Foreign Collaborations and Export Performance : A Case of MNC's Affiliates and Local Enterprises in Indian Automobile Ancillary Industry

The role of MNCs and their affiliates i.e. FCA units are assumed to bear significant advantages for the export promotion from developing host countries, which has been widely discussed by the economists and researchers. Considering the advantages MNCs lend to the host country’s industry (FCA units) we may say that the export performance of FCA units is greater than that of the non-FCA units (local enterprises). This is because the export generating dimensions of the foreign technology works in favour of the technology recipients. To test the same, an extensive field survey was undertaken leading to collection of relevant data by interviewing the senior executives of the units of the study. The results of study, however, revealed that the export generating effects of foreign technology, as mentioned above, have not been felt in the spirit of furthering the export performances. In spite of access to foreign technology and its advantages, the export performance of FCA units has been found lower than the non-FCA units