Authors: Jolta Kacani
Addresses: School of Industrial Engineering, Universitat Politècnica de Catalunya, South Campus – Bldg. PI, Avenida Diagonal, 647, 08028, Barcelona, Spain
Abstract: Foreign direct investment can help developing countries to participate in various segments of the supply chain as these countries can benefit from additional knowledge, improved industrial capacity, and higher economic growth. This paper focuses on the importance of knowledge flexibility in enhancing the production activity of clothing manufacturing enterprises located in developing countries beyond the production segment of the supply chain. In this paper, the level of knowledge flexibility is determined by building a model that includes both the channels and the factors affecting the transfer of knowledge from the head office to their subsidiaries located in developing countries. The main channels of knowledge transfer included in the model are: 1) employment and training of local employees; 2) linkages established with the host economy; 3) demonstration effects, while the key factors considered are: 1) knowledge management; 2) investments made in the host territory; 3) possession of alternative production plants in other host territories.
Keywords: business analytics; case study methodology; channels of knowledge transfer; clothing industry; demonstration effects; flexibility; foreign direct investment; knowledge management; linkages; supply chain.
International Journal of Intelligent Enterprise, 2017 Vol.4 No.3, pp.204 - 226
Received: 30 May 2016
Accepted: 30 Jun 2016
Published online: 19 Oct 2017 *