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Leveraging knowledge and competencies across space: The next frontier in international business

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  • Mudambi, Ram
  • Swift, Tim

Abstract

Multinational enterprises (MNEs) are networked firms whose subsidiaries act as nodes embedded in a variety of local contexts. This allows them to tap into many local systems of innovation to access diverse knowledge bases and integrate them to create new competencies. Currently technology is altering our conception of space and forcing us to recognize that it is a multi-dimensional concept, incorporating geographic space, technological space and personal network space. At the corporate level, MNE managers need to understand comparative strategic management, constantly looking for arbitrage opportunities that arise due to differences in resources, capabilities and institutions across the local contexts. At the functional level, in order for the MNE to integrate knowledge from diverse geographic locations, managers must recognize that valuable knowledge resides in invisible communities of practice where narrow technological specializations, personal connections and information sharing are critical means of access.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Management.

Volume (Year): 17 (2011)
Issue (Month): 3 (September)
Pages: 186-189

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Handle: RePEc:eee:intman:v:17:y:2011:i:3:p:186-189

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Related research

Keywords: Knowledge-based competencies Economic geography The knowledge life cycle;

References

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  1. Sjoerd Beugelsdijk & Philip McCann & Ram Mudambi, 2010. "Introduction: Place, space and organization-- economic geography and the multinational enterprise," Journal of Economic Geography, Oxford University Press, vol. 10(4), pages 485-493, July.
  2. Klaus E. Meyer & Ram Mudambi & Rajneesh Narula, 2011. "Multinational Enterprises and Local Contexts: The Opportunities and Challenges of Multiple Embeddedness," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 235-252, 03.
  3. Mudambi, Ram, 2002. "Knowledge management in multinational firms," Journal of International Management, Elsevier, Elsevier, vol. 8(1), pages 1-9.
  4. Álvarez, Isabel & Marín, Raquel, 2010. "Entry modes and national systems of innovation," Journal of International Management, Elsevier, Elsevier, vol. 16(4), pages 340-353, December.
  5. Ram Mudambi, 2008. "Location, control and innovation in knowledge-intensive industries," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 699-725, September.
  6. Ram Mudambi & Pietro Navarra, 2004. "Is knowledge power? Knowledge flows, subsidiary power and rent-seeking within MNCs," Journal of International Business Studies, Palgrave Macmillan, vol. 35(5), pages 385-406, September.
  7. Catherine Beaudry & Stefano Breschi, 2003. "Are firms in clusters really more innovative?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(4), pages 325-342.
  8. Luo, Yadong & Sun, Jinyun & Wang, Stephanie Lu, 2011. "Comparative strategic management: An emergent field in international management," Journal of International Management, Elsevier, Elsevier, vol. 17(3), pages 190-200, September.
  9. Dellestrand, Henrik, 2011. "Subsidiary embeddedness as a determinant of divisional headquarters involvement in innovation transfer processes," Journal of International Management, Elsevier, Elsevier, vol. 17(3), pages 229-242, September.
  10. Sah, Raaj Kumar & Stiglitz, Joseph E, 1986. "The Architecture of Economic Systems: Hierarchies and Polyarchies," American Economic Review, American Economic Association, vol. 76(4), pages 716-27, September.
  11. Mudambi, Ram & Swift, Tim, 2009. "Professional guilds, tension and knowledge management," Research Policy, Elsevier, vol. 38(5), pages 736-745, June.
  12. Asakawa, Kazuhiro & Lehrer, Mark, 2003. "Managing local knowledge assets globally: the role of regional innovation relays," Journal of World Business, Elsevier, vol. 38(1), pages 31-42, February.
  13. Lamin, Anna & Dunlap, Denise, 2011. "Complex technological capabilities in emerging economy firms: The role of organizational relationships," Journal of International Management, Elsevier, Elsevier, vol. 17(3), pages 211-228, September.
  14. Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
  15. Tallman, Stephen & Chacar, Aya S., 2011. "Communities, alliances, networks and knowledge in multinational firms: A micro-analytic framework," Journal of International Management, Elsevier, Elsevier, vol. 17(3), pages 201-210, September.
  16. Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 451-496, June.
  17. Schotter, Andreas & Beamish, Paul W., 2011. "Performance effects of MNC headquarters-subsidiary conflict and the role of boundary spanners: The case of headquarter initiative rejection," Journal of International Management, Elsevier, Elsevier, vol. 17(3), pages 243-259, September.
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Citations

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Cited by:
  1. Jell-Ojobor, Maria & Windsperger, Josef, 2014. "The Choice of Governance Modes of International Franchise Firms — Development of an Integrative Model," Journal of International Management, Elsevier, Elsevier, vol. 20(2), pages 153-187.
  2. Dellestrand, Henrik, 2011. "Subsidiary embeddedness as a determinant of divisional headquarters involvement in innovation transfer processes," Journal of International Management, Elsevier, Elsevier, vol. 17(3), pages 229-242, September.
  3. Luo, Yadong & Sun, Jinyun & Wang, Stephanie Lu, 2011. "Comparative strategic management: An emergent field in international management," Journal of International Management, Elsevier, Elsevier, vol. 17(3), pages 190-200, September.
  4. Denk, Nikola & Kaufmann, Lutz & Roesch, Jan-Frederik, 2012. "Liabilities of Foreignness Revisited: A Review of Contemporary Studies and Recommendations for Future Research," Journal of International Management, Elsevier, Elsevier, vol. 18(4), pages 322-334.
  5. Tallman, Stephen & Chacar, Aya S., 2011. "Communities, alliances, networks and knowledge in multinational firms: A micro-analytic framework," Journal of International Management, Elsevier, Elsevier, vol. 17(3), pages 201-210, September.
  6. Mauri, Alfredo J. & Neiva de Figueiredo, João, 2012. "Strategic Patterns of Internationalization and Performance Variability: Effects of US-Based MNC Cross-Border Dispersion, Integration, and Outsourcing," Journal of International Management, Elsevier, Elsevier, vol. 18(1), pages 38-51.
  7. Esther Tippmann & Pamela Sharkey Scott & Vincent Mangematin, 2012. "Subsidiary managers' knowledge mobilizations: Unpacking emergent knowledge flows," Working paper serie RMT - Grenoble Ecole de Management hal-00864324, HAL.
  8. repec:hal:wpaper:hal-00864324 is not listed on IDEAS
  9. Lamin, Anna & Dunlap, Denise, 2011. "Complex technological capabilities in emerging economy firms: The role of organizational relationships," Journal of International Management, Elsevier, Elsevier, vol. 17(3), pages 211-228, September.
  10. Schotter, Andreas & Beamish, Paul W., 2011. "Performance effects of MNC headquarters-subsidiary conflict and the role of boundary spanners: The case of headquarter initiative rejection," Journal of International Management, Elsevier, Elsevier, vol. 17(3), pages 243-259, September.

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