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Complementarity and substitution in the knowledge networks of R&D subsidiaries
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation. (IEO)ORCID iD: 0000-0003-4425-9367
Brunel University, UK.
Brunel University, UK.
2016 (English)In: Research in Global Strategic Management - Volume 18 (2016): Perspectives on Headquarters-Subsidiary Relationships in the Contemporary MNC / [ed] Ambos, B., Ambos, T. & Birkinshaw, J.M., London: Emerald Group Publishing Limited, 2016, 247-274 p.Chapter in book (Refereed)
Abstract [en]

We argue that a foreign-based R&D subsidiary of a multinational enterprise (MNE) can potentially source knowledge from three diverse knowledge networks, namely (i) external knowledge network of the homecountry, (ii) external knowledge network of the host country, and (iii) internal (MNE) knowledge network. Drawing on the relative costs andbenefits associated with the process of synergistic knowledge, this studyexamines whether a substitutive or a complementary relationship exists when two of the aforementioned networks collaborate in order to generate new knowledge at the subsidiary level.

Our study’s sample is based on asurvey questionnaire addressed to foreign-based R&D subsidiaries of Fortune 500 companies. We assess the existence of complementarity/substitutability using the “production function approach.” Our results indicate that a complementary relationship exists between external knowledge network of the host and the home country, as well as between external knowledge network of the host country and internal knowledge network. On the other hand, external knowledge network of the home country and internal knowledge network form a substitutive relationship. Our study offers a more comprehensive view of the diverse sources/knowledge networks that R&D subsidiaries are sourcing knowledge from when compared to existing research. We also specify and account for the costs/benefits involved in knowledge sourcing and thereby detect possible substitution/complementarity between different sources ofknowledge. So far, there has been limited to nonexistent research into the diversity of knowledge networks of R&D subsidiaries and the examination of potential substitutabilities and complementarities. Hence our empirical study contributes to the development of this particular research stream.

Place, publisher, year, edition, pages
London: Emerald Group Publishing Limited, 2016. 247-274 p.
Keyword [en]
Knowledge networks, knowledge sourcing, complementarity, substitution
National Category
Business Administration
Identifiers
URN: urn:nbn:se:mdh:diva-34117DOI: 10.1108/S1064-485720160000017010OAI: oai:DiVA.org:mdh-34117DiVA: diva2:1055799
Available from: 2016-12-13 Created: 2016-12-13 Last updated: 2016-12-16

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
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  • asciidoc
  • rtf