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The Effect of Quantity, Quality and Timing of Headquarters-initiated Knowledge Flows on Subsidiary Performance

Author

Listed:
  • Yen Tran

    (Heriot-Watt University
    Copenhagen Business School)

  • Volker Mahnke

    (Copenhagen Business School)

  • Björn Ambos

    (Vienna University of Economics and Business)

Abstract

This paper develops and tests a model that explains how the quality, quantity and timing of knowledge flows from headquarters influence subsidiary performance. It extends recent research on vertical knowledge flows between global headquarters and international subsidiaries. We find a positive quality/performance relationship and a curvilinear quantity/performance relationship, indicating that too much knowledge sharing can be detrimental to the receiving subsidiary. Most importantly, we show that the timing of a knowledge flow significantly affects subsidiary sales performance.

Suggested Citation

  • Yen Tran & Volker Mahnke & Björn Ambos, 2010. "The Effect of Quantity, Quality and Timing of Headquarters-initiated Knowledge Flows on Subsidiary Performance," Management International Review, Springer, vol. 50(4), pages 493-511, August.
    • Handle: RePEc:spr:manint:v:50:y:2010:i:4:d:10.1007_s11575-010-0046-z
    DOI: 10.1007/s11575-010-0046-z
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    References listed on IDEAS

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    2. Cheng, Yang & Farooq, Sami, 2018. "The role of plants in manufacturing networks: A revisit and extension," International Journal of Production Economics, Elsevier, vol. 206(C), pages 15-32.
    3. Galli Geleilate, Jose-Mauricio & Andrews, Daniel S. & Fainshmidt, Stav, 2020. "Subsidiary autonomy and subsidiary performance: A meta-analysis," Journal of World Business, Elsevier, vol. 55(4).
    4. Maryse J. Brand & Evelien P. M. Croonen & Roger T. A. J. Leenders, 2018. "Entrepreneurial networking: a blessing or a curse? Differential effects for low, medium and high performing franchisees," Small Business Economics, Springer, vol. 50(4), pages 783-805, April.
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    6. Lazarova, Mila & Peretz, Hilla & Fried, Yitzhak, 2017. "Locals know best? Subsidiary HR autonomy and subsidiary performance," Journal of World Business, Elsevier, vol. 52(1), pages 83-96.
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    8. Li, Jingxun & Lee, Ruby P., 2015. "Can knowledge transfer within MNCs hurt subsidiary performance? The role of subsidiary entrepreneurial culture and capabilities," Journal of World Business, Elsevier, vol. 50(4), pages 663-673.
    9. Jiang Xu & Huihui Wu & Jianhua Zhang, 2022. "Innovation Research on Symbiotic Relationship of Organization’s Tacit Knowledge Transfer Network," Sustainability, MDPI, vol. 14(5), pages 1-22, March.
    10. Dellestrand, Henrik & Holm, Ulf & Lindahl, Olof, 2023. "Moving beyond the transfer dyad: Exploring network influences on transfer effectiveness," International Business Review, Elsevier, vol. 32(2).
    11. Ma, Danni & Fee, Anthony & Grabowski, Simone & Scerri, Moira, 2022. "Dual Organizational Identification in Multinational Enterprises and Interpersonal Horizontal Knowledge Sharing: A Conceptual Model," Journal of International Management, Elsevier, vol. 28(1).
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    13. Björn Ambos & Volker Mahnke, 2010. "How Do MNC Headquarters Add Value?," Management International Review, Springer, vol. 50(4), pages 403-412, August.
    14. Najafi-Tavani, Zhaleh & Robson, Matthew J. & Zaefarian, Ghasem & Andersson, Ulf & Yu, Chong, 2018. "Building subsidiary local responsiveness: (When) does the directionality of intrafirm knowledge transfers matter?," Journal of World Business, Elsevier, vol. 53(4), pages 475-492.
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    17. Kawai, Norifumi & Strange, Roger, 2014. "Subsidiary autonomy and performance in Japanese multinationals in Europe," International Business Review, Elsevier, vol. 23(3), pages 504-515.

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