Innovation Strategies of MNCs: A Case Study from Turkey

In this study, innovation and technology transfer strategies of foreign firms in Turkey and the impact of vertical and horizontal linkages, labour turnover and technology spillover on these activities are analyzed by adopting a grounded theory approach, which allows a theory to emerge from field work. It is found that the foreign firms are more innovative than their local partners, and generally transfer technology from their parent companies in home country not from local market. Additionally, findings of this study reiterate the importance of tacitness of knowledge, and confirm that technology cannot easily be transferred through passive mechanisms.