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Local, global, and internal knowledge sourcing: The trilemma of foreign-based R&D subsidiaries

Athreye, S and Batsakis, G and Singh, S (2016) 'Local, global, and internal knowledge sourcing: The trilemma of foreign-based R&D subsidiaries.' Journal of Business Research, 69 (12). pp. 5694-5702. ISSN 0148-2963

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Multinational Enterprises (MNEs) develop and sell their products and services in a global market, but also have the ability to source knowledge from local, global and intra-MNE networks. We argue that sourcing knowledge from each of the three networks is contingent upon factors, such as the strategic choice made by the headquarters about the role of the research and development (R&D) subsidiary, the scientific richness of the host location, and the institutional (i.e. IPR - Intellectual Property Rights) distance between the home and host locations. Hypotheses are tested on a dataset of 89 foreign-based R&D subsidiaries of Fortune 500 MNEs. The results indicate that R&D subsidiaries with support lab mandates are less likely to use host and internal (intra-MNE) sources of knowledge and more likely to use the home location's sources of knowledge. Internationally independent labs are less likely to source knowledge from internal networks. The findings show also that the scientific capability and availability of a technically skilled workforce in the host location is associated with the R&D subsidiary's use of local, rather than internal knowledge sources. Finally, weak IPR spurs the use of local knowledge sources, suggesting a role for technological spillovers.

Item Type: Article
Uncontrolled Keywords: embeddedness; IPR; knowledge sourcing; R&D subsidiary
Subjects: H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Essex Business School
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 19 Feb 2018 14:28
Last Modified: 06 Jan 2022 14:50

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