Abstract

This study delves into the various ways that Multinational Companies (MNCs) impact Bengaluru's hometown tech startups. This research is motivated by the growing number of Multinational Companies (MNCs) in India's tech hub and the need to understand how these multinational organizations influence local economies. The research focuses on the tech industry in Bengaluru, with a sample size of 129 respondents. Data was collected through surveys using a non-probability snowball sampling technique to assess the influence of MNCs. Various statistical methods were employed to address the research objectives: for the first objective, identifying factors influenced by MNCs on job creation, wealth development, and community development of tech startups in Bengaluru, exploratory and confirmatory factor analyses was used; the second objective, understanding the impact of MNCs on local tech startups through technology transfer, utilizes structural equation modelling; and for the third objective, investigating how MNCs influence productivity within the growth of domestic tech startup companies in Bengaluru, the questionnaire responses were analyzed.

The primary findings reveal that MNCs significantly impact job creation and wealth distribution, thereby fostering community development. The study concludes that while MNCs contribute positively to economic growth, they also introduce challenges that necessitate careful management to ensure sustainable development and equitable wealth distribution within the local tech ecosystem.