Global integration strategies in times of crisis

An event study of the impact the global financial crisis has on Turkish subsidiaries' exporting strategies

Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review

Abstract

Past research suggests that a financial crisis event has a dual and ambiguous effect on the exporting strategy of subsidiaries of multinational firms in a value chain and offshoring perspective. From a total volume perspective exports are expected to contract due to a decline in demand (demand shock) from other subsidiaries downstream in the value chain. While in a comparative perspective multinational subsidiaries are found to perform relatively better than local firms that are integrated differently (arms’ length) in global production networks (e.g., offshoring outsourcing). This chapter tries to reconcile these findings by testing a number of hypothesis about global integration strategies in the context of the Global Financial Crisis (GFC) and how it affected exporting among multinational subsidiaries operating out of Turkey. Controlling for the impact that exchange rate depreciations and volatility has on firm-level exports the study shows that the particular global event studied had no additional impact on individual firms’ exports. Since multinational subsidiaries are more insulated from these effects they are able to expand rather than contract their global integration strategies throughout the course of the GFC.
Original languageEnglish
Title of host publicationBreaking up the global value chains : opportunities and consequences
EditorsTorben Pedersen, Timothy M. Devinney, Laszlo Tihanyi, Arnaldo Camuffo
Place of PublicationBingley UK
PublisherEmerald Group Publishing
Publication date1 Aug 2017
Pages81-119
ISBN (Print)978-1-78743-072-3
ISBN (Electronic)978-1-78743-071-6
DOIs
Publication statusPublished - 1 Aug 2017
Externally publishedYes
SeriesAdvances in International Management
Volume30
ISSN1571-5027

Keywords

  • Global financial crisis
  • Integration strategies
  • Exporting strategies

Cite this

Jensen, C. (2017). Global integration strategies in times of crisis: An event study of the impact the global financial crisis has on Turkish subsidiaries' exporting strategies. In T. Pedersen, T. M. Devinney, L. Tihanyi, & A. Camuffo (Eds.), Breaking up the global value chains: opportunities and consequences (pp. 81-119). Bingley UK: Emerald Group Publishing. Advances in International Management, Vol.. 30 https://doi.org/10.1108/S1571-5027201730
Jensen, Camilla. / Global integration strategies in times of crisis : An event study of the impact the global financial crisis has on Turkish subsidiaries' exporting strategies. Breaking up the global value chains: opportunities and consequences. editor / Torben Pedersen ; Timothy M. Devinney ; Laszlo Tihanyi ; Arnaldo Camuffo. Bingley UK : Emerald Group Publishing, 2017. pp. 81-119 (Advances in International Management, Vol. 30).
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abstract = "Past research suggests that a financial crisis event has a dual and ambiguous effect on the exporting strategy of subsidiaries of multinational firms in a value chain and offshoring perspective. From a total volume perspective exports are expected to contract due to a decline in demand (demand shock) from other subsidiaries downstream in the value chain. While in a comparative perspective multinational subsidiaries are found to perform relatively better than local firms that are integrated differently (arms’ length) in global production networks (e.g., offshoring outsourcing). This chapter tries to reconcile these findings by testing a number of hypothesis about global integration strategies in the context of the Global Financial Crisis (GFC) and how it affected exporting among multinational subsidiaries operating out of Turkey. Controlling for the impact that exchange rate depreciations and volatility has on firm-level exports the study shows that the particular global event studied had no additional impact on individual firms’ exports. Since multinational subsidiaries are more insulated from these effects they are able to expand rather than contract their global integration strategies throughout the course of the GFC.",
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Jensen, C 2017, Global integration strategies in times of crisis: An event study of the impact the global financial crisis has on Turkish subsidiaries' exporting strategies. in T Pedersen, TM Devinney, L Tihanyi & A Camuffo (eds), Breaking up the global value chains: opportunities and consequences. Emerald Group Publishing, Bingley UK, Advances in International Management, vol. 30, pp. 81-119. https://doi.org/10.1108/S1571-5027201730

Global integration strategies in times of crisis : An event study of the impact the global financial crisis has on Turkish subsidiaries' exporting strategies. / Jensen, Camilla.

Breaking up the global value chains: opportunities and consequences. ed. / Torben Pedersen; Timothy M. Devinney; Laszlo Tihanyi; Arnaldo Camuffo. Bingley UK : Emerald Group Publishing, 2017. p. 81-119 (Advances in International Management, Vol. 30).

Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review

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Jensen C. Global integration strategies in times of crisis: An event study of the impact the global financial crisis has on Turkish subsidiaries' exporting strategies. In Pedersen T, Devinney TM, Tihanyi L, Camuffo A, editors, Breaking up the global value chains: opportunities and consequences. Bingley UK: Emerald Group Publishing. 2017. p. 81-119. (Advances in International Management, Vol. 30). https://doi.org/10.1108/S1571-5027201730