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Embeddedness of innovation receivers in the multinational corporation: Effects on business performance

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  • Hallin, Christina
  • Holm, Ulf
  • Sharma, Dharma Deo
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    Abstract

    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 demonstrates that the positive link between a subsidiary's embeddedness in the external network and the contribution to business performance of receiving an innovation is negatively affected when the innovation is unique compared with other innovations on the market.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 20 (2011)
    Issue (Month): 3 (June)
    Pages: 362-373

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    Handle: RePEc:eee:iburev:v:20:y:2011:i:3:p:362-373

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    Related research

    Keywords: Business performance Corporate relationships Embeddedness External network relationships Innovation transfer Innovation uniqueness Recipient subsidiary;

    References

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    Cited by:
    1. Gunnar Pippel, 2013. "Does Partner Type Matter in R&D Collaboration for Environmental Innovation?," IWH Discussion Papers 5, Halle Institute for Economic Research.
    2. Gunnar Pippel, 2012. "The Impact of R&D Collaboration Networks on the Performance of Firms and Regions: A Meta-Analysis of the Evidence," IWH Discussion Papers 14, Halle Institute for Economic Research.
    3. Colakoglu, Saba & Yamao, Sachiko & Lepak, David P., 2014. "Knowledge creation capability in MNC subsidiaries: Examining the roles of global and local knowledge inflows and subsidiary knowledge stocks," International Business Review, Elsevier, vol. 23(1), pages 91-101.

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