COGNITIVE BACKGROUND OF VERTICAL FDI SPILLOVERS: AWARENESS MOTIVATION COGNITIVE CAPACITY

Abstract

This study aims to investigate how the awareness, motivation, and capacity of local organizations affect vertical FDI spillovers in the Turkish automotive industry within the framework of institutional theory. A multiple case study method was used in this study, in which interviews, observations, and documents of seven local supplier organizations were subjected to content analysis. The findings show that the expectations of multinational companies for efficiency in buyer-supplier relationships have limited the awareness, motivation and capacity of local suppliers for internationalization and innovation. This situation prevents local organizations, especially those located at the lower rungs of the supply chain, from capturing the positive effects of vertical FDI spillovers.

Keywords

• FDI Spillovers
• Turkish Automotive Industry
• Innovation
• Internationalization

Project Number

117K787

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