With the development of multinational corporations, the United Kingdom has experienced increasing penetration of its economy by foreign affiliates. This is particularly noticeable in high technology industries such as Electrical and Instrument Engineering. The thesis identifies the mechanism by which direct foreign investment can influence industrial structure in such an industry; charts the effects within the UK Electrical and Instrument Engineering Industry; and identifies the extent to which this impact varies with the nationality of the investor. The study begins with a synthesis of the comprehensive and complex material available upon industrial/market structure and direct foreign investment. Chapters 2 and 3 demonstrate that the structure of Electrical and Instrument Engineering has changed significantly since the inter-war years. Productive capacity has expanded faster than that of any other UK industry. Throughout the minimum-list-headings of the industry market power has become more concentrated in the hands of the largest companies. Individual affiliates now display greater product specialisation and vertical integration, whilst the level of entry barriers has risen steadily. The model presented in chapter-3 hypothesises that direct foreign investment can be related to industrial structure in three distinct ways. Firstly, that a relationship exists between the distribution of foreign affiliates 11 25 I and the structural characteristics of the industries in which they operate. Secondly, that a similar relationship exists across the minimum-list-headings of each individual industry. Thirdly, that the operating characteristics of foreign affiliates in any individual minimum-list-heading differ from those of domestic companies. The first two of these are termed the Destination impact, and the third the Behavioural impact of direct foreign investment. The results of a survey of over 500 British and foreign owned companies, sub-divided by origin and size, suggest that foreign affiliates have contributed significantly to the changing structure of Electrical and Instrument Engineering both in their destination and behaviour. The destination of foreign investors was significantly related to areas displaying the fastest growth of productive capacity; imperfection of competition; technologically specialised and vertically integrated operations; and high barriers to entry. The behaviour of individual foreign affiliates was found to differ significantly from that of their UK counterparts (including affiliates of UK multinationals). Foreign owned companies exhibited high levels of sales. growth and efficiency; a disproportionate impact upon the distribution of market power; greater product specialisation and levels of vertical integration; and a significant contribution to the level of entry barriers. This influence was compounded by a greater productivity and profitability in the foreign affiliate; a differing pattern of geographical location to that of UK owned establishments; and a domestic reaction by UK companies and the government to foreign penetration. Variations within the foreign group were related to geographical origin. The total operations of US affiliates were most significant, but investors from EEC countries displayed characteristics which varied most from those of UK companies. The study concludes by relating changes in industrial structure to the presence of foreign affiliates, and outlining the implications of further foreign involvement

Diss. Stockholm : Handelshögsk.

With the development of multinational corporations, the United Kingdom has experienced increasing penetration of its economy by foreign affiliates. This is particularly noticeable in high technology industries such as Electrical and Instrument Engineering. The thesis identifies the mechanism by which direct foreign investment can influence industrial structure in such an industry; charts the effects within the UK Electrical and Instrument Engineering Industry; and identifies the extent to which this impact varies with the nationality of the investor. The study begins with a synthesis of the comprehensive and complex material available upon industrial/market structure and direct foreign investment. Chapters 2 and 3 demonstrate that the structure of Electrical and Instrument Engineering has changed significantly since the inter-war years. Productive capacity has expanded faster than that of any other UK industry. Throughout the minimum-list-headings of the industry market power has become more concentrated in the hands of the largest companies. Individual affiliates now display greater product specialisation and vertical integration, whilst the level of entry barriers has risen steadily. The model presented in chapter-3 hypothesises that direct foreign investment can be related to industrial structure in three distinct ways. Firstly, that a relationship exists between the distribution of foreign affiliates 11 25 I and the structural characteristics of the industries in which they operate. Secondly, that a similar relationship exists across the minimum-list-headings of each individual industry. Thirdly, that the operating characteristics of foreign affiliates in any individual minimum-list-heading differ from those of domestic companies. The first two of these are termed the Destination impact, and the third the Behavioural impact of direct foreign investment. The results of a survey of over 500 British and foreign owned companies, sub-divided by origin and size, suggest that foreign affiliates have contributed significantly to the changing structure of Electrical and Instrument Engineering both in their destination and behaviour. The destination of foreign investors was significantly related to areas displaying the fastest growth of productive capacity; imperfection of competition; technologically specialised and vertically integrated operations; and high barriers to entry. The behaviour of individual foreign affiliates was found to differ significantly from that of their UK counterparts (including affiliates of UK multinationals). Foreign owned companies exhibited high levels of sales. growth and efficiency; a disproportionate impact upon the distribution of market power; greater product specialisation and levels of vertical integration; and a significant contribution to the level of entry barriers. This influence was compounded by a greater productivity and profitability in the foreign affiliate; a differing pattern of geographical location to that of UK owned establishments; and a domestic reaction by UK companies and the government to foreign penetration. Variations within the foreign group were related to geographical origin. The total operations of US affiliates were most significant, but investors from EEC countries displayed characteristics which varied most from those of UK companies. The study concludes by relating changes in industrial structure to the presence of foreign affiliates, and outlining the implications of further foreign involvement

yes / Purpose – The purpose of this paper is to examine the role of dynamic marketing capabilities (DMC), foreign ownership modes and sub-national locations on the performance of foreign owned affiliates (FOAs) in developing economies. Design/methodology/approach – Based on a sample of 254 FOAs in Indian manufacturing sector (covering the period of 2000-2008 leading to 623 firm-year observations), the empirical paper adopts the panel data regression approach. Findings – The study confirms the significant importance of DMC to assist FOAs to gain better sales performance in an emerging market such as India. The findings indicate that Wholly Owned Foreign Affiliates (WOFAs) have better sales performance than International Joint Venture (IJV), and Majority-owned IJV (MAIJV) perform better than Minority-owned IJV (MIIJV) in the Indian manufacturing sector. The results confirm that effective deployment of DMC leads to better sales performance in WOFAs and to some extent in MAIJVs. Perhaps the most interesting finding is that developing DMC in non-Metropolitan areas is associated with higher sales growth than in Metropolitan locations. Originality/value – The study contributes to the literature by examining the impact of DMC on performance of FOA by considering the organised manufacturing sector in a large and fast growing developing economy. In addition, the results for the moderating effects provide novel evidence of the conditions under which DMC of FOA interacts with different ownership modes and influence firm performance.