10 Similarly, Jindra, Giroud, and Scott Kennel (2009) and Amendolagine et al. (2019) find for Eastern Europe and Sub-Saharan Africa that the percentage of foreign ownership is negatively associated with the provision of support, suggesting that some level of host economy participation in MNC affiliates facilitates supportive linkages.<sup>7</sup> In line with these findings, evidence from econometric studies shows that fully foreign-owned MNC affiliates create smaller positive productivity spillovers compared to affiliates with some level of host economy participation (Javorcik 2004; Merlevede, Schoors, and Spatareanu2014; Javorcik and Spatareanu 2008).

_The level of local sourcing._ This factor can also promote technology dissemination. The use of local suppliers generates economic benefits for MNC affiliates because it lowers costs of transportation and communication and increases flexibility. MNC affiliates are therefore often willing to provide support to local suppliers when they perceive that doing so allows them to obtain such benefits. Overall, the evidence shows that local sourcing exercises positive effects on technology dissemination (see, for example, Jordaan 2011a; Liao and Wei 2013). However, the relationship is often more nuanced. Several studies present evidence that the positive effect on technology transfers becomes smaller when the level of use of suppliers has reached a certain level (Saliola and Zanfei 2009; Franco, Sanfilippo, and Seric 2015; Giroud, Jindra, and Marek 2012). An explanation for these findings is that after some level of local sourcing is established, technological support is no longer required to ensure the quality and cost-competitiveness of local suppliers. Also, levels of local sourcing may be high and levels of supportiveness may be low in cases where MNC affiliates source standard and routine low value added inputs from local suppliers, as suppliers are less likely to need support to supply these types of inputs (Amendolagine et al. 2019).

_The level of autonomy with which affiliates operate_ . Affiliates of MNCs that operate centralized sourcing policies are usually characterized by low levels of local sourcing, as evidenced by case study findings on the automotive industry in the Czech Republic (Pavlinek and Zizalova 2016). Affiliates that are allowed to operate with more freedom and greater flexibility tend to use more local suppliers and are able to benefit from opportunities that arise when local supplier bases improve (UNCTAD 2001). Survey findings for several Eastern European countries indicate that MNC affiliates with a relatively high level of autonomy over technological business functions (Giroud, Jindra, and Marek 2012) or supply, logistics, and product development (Jindra, Giroud, and Scott-Kennel 2009) are also characterized by higher levels of local sourcing. Similarly, a high level of autonomy fosters the provision

> 7 Foreign participation is important, as shown in a study by Jordaan (2013), who reports results from a survey among MNC affiliates and domestic producer firms in northeastern Mexico, showing that firms with foreign participation are significantly more involved in providing a variety of types of support to their suppliers than domestic firms .