The impact of international knowledge flow on firm innovative performance

[German title: Der Einfluß des internationalen Wissenstransfers auf die Innovationsleistung eines Unternehmens]

Determinants of cross-national knowledge transfer and its effect on firm innovation
Masaaki Kotabe, Denise Dunlap-Hinkler, Ronaldo Parente and Harsh A Mishra
Journal of International Business Studies (2007) 38, 259–282.

Abstract: This study examines the determinants of international knowledge flow. From a resource-based perspective, it evaluates the impact of cross-national knowledge transfer on firm innovative performance. Based on 56,027 US patents owned by 53 selected firms in the US-based pharmaceutical industry, the results suggest that innovative performance is a curvilinear function of the international knowledge content used by a firm to innovate. As hypothesized, it was found that at (1) low and moderate levels of international knowledge content, a firm’s strategy to transfer international knowledge improves its innovative performance, and at (2) higher levels of international knowledge content, there are diminishing marginal returns to transferring knowledge from overseas.

Keywords: knowledge management, knowledge transfer, multinational firm, innovation, international sourcing

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Copyright © 2007 Palgrave Macmillan Ltd.

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