The Effects of MNCs Foreign Direct Investment on the Development of Iran's Mobile Industry

This study investigates the impact of activities of multinationals on local firms in Iran mobile industries. Methodologically, both quantitative and qualitative research methods have been employed. The conceptual model was developed based on literature review and historical trend of formation and development of Irancell and its effect on the Iran’s mobile industry and also content analysis of expert opinion. In this model multinationals have affect on local companies and suppliers through four mechanisms (competition, imitation, communication and movement of human resource). After that the influence of FDI’s spillover over local companies and suppliers has been studied. This impact has two aspect; technological and managerial. In this context after analyzing the validity and reliability of the questionnaire, A sample of 45 senior and middle managers was determine and the questionnaire was distributed. Base on survey results, it was found that mechanisms of competition and imitation were more important in the technology spillover, and the effect of FDI on local companies was greater than its effect on domestic suppliers. At the end of the study Some Recommendations for strengthening the influence of multinational companies entering the local supplier network development is presented.