IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v29y2018i5p855-872.html
   My bibliography  Save this article

The Influence of Multiple Knowledge Networks on Innovation in Foreign Operations

Author

Listed:
  • Heather Berry

    (School of Business, George Washington University, Washington, DC 20052)

Abstract

Although extant literature has long argued that firm embeddedness within knowledge networks increases innovation, we know much less about how interactions across multiple knowledge networks jointly influence learning and innovation outcomes within firms. This paper contributes to our understanding of global innovation in multinational corporations (MNCs) by exploring how competing tensions across parent, host-country, and third-country knowledge networks in terms of knowledge domain diversity and dominance, organizational bias, and knowledge relevance perceptions influence innovation outcomes. Empirical results from a comprehensive panel of U.S. MNCs reveal different “preferred” combinations of high and low embeddedness across parent, host-country, and third-country knowledge networks for incremental versus radical innovation outcomes, reflecting how competing tensions across knowledge networks can limit or enhance knowledge search for diverse knowledge and influence innovation outcomes in the foreign operations of MNCs.

Suggested Citation

  • Heather Berry, 2018. "The Influence of Multiple Knowledge Networks on Innovation in Foreign Operations," Organization Science, INFORMS, vol. 29(5), pages 855-872, October.
    • Handle: RePEc:inm:ororsc:v:29:y:2018:i:5:p:855-872
    DOI: 10.1287/orsc.2018.1203
    as

    Download full text from publisher

    File URL: https://doi.org/10.1287/orsc.2018.1203
    Download Restriction: no
    File URL: https://libkey.io/10.1287/orsc.2018.1203?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Christensen, Clayton M. & Rosenbloom, Richard S., 1995. "Explaining the attacker's advantage: Technological paradigms, organizational dynamics, and the value network," Research Policy, Elsevier, vol. 24(2), pages 233-257, March.
    2. Mary Tripsas & Giovanni Gavetti, 2000. "Capabilities, cognition, and inertia: evidence from digital imaging," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1147-1161, October.
    3. Blanc, Helene & Sierra, Christophe, 1999. "The Internationalisation of R&D by Multinationals: A Trade-off between External and Internal Proximity," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(2), pages 187-206, March.
    4. Thomas Hutzschenreuter & Florian Gröne, 2009. "Product and geographic scope changes of multinational enterprises in response to international competition," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(7), pages 1149-1170, September.
    5. Stephanie C Schleimer & Torben Pedersen, 2014. "The effects of MNC parent effort and social structure on subsidiary absorptive capacity," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(3), pages 303-320, April.
    6. Morck, Randall & Yeung, Bernard, 1991. "Why Investors Value Multinationality," The Journal of Business, University of Chicago Press, vol. 64(2), pages 165-187, April.
    7. Song, Jaeyong & Asakawa, Kazuhiro & Chu, Youngeun, 2011. "What determines knowledge sourcing from host locations of overseas R&D operations?: A study of global R&D activities of Japanese multinationals," Research Policy, Elsevier, vol. 40(3), pages 380-390, April.
    8. Peter J. Buckley & Mark Casson, 1991. "The Future of the Multinational Enterprise," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-21204-0.
    9. Hall, B. & Jaffe, A. & Trajtenberg, M., 2001. "The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools," Papers 2001-29, Tel Aviv.
    10. Foss, Nicolai J. (ed.), 1997. "Resources, Firms, and Strategies: A Reader in the Resource-Based Perspective," OUP Catalogue, Oxford University Press, number 9780198781790.
    11. Ginarte, Juan C. & Park, Walter G., 1997. "Determinants of patent rights: A cross-national study," Research Policy, Elsevier, vol. 26(3), pages 283-301, October.
    12. Feldstein, Martin & Hines, James R. & Hubbard, R. Glenn (ed.), 1995. "Taxing Multinational Corporations," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226240947, December.
    13. Peter K. Schott, 2004. "Across-Product Versus Within-Product Specialization in International Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(2), pages 647-678.
    14. Anupama Phene & Paul Almeida, 2008. "Innovation in multinational subsidiaries: The role of knowledge assimilation and subsidiary capabilities," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 901-919, July.
    15. Anil K. Gupta & Vijay Govindarajan, 2000. "Knowledge flows within multinational corporations," Strategic Management Journal, Wiley Blackwell, vol. 21(4), pages 473-496, April.
    16. Paul Almeida & Anupama Phene, 2004. "Subsidiaries and knowledge creation: the influence of the MNC and host country on innovation," Strategic Management Journal, Wiley Blackwell, vol. 25(8‐9), pages 847-864, August.
    17. repec:fth:michin:282 is not listed on IDEAS
    18. Foss, Nicolai J. & Pedersen, Torben, 2002. "Transferring knowledge in MNCs: The role of sources of subsidiary knowledge and organizational context," Journal of International Management, Elsevier, vol. 8(1), pages 49-67.
    19. Juan Alcácer & Wilbur Chung, 2007. "Location Strategies and Knowledge Spillovers," Management Science, INFORMS, vol. 53(5), pages 760-776, May.
    20. Cantwell, John & Janne, Odile, 1999. "Technological globalisation and innovative centres: the role of corporate technological leadership and locational hierarchy1," Research Policy, Elsevier, vol. 28(2-3), pages 119-144, March.
    21. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May.
    22. Tony S. Frost, 2001. "The geographic sources of foreign subsidiaries' innovations," Strategic Management Journal, Wiley Blackwell, vol. 22(2), pages 101-123, February.
    23. Mary Tripsas, 1997. "Unraveling The Process Of Creative Destruction: Complementary Assets And Incumbent Survival In The Typesetter Industry," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 119-142, July.
    24. John Cantwell & Ram Mudambi, 2005. "MNE competence‐creating subsidiary mandates," Strategic Management Journal, Wiley Blackwell, vol. 26(12), pages 1109-1128, December.
    25. L Felipe Monteiro, 2015. "Selective attention and the initiation of the global knowledge-sourcing process in multinational corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(5), pages 505-527, June.
    26. Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, vol. 31(6), pages 899-933, August.
    27. James R. Hines, Jr., 1995. "Taxes, Technology Transfer, and the R&D Activities of Multinational Firms," NBER Chapters, in: The Effects of Taxation on Multinational Corporations, pages 225-252, National Bureau of Economic Research, Inc.
    28. Singh, Jasjit, 2008. "Distributed R&D, cross-regional knowledge integration and quality of innovative output," Research Policy, Elsevier, vol. 37(1), pages 77-96, February.
    29. Lori Rosenkopf & Atul Nerkar, 2001. "Beyond local search: boundary‐spanning, exploration, and impact in the optical disk industry," Strategic Management Journal, Wiley Blackwell, vol. 22(4), pages 287-306, April.
    30. Dahlin, Kristina B. & Behrens, Dean M., 2005. "When is an invention really radical?: Defining and measuring technological radicalness," Research Policy, Elsevier, vol. 34(5), pages 717-737, June.
    31. James R. Hines, Jr. & James R. Hines Jr. & R. Glenn Hubbard, 1995. "Taxes, Technology Transfer, and R&D by Multinational Firms," NBER Chapters, in: Taxing Multinational Corporations, pages 51-62, National Bureau of Economic Research, Inc.
    32. Martin, Xavier & Mitchell, Will, 1998. "The influence of local search and performance heuristics on new design introduction in a new product market," Research Policy, Elsevier, vol. 26(7-8), pages 753-771, April.
    33. Martin Feldstein & James R. Hines Jr. & R. Glenn Hubbard, 1995. "Taxing Multinational Corporations," NBER Books, National Bureau of Economic Research, Inc, number feld95-1, March.
    34. Scott Shane, 2001. "Technological Opportunities and New Firm Creation," Management Science, INFORMS, vol. 47(2), pages 205-220, February.
    35. Kristina Dahlin & Deans M. Behrens, 2005. "When is an invention really radical? Defining and measuring technological radicalness," Post-Print hal-00480416, HAL.
    36. Park, Walter G., 2008. "International patent protection: 1960-2005," Research Policy, Elsevier, vol. 37(4), pages 761-766, May.
    37. Wilbur Chung & Stephen Yeaple, 2008. "International knowledge sourcing: evidence from U.S. firms expanding abroad," Strategic Management Journal, Wiley Blackwell, vol. 29(11), pages 1207-1224, November.
    38. Yamin, Mo & Andersson, Ulf, 2011. "Subsidiary importance in the MNC: What role does internal embeddedness play?," International Business Review, Elsevier, vol. 20(2), pages 151-162, April.
    39. Michael J. Enright, 2000. "Regional Clusters and Multinational Enterprises," International Studies of Management & Organization, Taylor & Francis Journals, vol. 30(2), pages 114-138, June.
    40. Daniel Z. Levin & Rob Cross, 2004. "The Strength of Weak Ties You Can Trust: The Mediating Role of Trust in Effective Knowledge Transfer," Management Science, INFORMS, vol. 50(11), pages 1477-1490, November.
    41. Krishna Palepu, 1985. "Diversification strategy, profit performance and the entropy measure," Strategic Management Journal, Wiley Blackwell, vol. 6(3), pages 239-255, July.
    42. Henisz, Witold J, 2000. "The Institutional Environment for Multinational Investment," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 16(2), pages 334-364, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bahar, Dany & Choudhury, Prithwiraj & Rapoport, Hillel, 2020. "Migrant inventors and the technological advantage of nations," Research Policy, Elsevier, vol. 49(9).
    2. Liu, Yu & Maula, Markku, 2021. "Contextual status effects: The performance effects of host-country network status and regulatory institutions in cross-border venture capital," Research Policy, Elsevier, vol. 50(5).
    3. Xu, Chen & Xiong, Yan & Sun, Yuanxin & Liu, Yipeng, 2021. "Genetic distance, international experience and the performance of cross-border R&D for EMNEs," Journal of International Management, Elsevier, vol. 27(2).
    4. Jian Du & Shan Zhu & Wen Helena Li, 2023. "Innovation through internationalization: A systematic review and research agenda," Asia Pacific Journal of Management, Springer, vol. 40(3), pages 1217-1251, September.
    5. Anthony Frigon & David L. Rigby, 2021. "Geographies of Knowledge Sourcing and the Value of Knowledge in Multilocational Firms," Papers in Evolutionary Economic Geography (PEEG) 2132, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2021.
    6. Nie, Xinyu & Yu, Mingchuan & Zhai, Yuming & Lin, Han, 2022. "Explorative and exploitative innovation: A perspective on CEO humility, narcissism, and market dynamism," Journal of Business Research, Elsevier, vol. 147(C), pages 71-81.
    7. Zhang, Yi & Chen, Kaihua, 2022. "Network growth dynamics: The simultaneous interaction between network positions and research performance of collaborative organisations," Technovation, Elsevier, vol. 115(C).
    8. Heather Berry, 2023. "Diverse knowledge exploration and diffusion in MNCs," Strategic Management Journal, Wiley Blackwell, vol. 44(7), pages 1589-1615, July.
    9. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Heather Berry, 2017. "Managing valuable knowledge in weak IP protection countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 787-807, September.
    2. Heather Berry, 2023. "Diverse knowledge exploration and diffusion in MNCs," Strategic Management Journal, Wiley Blackwell, vol. 44(7), pages 1589-1615, July.
    3. Vittoria G. Scalera & Alessandra Perri & T. J. Hannigan, 2018. "Knowledge connectedness within and across home country borders: Spatial heterogeneity and the technological scope of firm innovations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(8), pages 990-1009, October.
    4. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 0. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-39.
    5. Thomas J. Hannigan & Alessandra Perri & Vittoria Giada Scalera, 2016. "The Dispersed Multinational: Does Connectedness Across Spatial Dimensions Lead to Broader Technological Search?," Working Papers 11, Department of Management, Università Ca' Foscari Venezia.
    6. René Belderbos & Boris Lokshin & Federico Michiel, 2021. "R&D and Foreign Subsidiary Performance at or Below the Technology Frontier," Management International Review, Springer, vol. 61(6), pages 745-767, December.
    7. Scott-Kennel, Joanna & Saittakari, Iiris, 2020. "Sourcing or sharing in MNE networks? National headquarters and foreign subsidiaries as knowledge conduits in SMOPECs," International Business Review, Elsevier, vol. 29(1).
    8. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 2020. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 538-576, June.
    9. Pengfei Li & Harald Bathelt, 2018. "Location strategy in cluster networks," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(8), pages 967-989, October.
    10. Athreye, Suma & Batsakis, Georgios & Singh, Satwinder, 2016. "Local, global, and internal knowledge sourcing: The trilemma of foreign-based R&D subsidiaries," Journal of Business Research, Elsevier, vol. 69(12), pages 5694-5702.
    11. Eunkwang Seo & Hyo Kang & Jaeyong Song, 2020. "Blending talents for innovation: Team composition for cross-border R&D collaboration within multinational corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(5), pages 851-885, July.
    12. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    13. Mario Kafouros & Niron Hashai & Janja Annabel Tardios & Elizabeth Yi Wang, 2022. "How do MNEs invent? An invention-based perspective of MNE profitability," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(7), pages 1420-1448, September.
    14. Jingjing Li & Gang Liu & Zihan Ma, 2021. "RD internationalization, domestic technology alliance, and innovation in emerging market," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-35, June.
    15. Eunkwang Seo & Hyo Kang & Jaeyong Song, 0. "Blending talents for innovation: Team composition for cross-border R&D collaboration within multinational corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-35.
    16. Lee Branstetter & Raymond Fisman & C. Fritz Foley, 2005. "Do Stronger Intellectual Property Rights Increase International Technology Transfer? Empirical Evidence from U.S. Firm-Level Data," NBER Working Papers 11516, National Bureau of Economic Research, Inc.
    17. René Belderbos & Bart Leten & Shinya Suzuki, 2017. "Scientific research, firm heterogeneity, and foreign R&D locations of multinational firms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(3), pages 691-711, September.
    18. Conroy, Kieran M. & Jacobs, Simon & Liu, Yang, 2023. "The dual knowledge role of open innovation intermediaries: Internal weaving and external filtering for MNE subsidiaries," Technovation, Elsevier, vol. 123(C).
    19. Håkanson, Lars & Kappen, Philip, 2016. "Live and let die: A survival analysis of foreign R&D units in Swedish MNEs," International Business Review, Elsevier, vol. 25(6), pages 1185-1196.
    20. Leone, Maria Isabella & Messeni Petruzzelli, Antonio & Natalicchio, Angelo, 2022. "Boundary spanning through external technology acquisition: The moderating role of star scientists and upstream alliances," Technovation, Elsevier, vol. 116(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ororsc:v:29:y:2018:i:5:p:855-872. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.