IDEAS home Printed from https://ideas.repec.org/a/eee/techno/v127y2023ics0166497223001402.html
   My bibliography  Save this article

Knowledge creation capability under different innovation-investment motives abroad: The knowledge-based view of international innovation management

Author

Listed:
  • Zámborský, Peter
  • Ingršt, Igor
  • Bhandari, Krishna Raj

Abstract

This paper focuses on knowledge creation capability and motives for international investment by emerging-market multinational enterprises (EMNEs) innovating in emerging markets. It analyses the motives for the relatively underresearched innovation-intensive investment by non-Chinese EMNEs in Central and Eastern Europe and offers new insights to the knowledge-based view of international innovation management. Building on interviews with senior managers from 11 EMNEs from India, Brazil, Russia, South Africa, Malaysia, and South Korea, this qualitative study develops, through a hybrid thematic analysis approach, a knowledge-based capability perspective on managing knowledge creation under different innovation-investment motives abroad, including knowledge seeking, market seeking, and dual motives. Knowledge creation capability includes knowledge integration, knowledge sharing, and knowledge cocreation. Both internal and external dimensions of knowledge creation capability are conceptualised, along with elements linking internal and external dimensions, namely managerial orchestration and innovation projects. The paper contributes to the knowledge-based view of firm innovation and global strategy by stressing the roles of international innovation-investment motives and organisational capabilities for creating and managing knowledge in EMNEs. It offers implications for managing subsidiaries of multinational enterprises involved in innovation in emerging markets, particularly regarding enhancing and linking the internal and external dimensions of subsidiaries’ knowledge creation capability via ambidexterity.

Suggested Citation

  • Zámborský, Peter & Ingršt, Igor & Bhandari, Krishna Raj, 2023. "Knowledge creation capability under different innovation-investment motives abroad: The knowledge-based view of international innovation management," Technovation, Elsevier, vol. 127(C).
    • Handle: RePEc:eee:techno:v:127:y:2023:i:c:s0166497223001402
    DOI: 10.1016/j.technovation.2023.102829
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166497223001402
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.technovation.2023.102829?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ge, Shuang & Liu, Xielin, 2022. "The role of knowledge creation, absorption and acquisition in determining national competitive advantage," Technovation, Elsevier, vol. 112(C).
    2. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    3. Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(4), pages 625-645, December.
    4. Jiangyong Lu & Xiaohui Liu & Mike Wright & Igor Filatotchev, 2014. "International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(4), pages 428-449, May.
    5. Fu, Xiaolan & Sun, Zhongjuan & Ghauri, Pervez N., 2018. "Reverse knowledge acquisition in emerging market MNEs: The experiences of Huawei and ZTE," Journal of Business Research, Elsevier, vol. 93(C), pages 202-215.
    6. Alvaro Cuervo-Cazurra & Mehmet Genc, 2008. "Transforming disadvantages into advantages: developing-country MNEs in the least developed countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(6), pages 957-979, September.
    7. Martine R Haas & Jonathon N Cummings, 2015. "Barriers to knowledge seeking within MNC teams: Which differences matter most?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(1), pages 36-62, January.
    8. Heejin Kim & B. Sebastian Reiche & Anne-Wil Harzing, 2022. "How does successive inpatriation contribute to subsidiary capability building and subsidiary evolution? An organizational knowledge creation perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(7), pages 1394-1419, September.
    9. Jaideep Anand & Gerald McDermott & Ram Mudambi & Rajneesh Narula, 2021. "Innovation in and from emerging economies: New insights and lessons for international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(4), pages 545-559, June.
    10. Ferraris, Alberto & Giachino, Chiara & Ciampi, Francesco & Couturier, Jerome, 2021. "R&D internationalization in medium-sized firms: The moderating role of knowledge management in enhancing innovation performances," Journal of Business Research, Elsevier, vol. 128(C), pages 711-718.
    11. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 2020. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 538-576, June.
    12. Lynch, Richard & Jin, Zhongqi, 2016. "Knowledge and innovation in emerging market multinationals: The expansion paradox," Journal of Business Research, Elsevier, vol. 69(5), pages 1593-1597.
    13. Snehal Awate & Marcus M Larsen & Ram Mudambi, 2015. "Accessing vs sourcing knowledge: A comparative study of R&D internationalization between emerging and advanced economy firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(1), pages 63-86, January.
    14. Stephanie Lu Wang & Yadong Luo & Xiongwen Lu & Jinyun Sun & Vladislav Maksimov, 2014. "Autonomy delegation to foreign subsidiaries: An enabling mechanism for emerging-market multinationals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(2), pages 111-130, February.
    15. Conroy, Kieran M. & Jacobs, Simon & Liu, Yang, 2023. "The dual knowledge role of open innovation intermediaries: Internal weaving and external filtering for MNE subsidiaries," Technovation, Elsevier, vol. 123(C).
    16. Prokop, Daniel, 2021. "University entrepreneurial ecosystems and spinoff companies: Configurations, developments and outcomes," Technovation, Elsevier, vol. 107(C).
    17. Narula, R. & Ashok, M. & Martinez-Noya, A., 2014. "End-user collaboration for process innovation in services: The role of internal resources," MERIT Working Papers 019, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    18. Bhandari, Krishna Raj & Rana, Sudhir & Paul, Justin & Salo, Jari, 2020. "Relative exploration and firm performance: Why resource-theory alone is not sufficient?," Journal of Business Research, Elsevier, vol. 118(C), pages 363-377.
    19. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    20. David J Teece, 2014. "A dynamic capabilities-based entrepreneurial theory of the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(1), pages 8-37, January.
    21. Gama, Fábio & Sjödin, David & Parida, Vinit & Frishammar, Johan & Wincent, Joakim, 2022. "Exploratory and exploitative capability paths for innovation: A contingency framework for harnessing fuzziness in the front end," Technovation, Elsevier, vol. 113(C).
    22. Niels Noorderhaven & Anne-Wil Harzing, 2009. "Knowledge-sharing and social interaction within MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(5), pages 719-741, June.
    23. Thomas Hutzschenreuter & Philippa-Luisa Harhoff, 2020. "National capital city location and subsidiary portfolio expansion: The negative effect of geographic distance to the capital city at inception on the speed of subsequent investments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(7), pages 1107-1132, September.
    24. John Child & Suzana B. Rodrigues, 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?," Management and Organization Review, International Association of Chinese Management Research, vol. 1(3), pages 381-410, November.
    25. Wilbur Chung & Juan Alcácer, 2002. "Knowledge Seeking and Location Choice of Foreign Direct Investment in the United States," Management Science, INFORMS, vol. 48(12), pages 1534-1554, December.
    26. Ferreira, João J. & Fernandes, Cristina I. & Guo, Ying & Rammal, Hussain G., 2022. "Knowledge worker mobility and knowledge management in MNEs: A bibliometric analysis and research agenda," Journal of Business Research, Elsevier, vol. 142(C), pages 464-475.
    27. Ram Mudambi & Pietro Navarra, 2004. "Is knowledge power? Knowledge flows, subsidiary power and rent-seeking within MNCs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 385-406, September.
    28. Pereira, Vijay & Temouri, Yama & Shen, Kathy Ning & Xie, Xuanli & Tarba, Shlomo, 2022. "Exploring multilevel innovative ecosystems and the strategies of EMNEs through disruptive global expansions – The case of a Chinese MNE," Journal of Business Research, Elsevier, vol. 138(C), pages 92-107.
    29. Sumantra Ghoshal & Christopher A Bartlett, 1988. "Creation, Adoption and Diffusion of Innovations by Subsidiaries of Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 365-388, September.
    30. Nicolai J. Foss & Torben Pedersen, 2019. "Microfoundations in international management research: The case of knowledge sharing in multinational corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1594-1621, December.
    31. Narula, R. & Ashok, M. & Martinez-Noya, A., 2014. "End-user collaboration for process innovation in services: The role of internal resources," MERIT Working Papers 2014-019, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    32. Yakob, Ramsin & Nakamura, H. Richard & Ström, Patrik, 2018. "Chinese foreign acquisitions aimed for strategic asset-creation and innovation upgrading: The case of Geely and Volvo Cars," Technovation, Elsevier, vol. 70, pages 59-72.
    33. Lee, Jeoung Yul & Jiménez, Alfredo & Bhandari, Krishna Raj, 2020. "Subsidiary roles and dual knowledge flows between MNE subsidiaries and headquarters: The moderating effects of organizational governance types," Journal of Business Research, Elsevier, vol. 108(C), pages 188-200.
    34. Kazadi, Kande & Lievens, Annouk & Mahr, Dominik, 2016. "Stakeholder co-creation during the innovation process: Identifying capabilities for knowledge creation among multiple stakeholders," Journal of Business Research, Elsevier, vol. 69(2), pages 525-540.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stojčić, Nebojša & Dabić, Marina & Kraus, Sascha, 2024. "Customisation and co-creation revisited: Do user types and engagement strategies matter for product innovation success?," Technovation, Elsevier, vol. 134(C).
    2. José Manuel Saiz-Alvarez, 2024. "Innovation Management: A Bibliometric Analysis of 50 Years of Research Using VOSviewer ® and Scopus," World, MDPI, vol. 5(4), pages 1-28, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Su, Cong & Kong, Lingshuang & Ciabuschi, Francesco & Holm, Ulf, 2020. "Demand and willingness for knowledge transfer in springboard subsidiaries of Chinese multinationals," Journal of Business Research, Elsevier, vol. 109(C), pages 297-309.
    2. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    3. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 0. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-39.
    4. Luo, Yadong & Bu, Juan, 2018. "Contextualizing international strategy by emerging market firms: A composition-based approach," Journal of World Business, Elsevier, vol. 53(3), pages 337-355.
    5. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 2020. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 538-576, June.
    6. Fortwengel, Johann & Gutierrez Huerter O, Gabriela & Kostova, Tatiana, 2023. "Three decades of research on practice transfer in multinational firms: Past contributions and future opportunities," Journal of World Business, Elsevier, vol. 58(3).
    7. Maksimov, Vladislav & Luo, Yadong, 2021. "International springboard as an entrepreneurial act," Journal of World Business, Elsevier, vol. 56(3).
    8. Danchi Tan & Weichieh Su & Joseph T. Mahoney & Yasemin Kor, 2020. "A review of research on the growth of multinational enterprises: A Penrosean lens," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 498-537, June.
    9. Grazia D. Santangelo & Anupama Phene, 2022. "Knowledge sourcing by the multinational enterprise: An individual creativity-based model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 434-448, April.
    10. Luo, Yadong & Maksimov, Vladislav & Bu, Juan, 2021. "Making Geographic Dispersion Work for Emerging Market MNEs," Journal of International Management, Elsevier, vol. 27(3).
    11. Randolph Luca Bruno & Riccardo Crescenzi & Saul Estrin & Sergio Petralia, 2022. "Multinationals, innovation, and institutional context: IPR protection and distance effects," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 1945-1970, December.
    12. Lunnan, Randi & Meyer, Klaus & Mudambi, Ram & Yang, Qin, 2023. "The impact of knowledge and financial resource flows for MNE strategy: A typology of subsidiary roles," International Business Review, Elsevier, vol. 32(6).
    13. Zhao, Shasha & Liu, Xiaohui & Andersson, Ulf & Shenkar, Oded, 2022. "Knowledge management of emerging economy multinationals," Journal of World Business, Elsevier, vol. 57(1).
    14. Joseph A. Clougherty & Jin Uk Kim & Bradley R. Skousen & Florian Szücs, 2017. "The Foundations of International Business: Cross-Border Investment Activity and the Balance between Market-Power and Efficiency Effects," Journal of Management Studies, Wiley Blackwell, vol. 54(3), pages 340-365, May.
    15. Estrin, Saul & Meyer, Klaus E. & Pelletier, Adeline, 2018. "Emerging Economy MNEs: How does home country munificence matter?," Journal of World Business, Elsevier, vol. 53(4), pages 514-528.
    16. Minyoung Kim & Curba Morris Lampert & Raja Roy, 2020. "Regionalization of R&D activities: (Dis)economies of interdependence and inventive performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(7), pages 1054-1075, September.
    17. Phookan, Himadree & Sharma, Revti Raman, 2021. "Subsidiary power, cultural intelligence and interpersonal knowledge transfer between subsidiaries within the multinational enterprise," Journal of International Management, Elsevier, vol. 27(4).
    18. Xiao, Shufeng & Yu, Tianjiao, 2024. "Underperformance duration and R&D internationalization: Institutional contingencies in an emerging economy," International Business Review, Elsevier, vol. 33(4).
    19. Ayden, Yuksel & Tatoglu, Ekrem & Glaister, Keith W. & Demirbag, Mehmet, 2021. "Exploring the internationalization strategies of Turkish multinationals: A multi-perspective analysis," Journal of International Management, Elsevier, vol. 27(3).
    20. Zhang, Feng & Jiang, Guohua & Cantwell, John A., 2019. "Geographically Dispersed Technological Capability Building and MNC Innovative Performance: The Role of Intra-firm Flows of Newly Absorbed Knowledge," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:techno:v:127:y:2023:i:c:s0166497223001402. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/01664972 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.