Article

 

A strategy view on knowledge in the MNE – Integrating Subsidiary Roles and Knowledge Flows (p.43-72)

by

Björn Jindra, Halle Institute for Economic Research Halle (IWH) (Germany)

Keywords : Knowledge flows, multinational corporations, subsidiaries

JEL classification : D20 F23 L20 O30

Abstract

We assume knowledge inflows endogenous to subsidiary roles. Integrating organisational and knowledge-based views we propose a new subsidiary typology based on MNE integration-subsidiary capability. We hypothesise that both dimensions are positively associated with knowledge inflows into the focal subsidiary. This prediction is tested with data for 425 subsidiaries. The key findings were: (a) the extent for knowledge inflows differs significantly across all subsidiary roles; (c) it diminishes in a anti-clockwise direction starting in the high integration-high capability quadrant of the IC taxonomy; thus (b) both MNE integration and subsidiary capability drive knowledge inflows, although, the balance shifts more towards integration.