Theses and Dissertations - UTB/UTPA
Entrepreneurship in multinational corporations and capability development of domestic firms: An exploratory study in the US-Mexico border region
Date of Award
Doctor of Philosophy (PhD)
Dr. Jane LeMaster
Dr. John Sargent
Dr. Linda Matthews
This dissertation explores the relationship between entrepreneurship and capability development in emerging markets. This study focuses on entrepreneurial activities in multinational corporations (MNCs) in emerging markets. Maquila plants and local Mexican suppliers located in (or near) Reynosa, Tamaulipas are investigated. The results from 34 interviews of a sample local Mexican supplier, maquila plant, local government, local university and Reynosa Asociación de Maquiladoras y Manufactureras, A.C. (RAMMAC) suggest that the entrepreneurship in the maquila plants occurs through the continuous improvement in the manufacturing process. The purpose is primarily efficiency and quality. The border economy that is primarily driven by the economic cycle in the United States, especially recession, tends to strengthen this trend. Recognition of new market opportunities and product development are not strong entrepreneurial activities in the maquila plants. There is currently no strong linkage between entrepreneurial activities in the maquila plants and capability development of local Mexican suppliers. However, if there are more entrepreneurial activities in the maquila plants, there will be more business opportunities for local Mexican suppliers. Local Mexican suppliers learn about the business processes from maquila plants. Entrepreneurial activities in the maquila plants can potentially have a positive effect on the capability development of local Mexican suppliers. Maquila plants learn from and do business with various sizes and types of local Mexican suppliers. The learning content of maquila plants from local Mexican suppliers includes process improvement as well as the local culture. Thus, capability development of local Mexican suppliers can potentially have a positive effect on entrepreneurial activities in the maquila plants. The governance structure between maquila plants and local Mexican suppliers is the strongest for network structure than for the market and hierarchy structures. Hierarchical structure is not strong for maquila plants and local Mexican suppliers. The governance structure between maquila plants and local Mexican suppliers on capability development of local Mexican suppliers is the mixed result. The current commitment of maquila plants to local communities is strong for employee benefits. This characteristic of local embeddedness of maquila plants is not related to the capability development of local Mexican suppliers.
University of Texas-Pan American
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