Multinational corporation’s headquarters’ motivations to source knowledge from host countries

[Deutscher Titel: Motivatoren von Zentralen multinationaler Unternehmen Wissen in Gastländern zu beziehen]

Jaeyong Song and Jongtae Shin
The paradox of technological capabilities: a study of knowledge sourcing from host countries of overseas R&D operations
Journal of International Business Studies, Volume 39, Issue 2 (March 2008):  291-303

Abstract: We investigate the factors that influence the extent to which a multinational corporation’s headquarters (MNC-HQ) sources knowledge from the host countries of its R&D labs. We propose that the technological capabilities held by MNC-HQs present a paradox. On the one hand, they enhance MNC-HQs’ learning capabilities. On the other hand, they reduce MNC-HQs’ motivations to outsource knowledge from host countries. We also argue that it is important to consider both relative and absolute levels of technological capabilities, because relative levels can influence MNC-HQs’ motivations to source knowledge from host countries. Statistical findings generally support our arguments.

Keywords: absorptive capacity, knowledge sourcing, overseas R&D, relative capabilities

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Copyright © 2008 Palgrave Macmillan Ltd.

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