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The Multinational Corporation and the Global Sourcing of Knowledge: Remodeling Absorptive Capacity

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  • Kottaridi, Constantina
  • Papanastassiou, Marina
  • Pitelis, Christos
  • Thomakos, Dimitrios

Abstract

We build on extant theory of the MNC, MNC subsidiaries, absorptive capacity and Penrose's concept of 'productive opportunity' to develop a framework on the MNC and absorptive capacity (AC) that allows us to explore the role of subsidiaries in the global sourcing of knowledge. We develop and test hypotheses using primary questionnaire-collected data. Our results support the idea that subsidiaries' realized AC can be improved by the realized and potential AC of the MNC group and the subsidiary and in turn may improve the performance of the subsidiaries and the group as a whole.

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  • Kottaridi, Constantina & Papanastassiou, Marina & Pitelis, Christos & Thomakos, Dimitrios, 2008. "The Multinational Corporation and the Global Sourcing of Knowledge: Remodeling Absorptive Capacity," Papers DYNREG35, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esr:wpaper:dynreg35
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    1. Christos N. Pitelis, 2011. "Foreign Direct Investment and Economic Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume III, chapter 1, Edward Elgar Publishing.
    2. Christos N. Pitelis, 2009. "The Sustainable Competitive Advantage and Catching-up of Nations: FDI, Clusters and the Liability (Asset) of Smallness," Management International Review, Springer, vol. 49(1), pages 95-120, February.

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