Álvarez González, IsabelMarín Sanz, RaquelSantos Arteaga, Francisco Javier2023-06-182023-06-182015-091463678610.1111/manc.12074https://hdl.handle.net/20.500.14352/23804This paper illustrates how wholly owned entry modes of multinational companies (MNCs) are jointly determined by both the strategic objectives of the MNC and the local firms’ assets in the creation of value. In particular, the entry mode chosen is based on the potential reciprocal technological spillovers between local firms and MNC subsidiaries. M&As are preferred when host countries exhibit a certain level of development in their local systems of innovation, especially for technologically leading MNCs. Otherwise, for technological laggard MNCs, greenfield investments prevail and M&As may be carried out for meeting demand motives in developing local systems of innovation.engjournal articlehttp://dx.doi.org/10.1111/manc.12074restricted accessForeign investmentsInternational business enterprisesTechnological innovationsEconomicsDeveloping countriesDesarrollo económicoEconomía internacionalEmpresas5307.03 Modelos y Teorías del desarrollo Económico5307.04 Estudios del desarrollo Económico5310 Economía Internacional5311 Organización y Dirección de Empresas