IDEAS home Printed from https://ideas.repec.org/a/eee/intman/v28y2022i1s1075425321000673.html
   My bibliography  Save this article

Knowledge sharing dynamics in international subcontracting arrangements: The case of Finnish high-tech SMEs

Author

Listed:
  • Ahokangas, Petri
  • Haapanen, Lauri
  • Golgeci, Ismail
  • Arslan, Ahmad
  • Khan, Zaheer
  • Kontkanen, Minnie

Abstract

This paper focuses on an under-researched topic of knowledge sharing dynamics in international subcontracting relationships of SMEs. Based on in-depth qualitative analysis of three Finnish high-tech firms, our findings reveal that not only cost and performance expectations motivate SMEs for international subcontracting, but also the factors like lack of in-house alternatives, the volatility of workload, and need for speed in growth-related activities such as deliveries play an important role. We further found that the SMEs try to balance internal risks/uncertainty and external risks/uncertainty throughout international subcontracting. Our paper contributes to the extant literature by being one of the first studies to specifically highlight the range of knowledge sharing and knowledge protection mechanisms used in international subcontracting in SME-SME relationships in which partners come from different institutional settings and physical locations. Moreover, this paper is one of the few studies to specifically highlight the role of time in knowledge sharing from the buyer's point of view as well, specifically by emphasizing the need to balance the internal and external risks during the life-cycle of international subcontracting while balancing short-term challenges and long-term strategic development plans.

Suggested Citation

  • Ahokangas, Petri & Haapanen, Lauri & Golgeci, Ismail & Arslan, Ahmad & Khan, Zaheer & Kontkanen, Minnie, 2022. "Knowledge sharing dynamics in international subcontracting arrangements: The case of Finnish high-tech SMEs," Journal of International Management, Elsevier, vol. 28(1).
  • Handle: RePEc:eee:intman:v:28:y:2022:i:1:s1075425321000673
    DOI: 10.1016/j.intman.2021.100888
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1075425321000673
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.intman.2021.100888?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Roza, Marja & Van den Bosch, Frans A.J. & Volberda, Henk W., 2011. "Offshoring strategy: Motives, functions, locations, and governance modes of small, medium-sized and large firms," International Business Review, Elsevier, vol. 20(3), pages 314-323, June.
    2. BLOME, Constantin & SCHOENHERR, Tobias & ECKSTEIN, Dominik, 2014. "The impact of knowledge transfer and complexity on supply chain flexibility: a knowledge-based view," LIDAM Reprints CORE 2603, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Khan, Zaheer & Lew, Yong Kyu & Marinova, Svetla, 2019. "Exploitative and exploratory innovations in emerging economies: The role of realized absorptive capacity and learning intent," International Business Review, Elsevier, vol. 28(3), pages 499-512.
    4. L. Felipe Monteiro & Niklas Arvidsson & Julian Birkinshaw, 2008. "Knowledge Flows Within Multinational Corporations: Explaining Subsidiary Isolation and Its Performance Implications," Organization Science, INFORMS, vol. 19(1), pages 90-107, February.
    5. Curtis, Sarah & Gesler, Wil & Smith, Glenn & Washburn, Sarah, 2000. "Approaches to sampling and case selection in qualitative research: examples in the geography of health," Social Science & Medicine, Elsevier, vol. 50(7-8), pages 1001-1014, April.
    6. Anne Parmigiani & Miguel Rivera-Santos, 2011. "Clearing a Path Through the Forest : A Meta-Review of Interorganizational Relationships," Post-Print hal-02313129, HAL.
    7. Welker, Gera A. & van der Vaart, Taco & Pieter van Donk, Dirk, 2008. "The influence of business conditions on supply chain information-sharing mechanisms: A study among supply chain links of SMEs," International Journal of Production Economics, Elsevier, vol. 113(2), pages 706-720, June.
    8. María Isabel Camio & María Del Carmen Romero & María Belén Álvarez & Alfredo José Rébori, 2018. "Distinctive Innovation Capabilities of Argentine Software Companies with High Innovation Results and Impacts," Administrative Sciences, MDPI, vol. 8(2), pages 1-22, April.
    9. Gölgeci, Ismail & Gligor, David M. & Tatoglu, Ekrem & Arda, Ozlem Ayaz, 2019. "A relational view of environmental performance: What role do environmental collaboration and cross-functional alignment play?," Journal of Business Research, Elsevier, vol. 96(C), pages 35-46.
    10. Maurizio Zollo & Jeffrey J. Reuer & Harbir Singh, 2002. "Interorganizational Routines and Performance in Strategic Alliances," Organization Science, INFORMS, vol. 13(6), pages 701-713, December.
    11. Argote, Linda & Ingram, Paul, 2000. "Knowledge Transfer: A Basis for Competitive Advantage in Firms," Organizational Behavior and Human Decision Processes, Elsevier, vol. 82(1), pages 150-169, May.
    12. Kedia, Ben L. & Lahiri, Somnath, 2007. "International outsourcing of services: A partnership model," Journal of International Management, Elsevier, vol. 13(1), pages 22-37, March.
    13. Zaheer Khan & Oded Shenkar & Yong Kyu Lew, 2015. "Knowledge transfer from international joint ventures to local suppliers in a developing economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(6), pages 656-675, August.
    14. Ebers, Mark & Maurer, Indre, 2014. "Connections count: How relational embeddedness and relational empowerment foster absorptive capacity," Research Policy, Elsevier, vol. 43(2), pages 318-332.
    15. Niels Noorderhaven & Anne-Wil Harzing, 2009. "Knowledge-sharing and social interaction within MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(5), pages 719-741, June.
    16. Jenny Rowley, 2014. "Designing and using research questionnaires," Management Research Review, Emerald Group Publishing Limited, vol. 37(3), pages 308-330, March.
    17. Tammy E. Beck & Donde Ashmos Plowman, 2014. "Temporary, Emergent Interorganizational Collaboration in Unexpected Circumstances: A Study of the Columbia Space Shuttle Response Effort," Organization Science, INFORMS, vol. 25(4), pages 1234-1252, August.
    18. Keith D Brouthers, 2013. "A retrospective on: Institutional, cultural and transaction cost influences on entry mode choice and performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(1), pages 14-22, January.
    19. Gerald Albaum & Robert A Peterson, 1984. "Empirical Research in International Marketing: 1976–1982," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 15(1), pages 161-173, March.
    20. Giuliani, Elisa & Pietrobelli, Carlo & Rabellotti, Roberta, 2005. "Upgrading in Global Value Chains: Lessons from Latin American Clusters," World Development, Elsevier, vol. 33(4), pages 549-573, April.
    21. Gabriel Szulanski & Dimo Ringov & Robert J. Jensen, 2016. "Overcoming Stickiness: How the Timing of Knowledge Transfer Methods Affects Transfer Difficulty," Organization Science, INFORMS, vol. 27(2), pages 304-322, April.
    22. Pisani, Niccolò & Muller, Alan & Bogăţan, Paula, 2018. "Top Management Team Internationalization and Firm-level Internationalization: The Moderating Effects of Home-region Institutional Diversity and Firm Global Focus," Journal of International Management, Elsevier, vol. 24(3), pages 239-256.
    23. Rabbiosi, Larissa, 2011. "Subsidiary roles and reverse knowledge transfer: An investigation of the effects of coordination mechanisms," Journal of International Management, Elsevier, vol. 17(2), pages 97-113, June.
    24. Zeng, Rong & Grøgaard, Birgitte & Steel, Piers, 2018. "Complements or substitutes? A meta-analysis of the role of integration mechanisms for knowledge transfer in the MNE network," Journal of World Business, Elsevier, vol. 53(4), pages 415-432.
    25. Masaaki Kotabe & Xavier Martin & Hiroshi Domoto, 2003. "Gaining from vertical partnerships: knowledge transfer, relationship duration, and supplier performance improvement in the U.S. and Japanese automotive industries," Strategic Management Journal, Wiley Blackwell, vol. 24(4), pages 293-316, April.
    26. Ho, Mia Hsiao-Wen & Wang, Fatima, 2015. "Unpacking knowledge transfer and learning paradoxes in international strategic alliances: Contextual differences matter," International Business Review, Elsevier, vol. 24(2), pages 287-297.
    27. Adomako, Samuel & Amankwah-Amoah, Joseph & Dankwah, George Obeng & Danso, Albert & Donbesuur, Francis, 2019. "Institutional voids, international learning effort and internationalization of emerging market new ventures," Journal of International Management, Elsevier, vol. 25(4).
    28. Ghiyoung Im & Arun Rai, 2008. "Knowledge Sharing Ambidexterity in Long-Term Interorganizational Relationships," Management Science, INFORMS, vol. 54(7), pages 1281-1296, July.
    29. Yong Kyu Lew & Rudolf R Sinkovics & Mo Yamin & Zaheer Khan, 2016. "Trans-specialization understanding in international technology alliances: The influence of cultural distance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(5), pages 577-594, June.
    30. Son, Byung-Gak & Kocabasoglu-Hillmer, Canan & Roden, Sinéad, 2016. "A dyadic perspective on retailer–supplier relationships through the lens of social capital," International Journal of Production Economics, Elsevier, vol. 178(C), pages 120-131.
    31. Duanmu, Jing-Lin & Fai, Felicia M., 2007. "A processual analysis of knowledge transfer: From foreign MNEs to Chinese suppliers," International Business Review, Elsevier, vol. 16(4), pages 449-473, August.
    32. N L Reynolds & A C Simintiras & A Diamantopoulos, 2003. "Theoretical justification of sampling choices in international marketing research: key issues and guidelines for researchers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 80-89, January.
    33. Arslan, Ahmad & Haapanen, Lauri & Ahokangas, Petri & Naughton, Sean, 2021. "Multicultural R&D team operations in high-tech SMEs: Role of team task environment and individual team members’ personal experiences," Journal of Business Research, Elsevier, vol. 128(C), pages 661-672.
    34. Keith D Brouthers, 2013. "Institutional, cultural and transaction cost influences on entry mode choice and performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(1), pages 1-13, January.
    35. Blome, Constantin & Schoenherr, Tobias & Eckstein, Dominik, 2014. "The impact of knowledge transfer and complexity on supply chain flexibility: A knowledge-based view," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 307-316.
    36. Lee, Jeoung Yul & Jiménez, Alfredo & Bhandari, Krishna Raj, 2020. "Subsidiary roles and dual knowledge flows between MNE subsidiaries and headquarters: The moderating effects of organizational governance types," Journal of Business Research, Elsevier, vol. 108(C), pages 188-200.
    37. Murphree, Michael & Anderson, John (Andy), 2018. "Countering Overseas Power in Global Value Chains: Information Asymmetries and Subcontracting in the Plastics Industry," Journal of International Management, Elsevier, vol. 24(2), pages 123-136.
    38. Martinkenaite, Ieva & Breunig, Karl Joachim, 2016. "The emergence of absorptive capacity through micro–macro level interactions," Journal of Business Research, Elsevier, vol. 69(2), pages 700-708.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ren, Yu & Wu, Kuo-Jui & Lim, Ming K. & Tseng, Ming-Lang, 2023. "Technology transfer adoption to achieve a circular economy model under resource-based view: A high-tech firm," International Journal of Production Economics, Elsevier, vol. 264(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zahoor, Nadia & Khan, Zaheer & Shenkar, Oded, 2023. "International vertical alliances within the international business field: A systematic literature review and future research agenda," Journal of World Business, Elsevier, vol. 58(1).
    2. Gölgeci, Ismail & Ferraris, Alberto & Arslan, Ahmad & Tarba, Shlomo Y., 2019. "European MNE subsidiaries' embeddedness and innovation performance: Moderating role of external search depth and breadth," Journal of Business Research, Elsevier, vol. 102(C), pages 97-108.
    3. Arslan, Ahmad & Ahokangas, Petri & Haapanen, Lauri & Golgeci, Ismail & Tarba, Shlomo Y. & Bazel-Shoham, Ofra, 2022. "Generational differences in organizational leaders: an interpretive phenomenological analysis of work meaningfulness in the Nordic high-tech organizations," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    4. Wu, Jie & Zahoor, Nadia & Khan, Zaheer & Meyer, Martin, 2023. "The effects of inward FDI communities on the research and development intensity of emerging market locally domiciled firms: Partial foreign ownership as a contingency," Journal of Business Research, Elsevier, vol. 156(C).
    5. 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.
    6. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 0. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-39.
    7. Junshuai Cheng & Qaisar Iqbal & Guangmeng Ji & Weichun Li, 2022. "A Sustainable and Comprehensive Framework for Knowledge Transfer in MNCs: An Empirical Examination Based on Country, Company and Individual Levels of Chinese MNCs," Sustainability, MDPI, vol. 14(21), pages 1-17, October.
    8. Demeter, Krisztina & Szász, Levente & Rácz, Béla-Gergely, 2016. "The impact of subsidiaries’ internal and external integration on operational performance," International Journal of Production Economics, Elsevier, vol. 182(C), pages 73-85.
    9. Fortwengel, Johann & Gutierrez Huerter O, Gabriela & Kostova, Tatiana, 2023. "Three decades of research on practice transfer in multinational firms: Past contributions and future opportunities," Journal of World Business, Elsevier, vol. 58(3).
    10. Tippmann, Esther & Sharkey Scott, Pamela & Mangematin, Vincent, 2014. "Subsidiary managers’ knowledge mobilizations: Unpacking emergent knowledge flows," Journal of World Business, Elsevier, vol. 49(3), pages 431-443.
    11. Ali Shamsollahi & Danielle A. Chmielewski-Raimondo & Simon J. Bell & Reza Kachouie, 2021. "Buyer–supplier relationship dynamics: a systematic review," Journal of the Academy of Marketing Science, Springer, vol. 49(2), pages 418-436, March.
    12. Nicolai J. Foss & Torben Pedersen, 2019. "Microfoundations in international management research: The case of knowledge sharing in multinational corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1594-1621, December.
    13. 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.
    14. Crespo, Cátia Fernandes & Lages, Luis Filipe & Crespo, Nuno Fernandes, 2020. "Improving subsidiaries' innovation through knowledge inflows from headquarters and peer subsidiaries," Journal of International Management, Elsevier, vol. 26(4).
    15. Cerchione, Roberto & Esposito, Emilio, 2016. "A systematic review of supply chain knowledge management research: State of the art and research opportunities," International Journal of Production Economics, Elsevier, vol. 182(C), pages 276-292.
    16. Keith D. Brouthers & Liang Chen & Sali Li & Noman Shaheer, 2022. "Charting new courses to enter foreign markets: Conceptualization, theoretical framework, and research directions on non-traditional entry modes," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 2088-2115, December.
    17. Seyoum, Belay & Lian, Yunshan, 2018. "Market performance implications of modularization: Evidence from global auto firms operating in China," International Business Review, Elsevier, vol. 27(4), pages 852-866.
    18. Esther Tippmann & Pamela Sharkey Scott & Vincent Mangematin, 2014. "Subsidiary managers’ knowledge mobilizations: Unpacking emergent knowledge flows," Post-Print hal-00864324, HAL.
    19. Samir Hammami & Omar Durrah & Syed Ahsan Jamil & Mohammedosman Eltigani, 2022. "Engaging Knowledge Capabilities to Sustain the Application of Information Technology Governance in Healthcare Institutions," SAGE Open, , vol. 12(4), pages 21582440221, October.
    20. Martin, Xavier, 2013. "Solving theoretical and empirical conundrums in international strategy research by matching foreign entry mode choices and performance," Other publications TiSEM 7645ea46-0b9a-4fc0-ae33-a, Tilburg University, School of Economics and Management.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:28:y:2022:i:1:s1075425321000673. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.