IDEAS home Printed from https://ideas.repec.org/a/eee/worbus/v51y2016i4p641-653.html
   My bibliography  Save this article

Tapping the power of local knowledge: A local-global interactive perspective

Author

Listed:
  • Li, Shenxue
  • Easterby-Smith, Mark
  • Lyles, Marjorie A.
  • Clark, Timothy

Abstract

Existing theories of international business and strategy do not fully explain how local knowledge disadvantage faced by foreign investors can be mitigated. We conducted an in-depth qualitative study into four MNCs to investigate the micro-processes of how they generated value from their dispersed sources of local knowledge in China. The results suggest an interactive model: that MNCs employed management processes encompassing three strategically interconnected efforts—global knowledge penetration, local-global knowledge blending, and local-global knowledge integration. The model highlights the interplay between global and local knowledge and challenges extant research that solely focuses on the transfer of either home-based or local knowledge.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:worbus:v:51:y:2016:i:4:p:641-653
    DOI: 10.1016/j.jwb.2016.04.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1090951616300220
    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. Paul R. Carlile & Eric S. Rebentisch, 2003. "Into the Black Box: The Knowledge Transformation Cycle," Management Science, INFORMS, vol. 49(9), pages 1180-1195, September.
    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. 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.
    4. Jan Johanson & Jan-Erik Vahlne, 2009. "The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1411-1431, December.
    5. Shige Makino & Andrew Delios, 1996. "Local Knowledge Transfer and Performance: Implications for Alliance Formation in Asia," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(5), pages 905-927, December.
    6. Li, Shenxue & Scullion, Hugh, 2010. "Developing the local competence of expatriate managers for emerging markets: A knowledge-based approach," Journal of World Business, Elsevier, vol. 45(2), pages 190-196, April.
    7. Michael D Lord & Annette L Ranft, 2000. "Organizational Learning About New International Markets: Exploring the Internal Transfer of Local Market Knowledge," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(4), pages 573-589, December.
    8. Petersen, Bent & Pedersen, Torben, 2002. "Coping with liability of foreignness: Different learning engagements of entrant firms," Journal of International Management, Elsevier, vol. 8(3), pages 339-350.
    9. Nicolai Juul Foss & Torben Pedersen, 2004. "Organizing knowledge processes in the multinational corporation: an introduction," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 340-349, September.
    10. Esther Tippmann & Pamela Sharkey Scott & Vincent Mangematin, 2012. "Problem solving in MNCs: How local and global solutions are (and are not) created," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(8), pages 746-771, October.
    11. 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.
    12. J Michael Geringer & Louis Hebert, 1991. "Measuring Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(2), pages 249-263, June.
    13. Elco Burg & Hans Berends & Erik M. Raaij, 2014. "Framing and Interorganizational Knowledge Transfer: A Process Study of Collaborative Innovation in the Aircraft Industry," Journal of Management Studies, Wiley Blackwell, vol. 51(3), pages 349-378, May.
    14. 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.
    15. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    16. Shige Makino & Andrew Delios, 1996. "Local Knowledge Transfer and Performance: Implications for Alliance Formation in Asia," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 905-927, December.
    17. Richard L. Daft & Robert H. Lengel, 1986. "Organizational Information Requirements, Media Richness and Structural Design," Management Science, INFORMS, vol. 32(5), pages 554-571, May.
    18. Dustin J. Bluhm & Wendy Harman & Thomas W. Lee & Terence R. Mitchell, 2011. "Qualitative Research in Management: A Decade of Progress," Journal of Management Studies, Wiley Blackwell, vol. 48(8), pages 1866-1891, December.
    19. Peter J Buckley & Martin J Carter, 2004. "A formal analysis of knowledge combination in multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 371-384, September.
    20. Mike W Peng & Denis Y L Wang & Yi Jiang, 2008. "An institution-based view of international business strategy: a focus on emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 920-936, July.
    21. Alex Eapen, 2012. "Social structure and technology spillovers from foreign to domestic firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(3), pages 244-263, April.
    22. Robert M. Grant & Charles Baden‐Fuller, 2004. "A Knowledge Accessing Theory of Strategic Alliances," Journal of Management Studies, Wiley Blackwell, vol. 41(1), pages 61-84, January.
    23. Denk, Nikola & Kaufmann, Lutz & Roesch, Jan-Frederik, 2012. "Liabilities of Foreignness Revisited: A Review of Contemporary Studies and Recommendations for Future Research," Journal of International Management, Elsevier, vol. 18(4), pages 322-334.
    24. Zaheer, Srilata, 2002. "The liability of foreignness, redux: a commentary," Journal of International Management, Elsevier, vol. 8(3), pages 351-358.
    25. Hong, Jacky F.L. & Snell, Robin Stanley, 2015. "Knowledge development through co-opetition: A case study of a Japanese foreign subsidiary and its local suppliers," Journal of World Business, Elsevier, vol. 50(4), pages 769-780.
    26. Shenxue Li & Hugh Scullion, 2006. "Bridging the distance: Managing cross-border knowledge holders," Asia Pacific Journal of Management, Springer, vol. 23(1), pages 71-92, March.
    27. Yi Feng Chen & Dean Tjosvold, 2006. "Participative Leadership by American and Chinese Managers in China: The Role of Relationships," Journal of Management Studies, Wiley Blackwell, vol. 43(8), pages 1727-1752, December.
    28. 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.
    29. 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.
    30. Harvey, Michael G. & Speier, Cheri & Novicevic, Milorad M., 1999. "The impact of emerging markets on staffing the global organization:: A knowledge-based view," Journal of International Management, Elsevier, vol. 5(3), pages 167-186.
    31. Robert A Burgelman, 2011. "Bridging history and reductionism: A key role for longitudinal qualitative research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(5), pages 591-601, June.
    32. 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.
    33. 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.
    34. Stephen Tallman & Aya S. Chacar, 2011. "Knowledge Accumulation and Dissemination in MNEs: A Practice‐Based Framework," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 278-304, March.
    35. Burgelman, Robert A., 2011. "Bridging History and Reductionism: A Key Role for Longitudinal Qualitative Research," Research Papers 2045r, Stanford University, Graduate School of Business.
    36. Alvaro Cuervo-Cazurra & Mary M Maloney & Shalini Manrakhan, 2007. "Causes of the difficulties in internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(5), pages 709-725, September.
    37. Luo, Yadong & Shenkar, Oded & Nyaw, Mee-Kau, 2002. "Mitigating liabilities of foreignness: Defensive versus offensive approaches," Journal of International Management, Elsevier, vol. 8(3), pages 283-300.
    38. Patriotta, Gerardo & Castellano, Anna & Wright, Mike, 2013. "Coordinating knowledge transfer: Global managers as higher-level intermediaries," Journal of World Business, Elsevier, vol. 48(4), pages 515-526.
    39. Kent Eriksson & Jan Johanson & Anders Majkgård & D Deo Sharma, 1997. "Experimental Knowledge and Costs in the Internationalization Process," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(2), pages 337-360, June.
    40. Bent Petersen & Torben Pedersen & Marjorie A Lyles, 2008. "Closing knowledge gaps in foreign markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(7), pages 1097-1113, October.
    41. Raab, Katharina J. & Ambos, Björn & Tallman, Stephen, 2014. "Strong or invisible hands? – Managerial involvement in the knowledge sharing process of globally dispersed knowledge groups," Journal of World Business, Elsevier, vol. 49(1), pages 32-41.
    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. 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).
    2. Li, Shenxue & Easterby-Smith, Mark & Hong, Jacky F.L., 2019. "Towards an understanding of the nature of dynamic capabilities in high-velocity markets of China," Journal of Business Research, Elsevier, vol. 97(C), pages 212-226.
    3. Scott-Kennel, Joanna & Saittakari, Iiris, 2020. "Sourcing or sharing in MNE networks? National headquarters and foreign subsidiaries as knowledge conduits in SMOPECs," International Business Review, Elsevier, vol. 29(1).
    4. Li, Shenxue & Clark, Timothy & Sillince, John, 2018. "Constructing a strategy on the creation of core competencies for African companies," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 204-213.
    5. Tao Bai & Jialin Du & Angelo M. Solarino, 2018. "Performance of foreign subsidiaries “in” and “from” Asia: A review, synthesis and research agenda," Asia Pacific Journal of Management, Springer, vol. 35(3), pages 607-638, September.

    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:51:y:2016:i:4:p:641-653. 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: (Haili He). 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.