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Who is in and who is out? Integration of technological knowledge in the multinational corporation

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  • Katarina Blomkvist
  • Philip Kappen
  • Ivo Zander

Abstract

This article concerns the integration of technological knowledge within multinational corporations (MNCs). We empirically investigate the degree of technological knowledge integration of competence-creating subsidiaries with headquarters and sister subsidiaries and explore the effects of intersubsidiary differentiation. Data on the complete US patenting activity of 22 Swedish multinationals from 1893 to 2008 reveal significant differences in degrees of technological knowledge integration. As expected, the results show that greenfield subsidiaries are more integrated with headquarters and other greenfield subsidiaries than with acquired subsidiaries. In contrast, acquired subsidiaries do not appear to be as easily integrated into the MNC, and for this group the empirical evidence shows very little integration of technological knowledge. The findings provide extended insights into the role of competence-creating subsidiaries as providers of technological knowledge to headquarters and other MNC subsidiaries, and suggest a distinct pattern of subsidiary knowledge integration, ordered by what appears to be in-groups and out-groups, that has been overlooked in the prior MNC literature.

Suggested Citation

  • Katarina Blomkvist & Philip Kappen & Ivo Zander, 2019. "Who is in and who is out? Integration of technological knowledge in the multinational corporation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(3), pages 437-457.
    • Handle: RePEc:oup:indcch:v:28:y:2019:i:3:p:437-457.
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    File URL: http://hdl.handle.net/10.1093/icc/dty024
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    Citations

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    Cited by:

    1. Lopez-Vega, Henry & Tell, Fredrik, 2021. "Technology strategy and MNE subsidiary upgrading in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    2. Sarianna Lundan & John Cantwell, 2020. "The local co-evolution of firms and governments in the Information Age," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1516-1528, December.
    3. Figueiredo, Paulo N. & Larsen, Henrik & Hansen, Ulrich E., 2020. "The role of interactive learning in innovation capability building in multinational subsidiaries: A micro-level study of biotechnology in Brazil," Research Policy, Elsevier, vol. 49(6).
    4. Blomkvist, Katarina & Kappen, Philip & Zander, Ivo, 2023. "Weathering storms – Technological exploration of MNCs in times of financial crisis," Journal of World Business, Elsevier, vol. 58(2).
    5. Tomasz Gołębiowski & Lidia Danik & Małgorzata Stefania Lewandowska & Piotr Zaborek, 2022. "Innovation Performance of Foreign Subsidiaries in Post-Transition Economy: Evidence from Poland," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 46-66.
    6. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.

    More about this item

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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