Factors affecting research and development (R&D) collaboration of multinational enterprises (mnes) and their local partner firms: A case study of Turkish automotive industry

This thesis focuses on disclosing the factors that affect the Research and Development (R&D) collaboration between Multinational Enterprises (MNEs), and their Turkish partner firms, in the automotive industry. Following the literature review and pre-test interviews with the experts from the industry a number of different factors were identified. The methodology of the research was ?Case Study? in order to provide an in-depth exploration of the factors. There are three case studies namely: Tofaş-Fiat, Ford Otosan-Ford and Hyundai Assan-Hyundai. The primary data was collected from 40 respondents (R&D/production managers and employees) by in-depth face-to-face interviewing.Findings yield that the most important factors affecting R&D collaboration for the local companies were production, innovation & R&D capabilities and then absorptive capacity of the local companies. The most important factor affecting MNE?s R&D location decisions was the main R&D policy of the MNE (criteria for possible R&D collaboration, openness to R&D collaboration and strategic goals). Another factor, competition between other R&D departments in different countries, and other R&D department?s competency were found as moderate level of importance.R&D Managers of Fiat, Ford and Hyundai found the Turkish government?s R&D incentives very attractive, and found that Turkey?s infrastructure, socio-economic conditions and cheap but skilled labor force were appropriate for undertaking R&D collaborations. Social factors (mutual trust, level of commitment and cultural conflicts) were found to be an important influence in MNE?s R&D location decisions. The findings are expected to contribute to the R&D efforts and innovativeness of the Turkish Automotive Industry.