Knowledge creation capability in MNC subsidiaries: Examining the roles of global and local knowledge inflows and subsidiary knowledge stocks |
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| Affiliation: | 1. Berry College, Campbell School of Business, 2277 Martha Berry Hwy NW, Mount Berry, GA 30149, USA;2. Koc University, College of Administrative Sciences and Economics, Istanbul, Turkey;3. The University of Melbourne, The Faculty of Business and Economics, Parkville Victoria, VIC 3010, Australia;4. Rutgers University, School of Management and Labor Relations, 94 Rockafeller Road, Piscataway, NJ 08854, USA;1. Department of Business Studies, Uppsala University, Sweden;2. Public University of Navarre, Spain;1. The University of Auckland Business School, Owen G Glenn Building, 12 Grafton Rd, 1142 Auckland, New Zealand;2. The University of Sydney Business School, H10—Storie Dixson Wing Building, Sydney 2006, NSW, Australia |
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| Abstract: | Grounded in knowledge-based theories of the multinational corporation (MNC) and building on organizational learning literature, this paper develops and tests a model of MNC subsidiaries’ knowledge creation capability as a joint function of knowledge inflows to subsidiaries and their knowledge stocks (i.e., subsidiaries’ internal human, social, and organizational capital). Survey-based data from 106 subsidiaries located in the U.S. suggests that local (i.e., host country) knowledge inflows to a subsidiary are more effective in enhancing a subsidiary's knowledge creation capability compared to global knowledge inflows from other units of the same MNC. Furthermore, results point to a not-invented-here syndrome in the exploitation of knowledge sourced from the parent company; such that when a subsidiary's internal social capital is high, the relationship between global knowledge inflows and knowledge creation capability is negative and when it is low, the relationship becomes positive. |
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| Keywords: | Absorptive capacity Human capital Knowledge creation Knowledge flows Organizational capital Organizational learning Social capital Subsidiary management |
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