IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

The tension of information sharing: Effects on subsidiary embeddedness

  • Santangelo, Grazia Domenica

This paper investigates the relationship between foreign subsidiary competition and embeddedness in a peripheral area of an advanced country. The study argues that pressure to innovate and unintended private knowledge spillovers compete in explaining the relationship between competition and embeddedness as a result of the tension of information sharing. Such a tension can be relaxed when accounting for subsidiaries’ competence-creating entry motives. Statistical analysis supports this argument. This study contributes to the broad IB field as well as to business network theory and to research on the creation of local linkages by MNEs. Implications for managers and policy-makers are also discussed.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sciencedirect.com/science/article/pii/S0969593111000059
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Elsevier in its journal International Business Review.

Volume (Year): 21 (2012)
Issue (Month): 2 ()
Pages: 180-195

as
in new window

Handle: RePEc:eee:iburev:v:21:y:2012:i:2:p:180-195
Contact details of provider: Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description

Order Information: Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic
Web: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Trevino, Len J. & Grosse, Robert, 2002. "An analysis of firm-specific resources and foreign direct investment in the United States," International Business Review, Elsevier, vol. 11(4), pages 431-452, August.
  2. Santangelo, Grazia D., 2009. "MNCs and linkages creation: Evidence from a peripheral area," Journal of World Business, Elsevier, vol. 44(2), pages 192-205, April.
  3. d'ASPREMONT, Claude & BHATTACHARYA, Sudipto & GERARD-VARET, Louis-André, . "Knowledge as a public good: efficient sharing and incentives for development effort," CORE Discussion Papers RP 1356, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Chung, Wilbur, 2001. "Mode, size, and location of foreign direct investments and industry markups," Journal of Economic Behavior & Organization, Elsevier, vol. 45(2), pages 185-211, June.
  5. Geert Steurs, 1997. "Strategic Rivalry With Spillovers Within Segmented Versus Integrated Markets," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 4(4), pages 321-337.
  6. Ram Mudambi & Pietro Navarra, 2004. "Is knowledge power? Knowledge flows, subsidiary power and rent-seeking within MNCs," Journal of International Business Studies, Palgrave Macmillan, vol. 35(5), pages 385-406, September.
  7. Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers 14-92, Tel Aviv.
  8. Sanna-Randaccio, Francesca & Veugelers, Reinhilde, 2002. "Multinational Knowledge Spillovers with Centralized versus Decentralized R&D: A Game Theoretic Approach," CEPR Discussion Papers 3151, C.E.P.R. Discussion Papers.
  9. Hong, Jacky Fok Loi & Snell, Robin Stanley & Easterby-Smith, Mark, 2009. "Knowledge flow and boundary crossing at the periphery of a MNC," International Business Review, Elsevier, vol. 18(6), pages 539-554, December.
  10. Cassiman, Bruno & Colombo, Massimo G. & Garrone, Paola & Veugelers, Reinhilde, 2005. "The impact of M&A on the R&D process: An empirical analysis of the role of technological- and market-relatedness," Research Policy, Elsevier, vol. 34(2), pages 195-220, March.
  11. Jeffrey I. Bernstein & M. Ishaq Nadiri, 1989. "Research and Development and Intra-industry Spillovers: An Empirical Application of Dynamic Duality," Review of Economic Studies, Oxford University Press, vol. 56(2), pages 249-267.
  12. Scott-Kennel, Joanna & Enderwick, Peter, 2004. "Inter-firm alliance and network relationships and the eclectic paradigm of international production: an exploratory analysis of quasi-internalisation at the subsidiary level," International Business Review, Elsevier, vol. 13(4), pages 425-445, August.
  13. Philip McCann & Ram Mudambi, 2005. "Analytical differences in the economics of geography: the case of the multinational firm," Environment and Planning A, Pion Ltd, London, vol. 37(10), pages 1857-1876, October.
  14. Sourafel Girma, 2003. "Absorptive capacity and productivity spillovers From FDI: a threshold regression analysis," European Economy Group Working Papers 25, European Economy Group.
  15. Gorg, Holger & Strobl, Eric, 2001. "Multinational Companies and Productivity Spillovers: A Meta-analysis," Economic Journal, Royal Economic Society, vol. 111(475), pages F723-39, November.
  16. von Hippel, Eric, 1987. "Cooperation between rivals: Informal know-how trading," Research Policy, Elsevier, vol. 16(6), pages 291-302, December.
  17. Pearce, Robert D., 1999. "Decentralised R&D and strategic competitiveness: globalised approaches to generation and use of technology in multinational enterprises (MNEs)," Research Policy, Elsevier, vol. 28(2-3), pages 157-178, March.
  18. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 1-31, March.
  19. Henry Kaiser, 1974. "An index of factorial simplicity," Psychometrika, Springer;The Psychometric Society, vol. 39(1), pages 31-36, March.
  20. Susan E Feinberg & Sumit K Majumdar, 2001. "Technology Spillovers from Foreign Direct Investment in the Indian Pharmaceutical Industry," Journal of International Business Studies, Palgrave Macmillan, vol. 32(3), pages 421-437, September.
  21. Klaus E Meyer & Evis Sinani, 2009. "When and where does foreign direct investment generate positive spillovers? A meta-analysis," Journal of International Business Studies, Palgrave Macmillan, vol. 40(7), pages 1075-1094, September.
  22. Jindra, Björn & Giroud, Axèle & Scott-Kennel, Joanna, 2009. "Subsidiary roles, vertical linkages and economic development: Lessons from transition economies," Journal of World Business, Elsevier, vol. 44(2), pages 167-179, April.
  23. John Cantwell & Grazia D. Santangelo, 2002. "special issue: The new geography of corporate research in Information and Communications Technology (ICT)," Journal of Evolutionary Economics, Springer, vol. 12(1), pages 163-197.
  24. Yan Zhang & Haiyang Li & Michael A Hitt & Geng Cui, 2007. "R&D intensity and international joint venture performance in an emerging market: moderating effects of market focus and ownership structure," Journal of International Business Studies, Palgrave Macmillan, vol. 38(6), pages 944-960, November.
  25. Julian Birkinshaw & Neil Hood, 2000. "Characteristics of Foreign Subsidiaries in Industry Clusters," Journal of International Business Studies, Palgrave Macmillan, vol. 31(1), pages 141-154, March.
  26. Ann E. Harrison & Brian J. Aitken, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, vol. 89(3), pages 605-618, June.
  27. Giroud, Axèle & Scott-Kennel, Joanna, 2009. "MNE linkages in international business: A framework for analysis," International Business Review, Elsevier, vol. 18(6), pages 555-566, December.
  28. Beugelsdijk, Sjoerd & Smeets, Roger & Zwinkels, Remco, 2008. "The impact of horizontal and vertical FDI on host's country economic growth," International Business Review, Elsevier, vol. 17(4), pages 452-472, August.
  29. Narula, Rajneesh & Santangelo, Grazia D., 2009. "Location, collocation and R&D alliances in the European ICT industry," Research Policy, Elsevier, vol. 38(2), pages 393-403, March.
  30. S.A. Lippman & R.P. Rumelt, 1982. "Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 418-438, Autumn.
  31. Lilach Nachum & Cliff Wymbs, 2005. "Product differentiation, external economies and MNE location choices: M&As in Global Cities," Journal of International Business Studies, Palgrave Macmillan, vol. 36(4), pages 415-434, July.
  32. Pearce, Robert & Papanastassiou, Marina, 1999. "Overseas R&D and the strategic evolution of MNEs: evidence from laboratories in the UK," Research Policy, Elsevier, vol. 28(1), pages 23-41, January.
  33. Klaus E Meyer, 2004. "Perspectives on multinational enterprises in emerging economies," Journal of International Business Studies, Palgrave Macmillan, vol. 35(4), pages 259-276, July.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:21:y:2012:i:2:p:180-195. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.