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The tension of information sharing: Effects on subsidiary embeddedness

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  • Santangelo, Grazia Domenica

Abstract

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.

Suggested Citation

  • Santangelo, Grazia Domenica, 2012. "The tension of information sharing: Effects on subsidiary embeddedness," International Business Review, Elsevier, vol. 21(2), pages 180-195.
  • Handle: RePEc:eee:iburev:v:21:y:2012:i:2:p:180-195
    DOI: 10.1016/j.ibusrev.2011.01.004
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    Cited by:

    1. Utz Schäffer & Matthias D. Mahlendorf & Jochen Rehring, 2014. "Does the Interactive Use of Headquarter Performance Measurement Systems in Foreign Subsidiaries Endanger the Potential to Profit from Local Relationships?," Australian Accounting Review, CPA Australia, vol. 24(1), pages 21-38, March.
    2. repec:pal:jintbs:v:48:y:2017:i:9:d:10.1057_s41267-017-0119-3 is not listed on IDEAS
    3. Davide Castellani & Maria Mancusi & Grazia Santangelo & Antonello Zanfei, 2015. "Exploring the links between offshoring and innovation," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(1), pages 1-7, March.
    4. Sánchez-Sellero, Pedro & Rosell-Martínez, Jorge & García-Vázquez, José Manuel, 2014. "Absorptive capacity from foreign direct investment in Spanish manufacturing firms," International Business Review, Elsevier, vol. 23(2), pages 429-439.
    5. Sasaki, Innan & Yoshikawa, Katsuhiko, 2014. "Going beyond national cultures – Dynamic interaction between intra-national, regional, and organizational realities," Journal of World Business, Elsevier, vol. 49(3), pages 455-464.
    6. Achcaoucaou, Fariza & Miravitlles, Paloma & León-Darder, Fidel, 2017. "Do we really know the predictors of competence-creating R&D subsidiaries? Uncovering the mediation of dual network embeddedness," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 181-195.
    7. Achcaoucaou, Fariza & Miravitlles, Paloma & León-Darder, Fidel, 2014. "Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness," International Business Review, Elsevier, vol. 23(1), pages 76-90.
    8. Rabbiosi, Larissa & Santangelo, Grazia D., 2013. "Parent company benefits from reverse knowledge transfer: The role of the liability of newness in MNEs," Journal of World Business, Elsevier, vol. 48(1), pages 160-170.
    9. Perri, Alessandra & Andersson, Ulf & Nell, Phillip C. & Santangelo, Grazia D., 2013. "Balancing the trade-off between learning prospects and spillover risks: MNC subsidiaries’ vertical linkage patterns in developed countries," Journal of World Business, Elsevier, vol. 48(4), pages 503-514.
    10. Gauselmann, Andrea, 2013. "R&D Co-operation in European Post-transition Economies," IWH Discussion Papers 4/2013, Halle Institute for Economic Research (IWH).
    11. Pierre Van Der Eng, 2017. "Dealing With Liability Of Foreignness: The Case Of Philips In Australia, 1945-1980," CEH Discussion Papers 06, Centre for Economic History, Research School of Economics, Australian National University.

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