IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v34y2003i6p516-529.html
   My bibliography  Save this article

Knowledge of the firm and the evolutionary theory of the multinational corporation

Author

Listed:
  • B Kogut

    (Wharton School, University of Pennsylvania, USA)

  • U Zander

    (Institute of International Business (IIB), Stockholm School of Economics, Sweden)

Abstract

Firms are social communities that specialize in the creation and internal transfer of knowledge. The multinational corporation arises not out of the failure of markets for the buying and selling of knowledge, but out of its superior efficiency as an organizational vehicle by which to transfer this knowledge across borders. We test the claim that firms specialize in the internal transfer of tacit knowledge by empirically examining the decision to transfer the capability to manufacture new products to wholly owned subsidiaries or to other parties. The empirical results show that the less codifiable and the harder to teach is the technology, the more likely the transfer will be to wholly owned operations. This result implies that the choice of transfer mode is determined by the efficiency of the multinational corporation in transferring knowledge relative to other firms, not relative to an abstract market transaction. The notion of the firm as specializing in the transfer and recombination of knowledge is the foundation to an evolutionary theory of the multinational corporationJournal of International Business Studies (2003), 34, 516–529. doi:10.1057/palgrave.jibs.8400058

Suggested Citation

  • B Kogut & U Zander, 2003. "Knowledge of the firm and the evolutionary theory of the multinational corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 516-529, November.
  • Handle: RePEc:pal:jintbs:v:34:y:2003:i:6:p:516-529
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/jibs/journal/v34/n6/pdf/8400058a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/jibs/journal/v34/n6/full/8400058a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

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

    Citations

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


    Cited by:

    1. Johannes van der Pol, 2018. "Explaining the structure of collaboration networks: from firm-level strategies to global network structure," Cahiers du GREThA 2018-02, Groupe de Recherche en Economie Théorique et Appliquée.
    2. Anna Tobolska, 2016. "System szkoleń i podnoszenia kwalifikacji zawodowych jako forma transferu wiedzy w przedsiębiorstwach międzynarodowych," Gospodarka Narodowa, Warsaw School of Economics, issue 2, pages 121-148.
    3. International Monetary Fund, 2011. "Algeria; Selected Issues Paper," IMF Staff Country Reports 11/41, International Monetary Fund.
    4. Heike Mayer, 2013. "Spinoff regions: entrepreneurial emergence and regional development in second-tier high-technology regions – observations from the Oregon and Idaho electronics sectors," Chapters,in: Handbook of Industry Studies and Economic Geography, chapter 8, pages 207-229 Edward Elgar Publishing.
    5. 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.
    6. Jayet, H. & Marchal, L., 2016. "Migration and FDI: Reconciling the standard trade theory with empirical evidence," Economic Modelling, Elsevier, vol. 59(C), pages 46-66.
    7. Ramlogan, Ronnie & Consoli, Davide, 2007. "Knowledge, Understanding and the Dynamics of Medical Innovation," European Journal of Economic and Social Systems, Lavoisier, vol. 20(2), pages 231-249.
    8. Alberto Di Minin & Jieyin Zhang, 2010. "An Exploratory Study on International R&D Strategies of Chinese Companies in Europe," Review of Policy Research, Policy Studies Organization, vol. 27(4), pages 433-455, July.
    9. repec:eee:iburev:v:27:y:2018:i:1:p:66-77 is not listed on IDEAS
    10. Małgorzata Stefania Lewandowska, 2014. "Innowacje otwarte polskich przedsiębiorstw," Gospodarka Narodowa, Warsaw School of Economics, issue 2, pages 53-80.
    11. Rui, Huaichuan & Zhang, Miao & Shipman, Alan, 2016. "Relevant knowledge and recipient ownership: Chinese MNCS’ knowledge transfer in Africa," Journal of World Business, Elsevier, vol. 51(5), pages 713-728.
    12. Miia Kosonen & Kirsimarja Blomqvist, 2013. "University Knowledge Transfer in Romania: Getting Ready for the U-Multi-rank," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(2), pages 1-6, April.
    13. Chen-Wei Yang, 2015. "Implementing hospital innovation in Taiwan: the perspectives of institutional theory and social capital," International Journal of Health Planning and Management, Wiley Blackwell, vol. 30(4), pages 403-425, October.
    14. Cesaroni, Fabrizio & Giarratana, Marco S. & Martínez-Ros, Ester, 2012. "Technological capabilities and cost efficiency as antecedents of foreign market entry," MERIT Working Papers 049, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    15. repec:kap:asiapa:v:35:y:2018:i:1:d:10.1007_s10490-017-9516-1 is not listed on IDEAS
    16. Tsai, Ming-Tien & Li, Yong-Hui, 2007. "Knowledge creation process in new venture strategy and performance," Journal of Business Research, Elsevier, vol. 60(4), pages 371-381, April.
    17. Kunal Dasgupta, 2009. "Learning, Knowledge Diffusion and the Gains from Globalization," Working Papers tecipa-364, University of Toronto, Department of Economics.
    18. Michael Taylor, 2010. "Clusters: A Mesmerising Mantra," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 101(3), pages 276-286, July.
    19. repec:spr:manint:v:51:y:2011:i:2:d:10.1007_s11575-011-0072-5 is not listed on IDEAS

    More about this item

    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:pal:jintbs:v:34:y:2003:i:6:p:516-529. 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: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.palgrave-journals.com/ .

    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.

    We have no references for this item. You can help adding them by using 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.