IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v49y2018i6d10.1057_s41267-017-0112-x.html
   My bibliography  Save this article

Internal embeddedness, geographic distance, and global knowledge sourcing by overseas subsidiaries

Author

Listed:
  • Kazuhiro Asakawa

    (Keio University)

  • YeonJin Park

    (Electronics and Telecommunications Research Institute)

  • Jaeyong Song

    (Seoul National University)

  • Sang-Ji Kim

    (Samsung Economic Research Institute)

Abstract

We investigate determinants of global knowledge sourcing of overseas R&D subsidiaries, shedding light on vertical cross-border embeddedness within firms. Drawing on the paradox of embeddedness perspective, which assumes that embeddedness may facilitate or hinder knowledge transfer, we examine the extent to which different types of internal vertical embeddedness – administrative versus knowledge – facilitate global knowledge sourcing. We find that vertical administrative embeddedness inhibits global knowledge sourcing, while vertical knowledge embeddedness promotes it. We also find differing moderating effects of geographic distance between headquarters and its subsidiaries on the association between vertical embeddedness and global knowledge sourcing.

Suggested Citation

  • Kazuhiro Asakawa & YeonJin Park & Jaeyong Song & Sang-Ji Kim, 2018. "Internal embeddedness, geographic distance, and global knowledge sourcing by overseas subsidiaries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(6), pages 743-752, August.
    • Handle: RePEc:pal:jintbs:v:49:y:2018:i:6:d:10.1057_s41267-017-0112-x
    DOI: 10.1057/s41267-017-0112-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41267-017-0112-x
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41267-017-0112-x?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. Christine M. Chan & Shige Makino & Takehiko Isobe, 2010. "Does subnational region matter? Foreign affiliate performance in the United states and China," Strategic Management Journal, Wiley Blackwell, vol. 31(11), pages 1226-1243, November.
    2. 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.
    3. Henrik Dellestrand & Philip Kappen, 2012. "The effects of spatial and contextual factors on headquarters resource allocation to MNE subsidiaries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(3), pages 219-243, April.
    4. Ulf Andersson & Mats Forsgren & Ulf Holm, 2007. "Balancing subsidiary influence in the federative MNC: a business network view," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(5), pages 802-818, September.
    5. Xufei Ma & Tony W Tong & Markus Fitza, 2013. "How much does subnational region matter to foreign subsidiary performance? Evidence from Fortune Global 500 Corporations’ investment in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(1), pages 66-87, January.
    6. Albert, M. B. & Avery, D. & Narin, F. & McAllister, P., 1991. "Direct validation of citation counts as indicators of industrially important patents," Research Policy, Elsevier, vol. 20(3), pages 251-259, June.
    7. Kuemmerle, Walter, 1999. "Foreign direct investment in industrial research in the pharmaceutical and electronics industries--results from a survey of multinational firms," Research Policy, Elsevier, vol. 28(2-3), pages 179-193, March.
    8. Sjoerd Beugelsdijk & Ram Mudambi, 2013. "MNEs as border-crossing multi-location enterprises: The role of discontinuities in geographic space," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(5), pages 413-426, June.
    9. 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.
    10. 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.
    11. Jaeyong Song & Paul Almeida & Geraldine Wu, 2003. "Learning--by--Hiring: When Is Mobility More Likely to Facilitate Interfirm Knowledge Transfer?," Management Science, INFORMS, vol. 49(4), pages 351-365, April.
    12. Dellestrand, Henrik & Kappen, Philip, 2011. "Headquarters Allocation of Resources to Innovation Transfer Projects within the Multinational Enterprise," Journal of International Management, Elsevier, vol. 17(4), pages 263-277.
    13. Davide Castellani & Alfredo Jimenez & Antonello Zanfei, 2013. "How remote are R&D labs? Distance factors and international innovative activities," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(7), pages 649-675, September.
    14. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. 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).
    3. Xufei Ma & Andrew Delios & Shu Yu, 2020. "Innovation in MNC’S strategy and structure: the (re) emergence of host country headquarters in large emerging markets," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 609-632, September.
    4. Yuzhe Miao & Yuping Zeng & Jeoung Yul Lee, 2016. "Headquarters Resource Allocation for Inter-Subsidiary Innovation Transfer: The Effect of Within-Country and Cross-Country Cultural Differences," Management International Review, Springer, vol. 56(5), pages 665-698, October.
    5. Ram Mudambi & Lee Li & Xufei Ma & Shige Makino & Gongming Qian & Ron Boschma, 2018. "Zoom in, zoom out: Geographic scale and multinational activity," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(8), pages 929-941, October.
    6. Reilly, Marty & Scott, Pamela Sharkey & Tippmann, Esther & Mangematin, Vincent, 2023. "Sustaining competence creation in the multinational enterprise: The role of piloting in subsidiaries," Journal of International Management, Elsevier, vol. 29(3).
    7. 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.
    8. Maximilian Stallkamp & Brian C Pinkham & Andreas P J Schotter & Olha Buchel, 2018. "Core or periphery? The effects of country-of-origin agglomerations on the within-country expansion of MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(8), pages 942-966, October.
    9. Hsiang-Lin Cheng & Ming-Chang Huang, 2021. "Does dual Embeddedness matter? Mechanisms and patterns of subsidiary ambidexterity that links a Subsidiary’s dual Embeddedness with its learning strategy," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1431-1465, December.
    10. Kazuhiro Asakawa, 2020. "Disaggregating the headquarters: implications for overseas R&D subsidiaries’ reporting and the subsidiaries’ knowledge-sharing patterns," Journal of Organization Design, Springer;Organizational Design Community, vol. 9(1), pages 1-30, December.
    11. Achcaoucaou, Fariza & Miravitlles, Paloma & León-Darder, Fidel, 2014. "Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness," International Business Review, Elsevier, vol. 23(1), pages 76-90.
    12. Keramidas Olivier & Ekaterina Le Pennec & Sarah Serval, 2016. "Caractériser l'attractivité d'un territoire, une approche par les ressources : Le cas de 5 EMN européennes nouvellement implantées dans la région de Kalouga en Russie," Post-Print hal-01615457, HAL.
    13. Håkanson, Lars & Kappen, Philip, 2016. "Live and let die: A survival analysis of foreign R&D units in Swedish MNEs," International Business Review, Elsevier, vol. 25(6), pages 1185-1196.
    14. Mark Lorenzen & Ram Mudambi & Andreas Schotter, 0. "International connectedness and local disconnectedness: MNE strategy, city-regions and disruption," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-24.
    15. Marina Van Geenhuizen & Pieter Stek, 2015. "Mapping innovation in the global photovoltaic industry: a bibliometric approach to cluster identification and analysis," ERSA conference papers ersa15p697, European Regional Science Association.
    16. Thomas J. Hannigan & Alessandra Perri & Vittoria Giada Scalera, 2016. "The Dispersed Multinational: Does Connectedness Across Spatial Dimensions Lead to Broader Technological Search?," Working Papers 11, Department of Management, Università Ca' Foscari Venezia.
    17. Röell, Christiaan & Osabutey, Ellis & Rodgers, Peter & Arndt, Felix & Khan, Zaheer & Tarba, Shlomo, 2022. "Managing socio-political risk at the subnational level: Lessons from MNE subsidiaries in Indonesia," Journal of World Business, Elsevier, vol. 57(3).
    18. Benoit Decreton & Henrik Dellestrand & Philip Kappen & Phillip C. Nell, 2017. "Beyond Simple Configurations: The Dual Involvement of Divisional and Corporate Headquarters in Subsidiary Innovation Activities in Multibusiness Firms," Management International Review, Springer, vol. 57(6), pages 855-878, December.
    19. Wu, Yan & Strange, Roger & Shirodkar, Vikrant, 2021. "MNE divestments of foreign affiliates: Does the strategic role of the affiliate have an impact?," Journal of Business Research, Elsevier, vol. 128(C), pages 266-278.
    20. McDonald, Conor & Buckley, Peter J. & Voss, Hinrich & Cross, Adam R. & Chen, Liang, 2018. "Place, space, and foreign direct investment into peripheral cities," International Business Review, Elsevier, vol. 27(4), pages 803-813.

    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:49:y:2018:i:6:d:10.1057_s41267-017-0112-x. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    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.