assembly of these parts into the vehicles by importing at home means actually nothing to be production base.
- 7.
Here, XXX (USA, Germany, France, England, etc.) expresses the developed countries other than China, where the product design and development is realized.
Reference
Sönmez, A., & Pamukçu, M. T. (2012). Foreign direct investment and technology spillovers in the Turkish manufacturing industry. In I. H. Yetkiner, E. Erdil, & M. T. Pamukçu (Eds.), Dynamics, innovation policy and economic growth through technological advancements. Hershey, PA: IGI Global.
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© 2013 Springer International Publishing Switzerland
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Sönmez, A. (2013). Conclusion. In: Multinational Companies, Knowledge and Technology Transfer. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-02033-4_7
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DOI: https://doi.org/10.1007/978-3-319-02033-4_7
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