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Do Foreign-owned Subsidiaries in China Follow a Distinctive Pattern of Technological Knowledge Sourcing?

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  • Cantwell, John A.
  • Zhang, Feng

Abstract

This study investigates the China-located subsidiaries of foreign-owned multinational corporations (MNCs) for patterns of intra-firm and interorganizational technological knowledge accumulation. We analyze US patents attributed to those subsidiaries between 1996 and 2005 and argue that MNCs have recently tended toward open network structures, enabling subsidiaries in emerging markets to develop technological capabilities by searching for diversified inter-organizational knowledge sources beyond geographically local contexts to compensate for local limitations and deficiencies. Findings show that subsidiaries in China have gradually developed their technological capabilities through non-localized searches beyond their organizational, technological, and geographical boundaries. The study contributes to the literature on MNC organizational restructuring, subsidiary evolution, and subsidiary-level non-localized knowledge searches. The findings also have important implications for knowledge spillovers, MNC knowledge management, and government policies.

Suggested Citation

  • Cantwell, John A. & Zhang, Feng, 2013. "Do Foreign-owned Subsidiaries in China Follow a Distinctive Pattern of Technological Knowledge Sourcing?," Management and Organization Review, Cambridge University Press, vol. 9(3), pages 489-512, November.
    • Handle: RePEc:cup:maorev:v:9:y:2013:i:03:p:489-512_00
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    Cited by:

    1. Zhang, Feng & Jiang, Guohua & Cantwell, John A., 2015. "Subsidiary exploration and the innovative performance of large multinational corporations," International Business Review, Elsevier, vol. 24(2), pages 224-234.
    2. Shad Morris & James Oldroyd & Ryan T. Allen & Daniel Han Ming Chng & Jian Han, 2023. "From local modification to global innovation: How research units in emerging economies innovate for the world," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(3), pages 418-440, April.
    3. Sun, Sunny Li & Chen, Victor Z. & Sunny, Sanwar A. & Chen, Jie, 2019. "Venture capital as an innovation ecosystem engineer in an emerging market," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    4. Heuschneider, Sara & Herstatt, Cornelius, 2016. "External search for exploration of future discontinuities and trends: Implications from the literature using co-citation and content analysis," Working Papers 92, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    5. Asimakopoulos, Grigorios & Revilla, Antonio & Rodríguez, Alicia, 2023. "International R&D sourcing, innovation and firm age: The advantage of ‘born-international sourcers’," Technovation, Elsevier, vol. 122(C).
    6. Claudius Gräbner & Anna Hornykewycz, 2022. "Capability accumulation and product innovation: an agent-based perspective," Journal of Evolutionary Economics, Springer, vol. 32(1), pages 87-121, January.
    7. Tai-Yuen HON, 2015. "Sourcing in China," Journal of Social and Administrative Sciences, KSP Journals, vol. 2(4), pages 216-223, December.
    8. 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).
    9. Aistleitner, Matthias & Gräbner, Claudius & Hornykewycz, Anna, 2021. "Theory and empirics of capability accumulation: Implications for macroeconomic modeling," Research Policy, Elsevier, vol. 50(6).
    10. Zhang, Feng & Jiang, Guohua & Cantwell, John A., 2019. "Geographically Dispersed Technological Capability Building and MNC Innovative Performance: The Role of Intra-firm Flows of Newly Absorbed Knowledge," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.
    11. Shasha Zhao & Marina Papanastassiou & Robert D. Pearce & Chie Iguchi, 2021. "MNE R&D internationalization in developing Asia," Asia Pacific Journal of Management, Springer, vol. 38(3), pages 789-813, September.

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