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Knowledge outflows from foreign subsidiaries andthe tension between knowledge creation and knowledge protection: Evidence from the semiconductor industry
Ca' Foscari University of Venice, Italy.
Copenhagen Business School, Denmark. (IEO)ORCID iD: 0000-0003-4425-9367
2014 (English)In: International Business Review, ISSN 0969-5931, E-ISSN 1873-6149, Vol. 23, no 1, 63-75 p.Article in journal (Refereed) Published
Abstract [en]

This paper analyzes the MNC subsidiaries’ trade-off between the need for knowledge creation and the need for knowledge protection, and relates it to the extent of knowledge outflows generated within the host location. Combining research in International Business with Social Theory, we build a conceptual framework suggesting that subsidiaries that extensively draw on external knowledge sources are also more likely to generate knowledge outflows to local firms. We argue that this may be explained by the subsidiaries’ willingness to build the trust that facilitates the establishment of reciprocal knowledge linkages. However, when the value of the subsidiary’s knowledge stock is very high, the need for knowledge protection restrains reciprocity mechanisms in knowledge exchanges, thus reducing the extent of knowledge outflows to the host location. This study contributes to the literature on the firmlevel antecedents of FDI-mediated local knowledge outflows, as well as to the broad IB literature in the relationship between subsidiaries and their host regions. The implications for managers and policymakers are also discussed.

Place, publisher, year, edition, pages
Elsevier, 2014. Vol. 23, no 1, 63-75 p.
Keyword [en]
Local knowledge outflows, FDI, Knowledge creation, Knowledge protection
National Category
Economics and Business Business Administration
Research subject
Industrial Economics and Organisations
Identifiers
URN: urn:nbn:se:mdh:diva-23751DOI: 10.1016/j.ibusrev.2013.08.007ISI: 000329419600008Scopus ID: 2-s2.0-84888429232OAI: oai:DiVA.org:mdh-23751DiVA: diva2:681034
Available from: 2013-12-19 Created: 2013-12-19 Last updated: 2015-04-27Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
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  • de-DE
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  • nn-NO
  • nn-NB
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