Transnational Corporations and Local Firms in Developing Countries - Linkages and Upgrading -- Table of Contents -- Preface -- Part I Introduction and Conceptual Issues -- CHAPTER 1 Introduction and Analytical Framework -- Introduction -- A Conceptual and Analytical Framework -- The Structure and Content of Linkages -- The Effects of Linkages -- The Factors Shaping Linkages -- Methodology of the Study and Structure of the Book -- CHAPTER 2 Theories of Cross-Border Linkages -- Introduction -- A Development Perspective on Linkages -- Linkages in the Development Literature -- Neoclassical Trade Economics -- The FDI Literature -- The Competitiveness Literature -- The Global Value Chain Perspective -- An International Business (IB) Perspective on Linkages -- A Perfect Competition Model -- The Transaction Cost Perspective -- The Resource-Based Perspective -- The Value Chain Perspective -- The Network Perspective -- Conclusion -- Part II Case Studies of Danish Firm Linkages -- CHAPTER 3 A Survey of Linkages between Danish Foreign Investors and Local Firms in Developing Countries -- Introduction -- A Profile of Danish Investments in the Five Countries -- Size and International Orientation of the Danish Investor -- Industry Orientation and Activity of Projects -- Motives behind Establishment -- The Nature of Linkages to Local Industry -- Non-Equity Linkages -- Comparing Equity and Non-Equity Linkages -- Means of Upgrading -- Upgrading of Non-Equity Partners -- Upgrading effects -- The Role of Governments in Linkage Formation -- Government Facilitation of Linkages -- Government Impediments to Linkage Formation -- Conclusion -- CHAPTER 4 Donor Intervention and the Promotion of Inter-Firm Linkages in Ghana -- Introduction -- An Overview of the Analytical Framework -- The History of Private Enterprise Development in Ghana -- Methodology -- Results.

Profile of the Collaborating Companies -- Nature of Business -- Ownership -- Motives for Collaboration -- Challenges of Collaboration -- Performance -- Discussions -- Linkage and Knowledge Transfer -- Commitment and Collaboration -- Cultural Challenges in Inter-firm Collaboration -- Inter-Linkage Governance -- Third Party Intermediation -- Implications -- Conclusions -- CHAPTER 5 Danish-South African Business Linkages -- Introduction and Aim -- The Nature of Danish-South African Business Collaborations -- History of Danish Businesses in South Africa -- Forms and Activities of Danish Firms in South Africa -- Motives and Location of Establishment -- Firm Linkages as a Means of Upgrading the Resources and Capabilities of Local Firms: A Danish Perspective -- Types of Linkages and Motives of Establishment -- Content of Linkages -- Firm Linkages as a Means of Upgrading: A South African Perspective -- Danish-South African Distribution Relations - Forward Linkages -- Danish-South African Supplier Relations - Backward Linkages -- The Effect of the Danish-South African Linkages -- Discussion and Conclusion -- Commercially Initiated Linkages -- Government-Driven Linkages -- Conclusion -- CHAPTER 6 Collaborations between Danish Foreign Investors and Local Industry in India -- Introduction -- Linkages between the Danish and Indian Economies -- Danish Trade Relations with India -- Danish Investment Relations with India -- The Nature of Linkages to Indian Industry -- Equity Based Linkages -- Non-Equity Linkages -- When are Local Linkages Fostered? -- Upgrading Through Linkages -- Upgrading of Equity Partners -- Upgrading of Non-Equity Partners -- Conclusion -- CHAPTER 7 Learning and Competence Building through Cross-Cultural Linkages: The Case of Danish Companies in Malaysia -- Introduction -- Industrialization in Malaysia -- Import Substitution Stage.

Export Orientation Stage -- Learning Framework -- Action Based Learning -- Formal Learning -- Learning Through the Accessing of Existing Knowledge -- By Internal Interaction -- Design of the Empirical Study and Profile of Companies -- Cross-National Linkages between Danish and Malaysian Companies -- Motives for Establishing Linkages in Malaysia -- Links between Danish Companies and their Malaysian Affiliate -- Links to Customers -- Links to Suppliers -- Innovation and Training in the Case Companies -- Discussions and Theoretical Reflections -- Roles and Management Styles of Expatriates -- Conclusions -- CHAPTER 8 Upgrading and Aid Dependency: Danish Firms in Vietnam -- Introduction -- Linkages, Upgrading and Competitiveness -- Reforms and Opening the Vietnamese Economy -- Development of the Business Sector in Vietnam -- Firm Surveys -- Danish Firms in Vietnam - Industries and Motives -- Industry Distribution -- Market Seeking -- Efficiency Seeking -- Resource Seeking -- Aid Support -- Forms of Establishment -- Exit Patterns -- Effects on Upgrading -- Means of Upgrading -- Discussion of the Upgrading Processes and Firm Linkages -- Organization of Inter-Industry Firm Linkages -- Conclusions: Policy and Strategy Implications -- Policy Implications -- Firm Strategies -- Part III Restructuring Linkages in International Value Chains -- CHAPTER 9 The Automotive Supplier Industry between Localizing and Globalizing Forces in Malaysia, India and South Africa -- Introduction -- The Automobile Industry in India, South Africa and Malaysia -- Auto Industries and Markets Compared -- The Diversity of the Auto Industry Policies and Employment -- The Evolution and Performance of the Auto Industry -- Theoretical Model -- Methodology of Empirical Study39 -- Linkages of Local Auto Suppliers -- Foreign Linkage Effects on Local Auto Suppliers -- "We Can Do it Alone".

Overall Foreign Linkage Effects on Upgrading -- Progress, Impasses and Regress of Local Auto Suppliers in Global Value Chains -- Linking Up and Becoming Efficient -- Becoming Innovative and Moving Up -- Moving Down and Out to the Domestic Aftermarket -- Conclusion -- CHAPTER 10 Upgrading and Strategic Options of Garment Producers in the Global Value Chain -- Introduction -- Theoretical Framework -- Major Shifts in the Global Garment Value Chain -- Methodology -- Three Country Cases -- The Ghanaian Garment Industry -- Garment as Lead Export Industry in Vietnam -- Malaysia's Mature Garment Industry -- Discussion -- Two Research Questions -- Upgrading/Development of Local Garment Firms through Global Links -- Strategic Options for Local Garment Producers -- Conclusions -- Part IV Conclusions - Strategy, Policy and Theoretical Perspectives -- CHAPTER 11 Main Empirical Findings -- Introduction -- The Structure and Content of Linkages -- The Structure of Linkages -- The Content of Linkages -- The Effects of Linkages -- Expansion of Activities -- Upgrading -- The Factors Shaping Linkages -- The TNCs -- Local Firms -- Governments -- Conclusion -- CHAPTER 12 Development Strategy, Industrial Policy and Cross Border Inter-Firm Linkages -- New Trends in International Development and Development Thinking -- Political and Economic Changes -- Private Sector Development: International Development Cooperation -- Private Sector Development: Danish Development Assistance -- Policy Regimes, Strategies and Linkage Formation -- Facilitating Cross-Border Linkages: Danish Company Experiences -- Explaining Political Governance of Cross-Border Linkages -- Final Reflections -- CHAPTER 13 North-South Business Linkages: Theoretical Reflections and Perspectives -- Introduction -- Theoretical Perspectives -- Theoretical Reflections -- Linkage Governance.

Globalization and Dynamics in Developing Economies -- Upgrading through FDI-based Linkages -- The Upgrading Impact of Non-equity Linkages -- A Learning Perspective on International Business Linkages -- Towards a Theory of International Linkage-Based Upgrading of Firms in Developing Countries -- Conclusions -- Bibliography -- Appendices -- Appendix I: Methodology -- General data on Danish establishments -- Respondents to the questionnaire -- Appendix II. The questionnaire.