IDEAS home Printed from https://ideas.repec.org/a/eee/worbus/v50y2015i1p94-107.html
   My bibliography  Save this article

MNEs and FSAs: Network knowledge, strategic orientation and performance

Author

Listed:
  • Scott-Kennel, Joanna
  • Giroud, Axele

Abstract

The objective of this research is to empirically investigate the contribution of network knowledge and strategic orientation to firm-specific advantages (FSAs). Using a unique firm-level dataset of the largest multinational enterprise (MNE) units across six small advanced economies, we find significant and positive relationships between different types of FSAs and (1) knowledge of the focal unit, and from internal corporate and external business networks; (2) unit role (headquarters and subsidiaries); (3) strategic orientation (local and global) and; (4) firm performance.

Suggested Citation

  • Scott-Kennel, Joanna & Giroud, Axele, 2015. "MNEs and FSAs: Network knowledge, strategic orientation and performance," Journal of World Business, Elsevier, vol. 50(1), pages 94-107.
  • Handle: RePEc:eee:worbus:v:50:y:2015:i:1:p:94-107
    DOI: 10.1016/j.jwb.2014.02.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1090951614000224
    Download Restriction: Full text for ScienceDirect subscribers only

    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. Wenpin Tsai, 2002. "Social Structure of “Coopetition” Within a Multiunit Organization: Coordination, Competition, and Intraorganizational Knowledge Sharing," Organization Science, INFORMS, vol. 13(2), pages 179-190, April.
    2. Fang, Yulin & Wade, Michael & Delios, Andrew & Beamish, Paul W., 2013. "An exploration of multinational enterprise knowledge resources and foreign subsidiary performance," Journal of World Business, Elsevier, vol. 48(1), pages 30-38.
    3. John H. Dunning & Sarianna M. Lundan, 2008. "Multinational Enterprises and the Global Economy, Second Edition," Books, Edward Elgar Publishing, number 3215.
    4. Alan M Rugman & Alain Verbeke, 2003. "Extending the theory of the multinational enterprise: internalization and strategic management perspectives," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(2), pages 125-137, March.
    5. Alan M Rugman & Alain Verbeke, 1992. "A Note on the Transnational Solution and the Transaction Cost Theory of Multinational Strategic Management," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(4), pages 761-771, December.
    6. 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.
    7. Hymer, Stephen, 1970. "The Efficiency (Contradictions) of Multinational Corporations," American Economic Review, American Economic Association, vol. 60(2), pages 441-448, May.
    8. Paul Almeida & Jaeyong Song & Robert M. Grant, 2002. "Are Firms Superior to Alliances and Markets? An Empirical Test of Cross-Border Knowledge Building," Organization Science, INFORMS, vol. 13(2), pages 147-161, April.
    9. Morck, Randall & Yeung, Bernard, 1991. "Why Investors Value Multinationality," The Journal of Business, University of Chicago Press, vol. 64(2), pages 165-187, April.
    10. Paterson, S. L. & Brock, D. M., 2002. "The development of subsidiary-management research: review and theoretical analysis," International Business Review, Elsevier, vol. 11(2), pages 139-163, April.
    11. Anne-Wil Harzing, 2000. "An Empirical Analysis and Extension of the Bartlett and Ghoshal Typology of Multinational Companies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(1), pages 101-120, March.
    12. Klaus E. Meyer & Ram Mudambi & Rajneesh Narula, 2011. "Multinational Enterprises and Local Contexts: The Opportunities and Challenges of Multiple Embeddedness," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 235-252, March.
    13. Buckley, Peter J., 2009. "Internalisation thinking: From the multinational enterprise to the global factory," International Business Review, Elsevier, vol. 18(3), pages 224-235, June.
    14. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    15. Jon I Martinez & J Carlos Jarillo, 1991. "Coordination Demands of International Strategies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(3), pages 429-444, September.
    16. Ambos, Tina C. & Ambos, Björn & Schlegelmilch, Bodo B., 2006. "Learning from foreign subsidiaries: An empirical investigation of headquarters' benefits from reverse knowledge transfers," International Business Review, Elsevier, vol. 15(3), pages 294-312, June.
    17. Yamin, Mohammad & Forsgren, Mats, 2006. "Hymer's analysis of the multinational organization: Power retention and the demise of the federative MNE," International Business Review, Elsevier, vol. 15(2), pages 166-179, April.
    18. 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.
    19. M Krishna Erramilli & Sanjeev Agarwal & Seong-Soo Kim, 1997. "Are Firm-Specific Advantages Location-Specific Too?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(4), pages 735-757, December.
    20. Anupama Phene & Paul Almeida, 2008. "Innovation in multinational subsidiaries: The role of knowledge assimilation and subsidiary capabilities," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 901-919, July.
    21. 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.
    22. Alan Rugman & Alain Verbeke & Wenlong Yuan, 2011. "Re‐conceptualizing Bartlett and Ghoshal's Classification of National Subsidiary Roles in the Multinational Enterprise," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 253-277, March.
    23. Yamin, Mo. & Otto, Juliet, 2004. "Patterns of knowledge flows and MNE innovative performance," Journal of International Management, Elsevier, vol. 10(2), pages 239-258.
    24. Cramer, J. S., 1987. "Mean and variance of R2 in small and moderate samples," Journal of Econometrics, Elsevier, vol. 35(2-3), pages 253-266, July.
    25. repec:fth:michin:282 is not listed on IDEAS
    26. Michailova, Snejina & Mustaffa, Zaidah, 2012. "Subsidiary knowledge flows in multinational corporations: Research accomplishments, gaps, and opportunities," Journal of World Business, Elsevier, vol. 47(3), pages 383-396.
    27. 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.
    28. Andersson, Ulf & Björkman, Ingmar & Forsgren, Mats, 2005. "Managing subsidiary knowledge creation: The effect of control mechanisms on subsidiary local embeddedness," International Business Review, Elsevier, vol. 14(5), pages 521-538, October.
    29. Pearce, Robert & Papanastassiou, Marina, 2006. "To 'almost see the world': Hierarchy and strategy in Hymer's view of the multinational," International Business Review, Elsevier, vol. 15(2), pages 151-165, April.
    30. Ambos, Tina C. & Ambos, Björn, 2009. "The impact of distance on knowledge transfer effectiveness in multinational corporations," Journal of International Management, Elsevier, vol. 15(1), pages 1-14, March.
    31. Yamin, Mo & Andersson, Ulf, 2011. "Subsidiary importance in the MNC: What role does internal embeddedness play?," International Business Review, Elsevier, vol. 20(2), pages 151-162, April.
    32. Pearce, Robert, 1999. "The evolution of technology in multinational enterprises: the role of creative subsidiaries," International Business Review, Elsevier, vol. 8(2), pages 125-148, April.
    33. Tina C Ambos & Ulf Andersson & Julian Birkinshaw, 2010. "What are the consequences of initiative-taking in multinational subsidiaries?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(7), pages 1099-1118, September.
    34. Mudambi, Ram, 2002. "Knowledge management in multinational firms," Journal of International Management, Elsevier, vol. 8(1), pages 1-9.
    35. Holm, Ulf & Sharma, D. Deo, 2006. "Subsidiary marketing knowledge and strategic development of the multinational corporation," Journal of International Management, Elsevier, vol. 12(1), pages 47-66, March.
    36. Fahy, John, 2002. "A resource-based analysis of sustainable competitive advantage in a global environment," International Business Review, Elsevier, vol. 11(1), pages 57-77, February.
    37. Alan M Rugman & Alain Verbeke, 2007. "Liabilities of regional foreignness and the use of firm-level versus country-level data: a response to Dunning et al. (2007)," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(1), pages 200-205, January.
    38. Lee, In Hyeock & Rugman, Alan M., 2012. "Firm-specific advantages, inward FDI origins, and performance of multinational enterprises," Journal of International Management, Elsevier, vol. 18(2), pages 132-146.
    39. Masaaki Kotabe & Srini S Srinivasan & Preet S Aulakh, 2002. "Multinationality and Firm Performance: The Moderating Role of R&D and Marketing Capabilities," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(1), pages 79-97, March.
    40. Morck, Randall & Yeung, Bernard, 1992. "Internalization : An event study test," Journal of International Economics, Elsevier, vol. 33(1-2), pages 41-56, August.
    41. Peter J Buckley & Mark C Casson, 2009. "The internalisation theory of the multinational enterprise: A review of the progress of a research agenda after 30 years," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1563-1580, December.
    42. 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.
    43. Y Luo, 2003. "Market-seeking MNEs in an emerging market: How parent–subsidiary links shape overseas success," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(3), pages 290-309, May.
    44. Hsu, Chia-Wen & Lien, Yung-Chih & Chen, Homin, 2013. "International ambidexterity and firm performance in small emerging economies," Journal of World Business, Elsevier, vol. 48(1), pages 58-67.
    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. Li, Shenxue & Easterby-Smith, Mark & Lyles, Marjorie A. & Clark, Timothy, 2016. "Tapping the power of local knowledge: A local-global interactive perspective," Journal of World Business, Elsevier, vol. 51(4), pages 641-653.
    2. repec:pal:jintbs:v:49:y:2018:i:1:d:10.1057_s41267-017-0090-z is not listed on IDEAS
    3. Manuel Hensmans & Guangyan Liu, 2016. "How do the normativity of headquarters and the knowledge autonomy of subsidiaries co-evolve?," iCite Working Papers WP2016-020, ULB -- Universite Libre de Bruxelles.
    4. repec:eee:jbrese:v:82:y:2018:i:c:p:230-245 is not listed on IDEAS

    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:worbus:v:50:y:2015:i:1:p:94-107. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.