Search results

1 – 10 of over 1000
To view the access options for this content please click here
Article
Publication date: 14 May 2018

Alberto Ferraris, Gabriele Santoro and Veronica Scuotto

This paper aims to investigate the relationship between the level of subsidiaries’ internal and external relational embeddedness and the degree of subsidiaries’ knowledge…

Abstract

Purpose

This paper aims to investigate the relationship between the level of subsidiaries’ internal and external relational embeddedness and the degree of subsidiaries’ knowledge transfer. More specifically, the aim is to explore dual embeddedness of subsidiaries involved in the knowledge transfer process within multinational corporations’ (MNCs) network.

Design/methodology/approach

The authors empirically analyse 165 European subsidiaries to demonstrate the crucial role of dual relational embeddedness in the transfer of knowledge within MNCs. Data were collected via a close-ended questionnaire and processed through an ordinary least squares regression model.

Findings

Results show that internal embeddedness directly and positively influences the degree of subsidiaries’ knowledge transfer, whereas external embeddedness does not. Notwithstanding, a higher level of both types of embeddedness – known as dual embeddedness – generates multiplicative and positive effects on the degree of subsidiaries’ knowledge transfer.

Practical implications

Best practices and relevant knowledge follow a reverse transfer of knowledge from the subsidiaries to the internal MNC network that is facilitated by the relational embeddedness of subsidiaries. This has resulted in developing a dual embeddedness, which introduces new routines and scripts, as well as more relational links.

Originality/value

The research emphasises the relevance of the knowledge transfer process in multiple directions, evoking the central role of dual-embedded subsidiaries.

Details

Journal of Knowledge Management, vol. 24 no. 3
Type: Research Article
ISSN: 1367-3270

Keywords

To view the access options for this content please click here
Article
Publication date: 10 September 2021

Mehdi Rasouli Ghahroudi, Seyed Hossein Chabok and Kieran M. Conroy

This study aims to focus on dual embeddedness as an important channel through which foreign subsidiaries access and share valuable and idiosyncratic knowledge within the…

Abstract

Purpose

This study aims to focus on dual embeddedness as an important channel through which foreign subsidiaries access and share valuable and idiosyncratic knowledge within the multinational corporation (MNC). The authors examine the dual embeddedness challenges of foreign subsidiaries based in the context of Iran as a transitional market.

Design/methodology/approach

The final sample includes 144 active foreign subsidiaries in Iran from across a broad range of industries. A structured questionnaire was distributed to firms and structural equation modeling was adopted to analyze the results.

Findings

The findings reveal how building external embeddedness in an environment with potentially poor access to valuable knowledge, and risk of knowledge leakage impacts the subsidiary’s ability to subsequently transfer this knowledge within the MNC. The authors identify the significance of absorptive capacity as a way for the subsidiary to access knowledge from and share knowledge with firms in the local market.

Originality/value

Departing from existing work on subsidiary embeddedness in developed markets, the authors reveal how competence creating subsidiaries manage dual embeddedness and knowledge transfer in transition economies that are low in knowledge stocks. The authors unpack how subsidiary absorptive capacity enables access to local knowledge in a transitional market and increases reverse knowledge transfer in the MNC. In doing so, the authors answer calls for work on the dynamic and complementary relationships that exists between subsidiary dual embeddedness, absorptive capacity and knowledge sourcing in less open markets. Focusing on Iran as a transitional economy, this study provides greater contextual nuance to the extant literature on subsidiary dual embeddedness.

Details

Multinational Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1525-383X

Keywords

To view the access options for this content please click here
Article
Publication date: 4 January 2016

Stefano Bresciani and Alberto Ferraris

The purpose of this paper is to investigate the relationship between the degree of subsidiary’s external and internal embeddedness and the contribution on subsidiary’s…

Abstract

Purpose

The purpose of this paper is to investigate the relationship between the degree of subsidiary’s external and internal embeddedness and the contribution on subsidiary’s business performance of a received innovation. In particular it focusses on dual embeddedness of the subsidiary that receives an innovation from the rest of the MNC’s network.

Design/methodology/approach

Using Amadeus databases were selected 93 CEE subsidiaries located in six countries. Data were collected through a standardized questionnaire and three hypothesis were tested through an OLS regression model.

Findings

The results indicate that the two types of embeddedness positively affect the received innovation’s contribution on business performance. Moreover, the inclusion of the interaction term shows how a simultaneously high level of embeddedness in both external and internal business networks lead to a multiplicative and positive effect on subsidiary’s business performance. This means that external and internal embeddedness are not mutually exclusive suggesting, at the same time, the presence of interdependencies between the two networks that leads the “dual embedded” subsidiary to better received innovation performance.

Research limitations/implications

The results are limited due to the sample characteristics and the conceptual focus of network theory. Regarding the first point, the results are derived from MNC coming from developed European countries that are geographically proximate. Regarding the second point, this approach neglects the limitations of networks.

Practical implications

These results, therefore, propose to management the need to force the subsidiary toward a dual embeddedness in order to achieve better performance when an innovation has been received.

Social implications

This study puts in evidence how Eastern European policy makers should increase the knowledge sharing and accumulation in the local clusters between all the stakeholders with the aim at increasing the “appeal” of this area.

Originality/value

The specific contest in which the embedddedness component is analyzed is the main contribution of the paper because most of the previous research have been focussed on subsidiaries that develop and transfer the innovation. Moreover, the specific area where subsidiaries are located (Central and East Europe) may be another important contribution.

Details

Baltic Journal of Management, vol. 11 no. 1
Type: Research Article
ISSN: 1746-5265

Keywords

To view the access options for this content please click here

Abstract

Details

Migration Practice as Creative Practice
Type: Book
ISBN: 978-1-83867-766-4

To view the access options for this content please click here
Article
Publication date: 15 July 2014

Matevž Rašković

The purpose of this paper is to address the misapplication of the embeddedness concept in Ferraris’s (2014) paper and show how it needs to be used as a cornerstone…

Abstract

Purpose

The purpose of this paper is to address the misapplication of the embeddedness concept in Ferraris’s (2014) paper and show how it needs to be used as a cornerstone economic sociology concept within his proposed framework. This paper is a response to his paper in the Multinational Business Review “Rethinking the literature on ‘multiple embeddedness’ and subsidiary-specific advantages”.

Design/methodology/approach

The paper outlines the origin of the embeddedness concept and its evolution within the economic sociology literature. It addresses different types of embeddedness and continues with a critical analysis of Ferraris’s (2014) proposed framework of four main types of multinational enterprise (MNE) relationships. It provides suggestions for its improvement and application, as well as discusses the appropriate applications of embeddedness concept by international business (IB) scholars in MNE research.

Findings

The paper shows how the embeddedness concept is mostly used as a metaphor and as a simple umbrella label for different types of connections between MNEs, their subsidiaries and different types of environments. The analysis of Ferraris’s (2014) proposed framework shows how MNE embeddedness is incorrectly understood as emanating from the balancing of local responsiveness and global integration within MNEs, where subsidiaries develop subsidiary-specific advantages (SSAs) by recombining home – host country-specific advantages and parent – subsidiary firm-specific advantages (FSAs).

Originality/value

The paper adds to the existing IB understanding of MNEs’ multiple embeddedness and subsidiaries’ dual embeddedness through a wider and more structured economic sociology perspective. It provides an appropriate economic sociology-grounded typology of different types of embeddedness. A discussion of possible future research directions stresses how the embeddedness – dissembeddedness capability is a key source of MNE competitive advantage, which moderates the actual recombination process of producing FSAs and SSAs.

Content available
Book part
Publication date: 13 January 2021

Abstract

Details

Migration Practice as Creative Practice
Type: Book
ISBN: 978-1-83867-766-4

To view the access options for this content please click here
Article
Publication date: 1 February 2021

José Arias-Pérez, Juan Velez-Ocampo and Juan Cepeda-Cardona

This study aims to analyze the mediating effect of the open innovation processes of knowledge acquisition and exploitation as external embeddedness strategy on the…

Abstract

Purpose

This study aims to analyze the mediating effect of the open innovation processes of knowledge acquisition and exploitation as external embeddedness strategy on the relationships between strategic orientation toward digitalization and the three dimensions of the innovation capability: client, marketing and technology.

Design/methodology/approach

The research model was tested using a structural equation modeling design based on survey data from a financial and insurance sector multinational enterprise with direct operations in seven emerging countries. This sector is classified as being highly digitalized.

Findings

The results show that strategic orientation toward digitalization has an effect on innovation capability, with a greater impact on the client and technology dimensions than on the marketing dimension. However, the relationships with clients and technology are partially mediated by acquisition, while the one with marketing is mediated by exploitation.

Originality/value

This finding widens the current purpose and theoretical sense of external embeddedness as a type of inter-organizational arrangement key for digitalization in the literature, which is focused on the adaptation of digital technology of the head office to the needs of the subsidiaries and the systems of their local allies. By contrast, the study results show that external embeddedness is key for the multinational to be able, from its global way of creating value through digital technologies, not only to improve operating efficiency, but also to meet costumer experience expectations in each host country and innovate in local commercialization strategies, on account of the knowledge transfer between the multinational and the local players on customer preferences and technology uses in local markets.

Details

Journal of Knowledge Management, vol. 25 no. 5
Type: Research Article
ISSN: 1367-3270

Keywords

To view the access options for this content please click here
Article
Publication date: 30 September 2020

Cristina Doritta Rodrigues, Felipe Mendes Borini, Muhammad Mustafa Raziq and Roberto Carlos Bernardes

This study aims to look at the relationship of external embeddedness and institutional distance (governance aspects) with the foreign subsidiary research and development…

Abstract

Purpose

This study aims to look at the relationship of external embeddedness and institutional distance (governance aspects) with the foreign subsidiary research and development (R&D) capacity. Furthermore, it examines whether these relationships are mediated by subsidiary product and process innovation, and whether institutional distance plays a moderating role in the relationship between subsidiary innovation and R&D capacity.

Design/methodology/approach

The authors draw on survey data from 130 foreign subsidiaries operating in Brazil and test their model using variance-based structural equation modeling.

Findings

Results suggest that subsidiary (product and process) innovation fully mediates the relationships between: subsidiary external embeddedness and R&D capacity; and institutional distance and subsidiary R&D capacity, such that the relationship is positive in case of the former and negative in case of the latter. The relationship between subsidiary product and process innovation and R&D capacity is positive and stronger at lower levels of institutional distance.

Originality/value

The research ignores the underlying mechanisms of the external embeddedness and institutional distance relationship with subsidiary R&D capacity. Furthermore, institutional distance based on formal governance aspects and their impacts on subsidiary innovation and R&D capacity are rarely investigated. This paper contributes with regard to these aspects.

Details

Journal of Knowledge Management, vol. 24 no. 10
Type: Research Article
ISSN: 1367-3270

Keywords

To view the access options for this content please click here
Article
Publication date: 15 December 2020

Carson Duan, Bernice Kotey and Kamaljeet Sandhu

The purpose of this theoretical paper is to explore how immigrants' home-country entrepreneurial ecosystem (EE) factors impact transnational immigrant entrepreneurs…

Abstract

Purpose

The purpose of this theoretical paper is to explore how immigrants' home-country entrepreneurial ecosystem (EE) factors impact transnational immigrant entrepreneurs (TIEs). The paper draws on the dual embeddedness and transnational entrepreneurship theories to explore how the home-country EE influences transnational immigrant entrepreneurship (TIE).

Design/methodology/approach

This research adopted a qualitative case study methodology involving content analysis of secondary data. It analyzed data set against the existing EE framework to constructively explore the home-country effects.

Findings

The findings reveal that all home-country EE domains and associated factors affect TIEs. The paper established six testable propositions with regard to the home-country EE domains: accessible market, human capital, social culture, infrastructure and business support and government policies. A number of new factors were identified for each home-country EE domain. Finally, the paper provided future research directions.

Research limitations/implications

Care has to be taken in generalizing the findings from this research due to the small sample of contemporary Chinese immigrants in Australia and New Zealand. The propositions also require empirical testing.

Practical implications

The findings contribute to the TIE literature by identifying new factors of the home-country EE and presenting testable propositions. The results have impact on immigration policies and programs.

Social implications

Transnational immigrant entrepreneurship can be a pathway to help immigrants to integrate into mainstream society. The findings from this article indirectly contribute to immigrant social development.

Originality/value

This original article fills research gaps by analyzing how home-country EE elements affect TIE. It reveals that the EE framework is effective for investigating it.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 27 no. 3
Type: Research Article
ISSN: 1355-2554

Keywords

Abstract

Details

Journal of Knowledge Management, vol. 24 no. 2
Type: Research Article
ISSN: 1367-3270

1 – 10 of over 1000