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The paradox of technological capabilities: a study of knowledge sourcing from host countries of overseas R&D operations

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  • Jaeyong Song

    (Graduate School of Business, Seoul National University, Seoul, Korea)

  • Jongtae Shin

    (College of Management, Long Island University, Greenvale, USA)

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    Abstract

    We investigate the factors that influence the extent to which a multinational corporation's headquarters (MNC-HQ) sources knowledge from the host countries of its R&D labs. We propose that the technological capabilities held by MNC-HQs present a paradox. On the one hand, they enhance MNC-HQs' learning capabilities. On the other hand, they reduce MNC-HQs' motivations to outsource knowledge from host countries. We also argue that it is important to consider both relative and absolute levels of technological capabilities, because relative levels can influence MNC-HQs' motivations to source knowledge from host countries. Statistical findings generally support our arguments. Journal of International Business Studies (2008) 39, 291–303. doi:10.1057/palgrave.jibs.8400348

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    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

    Volume (Year): 39 (2008)
    Issue (Month): 2 (March)
    Pages: 291-303

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    Handle: RePEc:pal:jintbs:v:39:y:2008:i:2:p:291-303

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    Cited by:
    1. Smeets, Roger & Bosker, E.M., 2011. "Leaders, laggards and technology seeking strategies," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 80(3), pages 481-497.
    2. Thomson, Russell, 2013. "National scientific capacity and R&D offshoring," Research Policy, Elsevier, Elsevier, vol. 42(2), pages 517-528.
    3. Narula, Rajneesh & Michel, Julie, 2009. "Reverse knowledge transfer and its implications for European policy," MERIT Working Papers 035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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