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The Multinational Corporation and the global sourcing of knowledge: Remodeling absorptive capacity

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Author Info
Constantina Kottaridi
Marina Papanastassiou
Christos Pitelis
Dimitrios Thomakos

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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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Publisher Info
Paper provided by University of Peloponnese, Department of Economics in its series Working Papers with number 008.

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Length: 35 pages
Date of creation: 2007
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Handle: RePEc:uop:wpaper:008

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Related research
Keywords: Multinational Corporation; absorptive capacity; subsidiaries; knowledge;

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  1. Tobias Schmidt, 2005. "Absorptive Capacity – One Size Fits All? A Firm-level Analysis of Absorptive Capacity for Different Kinds of Knowledge," Industrial Organization 0510010, EconWPA. [Downloadable!]
    Other versions:
  2. Veugelers, Reinhilde, 1997. "Internal R & D expenditures and external technology sourcing," Research Policy, Elsevier, vol. 26(3), pages 303-315, October. [Downloadable!] (restricted)
  3. Bosch, F.A.J. van den & Wijk, R.A.J.L. van & Volberda, H.W., 2003. "Absorptive Capacity: Antecedents, Models and Outcomes," Research Paper ERS-2003-035-STR Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
  4. Julian Birkinshaw, 1996. "How Multinational Subsidiary Mandates are Gained and Lost," Journal of International Business Studies, Palgrave Macmillan Journals, vol. 27(3), pages 467-495, September. [Downloadable!] (restricted)
  5. Mowery, David C & Oxley, Joanne E, 1995. "Inward Technology Transfer and Competitiveness: The Role of National Innovation Systems," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 67-93, February.
  6. Leahy, Dermot & Neary, J Peter, 2004. "Absorptive Capacity, R&D Spillovers and Public Policy," CEPR Discussion Papers 4171, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Hirsch, Seev, 1976. "An International Trade and Investment Theory of the Firm," Oxford Economic Papers, Oxford University Press, vol. 28(2), pages 258-70, July. [Downloadable!] (restricted)
  8. 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. [Downloadable!] (restricted)
  9. Kamien, Morton I. & Zang, Israel, 2000. "Meet me halfway: research joint ventures and absorptive capacity," International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 995-1012, October. [Downloadable!] (restricted)
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