Most governments have been actively promoting their countries as investment locations to attract scarce private capital, associated technology, managerial skills and to create employment in order to help achieve their development goals. Furthermore, Policy agencies in less developed countries (LDCs) place attracting foreign direct investment (FDI) high on their agenda, expecting multinational enterprises (MNEs) to generate positive spill-overs and thus enhance the performance and competitiveness of domestic industries. Even though a number of previous studies suggests hypotheses and conducts empirical tests on spillover effects, few studies have focused on linking competitive strategies in terms of firm level characteristics to catch-up competitiveness in opened domestic market.