Unintentional, Unavoidable, and Beneficial Knowledge Leakage from the Multinational Enterprise

Published on Mar 1, 2019in Journal of International Business Studies7.72
· DOI :10.1057/s41267-018-0164-6
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 of knowledge exchange and hence is beneficial for MNEs. In addition, the costs of protecting knowledge incurred by an MNE will often outweigh the benefits.
  • References (72)
  • Citations (3)
Published on May 1, 2018in Global Strategy Journal2.73
Dana Minbaeva17
Estimated H-index: 17
(CBS: Copenhagen Business School),
Grazia D. Santangelo18
Estimated H-index: 18
(University of Catania)
Research summary We examine the conditions under which boundary spanners positively contribute to intra-MNC knowledge sharing. Specifically, we argue that the knowledge sharing behavior of boundary spanners should not be taken for granted, as it is affected by the individual's motivation to share knowledge and contingent upon the immediate organizational context in which the individual is located. An analysis of data covering 482 individuals located in different business units of a Danish MNC co...
Published on Feb 29, 2012
Michael Morley29
Estimated H-index: 29
Dana Minbaeva17
Estimated H-index: 17
Snejina Michailova26
Estimated H-index: 26
Published on Oct 1, 2017in Journal of International Business Studies7.72
Sandra Awanis2
Estimated H-index: 2
(Lancaster University),
Bodo B. Schlegelmilch41
Estimated H-index: 41
(SYSU: Sun Yat-sen University),
Charles Cui8
Estimated H-index: 8
(University of Manchester)
Materialism has an ugly face. The dominant view of materialism regards materialists as self-prioritizing individuals who oppose collective and prosocial goals in favor of a lifestyle led by money, possessions, and status. The present research argues that there is a side of materialism that is concerned with collective-oriented interests. We examine the nature and consequences of collective-oriented materialism – the belief system that ascribes importance to possessions for their symbolic and sig...
Published on Aug 3, 2017in Regional Studies3.07
Markus Grillitsch13
Estimated H-index: 13
(Lund University),
Magnus Nilsson8
Estimated H-index: 8
(Lund University)
Firm performance in the periphery: on the relation between firm-internal knowledge and local knowledge spillovers. Regional Studies. One of the most established arguments in regional studies is that knowledge dynamics shape the geography of economic activities and, more specifically, that knowledge-intensive activities benefit from collocation due to knowledge spillovers, local buzz and access to labour. There are, however, competing arguments that knowledge-intensive firms also suffer from nega...
Published on Aug 1, 2017in Strategic Management Journal5.57
Ji Youn Rose Kim2
Estimated H-index: 2
(UK: University of Kentucky),
H. Kevin Steensma18
Estimated H-index: 18
(UW: University of Washington)
Research summary: We consider conditions in which incumbent firms are particularly poised to benefit from knowledge spilling in from new ventures that employ individuals previously employed by the focal incumbent firm. We distinguish between inventors who leave their incumbent employers to found spin-outs and those who become non-founding employees of existing new ventures. Using a sample of new ventures and incumbent firms in the U.S. information technology (IT) sector, we find that incumbents ...
Published on Apr 1, 2017in Long Range Planning3.36
L. Felipe Monteiro6
Estimated H-index: 6
Michael J. Mol20
Estimated H-index: 20
Julian Birkinshaw52
Estimated H-index: 52
(LBS: London Business School)
This paper provides new theory and evidence about the benefits of openness on a firm’s innovation performance and, more importantly, the specific firm-level contingencies under which those benefits are more (or less) likely to be observed. Building on Dyer and Singh’s (1998) relational view, we suggest that a firm’s lack of resources and absorptive capacity, as well as its use of secrecy, are significant barriers to benefiting from openness to external knowledge. Using responses from 12,152 firm...
Published on Jan 1, 2016in International Journal of Management Reviews7.60
Alessandra Perri5
Estimated H-index: 5
(Ca' Foscari University of Venice),
Enzo Peruffo5
Estimated H-index: 5
(Libera Università Internazionale degli Studi Sociali Guido Carli)
This paper reviews and organizes the theoretical and empirical research on foreign direct investment (FDI) knowledge spillovers from the international business perspective. In doing so, it develops a framework for the analysis of this phenomenon. The suggested FDI knowledge spillover framework integrates both the macro‐level (country, industry, institutions) and micro‐level (multinational firm, headquarters, subsidiary, local firms) antecedents of spillovers with their consequences, and proposes...
Published on Jan 1, 2016
Joseph Kupfer1
Estimated H-index: 1
TN our age of electronic surveillance, centralized * data banks, and computerized solicitation, the topic of privacy is eliciting a good deal of attention. But what exactly is the value of privacy, of freedom from surveillance or information-gathering? The view I shall argue for here is that privacy is a necessary condition for something of basic value? the development of an autonomous self. Autonomy requires a conception of self for which privacy is indispensable. As necessary to the developmen...
Published on Apr 1, 1991in Research Policy5.42
Stephan Schrader3
Estimated H-index: 3
(MIT: Massachusetts Institute of Technology)
Abstract Employees frequently give technical information or advice to colleagues in other firms, including direct competitors. This paper addresses whether such information-transfer is in the economic interests of the firms involved. It is hypothesized that employees trade information in accordance with the economic interests of their firms. Conditions are discussed in which information trading creates an economic advantage for the participating firms. Data on specific information transfer decis...
Published on Mar 1, 2015in Management Science4.22
Cristobal Cheyre1
Estimated H-index: 1
(UCP: Catholic University of Portugal),
Steven Klepper41
Estimated H-index: 41
(CMU: Carnegie Mellon University),
Francisco Veloso22
Estimated H-index: 22
(UCP: Catholic University of Portugal)
Data on inventors and assignees of patents are used to analyze the mobility of semiconductor inventors. Exploiting data on the origins of semiconductor producers with larger sales, we argue that the higher mobility of semiconductor inventors in Silicon Valley is in great part due to the entry of spinoffs there. Our empirical evidence suggests that spinoff entry promoted mobility in Silicon Valley even before the industry was clustered there. Agglomeration economies and the ban on noncompete cove...
Cited By3
Published on Jul 8, 2019in Journal of International Business Studies7.72
Sourafel Girma41
Estimated H-index: 41
(University of Nottingham),
Holger Görg51
Estimated H-index: 51
(IfW: Kiel Institute for the World Economy),
Erasmus K. Kersting6
Estimated H-index: 6
(Villanova University)
The attraction of foreign direct investment (FDI) is considered to be of particular importance for emerging economies because it represents a channel through which international convergence in standards of living may be achieved. One important effect of FDI is its impact on wages, both within the targeted firm (direct) and the local firms within the same geographic region and sector (indirect). In this paper, we investigate the question whether multinational enterprises (MNEs) raise or lower wag...
Published on Mar 1, 2019in Journal of International Business Studies7.72
Farok J. Contractor27
Estimated H-index: 27
(RU: Rutgers University)
The purpose of this article is not merely to counter assertions about technology leakage/spillovers being innocuous or benevolent, but to go further and illuminate an under-researched question: How can companies seek the optimum balance between conscious disclosure and secrecy? The article works towards a theory of optimum disclosure, by identifying possible benefits and costs of disclosure or openness. In Paradigm 1, most companies find the net benefits of disclosure/openness to be negative. In...