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The purpose of this study is to investigate the impact of an industry’s connectedness to foreign countries on knowledge sourcing.

The authors examine the research model through probit regression techniques to the 472,303-patent data across 16 industries derived from the United States Patent and Trademark Office.

The results suggest that international connectedness increases the accessibility of foreign knowledge and helps the accumulation of technological capability. Thus, this paper provides a better understanding that international connectedness can be critical for exploiting knowledge dispersed worldwide and influencing intra- and interindustry knowledge-sourcing behavior in the home country.

While prior studies have mainly paid attention to the relationship between parents and subsidiaries in foreign countries for international knowledge sourcing, the authors attempt to analyze international and local knowledge sourcing with a broader set of knowledge sourcing channels at an aggregate level. By considering an industry’s export intensity and inward foreign direct investment, this study reveals specifically how the extent of an industry’s international connectedness influences knowledge sourcing from both abroad and locally.

This paper explains the mechanisms underlying the generation of two-way knowledge spillovers through the interaction of subsidiaries with differentiated local responsibilities and domestic firms.

The study is based on firm-level panel data from a census of Colombian manufacturing firms for the period 2003–2012. The estimation procedure involves two stages. In the first one, total factor productivity (TFP) of foreign and domestic firms is estimated. In a second step, we estimate conventional spillovers (from foreign-owned to local firms) and reverse spillovers (from local to foreign-owned firms) separately, using a random effect approach.

This study’s findings reveal that only locally creative subsidiaries enjoy positive and significant two-way knowledge spillover effects. The connectivity of subsidiaries to local and international networks is reinforced by reciprocal relationships among actors that enhance bidirectional knowledge flows, these being favored by the dynamics of clustering effects.

The paper contributes with new empirical evidence about the mechanism explaining how the technological heterogeneity of subsidiaries plays a determinant role in the generation of both knowledge flows from foreign to domestic firms and to the reverse, all integrated into the same framework.

Through increasing globalization, cities are becoming increasingly interconnected with each other. To remain competitive, it is necessary for cities to combine complementary non-local sources of knowledge with local knowledge sources. The authors contend that an increase in non-local knowledge sourcing tends to enhance local knowledge sourcing too. The purpose of this study is to examine the influence of international knowledge sources on the capacity to build upon local knowledge sources in a city region. In addition, the authors investigate whether information and communication technologies (ICT) knowledge sources have a bigger impact than do other fields of knowledge on local knowledge connectivity.

Using the US Patent and Trademark Office data, the authors study knowledge sourcing trends for the years 1980-2016 across 33 global cities. Backward patent citations from these granted patents are used to identify the location of inventors of prior knowledge sources, and the geography of knowledge building connections over time is assessed by using the inventor locations of cited (source) and citing (recipient) patents.

The authors show that international knowledge sourcing is highly connected with local knowledge sourcing. The authors also find that ICT have a significant effect on this relationship. However, there are significant differences across cities in the extent and nature of this relationship.

This study contributes to the literature on the changing geography of knowledge connections. It provides a detailed picture of changing knowledge sourcing trends at a city region level, and it improves our understanding of the role played by a variety of knowledge connections in helping a city remain competitive.

While conventional views of foreign investment activity primarily relate to efficiency-seeking investments, the authors argue that most other outward foreign direct investments (OFDIs) likely have positive effects on income development in the home region. Data on the US urban system not only illustrates this but also shows that this impact is not equal in all city-regions. The purpose of this paper is to develop an explanation as to why high- and low-income cities are associated with self-reinforcing cycles of OFDI activity that have different home-region impacts.

Conventional views assume that inward foreign direct investments (IFDIs) have a positive impact on target regions, while OFDIs are often treated as the flip side of this story, being seen as having negative effects by shifting jobs and income abroad. This paper counters this logic by developing a conceptual argument that systematically distinguishes different types of OFDIs and relates them to economic development effects in the home (investing) region.

Using a co-evolutionary conceptualization, this paper suggests that many high-income cities are characterized by a virtuous cycle of development where high, successful OFDI activity generates both positive income effects as well as incentives to engage in further OFDIs in the future, thus leading to additional income increases. In contrast, it is suggested that low-income cities are characterized by what we refer to as vicious cycles of development with low OFDI activity, few development impulses and a lack of incentives and capabilities for future investments.

This paper develops a counter-perspective to conventional views of OFDI activity, arguing that these investments have a positive impact on regional income levels. The authors develop a spatially sensitive explanation which acknowledges that OFDIs do not trigger a linear process but are associated with diverging inter-urban development paths and may contribute to higher levels of intra-urban inequality. From these findings, the authors derive conclusions for future research and public policy.

This paper proposes locational ambidexterity as a location-specific factor based on an operation flexibility perspective, and explores why and how multinational corporations (MNCs) proactively deal with uncertainty by valuing locational ambidexterity in making location decisions.

Location choice data for foreign direct investment (FDI) at a sub-national level in China is used to test the role of locational ambidexterity.

We find that FDI generally prefers locations with high ambidexterity. Moreover, investments from a heterogeneous country context are more sensitive to locational ambidexterity than those from a similar country context. However, there is no significant evidence that wholly owned investments favor locational ambidexterity more than do international joint ventures.

An alternative operationalization of locational ambidexterity may be needed. Future research could explore the sources of locational ambidexterity, identify other firm- and industry-level factors that could alter the value of ambidexterity, investigate how MNCs integrate locational ambidexterity into organization-specific option creation strategies and test the ambidexterity perspective with micro-level location choice data.

Locational ambidexterity may reduce the overall risk and adjustment cost of future changes. FDI may choose a location with high ambidexterity, i.e. a balanced portfolio of location-specific determinants, under uncertainty about the future.

Drawing on the notion of location flexibility from Buckley and Casson (1998), this study identifies a new location character, locational ambidexterity, and proposes that MNCs address uncertainty by choosing ambidextrous locations that offer more flexibility for MNCs to change or respond to potential volatility. Selecting locations with high ambidexterity is thus an alternative and complement to the organization-specific flexibility creation strategies suggested by the literature on real option and flexibility.

This chapter complements the one that appeared as “History of the AIB Fellows: 1975–2008” in Volume 14 of this series (International Business Scholarship: AIB Fellows on the First 50 Years and Beyond, Jean J. Boddewyn, Editor). It traces what happened under the deanship of Alan Rugman (2011–2014) who took many initiatives reported here while his death in July 2014 generated trenchant, funny, and loving comments from more than half of the AIB Fellows. The lives and contributions of many other major international business scholars who passed away from 2008 to 2014 are also evoked here: Endel Kolde, Lee Nehrt, Howard Perlmutter, Stefan Robock, John Ryans, Vern Terpstra, and Daniel Van Den Bulcke.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Scholars have examined, in various ways, the complexity of knowledge in innovation. Recently, research has begun to focus on the role of a continuous process of knowledge recombination in our understanding of a changing structure of knowledge complexity and knowledge accumulation. Furthermore, we also claim that this process may reflect changes in the underlying innovation paradigm, or in other words the arrival of the information age. Yet, little is known about how knowledge complexity is increasing in the broader context of globalization, in which the influence of a rising diversity of locational sources may feature more prominently. We consider how knowledge recombination that relies upon the global spread of innovation activities will affect our theory of the relationship through which earlier contributions to knowledge become inputs to subsequent knowledge building that generates more (or less) complex knowledge artifacts. We propose that knowledge complexity rises when recombined elements are sourced across two dimensions of distance simultaneously, namely when sources which are derived from (i) disparate knowledge fields and (ii) distinct geographic locations are combined. We thereby develop an international business perspective on knowledge complexity through recombination by better appreciating the processes that may be necessary when knowledge is combined along global value chains. We also suggest some implications for changing organizational forms by highlighting the value of connecting previously unconnected geographically distant elements, which suggests a greater potential for more informal and indirectly diffused knowledge-based connections.

Alan Rugman was one of the first to examine in a systematic way the connection between the internationalization of the firm and the diversification of assets within the multinational enterprises (MNE). He has since moved on to deal with many other issues surrounding the MNE, but his major contribution to the subject of international diversification (Rugman, 1979) was for many years essential reading for anyone with serious pretensions to be or to become an international business scholar. Rugman (2005) himself sees the key idea in his early book as being an appreciation of the role of risk in foreign direct investment (FDI). MNEs in the place of individual investors, diversified their portfolio of assets, and thereby served as a vehicle for risk reduction. This argument can be applied especially before 1970, before advances in financial markets and international asset instruments enabled individual investors (or funds acting on their behalf) to directly conduct for themselves such strategies of international diversification to reduce risk.

Most years, several AIB members are elected as AIB Fellows on account of their excellent international business scholarship, and/or past service as AIB President or Executive Secretary. The Fellows are in charge of electing Eminent Scholars as well as the International Executive and International Educator (formerly, Dean) of the Year, who often provide the focus for Plenary Sessions at AIB Conferences. Their history since 1975 covers over half of the span of the AIB and reflects many issues that dominated that period in terms of research themes, progresses and problems, the internationalization of business education and the role of international business in society and around the globe. Like other organizations, the Fellows Group had their ups and downs, successes and failures – and some fun too!