Company adaptation and the response to regional policy: A comparative analysis of MNC subsidiaries and indigenous companies

Ashcroft B. and Ingham K. P. D. (1979) Company adaptation and the response to regional policy: a comparative analysis of MNC subsidiaries and indigenous companies, Reg. Studies 13, 25–37. Differences in possibilities for company adaptation to local supply and demand conditions between MNC subsidiaries and indigenous companies may be an important factor influencing their responsiveness to regional policy. A priori argument suggests MNCs are more adaptive. Discriminant analysis of Mechanical Engineering MNCs and indigenous firms between regions suggests MNCs are located more efficiently and adapt more to their locations' characteristics, though the nature of the adaptation is distorted probably by current regional policy measures and regional variations in ‘efficiency’ wages.