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Knowledge transfer roles of subsidiaries in MNCs’ networks

Cigdem Baskici (Center for Strategy and Technology, Baskent University, Ankara, Turkey)

Review of International Business and Strategy

ISSN: 2059-6014

Article publication date: 6 November 2019

Issue publication date: 20 November 2019

330

Abstract

Purpose

Although there have been a considerable number of studies regarding subsidiary role typology in multinationals’ management literature, there appear to be few studies that consider knowledge-based role typology from the network-based perspective. The purpose of this study is to fill this gap and extend the study of Gupta and Govindarajan (1991). Thus, the study focuses on answering the following research question: Do subsidiaries have different roles in terms of knowledge flows within a multinational company (MNC)?

Design/methodology/approach

This empirical study has been carried out as an explorative single case study. An MNC with 15 foreign subsidiaries headquartered in Turkey, which operated in the manufacturing of household appliances and consumer electronics, has been selected as the case. Knowledge transfer is analyzed in this MNC from the network perspective.

Findings

Four role typologies are detected for subsidiaries of the MNC: collector transmitter, collector diffuser, converter transmitter and converter diffuser.

Research limitations/implications

Findings of this study are specific to this case. Testing the findings in a sample consisting of subsidiaries of MNCs producing transnational products may contribute to the generalizability of these roles.

Practical implications

This study offers potentially important findings for MNC managers to use. First, in this study, knowledge flows' route could be defined within MNCs’ dual network. Second, role typologies could inform MNC managers to design their MNCs’ knowledge network.

Originality/value

The suggested typologies are expected to more accurately define the roles of subsidiaries within contemporary MNCs which are accepted to be transformed from hierarchical structures to network-based organizations.

Keywords

Citation

Baskici, C. (2019), "Knowledge transfer roles of subsidiaries in MNCs’ networks", Review of International Business and Strategy, Vol. 29 No. 4, pp. 329-346. https://doi.org/10.1108/RIBS-05-2019-0062

Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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