Global Connections: A study of multinational companies in Sydney

| October 2, 2009

The Australian Business Foundation is an independent organisation undertaking evidence-based research to deliver fresh insights and practical intelligence to boost Australia’s capabilities and global competitiveness.

In 2009, The Australian Business Foundation released the report "Global Connections: A study of multinational companies in Sydney". A summary version of the report is available here.
 
Understanding how Sydney features in the strategies, organisation and location decisions of multinational corporations is critical for governments, multi-national companies and resident firms alike.  
 
Conducted by Enright Scott & Associates principal Michael Enright, Global Connections was informed by surveying a large number of MNCs operating in the Asia-Pacific region with a focus on identifying which activities are currently conducted in Australia, and what the opportunities and impediments are to attracting more high value, knowledge related activities.
 
The findings of Global Connections have some massive implications for the future innovation and prosperity of NSW and Australia. Open Forum and the Australian Business Foundation are launching this online forum as a space to invite some of the thought leaders in this area to share their ideas about the report and how we can learn from the lessons it provides.
 
Some of the key conclusions of Global Connections are highlighted here as food for thought.
 
“Sydney operates as a significant location, but not as a global centre, for the vast majority of foreign multinational companies. Self-sufficient and largely stand-alone, Sydney operations of multinationals are essentially local implementers, rather than regional or global innovators for their parent companies. But, Sydney is more important to the strategies of foreign multinationals in 2008 than it was a decade ago, a positive trend that provides the base for future benefits to Sydney and to multinational companies.”
 
How can we extend that positive trend?
 
“Sydney offices of multinationals are moderate contributors to the multinational company as a whole in terms of decision-making; knowledge generation and application; management; and product and service development. They are more local implementers, not regional or global leaders within the parent multinational company. But there is evidence of a small set of exceptions who play a global role.”
 
Are you part of that “small set of exceptions”? Tell us about the values and practices which have set your organisation apart.
 
“Few if any of the potential impacts of the present global economic crisis on multinational companies is likely to be positive for Sydney.”
 
Sadly, more than six months later that sentence rings true. Was this avoidable?
 
“Urgent action is needed to revitalise investment promotion initiatives aimed at multinationals and to ramp up opportunities for more potent connections and collaborations between the Sydney operations of multinationals and local organisations.”
 
So let’s talk about how we can do just that. Are you involved in just such a successful collaborative partnership? Please share your experience.
 
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0 Comments

  1. foggy

    October 4, 2009 at 4:05 pm

    multinational and global

    pardon my business knowledge,but by virtue of  just being multinational means positioned on different parts of the globe  which in turn means automatically as being globally connected.but global competitiveness? i need direction….is Sydney competing at global level or are the global connections converging to the city drawn by its irresistible competitive policy?

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