Learning processes and knowledge transfer in the upward spiral model : an empirical assessment of springboard multinational enterprises

Purpose: The springboard theory for multinational enterprises and the upward spiral model address the expansion of emerging countries’ multinational enterprises (MNEs) abroad as a set of resource-building stages. This paper aims to analyze this model by qualifying knowledge flows in three domains: learning effects, transfer flows and global connections. Design/methodology/approach: The authors use 2018 data from the ORBIS database to identify evidence concerning the springboard MNE (SMNE) phenomenon. The authors select MNE firms from 93 emerging economies with presence in 71 developed and 93 developing countries. In addition, the authors differentiate between the levels of technological intensity of emerging market MNEs’ sectors. Findings: The results highlight the existence of learning processes taking place in subsidiaries and feeding back into parent firms, as well as the existence of capability transfer from home to host units. Originality/value: The main contribution is the addition of empirical evidence on the SMNE and specifically the upward spiral model, considering the micro-level and the productivity differences between parent firm and subsidiaries.