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Knowledge creation capability in MNC subsidiaries: Examining the roles of global and local knowledge inflows and subsidiary knowledge stocks

Published on Feb 1, 2014in International Business Review 3.64
· DOI :10.1016/j.ibusrev.2013.08.009
Saba Colakoglu10
Estimated H-index: 10
(Koç University),
Sachiko Yamao4
Estimated H-index: 4
(University of Melbourne),
David P. Lepak32
Estimated H-index: 32
(RU: Rutgers University)
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Abstract
Grounded in knowledge-based theories of the multinational corporation (MNC) and building on organizational learning literature, this paper develops and tests a model of MNC subsidiaries’ knowledge creation capability as a joint function of knowledge inflows to subsidiaries and their knowledge stocks (i.e., subsidiaries’ internal human, social, and organizational capital). Survey-based data from 106 subsidiaries located in the U.S. suggests that local (i.e., host country) knowledge inflows to a subsidiary are more effective in enhancing a subsidiary's knowledge creation capability compared to global knowledge inflows from other units of the same MNC. Furthermore, results point to a not-invented-here syndrome in the exploitation of knowledge sourced from the parent company; such that when a subsidiary's internal social capital is high, the relationship between global knowledge inflows and knowledge creation capability is negative and when it is low, the relationship becomes positive.
  • References (100)
  • Citations (23)
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References100
Newest
Published on Dec 1, 2012in International Business Review 3.64
Phillip Christopher Nell13
Estimated H-index: 13
(CBS: Copenhagen Business School),
Ulf Andersson32
Estimated H-index: 32
(CBS: Copenhagen Business School)
Many studies have focused on the effects of MNC subsidiaries’ external relational embeddedness. Little attention has been given to its antecedents and especially to the potential effect that the business network context might have. We try to fill this gap and attempt to explain variation among subsidiaries’ degree of relational embeddedness. Our results show a strong and robust effect of the business network context – i.e. the network context in which the direct business relationships between th...
Published on Oct 1, 2011in Journal of World Business 5.79
Phillip Christopher Nell13
Estimated H-index: 13
(CBS: Copenhagen Business School),
Björn Ambos22
Estimated H-index: 22
(WU: Vienna University of Economics and Business),
Bodo B. Schlegelmilch41
Estimated H-index: 41
(WU: Vienna University of Economics and Business)
MNCs have been conceptualized as differentiated networks that, in turn, are embedded in external networks. Previous research has predominantly focused on the embeddedness of established subsidiaries into their local environment, omitting to shed light on the phenomenon of headquarters linkages to the local context which creates embeddedness overlap. We develop a model of why MNCs develop overlapping linkages to local subsidiary networks even if the subsidiaries have grown out of the initial star...
Published on Aug 1, 2011in Journal of International Business Studies 7.72
Shad S. Morris11
Estimated H-index: 11
(Max M. Fisher College of Business),
Scott A. Snell39
Estimated H-index: 39
(UVA: University of Virginia)
Building on the organizational capabilities literature and theories of the multinational enterprise, this paper develops and tests a framework that examines the relationship between intellectual capital configurations and organizational capabilities in human resource (HR) subunits. Looking at 187 subunits from 20 MNEs, findings show that intellectual capital dimensions vary in their usefulness for generating, sharing, and implementing HR management practices. In particular, while certain resourc...
Published on Jun 1, 2011in International Business Review 3.64
Christina Hallin2
Estimated H-index: 2
(Uppsala University),
Ulf Holm21
Estimated H-index: 21
(Uppsala University),
Dharma Deo Sharma5
Estimated H-index: 5
(HHS: Stockholm School of Economics)
This paper investigates how relationship embeddedness in MNC subsidiaries' corporate and external networks influences the contribution of innovation transfer to the recipient subsidiary's business performance. OLS regressions using data on the intra-MNC transfer of 224 innovations indicate that the embeddedness of a subsidiary's relationships in the corporate and external network positively affects the received innovation's contribution to business performance. More detailed analysis demonstrate...
Published on Apr 1, 2011in International Business Review 3.64
Mo Yamin17
Estimated H-index: 17
(University of Manchester),
Ulf Andersson32
Estimated H-index: 32
(CBS: Copenhagen Business School)
This paper addresses the issue of how a subsidiary's internal and external embeddedness interact in generating the importance of the subsidiary vis-a-vis the MNC as a whole. We take previous findings of the positive impact of external embeddedness on a subsidiary's importance as our starting point and consider two questions: (a) how does the internal embeddedness of a subsidiary affect its organisational importance, and (b) how do a subsidiary's internal and external embeddedness interact in gen...
Published on Mar 1, 2011in Journal of Management Studies 5.84
Klaus E. Meyer41
Estimated H-index: 41
(University of Bath),
Ram Mudambi42
Estimated H-index: 42
(TU: Temple University),
Rajneesh Narula37
Estimated H-index: 37
(University of Reading)
Some scholars have argued that globalization will reduce the importance of local contexts. We argue instead that despite the increased frequency and intensity of interactions across local contexts, they continue to retain their distinctive differences. MNEs face growing challenges in managing the complexity of these interactions, because they must manage multiple embeddedness across heterogeneous contexts at two levels. First, at the MNE level, they must organize their networks to exploit effect...
Published on Jun 1, 2010in Human Resource Management Review 3.63
Clint Chadwick12
Estimated H-index: 12
(UAH: University of Alabama in Huntsville)
Abstract Synergy is a central tenet of the organizational level approach to human resource management (HRM). However, current theoretic treatments of synergy in the HRM literature are too inspecific to offer much insight about its essential characteristics in HRM systems. To move the treatment of synergy toward greater precision, this paper describes three different theoretic approaches to synergy in HRM systems: virtuous overlaps, independent effects, and efficient complementarities. Each of th...
Published on Feb 1, 2010in Journal of International Business Studies 7.72
Sea Jin Chang25
Estimated H-index: 25
,
Witteloostuijn van Arjen33
Estimated H-index: 33
(Tilburg University),
Lorraine Eden31
Estimated H-index: 31
(A&M: Texas A&M University)
JIBS receives many manuscripts that report findings from analyzing survey data based on same-respondent replies. This can be problematic since same-respondent studies can suffer from common method variance (CMV). Currently, authors who submit manuscripts to JIBS that appear to suffer from CMV are asked to perform validity checks and resubmit their manuscripts. This letter from the Editors is designed to outline the current state of best practice for handling CMV in international business researc...
Published on Jun 1, 2009in Journal of International Business Studies 7.72
Niels G. Noorderhaven31
Estimated H-index: 31
(Tilburg University),
Anne-Wil Harzing45
Estimated H-index: 45
(University of Melbourne)
Social interaction between managers from different units of a multinational enterprise (MNE) has been shown to be an important factor stimulating intra-MNE knowledge-sharing. Face-to-face social interactions form a communication channel particularly conducive to the transfer of tacit, non-codified knowledge. But intensive social interaction also provides opportunities for social construction of knowledge in a learning dialogue. The first explanation (sender–receiver) makes us expect social inter...
Published on Jan 1, 2009in Journal of Management Studies 5.84
Sung-Choon Kang8
Estimated H-index: 8
(SNU: Seoul National University),
Scott A. Snell39
Estimated H-index: 39
(UVA: University of Virginia)
Both researchers and managers are increasingly interested in how firms can pursue ambidextrous learning; that is, simultaneously exploring new knowledge domains while exploiting current ones. Ambidextrous learning is derived from intellectual capital architectures that underlie unique configurations of human, social, and organizational capital. We identified two distinctive architectures of intellectual capital that facilitate ambidextrous learning. Refined interpolation is an architecture compr...
Cited By23
Newest
Published on Dec 1, 2018in International Business Review 3.64
Victor Ragazzi Isaac (Escola Superior de Propaganda e Marketing), Felipe Mendes Borini8
Estimated H-index: 8
(USP: University of São Paulo)
+ 1 AuthorsGabriel R.G. Benito24
Estimated H-index: 24
(BI Norwegian Business School)
Abstract This study examines factors that influence the development and transformation of local innovations into global innovations from an emerging market subsidiary. We argue that subsidiaries’ relational embeddedness with the external local network is essential for the development of local innovations. Turning local innovations into global ones is the result of the level of innovativeness evoked by the subsidiary located in an emerging market. However, the transformation of local into global ...
Published on Apr 1, 2019in International Business Review 3.64
Palitha Konara2
Estimated H-index: 2
(Plymouth University),
Yingqi Wei20
Estimated H-index: 20
(University of Leeds)
Integrating the literature on language-MNEs (multinational enterprises) in international business and economic theory of human capital (HC), we establish an analytical framework to systematically examine how HC and language capital (LC) jointly determine foreign direct investment (FDI). We contend that the extent to which MNEs can leverage HC in a host country for FDI depends on LC. Based on an extensive bilateral dataset covering 3315 country pairs during 1995–2008, we reveal clear evidence on ...
Published on Mar 1, 2019in Journal of International Business Studies 7.72
Andrew C. Inkpen35
Estimated H-index: 35
(ASU: Arizona State University),
Dana Minbaeva17
Estimated H-index: 17
(CBS: Copenhagen Business School),
Eric W. K. Tsang39
Estimated H-index: 39
(UTD: University of Texas at Dallas)
Abstract Knowledge leakage as an undesirable outcome for MNEs is an accepted view in IB literature. We challenge this view and argue that knowledge leakage is often unintentional, unavoidable, and beneficial for the MNE. In a highly networked and information-rich society, knowledge leakage from MNEs (1) happens naturally due to interfirm relationships, interactions, and socialization, (2) is unavoidable due to employee mobility, and (3) facilitates knowledge inflows due to the reciprocity nature...
Izumi Mori1
Estimated H-index: 1
(UTokyo: University of Tokyo),
Soyeon Kim2
Estimated H-index: 2
(Meiji University),
Abd Rahman Abdul Rahim3
Estimated H-index: 3
(UTM: Universiti Teknologi Malaysia)
Published on Feb 1, 2019in International Journal of Information Management 5.06
Margaret L. Sheng7
Estimated H-index: 7
(NTUST: National Taiwan University of Science and Technology)
Abstract This study applies a capabilities perspective to examine how source-recipient knowledge absorption platforms affect the relationship between foreign tacit knowledge resource and multinational enterprises’ (MNEs) product innovativeness. Theoretically, this study moves beyond internal absorptive capacity into a capabilities perspective of MNEs’ product innovativeness. By using dynamic capabilities theory and absorptive capacity to frame source-recipient knowledge absorption platforms as d...
Published on Jan 1, 2019in Journal of World Business 5.79
Norifumi Kawai6
Estimated H-index: 6
(University of Sussex),
Chul Chung2
Estimated H-index: 2
(University of Reading)
Little research examines the mechanisms for the relationship between expatriate utilization and subsidiary performance. Building on the knowledge-based view of the firm, we propose a multi-stage mediation model to explain how expatriate staffing promotes subsidiary financial performance. Our results underscore that expatriate utilization has an indirect, mediated effect on subsidiary financial performance through its links with subsidiaries’ knowledge creation and product performance. Adopting a...
Published on Nov 14, 2018in Sustainability 2.59
Alberto Melane-Lavado1
Estimated H-index: 1
,
Agustín Álvarez-Herranz6
Estimated H-index: 6
Sustainability-oriented innovation (SOI), which displays an intention to develop a product or service that contributes to economic, environmental, and social sustainability, has drawn growing institutional and academic attention, due to the general consideration that innovation is an essential part of achieving sustainability. For developments of this nature, it is considered that foreign direct investment (FDI) helps companies to meet the requirements demanded by SOI, however, they show differe...
Published on Jun 11, 2018in Journal of Knowledge Management 4.60
Enrique Claver-Cortés37
Estimated H-index: 37
(University of Alicante),
Patrocinio Zaragoza-Sáez8
Estimated H-index: 8
(University of Alicante)
+ 2 AuthorsFrancisco García-Lillo6
Estimated H-index: 6
(University of Alicante)
Purpose Based on the knowledge-based theories of the MNC, this research aims to develop and test a holistic model to analyse the relationship between the strategic knowledge management (SKM) processes undertaken by subsidiaries and MNC performance. Additionally, it focuses on determining the impact that the relational context can have on knowledge creation and transfer inside the internal network of an MNC. Design/methodology/approach The research hypotheses are tested by partial least squares (...
Published on Apr 1, 2018in International Journal of Information Management 5.06
Xiongfei Cao1
Estimated H-index: 1
(Hefei University of Technology),
Ahsan Ali1
Estimated H-index: 1
(USTC: University of Science and Technology of China)
Abstract Effective teamwork, knowledge coordination, and knowledge creation are recognized as essential sources of team effectiveness and creativity in modern organizations. Nowadays, social media is significantly modifying the patterns in the use of technology to support knowledge management practices in teams. At the same time, the literature shows that transactive memory system (TMS), which refers to how team members share their distributed knowledge and expertise, is an important factor affe...