IDEAS home Printed from https://ideas.repec.org/a/eee/techno/v127y2023ics0166497223001402.html
   My bibliography  Save this article

Knowledge creation capability under different innovation-investment motives abroad: The knowledge-based view of international innovation management

Author

Listed:
  • Zámborský, Peter
  • Ingršt, Igor
  • Bhandari, Krishna Raj

Abstract

This paper focuses on knowledge creation capability and motives for international investment by emerging-market multinational enterprises (EMNEs) innovating in emerging markets. It analyses the motives for the relatively underresearched innovation-intensive investment by non-Chinese EMNEs in Central and Eastern Europe and offers new insights to the knowledge-based view of international innovation management. Building on interviews with senior managers from 11 EMNEs from India, Brazil, Russia, South Africa, Malaysia, and South Korea, this qualitative study develops, through a hybrid thematic analysis approach, a knowledge-based capability perspective on managing knowledge creation under different innovation-investment motives abroad, including knowledge seeking, market seeking, and dual motives. Knowledge creation capability includes knowledge integration, knowledge sharing, and knowledge cocreation. Both internal and external dimensions of knowledge creation capability are conceptualised, along with elements linking internal and external dimensions, namely managerial orchestration and innovation projects. The paper contributes to the knowledge-based view of firm innovation and global strategy by stressing the roles of international innovation-investment motives and organisational capabilities for creating and managing knowledge in EMNEs. It offers implications for managing subsidiaries of multinational enterprises involved in innovation in emerging markets, particularly regarding enhancing and linking the internal and external dimensions of subsidiaries’ knowledge creation capability via ambidexterity.

Suggested Citation

  • Zámborský, Peter & Ingršt, Igor & Bhandari, Krishna Raj, 2023. "Knowledge creation capability under different innovation-investment motives abroad: The knowledge-based view of international innovation management," Technovation, Elsevier, vol. 127(C).
  • Handle: RePEc:eee:techno:v:127:y:2023:i:c:s0166497223001402
    DOI: 10.1016/j.technovation.2023.102829
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166497223001402
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.technovation.2023.102829?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Ge, Shuang & Liu, Xielin, 2022. "The role of knowledge creation, absorption and acquisition in determining national competitive advantage," Technovation, Elsevier, vol. 112(C).
    2. Prokop, Daniel, 2021. "University entrepreneurial ecosystems and spinoff companies: Configurations, developments and outcomes," Technovation, Elsevier, vol. 107(C).
    3. Narula, R. & Ashok, M. & Martinez-Noya, A., 2014. "End-user collaboration for process innovation in services: The role of internal resources," MERIT Working Papers 019, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. J. Myles Shaver & Fredrick Flyer, 2000. "Agglomeration economies, firm heterogeneity, and foreign direct investment in the United States," Strategic Management Journal, Wiley Blackwell, vol. 21(12), pages 1175-1193, December.
    5. Cha, Hongryol, 2020. "A paradigm shift in the global strategy of MNEs towards business ecosystems: A research agenda for new theory development," Journal of International Management, Elsevier, vol. 26(3).
    6. Paola Criscuolo & Rajneesh Narula, 2007. "Using multi-hub structures for international R&D: Organisational inertia and the challenges of implementation," Management International Review, Springer, vol. 47(5), pages 639-660, September.
    7. Bhandari, Krishna Raj & Rana, Sudhir & Paul, Justin & Salo, Jari, 2020. "Relative exploration and firm performance: Why resource-theory alone is not sufficient?," Journal of Business Research, Elsevier, vol. 118(C), pages 363-377.
    8. Luo, Yadong & Zhang, Huan, 2016. "Emerging Market MNEs: Qualitative Review and Theoretical Directions," Journal of International Management, Elsevier, vol. 22(4), pages 333-350.
    9. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    10. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    11. Anil K. Gupta & Vijay Govindarajan, 2000. "Knowledge flows within multinational corporations," Strategic Management Journal, Wiley Blackwell, vol. 21(4), pages 473-496, April.
    12. Paul Almeida & Anupama Phene, 2004. "Subsidiaries and knowledge creation: the influence of the MNC and host country on innovation," Strategic Management Journal, Wiley Blackwell, vol. 25(8‐9), pages 847-864, August.
    13. David J Teece, 2014. "A dynamic capabilities-based entrepreneurial theory of the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(1), pages 8-37, January.
    14. Gama, Fábio & Sjödin, David & Parida, Vinit & Frishammar, Johan & Wincent, Joakim, 2022. "Exploratory and exploitative capability paths for innovation: A contingency framework for harnessing fuzziness in the front end," Technovation, Elsevier, vol. 113(C).
    15. Castellani, Davide & Perri, Alessandra & Scalera, Vittoria G., 2022. "Knowledge integration in multinational enterprises: The role of inventors crossing national and organizational boundaries," Journal of World Business, Elsevier, vol. 57(3).
    16. 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.
    17. Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(4), pages 625-645, December.
    18. Kotabe, Masaaki & Jiang, Crystal Xiangwen & Murray, Janet Y., 2011. "Managerial ties, knowledge acquisition, realized absorptive capacity and new product market performance of emerging multinational companies: A case of China," Journal of World Business, Elsevier, vol. 46(2), pages 166-176, April.
    19. Mudambi, Ram, 2002. "Knowledge management in multinational firms," Journal of International Management, Elsevier, vol. 8(1), pages 1-9.
    20. Thomas Hutzschenreuter & Philippa-Luisa Harhoff, 2020. "National capital city location and subsidiary portfolio expansion: The negative effect of geographic distance to the capital city at inception on the speed of subsequent investments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(7), pages 1107-1132, September.
    21. Michailova, Snejina & Zhan, Wu, 2015. "Dynamic capabilities and innovation in MNC subsidiaries," Journal of World Business, Elsevier, vol. 50(3), pages 576-583.
    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 Child & Suzana B. Rodrigues, 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?," Management and Organization Review, International Association of Chinese Management Research, vol. 1(3), pages 381-410, November.
    24. Jiangyong Lu & Xiaohui Liu & Mike Wright & Igor Filatotchev, 2014. "International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(4), pages 428-449, May.
    25. Wilbur Chung & Juan Alcácer, 2002. "Knowledge Seeking and Location Choice of Foreign Direct Investment in the United States," Management Science, INFORMS, vol. 48(12), pages 1534-1554, December.
    26. Nidthida Lin, 2020. "Designing Global Sourcing Strategy for Cost Savings and Innovation: A Configurational Approach," Management International Review, Springer, vol. 60(5), pages 723-753, October.
    27. Jeoung Yul Lee & Vasyl Taras & Alfredo Jiménez & Byungchul Choi & Chinmay Pattnaik, 2020. "Ambidextrous Knowledge Sharing within R&D Teams and Multinational Enterprise Performance: The Moderating Effects of Cultural Distance in Uncertainty Avoidance," Management International Review, Springer, vol. 60(3), pages 387-425, June.
    28. Ferreira, João J. & Fernandes, Cristina I. & Guo, Ying & Rammal, Hussain G., 2022. "Knowledge worker mobility and knowledge management in MNEs: A bibliometric analysis and research agenda," Journal of Business Research, Elsevier, vol. 142(C), pages 464-475.
    29. Liu, Yipeng & Meyer, Klaus E., 2020. "Boundary spanners, HRM practices, and reverse knowledge transfer: The case of Chinese cross-border acquisitions," Journal of World Business, Elsevier, vol. 55(2).
    30. Gammeltoft, Peter & Cuervo-Cazurra, Alvaro, 2021. "Enriching internationalization process theory: insights from the study of emerging market multinationals," Journal of International Management, Elsevier, vol. 27(3).
    31. Fu, Xiaolan & Sun, Zhongjuan & Ghauri, Pervez N., 2018. "Reverse knowledge acquisition in emerging market MNEs: The experiences of Huawei and ZTE," Journal of Business Research, Elsevier, vol. 93(C), pages 202-215.
    32. Alvaro Cuervo-Cazurra & Mehmet Genc, 2008. "Transforming disadvantages into advantages: developing-country MNEs in the least developed countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(6), pages 957-979, September.
    33. Mudambi, Ram & Swift, Tim, 2011. "Leveraging knowledge and competencies across space: The next frontier in international business," Journal of International Management, Elsevier, vol. 17(3), pages 186-189, September.
    34. Steinberg, Philip J. & Urbig, Diemo & Procher, Vivien D. & Volkmann, Christine, 2021. "Knowledge transfer and home-market innovativeness: A comparison of emerging and advanced economy multinationals," Journal of International Management, Elsevier, vol. 27(4).
    35. Martine R Haas & Jonathon N Cummings, 2015. "Barriers to knowledge seeking within MNC teams: Which differences matter most?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(1), pages 36-62, January.
    36. Heejin Kim & B. Sebastian Reiche & Anne-Wil Harzing, 2022. "How does successive inpatriation contribute to subsidiary capability building and subsidiary evolution? An organizational knowledge creation perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(7), pages 1394-1419, September.
    37. Pereira, Vijay & Temouri, Yama & Shen, Kathy Ning & Xie, Xuanli & Tarba, Shlomo, 2022. "Exploring multilevel innovative ecosystems and the strategies of EMNEs through disruptive global expansions – The case of a Chinese MNE," Journal of Business Research, Elsevier, vol. 138(C), pages 92-107.
    38. Ram Mudambi & Pietro Navarra, 2004. "Is knowledge power? Knowledge flows, subsidiary power and rent-seeking within MNCs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 385-406, September.
    39. Sumantra Ghoshal & Christopher A Bartlett, 1988. "Creation, Adoption and Diffusion of Innovations by Subsidiaries of Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 365-388, September.
    40. Jaideep Anand & Gerald McDermott & Ram Mudambi & Rajneesh Narula, 2021. "Innovation in and from emerging economies: New insights and lessons for international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(4), pages 545-559, June.
    41. Ferraris, Alberto & Giachino, Chiara & Ciampi, Francesco & Couturier, Jerome, 2021. "R&D internationalization in medium-sized firms: The moderating role of knowledge management in enhancing innovation performances," Journal of Business Research, Elsevier, vol. 128(C), pages 711-718.
    42. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 2020. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 538-576, June.
    43. Kevin Zheng Zhou & Caroline Bingxin Li, 2012. "How knowledge affects radical innovation: Knowledge base, market knowledge acquisition, and internal knowledge sharing," Strategic Management Journal, Wiley Blackwell, vol. 33(9), pages 1090-1102, September.
    44. Lynch, Richard & Jin, Zhongqi, 2016. "Knowledge and innovation in emerging market multinationals: The expansion paradox," Journal of Business Research, Elsevier, vol. 69(5), pages 1593-1597.
    45. Paul N. Gooderham & Torben Pedersen & Alexander Madsen Sandvik & Àngels Dasí & Frank Elter & Jarle Hildrum, 2022. "Contextualizing AMO Explanations of Knowledge Sharing in MNEs: The Role of Organizational and National Culture," Management International Review, Springer, vol. 62(6), pages 859-884, December.
    46. Srivardhini K. Jha & Charles Dhanaraj & Rishikesha T. Krishnan, 2018. "From Arbitrage to Global Innovation: Evolution of Multinational R&D in Emerging Markets," Management International Review, Springer, vol. 58(4), pages 633-661, August.
    47. 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.
    48. Narula, R. & Ashok, M. & Martinez-Noya, A., 2014. "End-user collaboration for process innovation in services: The role of internal resources," MERIT Working Papers 2014-019, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    49. Yakob, Ramsin & Nakamura, H. Richard & Ström, Patrik, 2018. "Chinese foreign acquisitions aimed for strategic asset-creation and innovation upgrading: The case of Geely and Volvo Cars," Technovation, Elsevier, vol. 70, pages 59-72.
    50. 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.
    51. Kazadi, Kande & Lievens, Annouk & Mahr, Dominik, 2016. "Stakeholder co-creation during the innovation process: Identifying capabilities for knowledge creation among multiple stakeholders," Journal of Business Research, Elsevier, vol. 69(2), pages 525-540.
    52. Snehal Awate & Marcus M Larsen & Ram Mudambi, 2015. "Accessing vs sourcing knowledge: A comparative study of R&D internationalization between emerging and advanced economy firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(1), pages 63-86, January.
    53. Stephanie Lu Wang & Yadong Luo & Xiongwen Lu & Jinyun Sun & Vladislav Maksimov, 2014. "Autonomy delegation to foreign subsidiaries: An enabling mechanism for emerging-market multinationals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(2), pages 111-130, February.
    54. Snejina Michailova & Elena Sidorova, 2010. "Knowledge Management In Transition Economies: Selected Key Issues And Possible Research Avenues," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 1(1).
    55. Conroy, Kieran M. & Jacobs, Simon & Liu, Yang, 2023. "The dual knowledge role of open innovation intermediaries: Internal weaving and external filtering for MNE subsidiaries," Technovation, Elsevier, vol. 123(C).
    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. Stojčić, Nebojša & Dabić, Marina & Kraus, Sascha, 2024. "Customisation and co-creation revisited: Do user types and engagement strategies matter for product innovation success?," Technovation, Elsevier, vol. 134(C).
    2. Jin, Qianqian & Chen, Hongshu & Wang, Xuefeng & Xiong, Fei, 2024. "How do network embeddedness and knowledge stock influence collaboration dynamics? Evidence from patents," Journal of Informetrics, Elsevier, vol. 18(4).
    3. Zhong, Xi & He, Xinming & Zhang, Wei, 2025. "Your potential knows no bounds: Do local CEOs influence firms’ overseas R&D activities?," Journal of Business Research, Elsevier, vol. 192(C).
    4. José Manuel Saiz-Alvarez, 2024. "Innovation Management: A Bibliometric Analysis of 50 Years of Research Using VOSviewer ® and Scopus," World, MDPI, vol. 5(4), pages 1-28, October.

    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. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    2. Roh, Taewoo & Lee, Min-Jae & Yang, Young Soo & Lee, Jeoung Yul, 2024. "Learning by giving-and-taking: Two-way knowledge transfer between core and periphery," European Management Journal, Elsevier, vol. 42(5), pages 685-697.
    3. 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.
    4. Su, Cong & Kong, Lingshuang & Ciabuschi, Francesco & Holm, Ulf, 2020. "Demand and willingness for knowledge transfer in springboard subsidiaries of Chinese multinationals," Journal of Business Research, Elsevier, vol. 109(C), pages 297-309.
    5. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 2020. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 538-576, June.
    6. 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).
    7. Grazia D. Santangelo & Anupama Phene, 2022. "Knowledge sourcing by the multinational enterprise: An individual creativity-based model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 434-448, April.
    8. 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.
    9. Esther Tippmann & Pamela Sharkey Scott & Vincent Mangematin, 2014. "Subsidiary managers’ knowledge mobilizations: Unpacking emergent knowledge flows," Post-Print hal-00864324, HAL.
    10. Mashiho Mihalache & Oli Mihalache & Jan Ende, 2021. "International Diversification and MNE Innovativeness: A Contingency Perspective of Foreign Subsidiary Portfolio Characteristics," Management International Review, Springer, vol. 61(6), pages 769-798, December.
    11. Rammal, Hussain G. & Rose, Elizabeth L. & Ferreira, João J., 2023. "Managing cross-border knowledge transfer for innovation: An introduction to the special issue," International Business Review, Elsevier, vol. 32(2).
    12. Luo, Yadong & Bu, Juan, 2018. "Contextualizing international strategy by emerging market firms: A composition-based approach," Journal of World Business, Elsevier, vol. 53(3), pages 337-355.
    13. Lunnan, Randi & Meyer, Klaus & Mudambi, Ram & Yang, Qin, 2023. "The impact of knowledge and financial resource flows for MNE strategy: A typology of subsidiary roles," International Business Review, Elsevier, vol. 32(6).
    14. Zhao, Shasha & Liu, Xiaohui & Andersson, Ulf & Shenkar, Oded, 2022. "Knowledge management of emerging economy multinationals," Journal of World Business, Elsevier, vol. 57(1).
    15. Heejin Kim & B. Sebastian Reiche & Anne-Wil Harzing, 2022. "How does successive inpatriation contribute to subsidiary capability building and subsidiary evolution? An organizational knowledge creation perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(7), pages 1394-1419, September.
    16. Lopez-Vega, Henry & Tell, Fredrik, 2021. "Technology strategy and MNE subsidiary upgrading in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    17. Su, Cong & Kong, Lingshuang & Ciabuschi, Francesco, 2022. "Innovativeness and the relevance of political ties in Chinese MNEs," Journal of Business Research, Elsevier, vol. 153(C), pages 494-508.
    18. 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.
    19. Danchi Tan & Weichieh Su & Joseph T. Mahoney & Yasemin Kor, 2020. "A review of research on the growth of multinational enterprises: A Penrosean lens," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 498-537, June.
    20. Estrin, Saul & Meyer, Klaus E. & Pelletier, Adeline, 2018. "Emerging Economy MNEs: How does home country munificence matter?," Journal of World Business, Elsevier, vol. 53(4), pages 514-528.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:techno:v:127:y:2023:i:c:s0166497223001402. 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.sciencedirect.com/science/journal/01664972 .

    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.