Knowledge spillovers through inward FDI in Vietnam - An empirical examination in the retail industry
Abstract
This study focuses on examining the key conduits promoting knowledge spillovers from inward foreign direct investment in the retail industry in Vietnam. Basing on the data collected from local retailers in Vietnam, the result confirms competitive pressure, demonstration effect, worker mobility and absorptive capacity as critical elements in the process of intra-industry knowledge spillovers, although some impacts are marginal. Moreover, the knowledge spillovers from MNEs subsidiaries are found positively affect the performance of local retailers. Rather than answering whether or not the knowledge spillovers take place in the retail market, the findings contribute essential highlights on how the mechanism actually works and also suggest some managerial application.
Keywords: Knowledge spillovers, Competitive pressure, Retail industry