Firm–education–industry association linkages: Driving the territorial embeddedness of business services multinational corporations in Romania?

Abstract

This study examines the nature and implications of linkages between multinational corporations and local institutions across peripheral regions. Analysing the development of outsourced and offshored business services in Romania, the study highlights the role of firm–education–industry association linkages in driving the territorial embeddedness of multinational corporations into host country regions. Firm–education–industry association linkages facilitated changes in higher education curricula to supply firm-specific skills, the development of advanced technical and management skills, and a programme of state policies privileging foreign capital. While this industrial and institutional transformation facilitated Romania’s move up the value chain into more advanced business services, it simultaneously drove forms of corporate capture and dependency, reproducing a flexible, co-opted workplace labour regime.