The Dynamics of Differentiation: The Resource Bases of Development and the Roles of MNE Subsidiaries

  • Robert Pearce
Part of the The Academy of International Business book series (AIB)


The chapter investigates the roles of MNEs in national economic development. This is an interaction of two multidimensional processes wherein countries pursue sustainable and deepening national development, and MNEs seek to develop global competitive networks. Countries can build on three levels of resource; non-renewable primary resources, standardised but improvable inputs, and creative knowledge and resources that can generate new competitive possibilities. The MNEs’ commitment to an economy can evolve as its resource base changes in response to developmental potentials and pressures. Two indications are drawn for development policy. Firstly, countries should seek to steer their resource base towards more internationally competitive capacities. Second, governments need to understand the MNEs’ strategic diversity and dynamic impulses.


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Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.John H. Dunning Centre for International Business, Henley Business School and Department of EconomicsUniversity of ReadingReadingUK

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