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Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China

Author

Listed:
  • Si Zhang

    (University of Chinese Academy of Sciences Huaibeizhen)

  • Shasha Zhao

    (Middlesex University Business School)

  • Ioannis Bournakis

    (Middlesex University Business School)

  • Robert Pearce

    (University of Reading Henley Business School)

  • Marina Papanastassiou

    (Middlesex University Business School)

Abstract

Emerging economies have become new destinations for knowledge sourcing, forcing Multinational Enterprises (MNEs) to reconfigure their global innovation strategies and structure. While foreign subsidiaries located in emerging economies were conventionally viewed as having market or efficiency seeking roles, they have started to evolve towards knowledge-seeking roles. We argue that the conventional wisdom shall be reassessed considering this recent shift. We empirically investigate 129 manufacturing MNE subsidiaries of Fortune 500 companies in China, in terms of their roles and sources of technology. Our results indicate that market and knowledge seeking subsidiaries located in China tend to have a positive impact on the generation of new knowledge, either through locally established MNE R&D laboratories or through collaborations with local firms and scientific institutions.

Suggested Citation

  • Si Zhang & Shasha Zhao & Ioannis Bournakis & Robert Pearce & Marina Papanastassiou, 2018. "Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 623-648, August.
    • Handle: RePEc:spr:epolit:v:35:y:2018:i:2:d:10.1007_s40888-018-0120-8
    DOI: 10.1007/s40888-018-0120-8
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    Keywords

    MNEs; R&D; China;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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