Emerging Capabilities in Manufacturing Companies

The international community has reported anincreasing flow of Foreign Direct Investment (FDI).Countries attract FDI according to their potentialbased on location's competitive advantages. Withindeveloping nations, those with rich natural resourcesused to be highly sought after; however, FDI flowrationale changed from seeking location inherentadvantages to those reflecting developedcapabilities and market opportunities. This can beseen in the emergence of countries such as Singaporeand China. This book explores the above phenomenonand aim to answer the question of how cansubsidiaries upgrade their roles to support theircorporations and the local economy? After exploringcases reporting shift from Mexico to China, theresearch concentrates on the evolution of VW Group.The research outputs are: a New Taxonomy of CompanyTransformations which aims to describe howsubsidiaries of modern MNEs influence corporategrowth; Definitions for Plant&Subsidiaries, and anInternationalization&Subsidiary Typology thatexplain the roles that plants/subsidiaries are ableto play for the network rather than the classic viewof what the network pursue through them.