Accessibility navigation


Foreign direct investment through acquisitions and implications for technological upgrading: case evidence from Tanzania

Portelli, B. and Narula, R. (2006) Foreign direct investment through acquisitions and implications for technological upgrading: case evidence from Tanzania. European Journal of Development Research, 18 (1). pp. 59-85. ISSN 1743-9728

Full text not archived in this repository.

It is advisable to refer to the publisher's version if you intend to cite from this work. See Guidance on citing.

To link to this item DOI: 10.1080/09578810600572387

Abstract/Summary

Using a case study approach, this paper examines the role of privatisation on the industrial landscape of Tanzania. We examine the impact of foreign direct investment (FDI) through acquisitions on technology transfer within the acquired firm as well as the development of linkages to other firms based in the host country. Our results suggest that technological upgrading has occurred following FDI, the intensity of which reflects the type of firm-specific assets of the parent multinational enterprise (MNE), as well as the pre-acquisition state of these industrial activities. Improved backward linkages are also evident with local economic agents, but their type and extent – reflecting Tanzania's comparative advantage in the primary sector – confirm that capabilities both within the acquired firms and also in the industrial base of the host country greatly influence the magnitude and intensity of technological upgrading. 'Narrower' technology gaps between the MNE affiliate and the domestic sector are more likely to result in backward linkages and determine the type of technological content of inputs sourced locally rather than within the MNE.

Item Type:Article
Refereed:Yes
Divisions:Henley Business School > International Business and Strategy
ID Code:38089
Publisher:Palgrave Macmillan

University Staff: Request a correction | Centaur Editors: Update this record

Page navigation