ABSTRACT
This chapter provides a statement on how the strategy of the translational corporations (TNC)-parent influences its affiliates’ propensity to strike local linkages and utilise local scientific and technical talent in India, and where this positions the affiliate in terms of its global versus local configuration of production. The process of globalisation led TNC-parents to initiate similar equipment-process-technology, intermediate goods and raw materials and encouraged their affiliates to make identical line of goods throughout the world. The concentration–dispersal of the global value chain of the TNC-parent dictates its backward and forward linkages within home and host environments. As TNCs increasingly disperse their value chain globally to seek strategic complementarities in assets, skills, knowledge and low cost resources, location specific advantages of host countries represent the reverse flow of ownership advantages. The chapter utilizes a number of proxy variables that will inform the incidence of global and local linkages and the differences between TNC-affiliates and local enterprises in their attainments of linkages.
