Skip to main content
. 2023 Mar 3;54(4):599–630. doi: 10.1057/s41267-022-00596-6

Table 2.

Results of multilevel Tobit model for supplier GVC versus customer GVC

DV: Subsidiary sales intensity within the GVC (%) Hypo. Model 1 Model 2 Model 3
Variables Coef. SE Sig. Coef. SIE Sig. Coef. SE Sig.
Fixed effects
Intercept 82.69 11.71 0.00 101.58 12.28 0.00 107.32 12.83 0.00
Subsidiary level
Subsidiary size = log (subsidiary assets) 0.08 0.30 0.80 0.17 0.31 0.58 0.15 0.31 0.63
Subsidiary age = log (years since establishment) − 1.53 0.50 0.00 − 1.75 0.50 0.00 − 1.76 0.50 0.00
Ownership mode dummy (WOS = 1 vs JV = 0) − 1.12 1.27 0.38 − 0.48 1.27 0.70 − 0.51 1.27 0.69
Vertical diversification (vertical integration) − 66.42 1.69 0.00 − 65.81 1.68 0.00 − 65.66 1.69 0.00
R&D IJV subsidiaries 1.49 3.74 0.69 1.15 3.72 0.76 1.27 3.72 0.73
Headquarters’ knowledge transfer in value creation − 5.04 5.75 0.38 − 0.03 5.77 1.00 − 0.16 5.77 0.98
Headquarters’ knowledge transfer in value capturing − 23.94 8.66 0.01 − 17.50 8.67 0.04 − 17.67 8.67 0.04
Subsidiary value creation (R&D forces) (ratio) − 94.07 16.40 0.00 − 95.27 16.41 0.00
Subsidiary value capturing (advertising intensity) (ratio) 45.68 9.65 0.00 46.09 9.65 0.00
(Host) country level
Political stability 0.07 0.04 0.09 0.09 0.04 0.05 0.09 0.04 0.05
Cultural Euclidean distance − 0.15 0.05 0.00 − 0.14 0.05 0.00 − 0.13 0.05 0.00
Host country GDP = log (host country GDP) − 1.16 0.61 0.06 − 0.96 0.63 0.13 − 1.07 0.64 0.09
Host country GDP growth − 0.74 0.22 0.00 − 0.70 0.23 0.00 − 0.71 0.24 0.00
Host country R&D intensity (%) − 1.53 1.61 0.34 − 1.52 1.67 0.36 − 1.46 1.67 0.38
Host country technological change (%) − 0.00 0.10 0.99 − 0.01 0.10 0.95 − 0.00 0.10 0.99
Host country market competitive environment − 3.68 1.90 0.05 − 2.81 1.97 0.15 − 2.91 1.97 0.14
Legal environment distance − 1.04 1.15 0.37 − 1.20 1.15 0.30 − 1.35 1.15 0.24
IP protection distance − 0.12 0.75 0.87 − 0.21 0.77 0.78 − 0.25 0.78 0.75
Asset-augmentation FDI 7.56 1.97 0.00 5.87 1.98 0.00 5.55 1.99 0.01
MNE/HQ level
MNE size = log (firm assets) − 0.00 0.13 0.98 − 0.26 0.22 0.24 − 0.48 0.26 0.07
MNE international experience (depth) 0.99 0.30 0.00 0.90 0.30 0.00 0.82 0.30 0.01
MNE host country number 0.75 0.23 0.00 0.48 0.24 0.04 0.44 0.24 0.06
MNE governance − 0.06 0.10 0.53 − 0.03 0.11 0.76 − 0.02 0.11 0.86
MNE Geographic diversification 0.79 1.74 0.65 0.10 1.78 0.96 0.13 1.78 0.94
MNE Industry 4.0 orientation (weighted by employees) H1 94.87 18.08 0.00 207.82 55.40 0.00
HQ value creation = log (applied patents) 1.45 0.62 0.02 1.78 0.64 0.01
HQ value capturing (advertising intensity) (ratio) 123.08 48.27 0.01 139.10 53.20 0.01
MNE/HQ level interactions
Industry 4.0 orientation × HQ value creation H2A 24.57 6.45 0.00
Industry 4.0 orientation × HQ value capturing H3A 3175.49 1199.96 0.01
Cross-level interactions
Industry 4.0 orientation × subsidiary value creation H2B
Industry 4.0 orientation × subsidiary value capturing H3B
Predicted residuals from stage 1 − 0.03 0.01 0.02 − 0.02 0.01 0.12 − 0.02 0.01 0.10
Eastern Asia 13.48 7.77 0.08 15.03 7.76 0.05 14.03 7.89 0.08
Southern Asia 23.65 8.75 0.01 21.51 8.72 0.01 19.20 9.23 0.04
Western Asia 22.08 11.25 0.05 15.66 11.08 0.16 16.78 11.18 0.13
Chemicals excluding pharmaceuticals 0.77 2.15 0.72 0.84 2.24 0.71 0.93 2.25 0.68
Pharmaceuticals 0.12 9.02 0.99 3.57 8.81 0.69 3.72 8.83 0.67
Rubber and plastics products 3.49 3.53 0.32 0.04 3.54 0.99 0.10 3.55 0.98
Other non-metallic mineral products 0.14 2.95 0.96 0.94 3.00 0.75 1.01 3.01 0.74
Basic metals and fabricated metal products 1.31 3.22 0.68 2.37 3.26 0.47 2.47 3.28 0.45
Radio, TV, communications equipment and computing machinery 4.81 1.78 0.01 7.79 1.95 0.00 7.90 1.96 0.00
Electrical machinery and apparatus, n.e.c. 11.30 3.19 0.00 11.07 3.24 0.00 11.10 3.24 0.00
Motor vehicles, trailers and semi-trailers 0.21 2.02 0.92 0.56 2.17 0.80 0.63 2.17 0.77
Random effects
MNE/HQ Level 0.26 0.10 0.01 0.33 0.12 0.00 0.40 0.13 0.00
(Host) Country Level 0.30 0.13 0.02 0.36 0.14 0.01 0.45 0.15 0.00
σu 8.57 2.67 0.00 8.72 2.83 0.00 8.74 2.85 0.00
σe 35.71 0.34 0.00 35.51 0.34 0.00 35.50 0.34 0.00
Log-likelihood − 27861.91 − 27797.05 − 27785.35
DV: Subsidiary sales intensity within the GVC (%) Hypo. Model 4 Model 5
Variables Coef. SE Sig. Coef. SE Sig.
Fixed effects
Intercept 102.01 12.34 0.00 107.47 12.84 0.00
Subsidiary level
Subsidiary size = log (subsidiary assets) 0.16 0.31 0.61 0.13 0.31 0.67
Subsidiary age = log (years since establishment) − 1.73 0.50 0.00 − 1.74 0.50 0.00
Ownership mode dummy (WOS = 1 vs JV = 0) − 0.53 1.27 0.67 − 0.56 1.27 0.66
Vertical diversification (vertical integration) − 65.82 1.68 0.00 − 65.67 1.69 0.00
R&D IJV subsidiaries 1.16 3.72 0.76 1.28 3.72 0.73
Headquarters’ knowledge transfer in value creation − 0.01 5.77 1.00 − 0.17 5.77 0.98
Headquarters’ knowledge transfer in value capturing − 17.57 8.67 0.04 − 17.73 8.67 0.04
Subsidiary value creation (R&D forces) (ratio) − 89.93 16.73 0.00 − 91.44 16.75 0.00
Subsidiary value capturing (advertising intensity) (ratio) 44.92 9.85 0.00 44.70 9.85 0.00
(Host) country level
Political stability 0.08 0.04 0.06 0.08 0.04 0.06
Cultural Euclidean distance − 0.14 0.05 0.00 − 0.13 0.05 0.00
Host country GDP = log (host country GDP) − 0.99 0.63 0.11 − 1.11 0.64 0.09
Host country GDP growth − 0.69 0.23 0.00 − 0.71 0.24 0.00
Host country R&D intensity (%) − 1.57 1.67 0.35 − 1.50 1.67 0.37
Host country technological change (%) − 0.00 0.10 0.98 − 0.00 0.10 0.98
Host country market competitive environment − 2.62 1.98 0.19 − 2.75 1.98 0.17
Legal environment distance − 1.18 1.15 0.30 − 1.34 1.15 0.24
IP protection distance − 0.26 0.78 0.74 − 0.29 0.78 0.71
Asset-augmentation FDI 5.98 1.98 0.00 5.66 1.99 0.00
MNE/HQ level
MNE size = log (firm assets) − 0.25 0.22 0.27 − 0.46 0.26 0.08
MNE international experience (depth) 0.87 0.30 0.00 0.79 0.30 0.01
MNE host country number 0.46 0.24 0.05 0.43 0.24 0.07
MNE governance − 0.05 0.11 0.68 − 0.03 0.11 0.80
MNE Geographic diversification 0.15 1.78 0.93 0.17 1.78 0.92
MNE Industry 4.0 orientation (weighted by employees) H1 103.03 33.60 0.00 194.98 61.82 0.00
HQ value creation = log (applied patents) 1.50 0.62 0.02 1.87 0.64 0.00
HQ value capturing (advertising intensity) (ratio) 133.51 48.27 0.01 138.40 53.20 0.01
MNE/HQ level interactions
Industry 4.0 orientation × HQ value creation H2A 20.65 6.61 0.00
Industry 4.0 orientation × HQ value capturing H3A 3118.85 1201.35 0.01
Cross-level interactions
Industry 4.0 orientation × subsidiary value creation H2B − 414.04 336.82 0.22 − 398.99 337.16 0.24
Industry 4.0 orientation × subsidiary value capturing H3B 453.98 154.23 0.00 396.57 157.02 0.01
Predicted residuals from stage 1 − 0.02 0.01 0.09 − 0.02 0.01 0.07
Eastern Asia 15.29 7.78 0.05 14.05 7.89 0.08
Southern Asia 21.62 8.80 0.01 18.72 9.26 0.04
Western Asia 14.49 11.13 0.19 15.76 11.20 0.16
Chemicals excluding pharmaceuticals 0.76 2.24 0.73 0.92 2.26 0.68
Pharmaceuticals 3.44 8.81 0.70 3.71 8.82 0.68
Rubber and plastics products 0.08 3.54 0.98 0.04 3.55 0.99
Other non-metallic mineral products 0.78 3.00 0.79 0.91 3.01 0.76
Basic metals and fabricated metal products 2.24 3.26 0.49 2.42 3.28 0.46
Radio, TV, communications equipment and computing machinery 7.72 1.95 0.00 7.87 1.96 0.00
Electrical machinery and apparatus, n.e.c. 10.99 3.25 0.00 11.05 3.25 0.00
Motor vehicles, trailers and semi-trailers 0.49 2.17 0.82 0.59 2.18 0.79
Random effects
MNE/HQ Level 0.44 0.13 0.00 0.41 0.14 0.00
(Host) Country Level 0.45 0.15 0.00 0.43 0.15 0.01
σu 8.81 2.83 0.00 8.92 2.85 0.00
σe 35.51 0.34 0.00 35.50 0.34 0.00
Log-likelihood − 27789.32 − 27776.63
DV: Subsidiary purchase intensity within the GVC (%) Hypo. Model 6 Model 7 Model 8
Variables Coef. SE Sig. Coef. SE Sig. Coef. SE Sig.
Fixed effects
Intercept 15.90 13.13 0.23 − 8.87 13.50 0.51 − 1.00 14.11 0.94
Subsidiary level
Subsidiary size = log (subsidiary assets) 0.74 0.33 0.03 0.65 0.34 0.06 0.62 0.34 0.07
Subsidiary age = Log (years since establishment) 5.49 0.56 0.00 5.82 0.55 0.00 5.83 0.55 0.00
Ownership mode dummy (WOS = 1 vs JV = 0) − 0.32 1.42 0.82 − 0.73 1.39 0.60 − 0.74 1.39 0.59
Vertical diversification (vertical integration) − 38.87 1.89 0.00 − 40.38 1.85 0.00 − 40.15 1.86 0.00
R&D IJV Subsidiaries 0.80 4.19 0.85 0.23 4.09 0.96 0.07 4.09 0.99
Headquarters’ knowledge transfer in value creation − 7.79 6.45 0.23 − 5.48 6.35 0.39 − 5.41 6.35 0.39
Headquarters’ knowledge transfer in value capturing − 13.29 9.71 0.17 − 31.21 9.53 0.00 − 31.12 9.53 0.00
Subsidiary value creation (R&D forces) (ratio) 289.81 18.02 0.00 288.95 18.02 0.00
Subsidiary value capturing (Advertising Intensity) (ratio) 50.89 10.61 0.00 50.45 10.61 0.00
(Host) Country level
Political stability 0.10 0.05 0.05 0.05 0.05 0.35 0.05 0.05 0.33
Cultural Euclidean distance − 0.03 0.05 0.53 − 0.05 0.05 0.35 − 0.03 0.05 0.57
Host country GDP = Log (host country GDP) − 1.08 0.68 0.11 − 0.47 0.69 0.49 − 0.36 0.70 0.60
Host country GDP growth 1.02 0.25 0.00 1.12 0.25 0.00 1.03 0.26 0.00
Host country R&D intensity (%) 0.31 1.80 0.87 3.79 1.83 0.04 3.79 1.83 0.04
Host country technological change (%) 0.16 0.11 0.14 0.09 0.11 0.40 0.10 0.11 0.36
Host country market competitive environment 1.72 2.13 0.42 0.06 2.17 0.98 0.13 2.17 0.95
Legal environment distance 1.91 1.29 0.14 1.31 1.26 0.30 1.49 1.26 0.24
IP protection distance − 0.65 0.84 0.44 1.11 0.85 0.19 1.18 0.85 0.17
Asset-augmentation FDI 6.53 2.21 0.00 2.52 2.17 0.25 2.87 2.18 0.19
MNE/HQ Level
MNE size = Log (Firm assets) 0.12 0.15 0.42 0.03 0.24 0.90 − 0.28 0.29 0.34
MNE international experience (depth) − 0.38 0.33 0.25 − 0.23 0.33 0.48 − 0.30 0.33 0.36
MNE host country number − 0.86 0.26 0.00 − 0.26 0.26 0.32 − 0.30 0.26 0.25
MNE governance − 0.04 0.11 0.71 − 0.09 0.12 0.48 − 0.10 0.12 0.42
MNE geographic diversification 4.39 1.95 0.02 5.82 1.95 0.00 5.70 1.95 0.00
MNE Industry 4.0 orientation (weighted by employees) H1 41.17 19.89 0.04 52.57 27.40 0.06
HQ value creation = Log (applied patents) 1.24 0.68 0.07 0.66 0.70 0.35
HQ value capturing (advertising intensity) (ratio) − 95.45 53.02 0.07 − 75.33 58.43 0.20
MNE/HQ level Interactions
Industry 4.0 orientation × HQ value creation H2A 13.70 7.09 0.05
Industry 4.0 orientation × HQ value capturing H3A − 894.28 1124.64 0.43
Cross-level Interactions
Industry 4.0 orientation × subsidiary value creation H2B
Industry 4.0 orientation × subsidiary value capturing H3B
Predicted residuals from stage 1 − 0.02 0.01 0.08 − 0.03 0.01 0.02 − 0.03 0.01 0.01
Sub-Saharan Africa 30.32 11.70 0.01 32.80 11.60 0.01 30.13 11.77 0.01
Southern Asia 14.24 8.80 0.11 20.64 8.84 0.02 16.51 9.36 0.08
Europe 15.49 7.79 0.05 16.95 7.96 0.03 14.81 8.18 0.07
Northern America 15.17 7.92 0.06 15.71 8.03 0.05 14.68 8.23 0.08
Chemicals excluding pharmaceuticals 9.82 2.15 0.00 9.32 2.26 0.00 9.21 2.28 0.00
Pharmaceuticals 0.14 9.07 0.99 2.19 8.93 0.81 2.00 8.94 0.82
Rubber and plastics products 10.24 3.54 0.00 10.91 3.58 0.00 10.87 3.59 0.00
Other non-metallic mineral products 9.25 2.95 0.00 7.97 3.03 0.01 7.90 3.04 0.01
Basic metals and fabricated metal products 3.99 3.24 0.22 2.95 3.30 0.37 2.83 3.32 0.39
Radio, TV, communications equipment and computing machinery 9.84 1.79 0.00 10.11 1.97 0.00 9.93 1.98 0.00
Electrical machinery and apparatus, n.e.c. 13.62 3.21 0.00 10.70 3.30 0.00 10.63 3.30 0.00
Motor vehicles, trailers and semi-trailers 8.12 2.04 0.00 5.92 2.20 0.01 5.78 2.21 0.01
Random effects
MNE/HQ level 17.86 5.73 0.00 26.33 10.34 0.01 34.02 12.79 0.01
(Host) country level 0.30 0.10 0.00 0.28 0.11 0.01 0.29 0.10 0.01
σu 4.83 1.94 0.01 5.45 1.65 0.00 5.47 1.65 0.00
σe 39.73 0.44 0.00 38.67 0.43 0.00 38.66 0.43 0.00
Log-likelihood − 28479.89 − 28330.16 − 28318.35
DV: Subsidiary purchase intensity within the GVC (%) Hypo. Model 9 Model 10
Variables Coef. SE Sig. Coef. SE Sig.
Fixed effects
Intercept − 7.49 13.56 0.58 − 0.85 14.12 0.95
Subsidiary level
Subsidiary size = log (subsidiary assets) 0.63 0.34 0.06 0.61 0.34 0.08
Subsidiary age = Log (years since establishment) 5.81 0.55 0.00 5.82 0.55 0.00
Ownership mode dummy (WOS = 1 vs JV = 0) − 0.67 1.39 0.63 − 0.69 1.39 0.62
Vertical diversification (vertical integration) − 40.35 1.85 0.00 − 40.15 1.86 0.00
R&D IJV Subsidiaries 0.25 4.09 0.95 0.10 4.09 0.98
Headquarters’ knowledge transfer in value creation − 5.48 6.35 0.39 − 5.43 6.35 0.39
Headquarters’ knowledge transfer in value capturing − 31.13 9.53 0.00 − 31.05 9.53 0.00
Subsidiary value creation (R&D forces) (ratio) 286.12 18.38 0.00 285.29 18.40 0.00
Subsidiary value capturing (Advertising Intensity) (ratio) 47.47 10.83 0.00 47.81 10.83 0.00
(Host) Country level
Political stability 0.05 0.05 0.31 0.05 0.05 0.30
Cultural Euclidean distance − 0.05 0.05 0.37 − 0.03 0.05 0.57
Host country GDP = Log (host country GDP) − 0.40 0.69 0.56 − 0.31 0.70 0.66
Host country GDP growth 1.10 0.25 0.00 1.03 0.26 0.00
Host country R&D intensity (%) 3.75 1.83 0.04 3.75 1.83 0.04
Host country technological change (%) 0.09 0.11 0.41 0.10 0.11 0.38
Host country market competitive environment 0.05 2.17 0.98 0.00 2.18 1.00
Legal environment distance 1.33 1.26 0.29 1.49 1.26 0.24
IP protection distance 1.16 0.85 0.17 1.22 0.85 0.15
Asset-augmentation FDI 2.65 2.18 0.22 2.96 2.19 0.18
MNE/HQ Level
MNE size = Log (Firm assets) − 0.05 0.24 0.85 − 0.30 0.29 0.29
MNE international experience (depth) − 0.20 0.33 0.54 − 0.27 0.33 0.42
MNE host country number − 0.24 0.26 0.35 − 0.28 0.26 0.28
MNE governance − 0.09 0.12 0.46 − 0.10 0.12 0.40
MNE geographic diversification 5.76 1.95 0.00 5.66 1.96 0.00
MNE Industry 4.0 orientation (weighted by employees) H1 48.16 22.16 0.03 61.54 30.58 0.04
HQ value creation = Log (applied patents) 1.20 0.68 0.08 0.69 0.70 0.33
HQ value capturing (advertising intensity) (ratio) − 93.99 53.02 0.08 − 75.65 58.43 0.20
MNE/HQ level Interactions
Industry 4.0 orientation × HQ value creation H2A 13.14 7.26 0.07
Industry 4.0 orientation × HQ value capturing H3A − 828.14 1125.95 0.46
Cross-level Interactions
Industry 4.0 orientation × subsidiary value creation H2B 869.96 370.07 0.02 747.43 370.47 0.04
Industry 4.0 orientation × subsidiary value capturing H3B 272.38 169.54 0.11 217.78 172.61 0.21
Predicted residuals from stage 1 − 0.03 0.01 0.01 − 0.03 0.01 0.01
Sub-Saharan Africa 32.21 11.62 0.01 30.21 11.77 0.01
Southern Asia 20.54 8.93 0.02 17.40 9.39 0.06
Europe 16.50 7.99 0.04 15.03 8.19 0.07
Northern America 15.30 8.06 0.06 14.90 8.24 0.07
Chemicals excluding pharmaceuticals 9.20 2.26 0.00 9.15 2.28 0.00
Pharmaceuticals 2.00 8.93 0.82 1.90 8.94 0.83
Rubber and plastics products 10.74 3.58 0.00 10.76 3.59 0.00
Other non-metallic mineral products 7.73 3.03 0.01 7.71 3.04 0.01
Basic metals and fabricated metal products 2.76 3.30 0.40 2.71 3.32 0.41
Radio, TV, communications equipment and computing machinery 9.99 1.98 0.00 9.83 1.98 0.00
Electrical machinery and apparatus, n.e.c. 10.59 3.30 0.00 10.52 3.30 0.00
Motor vehicles, trailers and semi-trailers 5.81 2.21 0.01 5.69 2.21 0.01
Random effects
MNE/HQ level 27.41 11.45 0.02 38.79 14.69 0.01
(Host) country level 0.29 0.11 0.01 0.35 0.11 0.00
σu 5.38 1.67 0.00 5.41 1.66 0.00
σe 38.67 0.43 0.00 38.66 0.43 0.00
Log-likelihood − 28311.86 − 28297.41

N = 5572. Unstandardized coefficients are reported. The p values are based on two-tailed tests. Null models are analyzed, and region, industry and year dummies are estimated, but only significant region dummies are reported and year dummies are not reported here.